The morning journal-courier., 1908-03-28
DISCUSS PUBLIC
 SERVICE EVILS Business Men Hear That Com mission to Regulate Cor porations Should be
 Formed. PRESENT COMPANIES 0. K. Recurrence of Connecticut Railway and Lighting Overcapitalization
 Must be Guarded
 Against.
PRESENT COMPANIES 0. K.

quet hall to hear the need of a public utilities commission for Connecticut discussed. Beside the members of the Business Mems association there were present several members of the Chamber of Commerce and of the As sociated Civic societies.
 Before the discussion in regard to the public service commission was opened, F. l. Atwater moved that Pro- lessor William B. Bailey of Yale be asked to come before the Business Mems association date to be ar ranged for later. and to speak con- corning the conditions in the New Ha- ven slums as he did at the annual meeting of the Associated Civic socie- ties in the United church chapel on Thursday night. The motion was car ried and an invitation extended to Professor Bailey.
 In opening the discussion Sidney P. Butler, president of the association, stated that he wished it to be under stood that the movement for the cre- alton of the public utilities commits sion, so far as he was concerned was not a movement against the public service corporation of Connecticut He said that those in back of the move ment are not trying to work against the corporations, but are asking rath- CT for their cooperation. He then called upon Col N. q. osborn as the first speaker of the evening.
 Colonel osborn said; The public service corporations either fail 10 un- derstand the purpose of the movement or are sadly mistaken in regard to it. It is not reform movement It ap- plies to three parties, to give them all their equal rights. the corporations themselves, the state, and the people. It tends to prevent either of the other two from taking from the third it's rights.
 "The citizens of Connecticut ought to realize what Connecticut has done in regard to public service corpora tions. It has made of them private monopolies. IL has abandoned as I believe is right here, the principal of competition in the matters of railroad. street car lines, telegraph. telephone and express. The state has acquicsced in this. rather than adopted the policy of making them private corporations. Ceptain people have tried to establish independent lines From here rail- roads were built to Derby and to Mid 5t..a... l.,,. consolidation utftb tho very companies from which an effort was made to save the lines was the result. It was logical that there should be but one railroad system in Connecticut.
 "I coneede to the monopolies which enjoy rights in Connecticut all honesty of purpose, but the power of any body Is not to be exercised without some re- etraint do not want the power of these corporations to he weakened, broken or destroyed. But the corpor- ations cannot be trusted with absolute power and we must protect ourselves against any possible abuse. The gem eral assembly does not have time to attend to such matters, meeting as it does only once in two years and then for not longer than six months. There is so much public business before this session that nothing receives adequate attention
 As an example of what a public service corporation can do, the Con necticut Railway and Lighting com- pany got as wicked a charter as any body of men could ask or any legisla- ture grant. It could issue stocks and bonds as it saw fit. Of the stock s2o.- OoOOO of the s3e000,000 was. as Charles s. Mellen said, wind and water On l this stock in some way two per cent. had to he paid and now that the New Haven road has acquired the proper- ty, it will in some way manage to pay it, hut by this over-capitalization the i people of Connecticut are heavily bur 1 dened. Had there been a public util- | ities commission in Connecticut such a thing would not have happened The | commission would have had power to look into the conditions before the l charter was granted. Under the pres tent methods it is doubtful if two of the many charters held hv the New Ha- | ven road agree in the rights conferred i on the corporation. The railroad com nissioners do not know just what rights some of tho charters give the holding road One is allowed to do certain things provided, the stockhold- i CTS agree, another provided the direc- l tors agree and another providad the commission agrees-all are different. ! One even gives the holding company the right to organize banks If it
 wants to.
 T said that I did not fistrust any of | the public service corporations which ] are here now But there is a nossif,il- ] ity of some of them being sold out and
 owned by nonresident parties. Fol I instance a few years ago. there was q I movement ly the New Haven Gas com.
 pany to sell to unknown New York parties its plant he-e. Under tho
 present management there was and f
 no criticism. But with the ownership
 passing to unknown parties in New
 York. the people would like some com.
 mission to appeal to for protection.
 Another example of the proposed
 merger of the New Haven road and
 the Boston and Maine. II is moi inc
 New York Cea.ral which is biddins
 for the stocf Of the road. nor tbs ] (Continued on Second Page.)