I don’t agree that company towns were authoritarian. Can you find a real example that wasn’t just a newspaper political cartoon or a song? What did it mean to live in those towns? Think about it rationally. Let’s argue that a company was able to completely set up a new town with no previously existing infrastructure. Perhaps a mining company in remote Alaska. How do they get workers? They offer low rent or free housing, good schools, and reasonably priced shops, in addition to attractive salaries. This creates a real-life “company town” we’ve all heard of. What would happen if the company ever slacked off or attempted to exploit its “monopoly”? Of course, workers would begin to leave and look for work elsewhere! Who could possibly stop them from doing so, other than the state?

That’s the major difference between a state authority and a private “authority”. Private organizations are subject to market forces and competition. They can’t just simply be elected and do as they will for 2,4, 10 years, or life, without concern. The worse job private institutions do, the more unfair their pricing, the more attractive it becomes for competitive forces to come in and take their place. All the examples you can find of how terrible privatization is (e.g. healthcare) is actually because they are completely backed by the full might of the state, creating true monopolies and anti-competitive environment. These often come about as corruption and authoritarianism, private companies give money to key stakeholders in the state, who then use their power to craft regulation to protect their friends at the private companies, in return for more money. This will always happen, regardless of how many rules or safeguards you craft. If you don’t like that happening, the only solution is to stop giving the state the power to do that.