The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1908-12-17
PLAIN TALK FROM
CITY ATTORNEY HOUGEN

the following plain language in COM
menting on the recent decision of the
| rate commission on the gas rates:
You ask me what have to say abou
| gas rates:
The decision is surprising to say the
least. One is led to inquire whether
the special function of the public service
commission is to see that public service
| companies earn dividends or whether
| the public shall be reasonably well
served at reasonable price. Like the
three wise men of the East the commits
sion had a guiding star-dividends to
| the company.
| have read number of judicial opin-
ions saying that the first duty of "A pub
lie service company is to serve the pub
lie reasonably well at reasonable price,
irrespective of the fact whether they
earn dividends or not. This rule seems
| to have been reversed by the Commits
sion. also notice that the Commission
says that net earnings of the plant is
S73S5.00. This is after charging up three
and one-half per cent for depreciation.
The net earnings are therefore about
Sl2,50O. The Gas Company has recent
ly tioated a bond issue of $500, 900 on
the plant. OF this amount something
over 5000 900 have been already sold,
the bonds bearing five per cent.
The Gas Company and the Wisconsin
Trust Company in advertising bonds
gave statement of their earnings and
operating expenses and showed a net
earning of something over $4,000 per
annum. If this statement of the Gas
Company and the Trust Company is
untrue the distsict attorney ought to
being perpetrated upon the purchasers
of bonds, and if the finding of the Rate
Commission is true, the representa-
tions made by the Gas Company and
the Trust Company cannot be true.
There was no evidence taken before
the Commission, so that the Lord only
knows what they considered and what
method they used in arriving at their
conclusion. Before the Commission the
only question considered was whether
or not the arbitrary charge of twenty
ave cents per month for what Mr.. Doug
las calls a service charge should be
made. The Gas Company were satisfied
to make "A fiat charge of S1.0O tor gas if
they were allowed the twenty-five cents
service charge. The Commission makes
the remarkable decision that the Gas
Company must charge twenty five cents
monthly for service charge and charge
Sl.25 per thousand for gas-orders the
Gas Company to charge twenty five
cents per thousand more than they want
to charge. Somebody ought to have "A
guardian. The managers of thedas
Company certainly are not entitled to
much credit if they don't know how to
charge enough. The situation is quite
anomalous. dare say there never was
such situation before.
Another funny thing about the deci-
sion Douglas filed a petition last spring
so as to get rid of the two meter system,
so that when he made his numerous en-
tensions last summer, he would not
need to buy so many meters. The Com
mission at this time of the year an
nounces their temporary decision so as
to relieve the Gas Company from the
duty of maintaining two meters. In
the climate that we have at Manitowoc|
between the first of December and the
first of April there is no. likely to be
many gas extensions, so that there was
not any urgent need of this temporary
decision at this time.
AS great many people have thought
for long time, local affairs ought to be
managed by the local government, and
much better results all around would
be secured. Since the passage of the
original Railroad Commission Law
freight rates have been quite generally
advanced. The Commission refused TO
make a two cent passenger rate and the
legislature in spite of the commission
made a two cent rate. The express rates
have been increased from twenty-five
cents to thirty-five cents. Telephone
rates in a great many Of the cities in the
state of Wisconsin have been increased
by order of the Rate Commission and
electric light rates have been increased.
Now the Commission is doing the same
thing with our gas rates. Perhaps this
is the Wisconsin idea. If it is, it ought
to be exported.
The Commission claims the honor of
having abolished rebates and discrimi-
nations in this state. We haven't heard
any railroads complaining, but it ought
to have been possible to abolish rebates
and determinations without the inter
venton of the Commission. AS great
many people have for n long time be-
ture could do no greater benefit to the
people of this state than to abolish the
Railroad Commission altogether.
My opinion is that the Commission
have used us to wipe their feet on in ord
er to get ready to decide the Madison
Gas case. That may be good for the