Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1907-06-12
irite its own death sentence.

1 "EcOnomc efficiency still further
requires that the capital employed
shall be honestly stated, and that its
amount shall not be greater than is
necessary TO obtain the construction,
equipment materials and supplies re
quired at lowest terms. by reason of
prompt payment Any addition 10
, costs made necessary by reason Of
| charges for the right to be
a corporation: the right TO use
public thoroughfares and places for
| the distribution of The service: loca-
| lions for service ines; permits, TO
make changes in power or equipment.
etc. inevitably places a correspond
| ing burden upon the users of the serv-
ice who buy at an honest price guar
anteed by an honest and intelligent
law providing for and making manda-
tory an honest and intelligent system
of regulation. This statement should
make it clear to any mind that 1t is
the amount OF capital necessarily EN-
plcvod and not the fact of its owner
ship, that requires safeguarding in
order TO guarantee an honest price
to the user of the service II makes
no difference to the user whether the
capital employed is all owned by one
person. by a few persons, or by
thousands of persons who may be the
owners of the stocks and bonds is
sued by the corporation, or whether it
was drawn from the general body of
taxpayers. nor does it make any
difference to the user whether or not
the UNCONVENTIONAL value of the stocks
and bonds issued by corporation is
identical with the total capital assets
as shown by its books or twice or
three times as great. Neither does
ii make any difference to the user
whether or not all. or any part of. the
outstanding stocks and bonds of
corporation are owned or held by am
other corporation or holding company.
Under the system of state regula-
ton provided in the Wisconsin Meas
ure every economic advantage de
rivable from Mighty concentrated and
scientific management viii be trans
mitted directly to the people
Uniform Accounting and Publicity.
Correct accounting is Indispensable
to honest, intelligent and effective reg
ulation An accounting system. uni
form throughout state for all ac-
counts of the same class. is funda-
mental necessity for effective regula
| ton Such a system will make all
accounts. records and data com
parable Through comparison eveK
defect in economic operation and man
agement can be found and remedied.
BY this means only can adequacy of
! the service and the Teasonableness OF
the rates be demonstrated. The man
ager of every utility as well as the
commissions whose duty il is To adj
minister the law. will be helped by an
| examination of the published accounts
F., of all the utilities to learn wherein he
excels and wherein he can improve
| No manager will excel ia all things
None will be deficient in every re-
spect. This record will open the road
! for promotion for managers of small
utilities TO the management of large
ones, 1t will tend to eliminate the
inefficient aud promote the efficient
/ The combined effect viii be economic
efficiency and effective regulation re-
lsulting in adequate service and reason
able rates. and satisfied public
lopinion, all of which viii tend TO give
stability TO the undertaking and best
advantages to the community
Adequate serviee-Ressonabl Rates.
Adequate service can be secured
under an efficient system of state reg
lulation because the state can protect
Investments When the state prop
erly protects investments, it can re
quire any Improvement to be made
that eSperi"uce shows to be neces-
sary to 81 cure adequate service. II
win net be hampered by political or
financial spectators. small and great.
{ will have only to consider what Is
best in the way of extensions and bet
terments. changes III power equn
ment or methods and means of dis
tribution. and order it done The
state will have no purpose but to see
that the people are well served This
win secure adequate service if ade-
Iquate service is ohtainable
! Reasonable rates-ln establishing
an efficient system Of state regulation,
the law can establish rule for the
determination of reasonable rates that
Twin govern the owners Of utilities,
municipal and state authorities ard
the couffs. With such rule in force,
the only difference of opinion that can
exist must result from a question OF
fact not OF law or political eXpedi-
Iency. With the accounting system
under the control OF the state, oppor,
a. nifty for disagreement Us to facts
viii De reduced to a minimum.
J Reasonable proft-Any user who
demands that he shall be served at
reasonable rates must concede that
the owners of the capital employed in
his service are entitled TO a reason
able profit The law may provide
that the profit Of a utility shall he
limited exclusive Of INTEREST," to
twice the rate OF interest paid on its
bonded debt by the municipality in
u-Hscb tho ea.,,,fca is locafad r aacb