was "taken out of politics," meaning that the fare was raised to ten and then to fifteen cents, and deficits are now the regular order. The subway system is now a city-owned monopoly, run by bureaucrats, whose prime interest is the perpetuation of their jobs, not railroading.
There was no obvious "corruption" in this operation, but it is known that speculators took a keen interest in the bonds when the prices declined to less than the physical valuation of the property, and that they sold them to the city at a handsome profit; even if no officials were involved in this piece of business (which is assuming that officials are more than human), the fact is that this venture in public railroading compelled the citizens to finance the acquisition, and continues to compel them to meet the operational losses. It was done by a city, not a national, establishment. Indeed, the City of New York has set a pattern for the nationalizing of the railroads of the country: a regulatory body, with power to fix rates and compel unprofitable operation, squeezes the business into bankruptcy, so that the owners are quite willing to sell their property to the taxpayers, and bureaucracy improves its position.
Another case. It does not occur to a small town to set up a department of "weights and measures"; social power soon rides the dishonest merchant out of business, if not out of the community. In a city like New York the same social power is present, but it does not make itself felt with the same expedition because of the multitude of possible victims. A number of complaints suggests an "issue" to the sagacious politician, and a law and a bureau of "weights and measures" come into being. The bureau, however, soon finds itself short of business; it is in competition with social power, which is far more effective in punishing dishonest practices than are the police. 136
