The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1909-09-09
State Commissioner Roemer
Defends Rate and Public
Utilities Laws
MODELS FOR OTHER STATES
Commissioner Regards Uniform Ac-
counting System as Strongest Feature
of Public Utilities Act and Declares
That the Law is Effective

A strong tribute to the railroad rate
and public utilities laws of Wisconsin
was paid by State Rate Commissioner
j. H. Roemer in his address Wednes-
day morning at the convention of the
Wisconsin Bar Association in the fed
eral building. Commissioner Roemer
declared that both laws are the most
comprehensive of their kind in exisr
tence, and serve as models to other
states that are considering similar
legislation,
He praised particularly the uniform
accounting system provided for by the
public utilities act, saying that through
it the municipality conducted utility
may become as efficient as the privately
conducted one, that it is of great as
sistance to private corporations in en-
abling them to learn from the expert
ences of others, and that it is of ma
terial service to the investing public
in enabling it to get accurate informa-
ton in regard to the manner in which
the various utilities are being con-
Quoted.
''Proof that the railroad rate law is
effective is the fact that while it has
now been in operation for two years,
not single suggestion for an improve
ment in it has been forthcoming from
any source" said Commissioner Roe
mer. "The same applies to the public
utilities law. 1t would be premature
to pass that Judgment upon either at
this time. 1t can safely be said, how
ever, that the benefits ensuing from
them have been great, and that from
all indications they will be even more
fully enjoyed in time to come. 1t is
no longer necessary for municipal
bodies to interfere in the operation of
public utilities, and the corporations
and the commission can now labor to-
gether in harmony for the improvement
of service, regardless of demagogues.
"The most important part of the
work of the commission is appraising
the value of public utilities. For this
purpose the amount of capitalization
has to be disregarded entirely. The
capital stock of many corporations is
the product of the imagination of some
enthusiastic promoter. 1t is neces-
sary to carefully estimate the physical
valuation of the corporation IS proper
ty, and thus the labors of the commits
sion are of great assistance to the in
weston, who can learn from them the
actual amount of it's assets.
One of the best provisions of the
public utilities law is that by which
the system of accounting of all the
public utilities of the state are made
uniform 1t is help to the private
corporation, which can thus compare
it's own achievements with those of
others, and learn by their experiences.
1t benefits the municipality which
operates a public utility, for the peo-
pie may than compare it's operation
with that of private utilities of the
same kind, and compel good service and
an economical administration. In my
opinion, municipal plants can be operat-
ed as well as others under the spur
afforded by this provision of the law. =
Mr.. Boemer discussed the failure of
private corporations to jump Nat the
chance of exchanging their limited
secondary franchises for general in
determinate franchise. Not one in
ten of the corporations of the state
has done so, he said. He attributed
their unwillingness to the fear that
they could not do so legally without the
consent of the bondholders, which it
would be very difficult to secure, and
TO an erroneous idea of the value o.
the secondary franchises.