The daily morning journal and courier., 1907-06-11
AN IMPORTANT BILL.

IN IMPORTANT BILL.
 It may with propriety be said that the bin which the legislative commit tee on interpretations has reported fa- vorably to the general assembly for the purpose of more scientifically caring for the organization of public service corporations, should have been intro duced and enacted into law fifteen years ago. In large measure the evil which it seeks to remedy is now be- yond the control of the State, but there are still probably opportunities to come for the State to compel promoters to build honestly instead of for the profit there is in the speculation,
 The proposed law requires all parties intending to construct public service enterprise to give due notice to the Secretary of State in the shape of a formal notice. That starts the under taking with the knowledge of all con cerned. The proposed law then requires that the certificate of intent shall con- tain the names of the directors and of ficers of the company It further re- quires that twenty per cent. of the par value of the capital stock shall at that time have been paid in in cash, and a sworn statement made to the effect that the corporation has trans- acted no business except business con- nected with the organization of the company and that 1t has no liabilities. The proposed law arranges for the or derly manner in which a public service corporation may increase It's capital stock. Increased stock must be taken by the stockholders at not less than par, and, if all is not taken up in that way, 1t must be sold 10 outsiders at price not less than that offered the stockholders, or to the highest bidder for it. The utmost publicity is provided for, in order that all the essential facts connected with the administration of a public service corporation may be ac- cessible. This includes the sale of shares, the purchase of other properties and the issue of bonds. A heavy penal ty is attached for the violation of the act in any of it's provisions.
 The only two conceivable objections to such a law are, first the realization at the eleventh hour that such legisla- ton is necessary in the interest of the public, and second that 1t will interfere with the speculative enterprises of those who have as yet not entered thIs field of exploitation. The first objec- ton has it's roots in a keen regret that the State of Connecticut has been made such fool of by promoters, who un- derstood well how to play upon public needs at a critical hour in it's history, but that offers no sound reason against eleventh hour legislation. In spite of the fact that the travelling public is now obliged, and will be further oblig- ed to sacrifice lower fares and modern improvements in construction, in order that the companies may earn dividends on watered stock, it is well that the committee on interpretations should recommend to the general assembly that the time has come when notice should be given that hereafter in all undertakings, which have to do with public service corporate legislation, the point of view is to be the opposite of that which has prevailed in hysterl- cal form in the past. If made law, as 1t should be, Connecticut will be able to hold its head a bit higher in the common market place, It cannot possi- bly, undo the mischief which has been done, but 1t can aid posterity in it's am- bition to be wiser than we were.
 This act of the committee on incor- porations is from another standpoint the most suggestive legislative under taking which has seen the light of day during the winter at Hartford. Thus far things have been done which should not have been done, and they have been done without intelligent explana- tion. The defeat of the governors ve- toes is an illustration in point, Now the general assembly has had it put right up to it to say whether it wishes to attend to the public interests or