River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1907-01-17
Local Public Service Corporations.


he says:
1.-THE remedy for conditions now so
oppressive in the municipalities of the
state lies in complete revision of the
statutes relating to the organization of
public utility corporations and the grant
ing of municipal franchises, and provid-
ing for the supervision by public author
ity of the issue of stocks and bonds and
the control of the rates that shall be
charged and the service that shall be
rendered. Such legislation should strike
at the root of the matter. Franchises inn
providently granted are generally recog-
nized in this and other states as the
source of the evil which is aggravated
by overcapitaliZation and oppressive
management. The remedy lies in placing
an absolute limit by the legislature upon
the time for which a franchise may be
granted, and prescribing period upon
which all franchises heretofore granted
shall terminate. Already 20 states and
two territories have adopted legislation
fixing such limit ranging in a great ma
jority of cases from 20 to 80 years, and
containing a provision permitting the city
to purchase the plant at the expiration OF
the term or at time prior thereto. Inc
constitution of this state has wisely re-
served to the Legislature the power to
alter, amend or repeal all general or spe-
cial laws granting corporate powers ana
privileges. The exercise of this power by
the legislature for the control of public
service corporations has been upheld for
more than a generation by the supreme
court of this state and of the United
States, and there can be no just cause
for complaint against the adoption OF
proper amendments to charters and iran
chises which have since been granted and
accepted. Such grants have been made
subject to the exercise of this power for
the protection of the public.
"Since there are franchises in this state
which have been granted to public serv-
ice corporations in perpetuity, or
claimed to be such, and also many which
have been granted for very long period
Of years the terms of which will operate
harshly and oppressively, / recommend
hot
franchises heretofore granted to any in
dividual, partnership or corporation, to
engage in a public service business in
any city in this state, shall terminate on
January /, 1890, unless they shall sooner
expire by their own terms, and also de-
clarng that no franchise of such a ma
ture hereafter granted shall be for
longer term than 20 years.
''* A limit should be placed upon
the capitalization of local service cor
porations, and the issue of stocks and
bonds by them should be under the
supervision of the state commission
charged with regulation of such corpora
tions. Massachusetts and New York
have provided that no stocks or bonds
shall be issued by this class of corpora
lions without application having nfst
been made to the state commission and
it's approval obtained after an eXamlna-
ton as to the necessity of such issue,
and the methods and purposes OF the IN
vestment of the proceeds. With capital
zation measured by actual investment,
Just rates can readily be aScertained and
the accumulation of large surplus funds
through excessive charges may thus be
prevented.
''There is a growing sentiment in favor
of municipal ownership and encourage
ment should be extended in this direction,
especially with respect to water works
and gas and lighting plants. 1 recon-
mend the necessary legislation to en-
able any city or village to establish pubic
utilities, or to acquire such as may al
ready exist under the power of eminent
domain, and to pay for the same out OF
the proceeds of certificates OF indebted
ness, which may be MADE hen on on me
of such utilities by the municipality, 1t
should not be required to pay an exor-
same have been granted without consid-
GRAFTON. The legislation already recon-
mended to limit the duration of existing
franchises would be material H. AID 1t, TO
municipalities contemplating the pur-
chase of public utilities.
81 have treated this subject at some
vinced of its great Importance, and that
the regulation OF these corporatlonS py
state commission is necessity. The
sentiment of the people of the state, as
expressed in the several party platforms,
is pronounced and emphatic for leglSla-
ton giving the public effective control
over all public utilities
Insurance Legislation.
Attention is called to the insurance leg
islation passed in 1905, appointing COM
mittee to investigate the subject of in
surance He says this committee mas
been very thorough in it's work, and that
it's report will be placed before the legls-
lature, and says
ly every citizen of Wisconsin is vitality
Interested in the regulation of insurance
corporations. According to the report of
were on December 81, 1905, 293, 500 persons
in Wisconsin holding policies in old line
life insurance companies. amounting to
AtO TO-n n inh hn n 1nl
premium aggregated $S,697, 013.2S. The
people paying annually this large sum of
money, hecessitating in the majority of
instances careful saving, and those de-
pendent upon the policy holders for the
necessities of life look to this legislature,
and have a right to ask, that such laws
be passed as will adequately protect their
savings. Many people have. come to re-
gard life insurance as saving bank &C
count and certainly their equities in in
Surance policies are entitled to the same
careful legislation and state supervision
as has been adopted in regard to banks.
With the immense sums taken from the
policy holders, the treasures of the in
surance corporations have presented such
temptations for questionable transactions
as have been beyond the power of pres
ent day officials to resist. Protect the
rights and property of the people, erect
such legal safeguards that insurance
shall be such in fact, that trust funds
shall be honestly applied, that there shall
be a limit to the expenditure of the in
surance money and that just punishment
be melted out to all violators of the law.
Legislation failing in these respects falls
short of the public will"
State institutions.
In his message the governor reviews
each department of the state government
and the state institutions, showing, what
he says, is an economical administrat ton
of each department and institution, and a
few recommendations for special or in
creased appropriations are made in con-
nection with these.
Considerable space is devoted to the
subject of education and the needs of
the state in the way of educational leg
islation in which the governor says
1.-The total amount expended for in
struction in the schools under the super
vision of the county superintendent for
the year ending June 80, 1906, was So, 49,
S42.70; in cities, $S,4S5,649.92, or total of
IS 9S2 992. 81. The state shows it's interest
in maintaining public education by MAX
ing provision for distributing among the
public schools of the state $1,S70,000, as
aid in maintaining the common schools,
the free high schools, the state graded
schools the agricultural schools and the
county training schools.
with such a comprehensive education
al system, and the expenditure of so
large a sum of money, Wisconsin ought
to take front rank among the states
of the union, when education is consid-
cred. Reports show, however, that 1t does
not stand as high in educational results
as it should with this great expenditure.
There's but one apparent reason for this
condition and that is the Indifference
manifested on the part of large num-
, Der of parents, and those who have chill
dren under their control, in the matter
of sending these children regularly TO
school. BY far the most serious hindrance
to profitable school work is the one re-
sulting from irregularity of attendance.
1t is not necessary to enlarge on this
point, but it relates vitality to the prog
ress of the rural schools. those upon