The Price of Private Monopolies
An editorial critique of William C. Whitney's $20 million fortune, built on public franchise exploitation.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
The late William C. Whitney died worth $20,000,000. It is estimated by those conversant with his affairs that at least fifteen millions of that amount has been accumulated since he retired from the cabinet in 1889—fifteen years ago. How did he make this average of a million a year? By investing the bulk of his fortune in stocks of public service corporations—street railways, gas, water, electric companies. Although in nearly every instance he was a minority stockholder and subject to the dominance of the controlling factors, his bonds made him a million a year. The people of those cities where Mr. Whitney's corporations owned franchises—franchises that were a free gift in many cases—had surrendered the most profitable businesses in those cities to the exclusive exploitation and profit of private capital. The people gave away the use of their streets. They gave away the monopoly of water, or of gas, or of electricity to one corporation.
“The people of those cities where Mr. Whitney's corporations owned franchises—franchises that were a free gift in many cases—had surrendered the most profitable businesses in those cities to the exclusive exploitation and profit of private capital.”
This editorial captures the early 20th-century populist rage against 'franchise corporations,' a sentiment that resonates deeply in contemporary discussions about the privatization of public utilities and corporate monopolies in Washington State.
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