Competition; Monopolies -- United States; Trusts, Industrial
For mines of copper, zinc, lead, and similar metals, it would be best to
pursue a different plan, and simply provide by statute that such mines
should be leased for short terms of years to the bidder who would offer
to sell his product at the lowest price per ton at the mines, all
lettings and relettings to be publicly advertised, and the successful
bidder to give bonds for the faithful performance of his contract. It is
difficult to see how, under these conditions, a combination to defeat
competition could be formed. Relettings of expired leases would be
frequent; and bidding by the _selling price_, a single competitor would
be sufficient to break any combination. Of course the lease should
specify a minimum product which the mine should furnish.
It would be advisable, too, that a manifest duty of the government,
which should be undertaken even under present conditions, should be
observed. It should be required to work the mine with due attention to
saving the greatest possible amount of ore or mineral contained in the
seam or vein.
The third class of monopolies, whose legal subjection to public control
is acknowledged, are those connected with our municipal public works.
There is already a widespread movement toward taking the control and
operation of these out of the hands of private corporations, and placing
it directly with the city government, and progress in this direction is
very rapid. The author believes, however, that the general law already
stated is applicable here. If the public works of States and of the
nation are more economically and efficiently managed when in the hands
of private parties, it is surely unwise, as a general rule, to entrust
the operation of municipal works to the average city official. While it
is in the highest degree desirable that water-works, gas, and
electric-lighting plants, street railways, and the other municipal
enterprises, discussed in Chapter V., should be _owned_ by the
municipality, their operation, in cases where the employment of
considerable labor and the carrying on of intricate business and
mechanical operations is involved, should in general be entrusted to
private companies. In every case where the financial condition of the
municipality obliges it to rely at first upon private corporations for
the construction and ownership of its public works, the franchise should
expire at the end of a short term of years, and the city should then
have the privilege of purchasing the works at their actual cost.
As regards works for water supply, there can be little doubt that almost
invariably the municipality should operate as well as own the works, for
the administration of the works requires but a small amount of labor,
and that of such a class that the city can safely carry it on. But gas
or electric-light plants, both for street and resident lighting, should
be operated by private companies.
Public-domain text, read in full here on John Shaqi.
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