Omaha daily bee., 1908-06-08
COMMISSION FOR UTILITIES
Best Way 10 Handle Public Corpora
tons, Says New York Expert.
WILL TAKE THEM OUT OF POLITICS
Glenn Mar.ton says Thts Method VIII
work In CITIES and Creates
No DanEer In the
state.

Glen Narstor. a municipal ststis,ieian OF
New York, has been IN the city for several
days looking into the public service com
panies Of Omaha. Mr.. Marston is an expert
on public service problems, and spoke al
the University Of Nebraska last week on
the public control OF public utilities
L am surprised that there Is 50 little
knowledge OF the newest forms Of rekula-
ton out here. he said. state regulation
Of public service corporations seems 20 b
the best solution or the problem yet de-
vised. II Is the only method Of effectively
regulating the corporations without making
them a political issue. Many Of the evils
Of municipal government IN the United
states can be traced to efforts to bring the
public service companies into politics. The
public itself IL responsible for such a state
Of affairs. The voters place the control
Of the corporations IN the hsnds % city
officials who must necessarily owe alies-
lance to some political party, The Officials
have little time to devote TO their duties
and this gives the corporations a strong in
centive to secure the election OF men VINO
will act as they dictate or at least not act
against them. state regulation by commits
sions. on the other hand. removes all con-
troll from the municipality and removes all
incentive for the corporations to enter into
local politics. The corporations need not
be feared IN state politics. Their interests
are too diverse for them to get together on
any efini program that would affect the
commission in any material way"
Dates of = Commission.
When asked what he considered the
duties Of a commission should be. NJ.
Marston said: The state commission
should have power TO regulate rates and
quality Of service; they should control
capital expenditure. they should have sole
power to issue franchises and permits; they
should regulate competition and consolida-
tons. and should exercise a general super
vision over the corporations Of the state
The wisconsin public service law practic-
ally abolishes all franchises and issues In
eterminste permits. which are as good a.
unlimited perpetual franchises as long as
the company behaves itself. These permits
are ~revoeable on short notice after q public
hearing. II the company abuses its privil-
eyes It is likely 20 be put out Of business.
You can see that this Is good for both the
companies and the public. The good com
panies have nothing to fear and the bad
ones get what they deserve. The consumer
also gets a price from 9 to S per cent lower
than he could get from a company. whose
limited franchise compelled II to earn back
enough to pay its capital investment IN al
ditibn to 9 reasonable profit Such a plan
would be successful only under state regu-
lation. and would not do where the munich
pality had any control over the company"
Mr.. Marston left last night for the east.
and will spend the coming month in exam
lining public utility plants in a large num-
Der OF cities IN Illinois. Indiana and Ohio.
It Is said that he has the largest collection
OF municipal reports in this country.