Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1906-10-24

ally the same as has been determined
for Chicago, which is about to re
ceiYe rs cent gas. When it is remem
bered how extensively gas is used il
our large cities, and how much more
it would be used but for the exorbit
ant rates, some idea of the import
anoe of the question is gained. The
product OF these companies has
long ceased to be a luxury and is &
common necessity.
Watered Stocks.
These excessive rates, or rather
the lack of restriction upon rates
could have but one result, and that
was a general resorting to the prac
tiee of watering stock In no field
has this become so prevalent as
among public service corporations
Realizing that boundless wealth could
be gained by gradually resisting rates
as to which there was no limit, and
that actual profits could be concealed
from the public by an issue of ficti-
tious or watered stock the public has
been compelled to support and to
give value to millions of dollars in
securities for which no legitimate ex-
penditure was made During the de-
cade from 1890 to 1900 the cost of
material used by the gas companies
of the United States increased 46.S
per cent; the number of plants in
creased 1872 per cent; value of pro
ducts increased 1923 per cent; wages
paid increased 46.9 per cent, but the
capitalization grew 1871 per cent
OF equal interest is the fact that sal
aries of officers increased 1861 per
cent.
Remedy Lies in Railroad Commission
The, only remedy for this condi-
ton lies in the adoption of law CIV
ing the state railroad commission the
power to determine the reasonable
ness of the rate for service in each
of the cities of the state. The com
mission should be granted the power
L
animation of the properties and in
vestments of each company in order
to determine the amount of money
needed TO yield fair return upon
the amount actually invested 1t
should have the power to determine
the necessity and reasonableness of
every issue of stocks or bonds by
such companies and to refuse the is
sue of any securities unless they be
for actual expense incurred. Only
through such law will the practice
of stock watering be stopped and
the resulting necessity for excessive
charges be prevented.
Councils Not to Regulate.
1T has been urged by the demo
cratic party that the power to regu-
late these corporations should be left
to the several cities, that it is a
local problem and the common coun-
ellis are best qualified to discharge
this duty. No course could be more
disastrous to the interests OF the peo-
pie The determination of the rea-
sonableness of a charge for service
requires the most thorough and tech
nical knowledge. 1t requires the
ability to examine accounts and to
understand the results of an investi-
cation. 1t requires a knowledge of
finances, cost of manufacture and dis
tribution to the minutest detail. Are
our common councils composed of
business experts? Why have they
not already dealt with the franchise
problem in their cities? These pro-
bIems should be submitted to the
state railroad commission composed
of unbiased men who are experts, &C
quainted with every phase of opera
ton of public service companies.
Such a commission would devote the
proper time to this work. Ability
and not politics determine their APP
pointment The term of Office is long
and their income is sufficient to re-
move them from temptations of cor
porations. Only such a commission,
removed from the influence of the
local forces and making an expert
study of the minute and intricate
questions involved, can solve this pro-
blem. To give this power to the state
railroad commission is in harmony
with the experience of other states
and along the line of the best econo-
mic thought"
In conclusion the governor advo-
Gated a constitutional amendment for
a graduated income Tax law.
NEW RACINE COUNTY BANK.