ownership.

As regards the operation of lighting plants in small towns, it would
doubtless be best to lease the plant for short terms of years to the
highest bidder, making sure that the call for proposals is widely
circulated. Great cities, however, would find this policy
unsatisfactory. If a ten-year lease of the Philadelphia gas-works, for
instance, were advertised for sale to the highest bidder, there would be
but few really close bidders upon it, and the danger of "a combination
to defeat competition" would be great. It is at least worth considering
whether such a plan as we proposed for railways could not be made
feasible here. Let a corporation be chartered to operate the lighting
plant of the city, and let the charter of the corporation provide that
its rates shall be such as to pay an annual dividend upon its capital
stock (fixed by law and not changeable) equal to the legal rate of
interest in the State. Provided, that in no case should the rates be
lowered unless the net profits in one year were more than 2 per cent. in
excess of this rate, and that the excess for two consecutive years was
more than 11/2 per cent. in excess of this rate. Provided also, that in no
case should the rates be raised unless the deficit exceeded 11/2 per cent.
in any year, and 1 per cent. for two consecutive years, and that it
should be proven by the company that it had exercised all reasonable
diligence, care, and economy in the management and operation of its
business.

A certain proportion of the stock--less than a majority--should be held
by the city; and the mayor should appoint directors to represent the
city, at least one of whom should be personally conversant with the
industry carried on by the company.

Although not often so considered, the matter of passenger transportation
is a much more important matter in our greatest cities than either
lighting or water supply. The laboring man, who has to pay perhaps
twelve cents for the necessary ride back and forth to his work every
day, feels this tax most severely. Suppose that under such an
arrangement for street railways as we have outlined for gas and electric
lighting companies the fare would be reduced to three cents. His savings
from this source would amount to at least $18 per year. Counting the
extra rides and those which his wife and children have to take, the
annual saving would probably reach $25, a sum which to the average
laboring man with a family dependent upon