The Superior times. [volume] (Superior, Wis.) 1870-1912, 1907-01-12
Local Public Service CORPORATIONS.

ol't' ANA To employ such experts as
may ne required to aid in this work.
Local Public Service Corporations.
GOV. Davidson believes that time has
come Tor the state to assume some con-
trol over the local public service corpora
| tons, their organization and the rates
| charged by them, and in this connection
he says.
The remedy for conditions now so
| oppressive in the municipalities of the
state lies in a complete revision of the
statutes relating to the organization OF
pHbIlt utllIty corporations and the grant
ing OF municipal franchises, and proNld-
ins for the supervision by public author
lly OF the issue of stocks and bonds and
the control of the rates that shall he
charged and the service that shall be
rendered Such legislation should strike
at the roo # the matter. Franchises I'M
proVidently granted are generally recoS-
nized IN this and other states as the
source of the evil which is aggravated
10y 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
liking such limit, ranging in q great ma :
jority of cases from 20 to IS years, and
containing provision permitting the city
to purchase the plant at the expiration or
the term or at a time prior thereto. The
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 and
privileges. The exercise of this power by
the Legislature for the control of public
service corporations has been upheld for
more than 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 fran
chises which have since been granted and
tod St,ylt "a Al "a
subject to the exercise of this power tor
the protection of the public.
Since there are franchises in this state
which have been granted to public serv-
ice corporations in perpetuty, or
claimed to be such, and also many winch
have been granted for very long period
of years, the terms of which VIII operate
harshly and oppresSively, recomnenu
the enactment of law declaring that all
franchises heretofore granted to any IN
divdual, partnership or corporation, to
any city in this state, shall terminate on
January l. 1880, unless they shall sooner
expire by their own terms. and also de-
claring that no franchise of such ma
ture hereafter granted shall be Tor Il
longer term than 20 years.
- 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
lions. Massachusetts and New YORK
have provided that no stocks or bonds
shall be issued by this class of corpora
tons without application having iirst
been made to the state commission ana
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 capltal 70
ization measured by actual Investment,
lust 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. recon-
mend the necessary legislation TO en-
able any city or village to establish public
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 lien on the
property so acquired. In the purchase
of such utilities by the municipality, 1t
should not be required to pay an eNor-
bitant sum for the franchises where the
same have been granted without consid-
GRAFTON The legislation already recon-
mended to limit the duration of existing
franchises would be material aid to
municipalities contemplating the pur-
chase of public utilities.
II have treated this subject at some
length because ! am thoroughly con
WINGED of its great Importance, and that
the regulation of these corporations by a
state commission is a necessity. The
sentiment of the people of the state as
is pronounced and emphatic for legisla- ,
tion giving the public effective control
over all public utilities
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