Ladysmith news. [volume] (Ladysmith, Wis.) 1906-1907, 1907-01-19
GOV. DAVIDSON'S MESSAGE
Curb for Corporations Wherever Needed Is
the Plea of Wisconsn's Governor.

ice.
"Watered Stock"
lt has LONG been the settled policy
OF this state that capitalization of cor
porations should be measured by ac-
tual investment. The necessity for the
large increase of capitalization by
the Chicago & Northwestern and the
Chicago. Milwaukee & st. Paul rail-
way companies is not apparent. and
may justly challenge the attention
OF the legislature. [ am advised that
the additional stock is subject to the
pre-emptive right of existing stock
holders to purchase the same at par.
although it's market value is largely
in excess of that amount. Issue and
sale of additional stock under such
circumstances places an unjust and
unreasonable burden upon the COM
merce of the state and country, and
proper legislation should be enacted
to prevent the continuance of such
methods of railway management. This
is but one form of the evil of overcaD1-
talization of public service corpora
tons. and demonstrates the impor-
lance of placing the whole subject I'M
der the control of competent state au-
thGrities
The state railway commission
should also be clothed with adequate
power to determine the value of the
railway properties of the state and to
employ such experts as may be re-
CURED to aid in this work.
Civil Service Corporations.
A question of the utmost Importance
to large classes OF our people relates
to the control and regulation by the
state of local public service corpora
tons. Those corporations, in the alb
Sence of governmental restraint, have
grown in wealth and power and have
become the masters instead of the ser
wants of the people. The standard of
service has not kept pace with the
needs of the public. Or with the rapid
improvements in methods and appli-
ances. while the rate of profit has
steadily increased. With uncertain
powers. with frequently changing ad-
ministration with no fixed Responsible
ity upon the officers chosen for the
task, the cities of the state are not in
position to successfully deal with this
important problem and undertake the
regulation of public service corpora
tons. The remedy for conditions now
so oppressive in municipalities lies in
a complete revision of the statutes re-
lating to the organization of public
utility corporations and the granting
of municipal franchises. and providing
for the supervision by public authority
of the issue of stocks and bonds and
the control of the rate that shall be
charged and the service that shall he
rendered.
There is a growing sentiment In IA
vor Of municipal ownership, and en-
couragement should be extended in
this direction, especially with respect
to water works and gas and lighting
plants. | recommend the necessary
legislation to enable any city or village
to establish public utilities. or to &C
duire such as may already exist, I'M
der the power of eminent domain. and
to pay for the same out of the pro-
ceeds of certificates Of Indebtedness.
which may be lien on the property so
acquired.
Safeguarding Insurance.
Many people have come to regard
life insurance as a savings bank ac-
count, and certainly their equities ir1
insurance policies are entitled to the
same supervision as have been adopt
ed in regard to banks. With the inn
mense sums taken from the policy
holders, the treasures of the insurance
corporations have presented such
temptations for questionable transac-
tons as have been beyond the power
Of present day officials to resist. Pro
tect the right and property Of the peo-
pie, 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 eX-
penditure of the insurance money, and
that just punishment be melted out to
all violators of the law. Legislation
=
the public will.
There IS one Inconsistency in the
banking law which should be RENE
died. 1t is in the interest Of the state
to encourage the largest degree of in
dustry and thrift on the part of all
people by protecting savings banks
Legislation is urgently recommended,
either preventing the establishment OF
branch banks or requiring an increase
in capitalization by the parent bank
for each branch institution opened by
it.
In general the primary law has been
a success. and gives every indication
of accomplishing the results promised
for it.
At the conclusion of the reading OF
the message both houses adjourned un'
til Monday.
tn 10 n