The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-03-13
THE LAW OF 1895.
Its Bearing ON Water, Gas. Electric
Light and Telephone Companies.

Light and Telephone Companies.
Remarks of Franklin G. Payson, ESQ.,
Before the Legal Affairs Committee.
We have been asked by numb OIL
persons to print the argument OF Mr.
franklin @. Payson before the legal
affairs committee on Wednesday OF thls
week, upon the petition for oharoer loi
ANEW water company in the oity OIL Deer-
ing, as it touches upon the laws Oh 1920,
relating to the organization of gas anu
electric light companies, and telephone
and telegraph companies, about WHICH
there has been 30 much discussion.
Mr., Chairman and Gentlemen OF tne
Committee: Before discussing the iaoe ~
which have been presented to you az WHIP
hearing, I wish to call your attention ~
certain broad principles which seem "
me to underIie the questions involved In
this, and ali similar cases, and TO nave a
most important bearing upon their ueoor-
mination.
BY your decision of this matter, you
are not simply to say whether 5nis
Deering Water Company charter snaH or
shall not be granted, but you are TO sus-
tain or overthrow principles upon Wnlcn
depend the stability and prosperity tho ha
every quasi-public corporation wlsnInt ehe
State uf Maine, and the security and
value of the stocks and bonds OF tnose
corporations, amounting, In TIE aggregate,
to millions of dollars, and held largely
by the people of the State of Maine.
The responsibility placed upon you Is
a grave one; the questions to be settlea
are as important rs any you VIII nave
before you at this session and the Leg
islature. and the people ofssthe State, look
to you for a fair, just and an Impair
tial decision.
Fifty years ago, there was prcpapiy
neither gas company nor water eom
pany within the State of Maine; and
twenty years ago only, there was not a
telephone company mol. an electrlc llgnt
or power company.
The entire territory Of this sga6e was
then open and free 80 all, awaiting de-
yelopment in these directions. Now
there always have been. and always viii
be in every community, few men more
progressive, more far seeing, more eour-
ageous than the rest, who are wllilng 10
give their time, their money Eanu their
best endeavors to the building up OF the
community in which they lives partly
for the direct benefit which comes to
Un6En III Uilo cFcDU u oeeSSohcs
partly for the indirect benefit which
comes to them if the community in
which they live is prosperous, and partly
for the satisfaction they get in feeling
that they have in their time been OF. some
use to.their own, and perhaps to future
generations.
Fortunately for the State of Maine she
has had her full share Of such men, and
her industries have been fostered, her
1av6lnnpd and
improved, and her people been given the
advantages. moral and physical, which
come from good lights, good water and
easy com munication by means OF the
railroad, the telephone and the telegraph.
Now this has all been done by indi-
vidual capital, combined In large amounts
under the form OF corporations. and l
submit that the people of this state owe
to the pioneers in these enterprises very
large measure of admiration and graft
tude Have they always bad smooth
sailing in these enterprises? Have the
financial returns been satisfactory? Do
you not know of corporations which have
struggled on year after year, their direc-
tors taxing the full burden of mana2e
ment, their stockholders going without
returns on the investment, only in the
end to meet with failure and reorgaDiza-
ton? There is hardly an electric light
company in the State Of Maine today that
has not had this very experience. Do
the public worry about it? Do they step
in and ask to share the burden of man.
agement and assume the financial bur-
dens? Do they then show an eagerness
tu come into competition with such COM
panies? Not at all. But let prosperity
finally come; let corporations begin to
pay dividends, and their stock increase
in value, and how quickly the howl of
monopoly arises, and how keen becomes
the desire for free competition.
Now you are legislating for conditions
that exist in the State of Maine, and not
in other states. We have no trusts. we
have DO corporation scandals, but sub
NIT that the quasi-public corporations in
this state have had serious obstacles to
overcome, they have had no unreasona-
bly, large financial returns, have been for
the most part fairly and honestly man
aged, and have, with few exceptions,
given good service at fair rates, and as
long as they continue to do so, are en-
titled to reasonabl and just protection
by the Legislature Of this state, which
they have done so much to build up.
When, however, any such quasi-publlc
corporation does not fairly and honestly
perform its contract obligations to the
public. when it exacts extortionate rates
from the citizens of the city or town in
which it is located, when it does not give
to the public the KIND and quality of SER
vice which the public has right to ex-
pect, under existing contracts, then an
other question is presented, and the leg
islature, In it's wisdom, should not hest
tate to deal with it, and either insist that
the existing company should rgive satis-
factory service at fair and reasonable
rates, or after reasonable notice, allow q
new company, under proper restrictions,
TO succeed it. Well, gentlemen, these
companies have had this very protection.
1t has been the policy of this State,
from the beginning to accord capital al
ready invested in quasi public corpora
tinns, very fair and just protection;
and it ia for this reason that our water
powers have been and are being devel-
oned, that our State is traversed from
North to South and from East to West,
yvithtthe steam and electric railroad and
with the telenhone and telegraph, that
our cities and towns have their water,
gas and electric light companies. and
that our home capital has been SO largely
Invested in the stocks and bonds of these
very companies.
Is it wise, now to depart from this
policy?
We have heard good deal lately about
CHAPTERS 1902 and 10S of the Public Laws
of 1895, providing for the organization
of GAS and electric light cOmDauieS,