The Online Library of Liberty

A project of Liberty Fund, Inc.

• Preface
• Translator's Note
• Where and Why Public Ownership Has Failed
• Book I: Public and Private Trading Operations
• Chapter I: Two Precepts
• Chapter II: The Three Mainsprings of Human Action
• Chapter III: Determining Motives of Private As Against Public Enterprises
• Chapter IV: Government and Municipal Trading Operations
• Book II: Financial Results of Government and Municipal Ownership
• Chapter I: Bookkeeping In State and Municipal Trading Enterprises
• Chapter II: The Belgian State Railroads
• Chapter III: Prussian Railroads
• Chapter IV: State Railways of Austria and Hungary
• Chapter V: Italian Railways
• Chapter VII: Railways of New Zealand
• Chapter VIII: Government Railroads In France
• Chapter IX: Public Vs. Private Operation
• Chapter X: The Holy Cities of Municipal Operation
• Chapter XI: Operation of Gas and Electricity In the United Kingdom
• Chapter XII: Tramways In Great Britain
• Chapter XIII: Housing of the Working Classes and Public Ownership In Great Britain
• Chapter XIV: Housing of the Working Classes On the Continent
• Chapter XV: Government Control of Food Supplies
• Chapter XVI: Victims of Government Ownership
• Chapter XVII: Charges, Debts and Credit
• Chapter XVIII: Fictitious Profits
• Chapter XIX: Fiscal Monopolies
• Chapter XX: The Alcohol Monopoly In Switzerland and Russia
• Chapter XXI: Financial Disorder
• Chapter XXII: The Purchase Price
• Chapter XXIII: Delusions of Profit and the Life Insurance Monopoly In Italy
• Chapter XXIV: The Fiscal Mines of the Saar District
• Chapter XXV: Public Versus Private Enterprise
• Book III: Administrative Results
• Chapter I: Administrative Results
• Chapter II: The Safety of Travelers Upon State and Private Railway Lines
• Chapter III: Disorders, Delays and Errors
• Chapter IV: Official Conservatism
• Chapter V: Labor
• Chapter VI: The Consumer
• Chapter VII: Programs of Organization and Regulation
• Book IV: Political and Social Consequences of Public Operation
• Chapter I: Socialist Programs and the Facts
• Chapter II: Bluff
• Chapter III: Results of Experience
• Chapter IV: The State a Dishonest Man
• Chapter V: Corruption
• Chapter VI: Nationalization of Public Utilities and the Foundation of Great Fortunes
• Chapter VII: Disintegrating Character of Public Operation
• Appendix %u201ca%u201d: Alcoholism In Russia
• Appendix %u201cb%u201d: the Financial Year In Australia
• Appendix %u201cc%u201d: the Shortcomings of the Telephone In England

CHAPTER XVI

VICTIMS OF GOVERNMENT OWNERSHIP

A high school professor of Elbeuf, M. Mouchel, afterward mayor of that city for 17 years, and finally deputy, was attacked by the municipalization mania. He municipalized water, electricity, gas, the collection and disposal of garbage, and the burial of the dead. February 28, 1911, there appeared in the Dépêche de Rouen a highly eulogistic article extolling his work. On October 15 of the same year the mayor was obliged to confess that his attempts at municipalization were causing a deficit of 180,000 francs ($34,200) in a budget of 800,000 francs ($152,000). A sum of 250,000 francs ($47,500) would be necessary to cover the losses.

After confessing his delusions and deceptions before a meeting of the municipal council M. Mouchel committed suicide in the cellar of the town hall.

The serenity of the Socialist journals was scarcely rippled by such an occurrence. L'Humanité remarked: “It will be found that the municipal operation of gas will not have cost a sou more nor less than private operation.” Even if that statement were true it would have been bad business.

But the partisans of government and municipal ownership are incorrigible. “What if there are losses,” they say; “the citizens have been gainers.” Not as taxpayers, that is certain.

As for the United States the disorder and waste of its municipal administrations are notorious, and development of public operation has certainly not lessened them.

In Milwaukee, a city inhabited almost exclusively by Germans, municipal Socialism has been a very costly proposition. Before the city had experimented with a single municipal undertaking the annual normal increase of the budget was $250,000. Beginning with 1909 it has increased $1,000,000 in two years. At the April elections, 1912, the Socialist ticket was defeated by a majority of 13,000 and Mayor Seidel prosecuted.

A new Bureau of Efficiency and Economy, costing $20,000 a year, has been organized, but it has thus far failed to make any report.1

[1]Journal of Commerce, New York, December 22, 1911.