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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: City Club of Los Angeles Title: Report on government ownership of public utility Place: Los Angeles Date: 1917 COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET MASTER NEOATIVE • ORIGINAL MATERIAL AS FILMED ■ EXISTING BIBLIOGRAPHIC RECORD 049 'I' » < ■ City oliib of Los Angeles, cal. Committee on munioipal (^nership. Roport on go^mvient oimership of publio utility service undertakings ... presented to ' the Club . . . June thirty, nineteen seventeen . . . |Los Angeles 3 City club, of Los Angeles, 1917. 38 p. 23 on. RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA RLM SIZE: REDUCTION RATIO: iZlC IMAGE PLACEMENT: lA IB IIB DATE FILMED: lukl IS' INITIALS: C\ TRACKING « : FILMED BY PRESERVATION RESOURCES. BETHLEHEM. PA. :||| •31, •a 3 3 ftl o m Q."n (D O no X (A) N ^ X > M s 3 3 IN o 3 3 o Tj m "o 0 m I C CffI 1 TJ m ■■IB 3 li O 3 3 0> CLi 3 3 O ■D £3 -T c < X' »< rsi I—' N3, to 4^: 001 iS *0J liiMiiiiii tlMiiiiiliiiiia iT"iiiMi|i'itiiitiiiliiiiii[ ll|j||liy£jk.* CI^ CLUB OF JuOS jiBGEiES or" GCVE*mi:K!l? Q'^IIiHSHIir PUBLIC UUIUm 4 i 1 mil AH V School of Business t REPORT ON Government Ownership OF Public Utility Service Undertakings Fmpmed by the COMMITTEE ON MUNICIPAL OWNERSHIP id the r CITY CLUB OF LOS ANGELES PRISBNTBD TO THE CLUB, AND ORD£R£D PRINTBD June Thirty, Nineteen Seventeen PRICE !• CENTS PUBLISHED BY THB CITY CLUB OF LOS ANGELES, CALIFORNLV September IS, 1917 INTRODUCTION During the latter part of 1915 a Special Committee on Mtmlcipal Ownmhip was appointed by Francis B. Kellogg, Preaidfliit of tlie Ctty dab of Los Angeles, witb Chailes K. Mi^er, Consulting Engineer, Chairman. Tlie first result of tbe Committee's work was embodied In a report (based on 1915 data tben available) presented dniing tbe fall of 1916, and giyoi to the press. This part of the report is still left mainly on the 1915 basis. A supplemental report was snbaeQaently prepared, a brief synopsis of which was presented to the Club at its regular meeting on Saturday, Jime 30th, 1917, by the Committee Chairman. Both reports have been almost wholly the work of Mr. Mi^er. These r^K>rt8 contain a vast amount of detail information whieh should be made avaflahle to those interested in public senrlee finances and municipal ownership questions. It is believed that much of the data In tiie supplemental report and the method ot preeentatlon are original and unique. In view of the great Importaiice of Mvnlcipal Ownership extension and the taitereat of the gmieral public therein, the City Club has seen fit to hare both detailed reports and the synopsia published. It la earnestly hoped that in so doing the Club and its Cmnmfttee will have ftumlshed a distinct oontrlbution to aid in the full realization of government own- en^p of all Publie Utfilty Servioe Undertakings. Respectfully, A. G. BARTLETT, President, City Club of Los Angeles. toB Angeles, GaUf., July 28th, 1917. >tA«a>lAab«» REPORT ON GOVERNMENT OWNERSHIP OF PUBLIC UTILITY SERVICE UNDERTAKINGS BY THE ANGELES CTTY CLUB COMMITTEE ON MUNICIPAL OWNERSHIP rNTRODUCTORY OUTLINE OP "FIRST" AND "SUP^ PLEMENTAL" REPORTS There is probably more expressed sentiment in favor of municipal ownership of public service utilities, with at the same time less real accomplishment in establishing, than for any other question of public policy in our country. As many complaints are heard about the tiigh cost of living, taxes, ineffi- ciency and graft in public service, and others of a like nature, it should be of interest to every mie to know; of the accomplishments of cities in other coun- tries, the flnapcial status and attainments of Los Angeles in municipal ownership, also the actual and relative value of property devoted to public utility service, and the annual cost of service rendered by government agencies and privately owned utility concerns. To better inform ourselves the committee has undertaken to secure and pre- sent data on the following questions: First— The extent of governmental ownership of publio service utilities In QmuX Britain, Germany and the United States. Second— Bonded debt for revenue and non-revenue pniiiiellig purposes in some typical German and American cities, and the City of Los Angeles. Third— AccomplishmenU of Los Angeles in undertaking municipal ownership. Fourth— Bact^sion of government ownership. Fifth— The value of property devoted to public utility service in the dty under: (a) Public ownership, (b) Private ownership, (c) Public property created under private contracts, (d) The total amount of public service prop- erty subject to private control or Influence. Sixth— The annual cost of public service for the city under: (a) Public ownership and operation, (b) Private ownership and operation, also, (c) Cost of public work done under private contract. Sevenths-Incentives for poUtical activity by the private interests engaged in publie utility service and public works contracts. Eighth — Conclusions and recommendations for extension of government own- ership of public sOTvice utility undertakings. [3] I SYNOPSIS OF REPOETS GOMKAHISON OP AMERICAN, GBBAT BRITAIN AND GSRMAN CITIKS * n£ ^JLii ^"f ^^r^can cities, the 50 largest elites in Great Britain and wiSle. SriSLw^T^r^' ^""^""^ p^ersmp ^ Water. Gas and Mectrie ■nppues in numoer and per cents are as follows: OWNSRSHIP OF THREB LEADING SERVICE UTILITIES No. of — Wate^- —Gas— —Electric— —Total— aties. No. F.C. No. P.C. No. P.C. No. uu — P.C. 39 78. 21 42. 44 88. 104 €9.8 Ctormany ...50 48 96. 60 100. 42 84. 140 93.8 49 87.5 1 1.8 7 12.5 57 33.9 Tlotais* and % . m 87.2 72 46.1 93 59.6 301 64.3 *MaI nnmlier of utilities for all cities 468. «# #2^^ ^.^ ° ^^rylce by American cities is well established, as 49 offt^56 ciUes, or 87.5%, now own their supplies. This is higher than the OOmUM aTorage for the 100 cities in Great Britain and Germany ^ Gorman ciUes own their gas supply whUe only one of the 56 mmmmm otttai mnm its sopply. Gorman cities 84%, while the 68 Amorioaa dtiea stand at 12.6%. \?}^ average ownership of these three ntlUties sioir that the Great Britain cities own more than double the per cent of American cittes, while mo German city ownership per cent is nearly three times as much as ours. established policy of ownership of water service. 21?? kITIS^^ supplies is hardly considered as yet, and little more tian m HeglBiiiBS liao boon mado in tfoelrfo serffoo ownership in American cities. IX>S ANGISUBS' BSXFWimSCa WITH MUNICIPAL OWNBRSHIP frnJ^*JT^*^^!LJ^ ■'^^F^y _^;^-^^?8 has reduced the water rates fttjm 20 to 7 oonts par 188 on. a aad tho nHitaiim monthly bill from $1.50 to WW cants. Unreasonably higli rates are charged for natural gas supplied in the city and a controversy has heen carried on concerning tho matter for the last four jfion. The development of the electric power along the aqueduct by the city has teen hm op aacl Mayed fh» time to time through the influence and opposi- tion of the privately owned utiUty interests. The total electrical development along the aqueduct will amount to 126,820 K. W. This is equivalent to 44.17% of the combined production of the private) concerns now serving Los Angeles and vicinity (287.100 K. W.). It is equivalent to 30.6% of the total full produc- tfcm^tito aonodoot and tlM privale eoneema combined (315,225 K. w.). Since SK^^^SS pwpunad ^ city has pot in operaUon one plant with 18488 K.W. capacity. While the Los Angeles bonded debt per capita is higher than in most cities of the country, the issues are principally for revenue) producing undertakings, vliieli ]ia3re not been brought fully up to a revenue producing basis. The service QtiUtiea tiMt alHmld bo taksn owmt at once by the ctty. Gas and Electricity, are going concerns and should be fully self supporting, with a probable good proUt return at the present rates. For a community to issue bonds for such undertak- ^8S, in wh atever amount necessary, on a conservative business basis, is only Sood coflUBon sonse when a distinct gain or saving to the community can be iOiiiiiriiid Inr mk Jtf*am " PUBLIC SERVICE— PROPERTY VALUES Detailed information in tabular form gives: Non-Revenue Producing Mu- nicipal and County Property. Revenue Producing Municipal Property. Privately Owned Public Service Utility Property, Local and Interstate. The summary shows the total per capita value of service property is 1886.86, of which over half (1491.78) is under mivate ownership. Public property created under private contract amounts to a total of $44,000,000 or $88.00 per capita. Public property subject to private influence through franchise grants $138,266,605 or $276.53 per capita. Total public service property subject to private interest influ«M% 1428,165,000 or $856.31 per ci^pita equal 81.64% of the totaL Stato and United States property is not included. COST OF SERVICE. DIRECT TAX UBVY, ETC. Detailed information on the annual cost of public service covers cost of: Non-Revenue Producing City and County Service. Revenue Producing Service by the City. Public Utility Service Rendered by Private Ckmcems, Local and Interstate. Information is given concerning the annual cost of work carried out under private ccMitract, which in 1915 amounted to $6,707,629 or $13.41 per capita. The summary gives the following annual costs of public service rendered by : Publicly Owned — City and School District. .$16,711,127. Total, Per Capita $33.42 County 6,282,000. Total, Per Capita 12.56 (City's Portion) State 3,160,000. Total, Per Capita 6.32 (City's Portion) United States 5,470,000. Total, Per Ci^lta 10.94 (City's Portion) First Sub-Total $31,623,127. Total, Per Capita $^.24 Privately Owned Utility— Local $25,078,782. Total, Per Capita $50.16 Interstate 19,030,540. Total, Per Capita 38.06 (City's Portion) Second Sub-Total.... $44,109322. Total, Per CJapita $88.22 Grand Total $75,732,449. Per Capita $161.46 Cost of water transportation, cartage, storage, etc, is not included. The cost of public service is paid by direct tax, fees, licenses, rentals, in* temal revenue, duties, rates and fares. Direct tax levy for 1916 collected by: City $ 6,763,716. Total, Per Capita $13.61 County 4,410,000. Total, Per Capita 8.82 (City's Portion) Total Sum $11,163,715. Per Capita $22.33 (General Property Tax) 15] INCENTIVES FOR POLITICAL ACTIVITY BY PUB- UC UTILITY SERVICE AND CONTRACTING CON- CERNS AND NEED FOR EXTENSION OF PUB- LIC OWNERSHIP AND CONDUCT OF PUBLIC SERVICE UNDERTAKINGS bmntives for Polittal Aelivity Municipal goTenmMOt in tlie United Stotes lias been either disappointing or n nunre largely because of: First— Poor form of government Second— City elections based on national party politics. Third— The influence of the spoils *^5r®?: ^o*"^— Growth of public service utility undertakings in private hands yd ftM M^ ginnting. TOtli-Letting public works contracts to private in- twML Laek of interest by tlw eleetora in pnUic affairs. In short, onr cities have been governed in the interest of priyate gain rather than for the unselfish good of all. ^^Back of municipal government, graft and scandal has been almost invariably tnaciiiae trading and public wotka contracts. Examples: Tammany Hall con- HMon in mm Turk Olty, and ttm 8aa Ftedseo fftmdiise grafters. MONET MEASURE OF CONTBOI* INFLUBNGB Public service property values and cost of service, under private oontrol, should serve to show the degree of "interest" of the "Invisible Government" ^ "^y '^^"^" ^ public affairs. Over half (52.6%) of the property devoted to pdilie senriee is privately owned, wliile over a third more (38.94%) is subject to private interest iniinenee, making a total of over nine-tenths (91.64%) under selfish interest pressure. Out of the $151.46 per capita annual serlroe cost, 188.82 or nearly three-fifths (58.25%) is furnished by privately owned conoms. Private enterprise is undertaken primarily for profit. Private interests cea es fned in mnniidpal aifitirs can be served liy a "friendly" administration, hence their Interests and aetirity in pontics. Prises and re* turns to be secnred are so great that few of onr cities haw escaped this Miiiil. ing iniinenee. Qaui from Ckivemmeiit OwMnliip ia DoUan aoi Omti Biafegarding corrapCioii, graft and political scandal, what should complete government ownersh^ of pvhllc ser?lco vtmties and enterprises mean to us in money saving? Public service property privately owned amounts to almost |500 ($491.78) per capita. Rate fixing "fair return" is 8%. Municipal bond interest is generally 4%%. Aann a l saving between fair return and municipal bond interest on under- taklttgs eoBdocted withont proSt amoonts to 8H%. This amount of saving on the per capita private ownership propeftgr ▼alue of 1491.78, amounts to I17J1 for capita or $8,605,000 for the city. The per capita amount of contract work in 1915 was thirteen and one-half dfrifars (113.41). Contractors' profits are generally figured at 20%. Saving if done hy city without pvoUt, 11.88 per capita, making with the above about twenty dirtlars (119.89) or nearly ten million dollars ($9,945,000) for the city. With complete government ownership of all service utilities a vast amount of dttpiication and waste could ba avoided. With parcels post why have a half doeen private express companies? Why should not the telegraph and telephone sendee he consolidated and made a part of the postal system? It is hardly necessary to enumerate the dqpUcatlon of utility service concerns in Los Angles. The annual cost of utility serfice In the city rendered by privately owned con- L61 cems in 1915 was $44,109,822 or I88J2 per capita. It is a conservative pre- sumption that the elimination of duplication alone would save 10% on thi& amount or $4,410,932; per capita, $8.82. This with ''fair return" sa,ving gives a total of $13,015,932 or $26.03 per capita. Throw in for good measure the saving on contracts. The direct tax levy, both city and county, amounts to $11,163,715, or a per capita of $22.33. Often complaints are made about the amount of the direct tax levy. The two items of saving on cost of service rendered by private utility concerns, alone amount to over 16.5% more than the entire direct tax levy, saving $26.03; tax levy $22.33 per capita. The six largest per capita items of expense for service are: Interstate transportation, $35.00; local street railway transportation, $16.20; locei tele- phone. $18.04; electric, $12.52; education, $9.65; gasi $8.21. Five of the above are privately owned utilities end amounl^ to $84.87 out of a total of $84.62 or 90% of this service. WHAT THE POTENTIAL SAVING WOULD BUY If the people of Los Angeles were able to save the amount of the two Items above, $13,015,932 per annum, some of the following results might be accomplished: One year's saving would nearly pay for the estimated value of the Los An- geles Gas and Electric Corporation property, $14,000,000. The same estimate applies to the two telephone companies. It would more than two-thirds pay for the estimated value of the Southern California Edison property. Two years' savinge ($26,031,864) would more than cover the estimated value or bonded debt irf the Los Angeles Railway C!orporation ($23,500,000). It falla only $2,967,186 short of the estimated value of the property of the Pacific lii^t and Power Corporation. Eleven yeare* savings ($143,175,252) would more than pay for the entire estimated value of all local utility service property now under private owner- ship $140,427,000). We believe these estimates of saving are conservative. In view of the above showing we also believe that all utility service that now depends on fran- chise grants or is in its nature a monopoly should be carried on aa govenimwit undwtakings. As practically all service now carried on as government under- takings were at one time private enterprises, why should we he ilow or timid about complete owneiahip by the government? KEFOST ON THE EXTENSION OF PUBLIC OWNES- 8HIP OF PUBUC 8SEVICE UTIUTIES GfiOWTH OF PUBLIC OWNEBSHIP III imenl all fimetknis of soyemment such as tax collecting, the conduct of sdiools, ]Kdi«iiig mnd lire proteeUon, oonstnicttoii and maintenance of high- ways, postal service, sewerage disiKMuO, sanitation, public health, etc, were car- ried on at first as private enterprises. It logically follows that government or municipal ownership will eventually include all such public service utilities as water, gas, electricity, telegraph, telephone, transportation, marketing, many featares of recreation, anmaement and other like entennriseB. Am most of the functions and utility services now univenally performed Ijy the governing agencies are not of a profitable nature, little opposition was en- coimtered in taking them over. On the other hand most of those still conducted hy priTate enterpriee are of a profitable nature, and as a result the effort to extend public ownership to include them, meets the most strenuous position and innumerable obstacles ai* thmwal in the wajr by those owning m hsfing interests in them. PUBLIC OWNERSHIP IN GREAT BRITAIN, GERMANY AND THE UNITED STATES European countries have gone much farther in public ownership of service utilities than has the United States. Great Britain and Germany have made greater advancement than any other countries. There, railroad transportation and the t^egraph and telephone are carried on in part at least as government enteriirises. In the larger eities ttie majoit^, and in some cases all of the important utility enterprises are carried on under municipal ownership. Fred- rick C. Howe, in his "European Cities at Work," gives for the fifty principal cities of Great Britain in 1909 and a like number for Germany in 1908, the fol- lowing number of utilities municipally owned: TABLE NO. 1 MUNICIPAL OWNERSHIP OF UTILITIES IN THE 50 LEADIN0 QTI GREAT BRITAIN AND A UKE NUMBER IN GERMANY Number Municipally Owned in Kind of Utility or ESnterpfffse— Water Supply Bleetric Has TranmajTB Baths Markets . . flisnaiiter Houses OF Total • ■ IS. City Total (future) ft U A. Gas ft Elec Co, •..••.••.••.•«.••.«••.. • • . . £161 88486 88426 100.0 . • • 316^ 182.660 614 128.676 88JI 887400 84,760 164.686 84»760 67.8 100.0 188.676 •••*.. 48.7 • mm 871,850 249,276 67.0 122,575 33.0 126,820 287400 126,820 164,525 100.0 57.3 122,575 • • • 42.7 418,880 891,846 70.4 188.676 29.6 107,660 88426 31,875 28486 89.6 100.0 76.775 70.4 « • • 135,775 60.000 44.2 75,775 56.8 192,400 116,625 60.6 75,775 39.4 117,975 60,000 50.8 57.975 49Jt 46.886 28426 61.2 17.800 88.8 174»«00 116,686 66b8 67.976 8M 108,660 84,760 88.6 17300 17.4 884.470 168,696 67.7 75,775 32.3 216,670 158,695 73.2 57,975 26.8 144.620 126.820 87.7 17.800 12J TABLE NO. 8 BLBCTRIC POWER DEVELOPMENT IN LOS ANGELES AND VICINITY. TOTAL AND COMPARATIVE AMOUNTS OP COMBINED PRODUCTION — ^Amount in K. W. and Per Cents — i ■ • Cili y. -Companies- GROUP COMPOSED OF Total P.C.of P.Cof K. W. K. W. TotaL K. W. TotaL 1. aty Plant No. 1 (present), S. C. Edi- son Co., L. A. Gas ft Elec Co. ft Pa- cific Light & Power Corp 316,226 28,126 8.9 287400 914 8. City Plants 1 ft 2 (full development). S. C. Edison, L. A. Gas, ft P. L. ft 371,850 84.750 22.8 287.100 77.2 3. CJity Total Future, Edison Co.. L. A. Gas & El., & P. L. & P. Co 413,920 126,820 30.6 287.100 69.4 4, City Plant No. 1 (present), Edison Co., & L. A. Gas & Elec. Co 135,775 28.126 20.7 107.660 79.8 6. City Plants 1 & 2 (full development) & Edison Co., & L. A. Gas & Elec. Co.. 192,400 84,750 44.0 107,650 66.0 6. City Plant No. 1 (present) & Edison Co. 117,976 28.126 23.9 89360 76.1 7. City Plant No. 1 (present) ft L. G. Qbb 46,926 28.126 6U 17,800 88.8 8. City Plants 1 ft 2 (fuE deyelopment) 174,600 84.760 48.6 89,860 61J 9. aty Plants 1 ft 2 (full development) ft L. A. Gas & Elec. Co 10. City Total Future, Edison Co., & L. A. 102.560 84.760 88.6 17.800 17.4 11. City Total Future & So. Cal. Edison Co. 216,670 126,820 126,820 54.1 48.5 107,650 89,850 45.9 51.6 12. City Total Future & L. A. Gas ft 144,620 126.820 87.7 17,800 18.8 REMARKS— Group numbers correspond to those in Table No. 7 and are In- tended for convenience in comparison. It may be objected that much of the generating equipment of the companies is antiquated and inefficient. That is undoubtedly true. If purchased, however, it should be estimated and paid for only as such. The inefficiency of a eertaln portion of an equipment which is maintained only to bridge over temporary break- downs or for taking care of part of the peak load for a short period is of so serious disadvantage. The depreciated value of the electric equipment of the Los Angeles Ctes and Electric Corporation is probably between four and five million dollars. The depreciated physical value of the Southern California Edison Company equipment is probably somewherei between $18,000,000 and $20,000,000. If obsolesence of antiquated machinery is taken fully into account the value for the equipment of rtther of these c(»npanies may be even less than the figures Indicated. We have no exact figures for the value of either company's property or plants. All of the property of both companies outside as well as inside the dty limits, is eon- sidered. At the recent hearing before the State Railroad Commission one witness claimed that the value of the Southern CaUfomia Bdison Companjr's plant and business was $37,631,000. Another witness claimed that a return of 8%% on the investment was insufficient. The company has in the neighborhood of $17,000,000 5% bonds outstanding. The difference between high returns on a high valuation, and the same business conducted without profit will amount to nearly two million and a half dollars a year for this property alone. The bonded debt of the Los Angeles Gas and Electric Corporation la given in the discussion on gas (covering gas and electric property) as I8J26.000. [17] MAOmrUDE OF THE SUGGESTED UNDEETAKING The total value of the two electric plants and the gas plant is probahly somewhere between thirty-three and thirty-six -.^b- A proposal lOr the city to acquire any or aU of these properties will pjod- mbly be ™i at once with the objection that thei city is already overburdened vllh bond issues of the revenue-producing type. That is true to a degree, as indicated previously, however, we must adopt a policy to secure larger returns on the money already invested. . ^ ^ * It should be understood that the properties proposed to^ be taken over are m^lm eonccnis and are not only paying their way but returning a good Proflt to tlM? owners. It is for the purpose of saving this proflt to the consumers that the proposal is made for undertaking municipal ownership. The City Charter, SecUon 2. subdivision (7) (A) (B) and (C> and BecOm m subdivision (2). contains prorislcms for taking over publicjitility enter- wAm. These provisions seem to be adequate and equitable. We have legal Winion. stating the belief that the charter provisions and the state law are adequate for taking over the properties by condemnation "fcessary. b<^ to- glde and outside the city limits. We need not be tteiid ^out the sise of our enterprises whm we vidertnke them honestly and with intelligence. m etate the case very plainly. If the city owned these utilities at the preeent time we should be saving from one to two million dollars annually to the consumers which now goes to the owners in, profits. Not profits ^Vl^J^^J^. considered. The removal of that amount of utility value from the Md of POl>a«al activity and proesurs is one of the meel Important objects to aeeompllsh through municipal ownership. . t ^ *,u- ..♦sis*^ Our American cities have too long been run in the intcreste of the utility corporations and public work contractors. We continually hear the charge of Inefficiency in municipal administration and corruption and graft In ttie public sirtice. Theee very evUs* howevert are chargeable mostly to the pernicious In- Hmnmcti just mentioned, together with other selfish interests. America's democracy as exemplified in our cities must and will make good. Let us therefore take the lead, in so far as we may, in aocomplishing this entf, and give earnest consideration and effort to one of the most Important factors In the aecompllslHiient of ifile purpose, namely, the Intelligent egctention of munielpai ewener aW p of puMlo Htliitien* CITY CLUB COMMITTEE ON MUNICIPAL OWNERSHIP Report approved September 27. 191<» by the committee and recommended to the Board of Gkivenim f or pabitettai: lfmpanies2 14,000,000 28.00 9.97 Mectric, So. Calif. Edison C0.2... 19.000,000 38.00 13.53 Electric, Pacific Lt. & Pow. Cor.2 29.000,000 58.00 20.65 Electric, ( Los Angeles Gas & Gas, /Electric Cor.2 14,000,000 28.00 9.97 Ctes, Economic Gas C0.8. 1,803,000 3.60 1.28 Gas, Southern Counties Gas Co.*. 1,439,000 2.88 1.02 Rftmarlfff Includes City Railway. Total $56,528,000. Total... $140,427,000 $280.85 100 Remarks— The "Property Values" are only approximate, and are based on: lOutstanding bonds; ^actual valuation or estimate; soutstanding stocks and bonds. The per capita amount for Pacific Electric Railway was obtained by dividing the total outstanding bond issue of $56,528,000 by 750,000, the appnudmate population smed. TABLE NO 6 INTERSTATE SERVICE UTIUTIES ^Property Values Per Per Service and Name of Company or Corporation— TML Capita. Gent. Telegn^h, Western Union (1) (2) 1*128,423,727 $ UI8 7M Telegraph, Postal Tel. A Ca^iB Co. (1) (2) 111,380,400 1.11 6J2 Express, American Express Co. (1) (3) 18,000,000 .84 1.00 Express, Wells-Fargo Express Co. (1) (3) 23,967,400 1.33 RaUway, Los Angeles & Salt Lake Ry. (1) (4)...... 81,824,000) ( 4M Rattway, Atchison, Topeka & Santa Fe Ry. (1) (4) . . 621,449,276) 207.69 (i4Ji Rallirmy, Southern Ps/dfic Co. (1) (4) 804410,416) (44.81 Total..., $1,795,664,218 210.92 100 Remarks: (1) Total par value of outstanding stocks and bonds. (2) This service covers nesxly the entire ooontry and the per capita amoant is for the total pwilatkm. (3) These two express companies do about fifty per cent of the total business of the country, or in other words, serve about half of the population. On that basis the per capita share of their value is about $0.84. The total for Los Angeles is $420,000. C21| ^^l^^ 1*1® ^^P'^^ ^207.69 is that of the par value of all outatRndinc' mS^Z^im^h^^Tl i"^""^!^ "^^^"^ a »«le below paT Tfte wset value la i»robably not far from $1,758,000,000 for tbe three raUww. Tiie t»tal liar value of au witrtMidliig ntflway a^ Stocks 8,635,835,000 Bonds ... 12,133,064,000 "^^^ ^20,768.899.000 -HlW^^«|2a7.«»« per capita portion. LOS In^elera'tSLVof^^^^^ ^'^^'^^ ^ «ion gives for Am^ MiS^^n! ^^.'^^ interstate railways reaching and servlug Loa iowC fSS- t^le No. 6 may very well be rewritten in the fol- TABLE NO. 7 VALOT OF lirrCIISTATE SBSRVIGB UnUTIBS PROPERTY (SUMMARY) — ■ Property Values Total Combined Per V aiues Credited to Per Kind of Service— ayatena. Capita. City of L. A. Cent. Telegraph (Two Companies)!.. ....f m.804,100 1 2.40 1 1,200,000 1.13 Bzpress (Two Companies) 2 .84 420,000 .39 Railway (Three <:k>mpanie8)3... .... 1,513,892,700 207.69 108,845.000 98.48 $210.93 $105,465,000 100 *^ population of the United States 3P" S f^^SS;i1^2.*5l":iSl?"«'»^"°" °' U»»te. . SfS^OOO .78 J .86 428,861 9.92 Remarks^'''*' ^ ^^^^ ^ •Sr^liS^ CaBUitolon. 1916. [24] While tho amount shown for water service is less than estimated in Uie previous report the estimated amount would be practically made up by the amoit&t of service rendered by the private water companies. See Table No. 13 and Remark (1). Table No. 19. (ii) lltiiiar Privata Ownerahlp. TABLE NO. 13 (I) ANNUAL COST OF LOCAL UTILITY SERVICB -Annual Cost of S«rvice- Per Total for Per Per Kind of Service— Capita. City of L. A. Ftoiily.* Cent Transportaaon, Local Street Railway......... $16.20 $8,100,000 $81.00 32.30 Telephone, Local 13.04 6,518,964 65.19 25.99 Electric, Light and Power 12.52 6,258,000 62.58 24.95 Gas: Light Heat and Power 8.21 4,106,508 41.06 16.38 Water (About 18,460 Consumers @ $7.08)i 19 96.318 (86.40) M Total $50.16 $25,078,782 100 •A family null Is considered as made up of five persons. Remarks: iThe per capita amount of $0.19 is based on the entire city population. The amount per capita for those actually served by the private water companies is 17.08 or $35.40 per fS^y. These consumers also pay Interest and sinldng fond taxes on the aqueduct bonds, amounting to $3.64 per capita or $18.20 per family. 9ates and taxes togetHer give $10.72 per capita and. $68.60 per family. TABLE NO. 14 (2) ANIMAL COST 01* INTBRBTATE UTILITY SERVICE ^Annual Cost of Service Total for the Per City of L. A Per Kind of Service— United States. Capita. Portion. Cent. Ttaiaportation, Railwayi $8,500,000,000 $35.00 $17,500,000 91.96 Transportation, Express2 206,108,092 2.06 1,030,540 5.41 Telegraph and Long Dist Telephones .... 100,000,000 1.00 500,000 2.63 Total $8,806A08,092 $88.06 119,080,640 100 Remarks: lUnited States total estimated firom 1914 report. sUnited States total estimated as twice the combined charges for traniporta- tion, of the American and Wells -Fargo Express Companies. scomplete or exact data not available. Estimate probably too small. (C) PUBLIC WORK CARRIED OUT UNDER PRIVATE CONTRACT DURING 1915 TABLE NO. 15 Ckist of Improvement- Separate Kind or Class of Improvement— Items. Street Improvement, Vrooman Act $4,216,867 Bbunmon Act 187,834 Harbor Fund 68,896 School Buildings, Equipment. Etc. BuUdings 1,150,571 Equipment • • 216,668 Barbor Improvements* Per Capita. Total. .......... 2.73 1.78 1,366,224 867,808 Per Cent $8.94 $4,473,597 66.69 20.87 12.94 Total ^3.41 $6,707,629 100 Remarks: •In addition to llila amonnt $68,896 was Included under "Street Improve- mmits/' making a total of $986,704 Ifor Harbor Contract Work. [26] TABLE NO. 16 SUMMARY OF ANNUAL COSTS FOR PUBLIC SERVICE, GROUPED UNDER NON-BBVENUS AND REVENUE PRODUCING Annual CJoit of Service Per Cents of Class of Service Total Service Per City Sub- Grand Rendered by — by Groups. Capita,. Portion. TotaL TotaL Non- Revenue Producing .$ 12,876,223 $24.79 $12,395,466 48.15 16.37 8,791,446 12.56 6,282,000 24.40 8.29 17,998,543 6.32 3,160,000 12.28 4^7 . 780^,4S5 7.81 3,906,000 16.17 6.16 Fif«t Sub-Total. .$ 820,469,647 $51.48 125,742.466 100 33.99 Roventio Produeiiig 4,315,661 8.62 4,315,661 8.63 5.70 United States Postal Service... . 313,364,667 3.13 1,565,000 3.13 2.06 Privately Owned, Local Service. 25,078,782 50.16 25,078,782 50.17 33.12 Privately Owned, Interstate ... . 3,806,108,092 38.06 19,030,540 38.07 25.13 Second Snb-Tolal. $4,148,867,202 $99.97 $49,989,983 100 66.01 151.45 75,732f449 100 !|i> TABLE NO. 17 SUMMARY OF ANNUAL COSTS FOR PUBLIC SERVICE, UNBRR PUBLIC AMD PRIVATB OWNERSHIP OROUPINO Annual Coat of Service Per Cents of Kind of Ownership; Total Service Per City Sub- Grand Service Rendered by — of Group. Capita. Portion. Total. Total. Publicly Owned cm and S^tihool Difltrlel f 17491,S84 $33.42 $16,711,127 52.84 22.07 County 8,791,446 12.56 6,282,000 19.86 8.29 State 17,998,543 6.32 3,160,000 10.00 4.17 United States 1,094,168,102 10.94 6,470,000 17.30 7.22 11nilSali.MaI..«Ut8A4»,976 |«SJi 181^23427. 100 41.75 fNrlnalrty Oufwad Local, UtiUty Sendee 25,078,782 50.16 25,078,782 56.85 33.12 mtnralliit Umty Senrleo. . . . . . 3308,108,092 88.06 19.030,540 43.15 25.13 Saomid Sal>.ToU1.83^1A86374 |88J22 |44409,322 100 68Jt5 Omnd Total iJMjmjM ISLm 76.782»448 100 In addition to the above, a substantial amount should be included to cover coat of water transportation, local cartage, warehouse and stora^^e charges, etc. nsntea for thaae ttema are, howtiww, not available. There are some duplications In the tahulated^figures, as the amonnt for "Inter- state Railway" service includes part of the cost shown for postal and express charges. In like manner, the cost of other service is made up in part of trans- portation charges. The amount of duplication and overlapping is probably much lota in tlie asgragato than tlioaa aarrlce eoata wbicii can not be aliown. While the tabulation figures are not fully exact and conq^eta or np to dal% tlMr wm nawertlMlaaa aarvn for tlia purposea of comparison. £26] DIraol Tax Levy TABLE NO. 18 CITY AND COUNTY DIRECT TAX IMVY, 1915 ^Amount of Direct Tax ' Total Per City's Per Per 'Iioyy for*— Collected. Capita. Portion. Family. Cent 16,753,715 $13.51 16,753,715 $67.55 60.50 8.82 4,410,000 44.10 39.50 $^...33 $11,163,715 $111.65 100 ^General property tax. It is perhaps needless to further consider tabulation detail at this tinio, and we come to the real lesson to be brousht out and presented througli the study. 3RD. INCENTIVES FOR POLITICAL ACTIVITY OF UTILITY AND CONTRACTING CONCERNS; NEED FOR EXTENSION OP PUBLIC OWNERSHIP AND CONDUCT OF PUBLIC SERVICE UNDERTAKINGS 8oma Cauaea for the Breaicdown of Our Municipal Governments The showing made in the United States, by municipal goyemments, during the century and a quarter of our independence, has on the whole been quite dis- annrtnting. Inefficiency and graft, with the domination of the political "boss," have been the rule rather than the exception, to a greater or less degree in prac- tically all of our cities. Among the causes or influences contributing to this result may be mentioned: 1st Forms of government poorly adopted for city conditions and service, (divided responsibiUty, checks and balances, short terms of office, etc.) ; Stod. Nomination and election of city officials based on the lines and policiea of national party politics; 8rd. Acceptance and use by the municipalities of the "spoUa system." which was grafted on the practice of our national parties; 4th The enormous growth and extension of public utility enterprises end undertakings, and, the granting and trading in utility franchises, with the at- tendent corruption and bribery; Bth. The practice of letting public works contracts to private parties; 6th Indifference and lack of interest in public affairs by the elector^ and an absence of open-mindedness to discover and adopt the best fonns or methoda JJgOT«nment suited to municipal requirements, already proven good by others. In few words, our municipalities have been administered too much the interests of personal or private profit, rather than In disinterested patriotlo service for tho good of all. Franchises and Contraeta This part of the report will attempt to deal only with privately owned puWte utilitv franchise and public works contract questions. These have been and are Snw unouestio^^^^^ among tiie most potent flMStors In the production of corrupt to o^^ There has been rarely a SSiiL'^^^y ^ "^-^ ^ [271 liad back of and inyolved with tt, in a mm «r Um diieel WW, traacbise srants or public works contracts. tVe notorious TmrnnuoKf Hall interests in New York City, have been chiefly eoncemed with puhUo works contracts, but trading In ntlUty franchises haa bem no inconsiderable part of their interest and activity in the nranicipality's affairs. Lincoln Steffens in "The Shame of the Cities" gives some outstanding featovea of graft and corruption of various kinds in the different American cities. As moat notaUe case in this country, of the exposure and prosecution of gmfl and mruption, was that of San Frandaoo. Tears of abeolnte dominatirporation. Eieven years' savings ($143,175,252) would more than pay for the entire esti- mated value of all local utility service property now under private ownership ($140,427,000) devoted to the service of the people of Los Angeles. On the face of this showing alone, we have no hesitancy in making the un- qualified assertion that all utility service that depends on franchise grants, or is In Its natnre a menopoly, should be owned and opeiated as |i government enter- prise. Moral Worth of Qevrnmewt Ownership Aa previously stated we have not lacked for sensational exposures of corrup- tion and gnurt in franchise trading, and steals, as well aa in public works contract scandals. As an additional and attendant evU of private ownership, stock Jobbing and gambling, are of serious importance. We may be indifferent toi corruption and scandal, but if the oft-repeated complaint about high taxes is any criterion of interest, tl^en the question of pub- He GwnendilPb as affektaig us by self-interest In dollars and cents, should be of compelling vital interest and importance to any person, paying utility service rates, either directly or indirectly, if the flgnrea above presented are worthy of confi- dence, which we believe they are. Where we have established a community interest in service, such as schools, postal service, conservation of health, fire protection, policing, water service, etc., tliOTe la never a question raised as to the propriety or desirability of their conduct as public enterprises. The question therefore naturally arrives as to why we should hesitate or be timid about the complete extension of government ownership to cover all public utility service? There Is perhaps nothing that wfll ecmdnce to the upbuilding, well-being and advancement of a community so much as the widespread and unselfish interest of all of the citizens, in the things essential or desirable for the good of all. Any conditions or agencies that stand in the way of this attainment should be removed. Corrupting Influence of "Private Interest" The "Invisible Government" or "System" is not a myth, belonging only to other times and places. Do not forget for a moment that this influence is always present and potently active. No better evidence of this need be shown than Is given in the words of Franklin mehbom In "^e System," whiek we tidte the Uherty of copying. 'The great San Francisco fire was brought under control Friday, April 20, 1906. The Sunday following, the first step was taken toward getting the scattered Board irf Supervisors together. . . The ashes of the burned city were still hot; the average citisen was thinking only of the next meal and shelter for the night for htanseif and dependents. But the public-service corporations were even then active in furthertag flaaa whldh had heeii teipflrarily dropped while San Francisco was boniins. [34] Ttenlajr. Ansoit $, 191& «^ TALENT. » m FOLPIT There is an idea abroad in the dutrch Uiat, for pjirposes of religious ffOafts, hiMk instnincatatlt vt at ef> (IcieAt as more puissant -ones — fully as efficient; that while in other matters there is a direct ratio between human .abtfity and accruing affects, in the range of Christian effort the ratio be- twe choice distinct Lev- itical requirement that no man with '» blemish should come nigh th« altar WoCer the offerii« of tfie Lord. That evinces God's purpose that no man should have charge of sanctuary ser- vice wIm was physictlly dcficicBt; aflid the infei'enc^ is easy not to say neces- sary, that he woUld regard with reluc- tance the intrusion into sanctuary of- fim-(rfa mn othcnrisc dcidoit "tji^l the notion has !5mehow become ttCnsed that pretty much anything win answ^ wkcK it is a question of Jlipaking a miaister. Not long ago I ^ ' .as called upon by a lady of consid- erable Christian eminence who, in the covrac of conversation rcttfrdiiig her '■houiekold, told me that she had «hf9« sons— John James and William. Sikfcgu«'t6 Jdw she fail Itet she liad devoted hiia to Uit. Jame«, she said, early developed grcfi- talents of a moneury kind— shrewdness, clever- meai aad tke lOifrMMid she put him to Business. The third son. William, she remarked, in ad apologetic kind pf way. she had consecrated id the Lofd, intending ne to understand that he had been set apart for th Christian ministry. A little later in the course of eej iv ersa tion, aflcr her characterisa- tion of her three sons hs)d passed out her mind, she remarked, casually, ncss for a bank presiddnpy. The great- force automobilistt est man that ever lived was minister. ' tcrmediate gear. The pulpit win rea^ in hs effects | Lane, wh» was one of tfie bnOdcn just according lo the power— conse- ' of the Los Angeles aqueduct, and crated power, of course— of the man who has just completed lor the City that occupies the pulpit. God uses his ' of Los Angdes . the presenutioa ot men for all they are worth; He can-' j At asost im pd r it an t. rim caM over not use them for any more; He will j heard before the Railroad Commis- not use them for any less. The onIy|Sion, said- in his letter of instructions profession or pursuit With equalled ' in the City, on account of the sharp angle and the careless dis- regard of of anlooBohae drivcts to the warning signals. "The more accustomed aulooiobile croiiiafc the more cardess tfiey are to its tram- ing signals, and the more chances ijbad Commission is being urged in\^'y t^^e in attempting to beat the Southern California, is now leading the ginda ciossiag protection ■>«•«- trains to and across this svdo Stop spccdtes, and only recently thb effort to cut down the deaths- reported each year to Interstate Commerce Commiss\bn. In ain. effort to co-operate with the Sute R|(ilroad Comniission in the pro- lection of dangerous crosdngs. Lane 4ias instructed the Board of Public \Vorks of Los Angdes to place a ^1 stop spccdtes, and only re< County issued a permit to an indi- vidud ow^er tf> put such check in front of hii property.on one of the County boulevards. This method seen^ to havi proved a successful mc^oA of fMting a "thank ytu mann- at the ctosdnt ; «fc««k »P««<«^ V****'*** of the Pacific Electric fdtar track line and Mission Road on the busiest make for greater^fcty at rdlroad crossings. Checks ion Mission Road And tremblet And often shari YoriVhMTf She writes golt And dapa the She hiaaca at'Ai \^7>en he coun She hnt In ciphers tha| Oh. show nw Upon the p| Or ancidit tiM Tell me iMt of Or mystic-C They're easy Pasadena. A bump wilt be !feet from the railroad right-of-way. constroced fifty ' and in the stree tover which your feet-on each side of the railway tracks to force Inttomohiles to alow down to 8 miles an hour in running over this dange«bos crosdng. The construction of a series of checks on each side of railway ccosa- ings to protect speeders i^ainst themsdves, has been advocated hoA by members and engineers of the State Railroad Commission and of- ficials of the Automobile Club of Southern Cdifornia. UntU this time,] Board has jurdiction. Snch chedcs. on both sides .of this crossing, wodd be a cbmparatively Inexpensive ex- periment, and one that merits a fair tfiaL* BSBVrriBB. SUhat Waiiaai had dways beca a pip- l^iag sort of child, aad she never had much expectation of beinf d»lc to raise him. •Wholeness is nC sense holiness. Completeness is first cousin to conse- cration; and whn it is a matter of choosing men to be ninisters, God's ^pped is. first of all, to them that .are daim agent of the Pacific Elec- pwe in heart not only, biit to them ^t are sUnch in body and gifted in mind; in other words, human thoroughbreds. There is no ministerial arr.ogance in this. 'It is a frank statement of fact, and fact, too, in the light of which we need to. think and act in all matters relative to th enriching and strength- ening of the Christian ministry. If you want to make, a man president of ^ a bnk, you will insist that he be hon- additional investigating willi be made »«; hat «iat wiB go very little way in aft«r the work is done, in i>rder to de- fjLar esteeem toward making out his termine the value of the innovation, ^mpetency for th position. Goodness Several construction methods^ are way toward suggested, dther the construction of Many a man who tfMta hinudf a modem bif^ gaa is oi^ an oM aoMoth bore. * • • definite action lo try out this asetbod of crossing protection. Some dajrs ago S. A. Bishop, gen- trie addressed a letter to the SUte Railroad Commission and to the Board of Public Utilities, suggesting that an experiment along this Hue be tried, and Lane, in order to try out the proposed plan at once, decided on the most dangerous crossing in the City of Los Angeles tor the teat. According to the pfain outiined. ipeed data wiB be taken at this cross- ing before the bump is instdled, and driving so ^any people into clubs and hotels? • • • Where a busy man is tempted by one devil the loafer is tempted by a d<»en.*Get bnsy* • • • It is getting harder every day for a man to succeed in any calKng and' yet be a drinker. • ♦ • IjCtter-writing preachers are seldom promoted, and^yet they the reason why. Atiht ««•> that their Gov. Han> Metodkt Epi* ger merdy nt When a man gion which mak^ body else is bad ter ask hlassclf : dridn. Now that in. ebb. Americanta tide. Let us h; spirit of '76. / an the tec; Yoo thiak • would do so are that yon* you can with ably accomp: [Preachers mi in the right sen should, not be nervous people by |ttst lettinf tfM« pleasantly alone.. • ♦ « FdthfttI are the woonda of a friend. I the limited ex dently partis; party wrongs goes aboot as short ^ composing fitnest for tl\e nrinistry as a bHimp or a dip in the road or the , but don't sharpen your tonpic fast to, hfliwitj- does* toward composing fit-^ building^ of a sand pit which would give point to an adage The only gei ccsduUy count Fig. 2 . . Hie people fmsol for the time tlie UNnies wMdi liad before tie die- atter divided the €ftjr. But th^ agents for the puhlic-senrice corporations did not forget. We find a representative of the Home Telephone Company picking his way over the hot ashes of the burned city to (Supervisor) McGushin's saloon to meet the Supervisors that the interests of his company might be preserved. . . . Bfea as the Home Company was ee^klng out the SupervisorSt the United Railroads was getting in touch with Rnel" While the incompetency, corruption and graft in San Francisco was no worse than has been and is experienced by other cities, the "exposures" have been more ■CHaattonal and complete; and more court convictions secured than in any others undertaken in the eoontiy. Inehided in the miTicticmB were iMj officials, bribe takers and bribe givers. Even so, the convictions fell short of the full measure of Justice, which, howerer* was through no fault of those who conducted the orig- inal prosecution. Does anyone for a moment imagine that these same corrupting influences are mil at woik in the city of Los Angeles? Publicity and tlie Prostitution of the Press The greatest weapon against this selfish influence is full and truthful pub- licity. On the other hand the most insidious and ingratiating influence of the "System" is accomplished through "controlled" publicity. Consequently the "Sys- tem" is "in" the publishing business and has established, and maintains all but complete control over newspaper publicity. As a fair example of publicity appar- ently backed by "Inspiration," note Fig. 2, which is a photograph of an article ap- pearing in the California Independent of August 3, 1916. It is a fair presumption that it was not the intention to have the "letter head" appear as copy, as we are reliably informed that after the discovery was made that a "slip" had occurred, the issne was suppressed. As to what degree of friendliness is entertafaied by the '•Special Agent of the President of the Pacific Electric" and other corporation friends toward the other members of the Board, of which the gentleman referred to in the article is a member, we are not in possessiont of "published information" In state. Mote Hues 3 to 8 iwdusiTe under "Protection for Grade Crossings," Fig. 2. Our "Frlendi" the Special Agents and Their "Friendships We need not flatter ourselves with the assertion or belief that there are not other officials, both electiTe and apptrfntive, that are well liked, by the "Special Agents" of the utility interests. Mr. Abraham Ruef was paid for his "services" as an "attorney." "There are other ways of killing a dog than choking him to death with butter." Sometimes officials are given a "friendly tip" on how to invest profitably in stocks. Some- times i^fidals are entrusted with the right to secure "options** oh property desired by and useful to public service corporations or their friends. Sometimes public officials are given an opportunity to "earn" commissions on services rendered. There are many ways in which "Special Agents" can render themselves agreeable and prove their qualifications as "good fellows." BvideBea is not lacking to show that the puhlie works contractors Insist on showing th^ "friendship" to public officials and employes in many different ways. On the other hand when public officials or employes are not responsive to the "friendship" of the invisible government or system, they are generally given to understand and feel that they "do not belong." CM] CONCLUSION Distinct Gains from Government Ownership We are definitely of the opinion that the complete ownership and operation of all public utility service undertakings by the government should result in the following: 1st. Lowering the cost of service, equivalent to over seventeen per cent of the entire public service cost, or to nearly thirty per cent of the cost of service rendered under present private ownership. Again this saving should amount to more than the entire direct tax levy at the present time; 2nd. Better service, through the elimination of duplicated property and service. 3rd. The removal from the political field, all of the activity and pressure now exerted through interest 3n, property owned and service rendered, by private own- ership for profit, which has been and is responsible for such a Imqge part of the corruption and graft in the conduct of government; 4th. The united sentiment and support of the major portion of the citizens of the community, in an insistent demand for efficient and honest service by public officials and employes, in the interest of the general good, instead as now too often happens, in the interest of special privilege. Sth. The relief of the press from the pressure and influence now exerted by the "System,** in behalf of public works contractors and the public utility concerns. 6th. The united interest and loyalty of the great majority of the citisens in the public service of all kinds, rendered for the benefit of all. Evil Influences Still Remain If all of the influences now exerted by the interests connected with public utility service and public works contracts, were removed, there is still enough self-interest left from other sources to more or less effectively stand in the way of the best and most efficient government, devoted to the general good. There are many forms of petty graft that still remain as a temptation for dishonest and unscrupulous persons to seek and obtain office for narrow self-serving and "profit** Qalns More Than Worth the Effort to Secure Government Ownership From the fact that practically all American cities have been and are poorly governed, an earnest and determined effort should be made to discover and apply effective remedies. We believe from the facts shown in this report, that the first step should be to establish all public utility service and public works construction as government undertakings. To do this for the entire country will mean a great amount of constructive effort and a fight of no mean proportions. In our estimation it is a fight that will unquestionably have to be made and the sooner it is started in earnest the better. United States Government's Ownership of the Telegraph; Other Service The United States Government constructed the first telegraph line in 1843-4, from Washington to Baltimore, and sold it to private parties in 1847. In 1806 Congress passed a law authorizing the government to purchase all graph lines after 1871. Many of the Postmaster Generals have since recomp|||||^ed the purchase of the telegraph by the government. ^^^^ We believe the United States Government should, with the least possible delay, take over both the telegraph and telephone systems of the country and operate them as a part of the postal system. All of the business now carried on by the private express companies should be carried on by the post office depart- ment, and the private concerns prohibited from competition, as was done in the letter-carrying service in 1845. After this is accomplished the general government Should beg^ taking over the interstate raihroadB. £571 What Los AngstM Should Unckrtako Wm the City of Im Ingetos we recommend and urge that all loeal utility ■arfioe %e taten over ^ tie €lty, prefeimldy la tlie foUowliig order: lit. The eompletlim of the ynrchaae, a»d the devdopsint of the required equ^OMiil lor the entire dtj eleetrie aerfice; 2nd. Ckumpiete the purchasing of all of the remaining water companies; 3rd. Take over, with the least possible delay, the entire eiinlpment of the Loa An^Eeles Gas and Eleetrie Oorp<»atlon as well as all other gaa supplies In the dty; 4th. Take over the local transportatUm senice; 5th. Take over all of the terminals of the interstate railroads In the dty; Cth. Extend the scope of the municipal markets; 7th. Bstahllahmnniclpal baths; Sih. BataMlBh municipal alani^ter houaea. Any Amoflcan CSIty that first accompllahes an of these undertaUngs may he eeuaietf m real, pioneer aa fir as 'thia 'Country la concerned. ■etiar Qevemmeiill Oo v er w w ie nt Owneraiiip One Step; BeHer Citizenship Another The full realisation of goTemment ownership and conduct aU public serrlce Win not automatically insure honest and efficient govemment. As yet we have not trained ourselves to that high standard of citizenship that calls forth the unselfish interest and devotion to the general welfare, that is essential to the success of ■elf -government. We hear much of the patriotism of war at this time. The demand and in- eentire for the patriotism of peace, though not as Intense as that of war, is never- theless ever present to enlist the disinterested efforts of all. We must foster the constructive patriotism of peace for the common good of all. The accomplishment of anything really worth while generally costs consider- ahle eHort. To redeem our municipal governments from the old curse of inefficiency, graft and misrule is more than worth the effort it will cost. As it is a real job, let ua go to work with determination and keep at it untU we succeed. June 7tht 1917. by Committee on Municipal Ownership. '(CHgned) MARTIN BEKINS. RALPH BENNETT. H. STANLEY BENEDICT. T. B. GIBBON. g. C. GRAHAM. JOHN R. HAYNES. C. W. KOINBR. RAY E. NIMMO. GHARIJQS K. M OHLBR* Oialrman. fl CMered Printed by the Oub June 30, 1917. WALTBE E. STEVENSON, Secretary. C49 City oltib of Lom ^eles, Cal, aoaDittM OQ Bunioipal ownership, _ Report on jovgipiiiA ownership^ } ^LfJWBIA UNiyERSITY LIBRARIES 0044268297 10