Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1907-01-16

per cent of the par value, except
when such stocks or bonds have been
listed on the stock exchange. sales
may be made at current prices. The
purpose of the statute. declares the
governor, is plain and highly com
mendable. but it is defective in that
1t contains no provision for admins
trative control over the subject. In
a purely private corporation, the only
parties directly concerned in the
issue OF stock are the stockholders
and the creditors, if there are any.
dec .iY (yo tmtlaffidailskt
The governor discusses this matter
quite fully calls attention to the huge
increases made recently by the St
Paul and Northwestern companies,
and recommends the enactment of a
law providing that the issue of stocks
and bonds be secured 10y a lien or
mortgage upon the property or fran
chise of any transportation corpora
ton organized under the laws Of this
state, shall be subject to the supervi-
sion and control of the state railway
commission and that any additional
stocks or bonds so issued shall not
be sold for less than the market value
when the market value exceeds the
par value. He also adds that rail
way properties of the state for the
purpose of taxation, but such valua-
ton may not be adequate to serve
as a guide to the railway commits
sion when considering the reason
ableness of the rates prescribed for
the transportation of passengers and
freight. The cost of railroad proper
ties must be considered as an element
in determining rates as the earnings
of the corporation must provide for
the expense Of maintenance and re-
pairs and reasonable returns upon the
capital actually invested.
It recommends that the state rail
way commission be clothed with ade-
quate power to determine the true
value of the railway properties.
Local public Service Corporations.
The governor declares that ques
ton of the utmost importance to
large classes Of our people relates to
the control and regulation by the
state of local public service corpora
tions The services rendered by this
class OF corporations greatly CON
tribute TO the life and comfort of the
inhabitants of the larger cities and
in many instances to those residing
in contiguous territory. A congested
population makes necessary artificial
lighting. an adequate water supply
and the means of rapid transporta-
ton, and if these cannot be fur
nished by the municipality the serv-
ices of public utility corporations
become indispensable. 1t has been
common practice in this as well as in
other states for the city to grant the
privilege of furnishing these IA
cilities to corporations, and fran
chises have been granted exclusive
in express terms or in practical APP
plication, and monopolistic in their
character which contain no adequate
safeguards for the protection of the
public. The result has been that
these corporations with the absence
of governmental restraint have grown
in wealth and power and have become
the masters instead of the servants of
the people The standard of service
has not, kept pace with the needs of
the public, or with the rapid i'm
provement in methods and appliances
while the rate of profit has steadily
increased 1t requires but super
fetal knowledge of the subject to re-
veal the fact that there is no uniform
relationship between the rates
charged and the cost and character of
the services rendered.
The eagerness of the municipalities
for local improvements and the ap-
parent Indifference of the state has
furnished the opportunity for or
ganized wealth to obtain valuable
franchises extending over long
period of years for the control of
public utilities and to furnish such
service and to fix such rates as would
yield the largest possible returns
without regard TO actual investment
or the needs of the people. Com
plants against service and rates have
received little attention or escaped
correction, either because the munich
pality did not have the power to
properly protect the public, or having
the power, has failed to exercise it
by reason of official Indifference or
subserviency to improper influences
With uncertain powers, with fire.
quently changing administration, with
no fixed responsibility upon officers
chosen for the task, the cities of the
state are not in position to success
fully deal with this important problem
and undertake the regulation of pub
lie service corporations
The evils growing out of the local
service problem are attributable to
three well defined causes,-namely,
long term and exclusive franchises.
excessive rates and overca pitaliza-
ton.
Municipal Franchises.
hshed by the municipalities or by
persons Or corporations to whom the
right is granted A franchise for
such purpose is a public grant and
it should be exercised under public