The Bridgeport evening farmer., 1909-07-21
SEVERE CRITICISM
If So.CaIIed Public Utilities Bill Agreed
 Upon by Special Committee.
Does Not Include Electric Lighting in IA Cities and TOwns-No Penalty for Inadequate Service - Capitalization Sections Sharply Censured as Extend. ing Corporate Power-Legal Stand. ard for Gas Reduced.
Hartford, NJuly 20.

Hartford, July zO Editor of the Farmer: The so-called public utilities bill pub l lished by a majority of the special committee appears to have been drawn l for the committee with extreme con- tempt for the intelligence of the Gen- eral Assembly and of the public. The bill leaves the existing railroad ! commission with no increase of its i present inadequate powers, but merely creates an additional commission with hardly so much as Semblance of power It excludes from it's operation railroads and street railways, although the demand for an effective public utilities commission resulted principal 1y from abuses connected with street railway charters
 The bill purports to apply to all lighting, telephone and water com pauies: but by section l all corpora lions reporting to the Railroad Com missioners are expressly excluded from the operation of the act; hence, al- though the Connecticut Company Ca subsidiary company Of the New York, New Haven & Hartford Railroad Com pany) reports to the Railroad Commis- eioners only in reference to it's street railway operations, yet 1t is exempt under the proposed act from making any reports concerning the electric lighting business which it conducts in Waterbury, New Britain, NorWa1k ana eleven other towns in the state, while all other private plants and the mun1- cfpaI plant in Norwich must make full reports Is this an indication of the origin of the proposed measure? Section of the majority bill pro- vides that the corporations subject to This act shall furnish reasonably prop CT and adequate service"; but the bill contains no provision for the enforce ment of suche service and no penalty for the failure to furnish it. This sec tion also provides that the corporation shall take all reasonable precautions to prevent injuring ''the persons or property of others; but it gives the commission created no power to order repairs necessary to public safety or even to investigate the causes Of ac- cident. The section, although having an appearance of importance, adds nothing in fact to the existing common law.
 Section 2, dealing with capitalization, fs a joke In conjunction with section 16, 1t gives all corporations subject to the act power to issue capital stock, mortgage bonds, or other evidences of indebtedness in unlimited quantities flor paying the whole or any part of it's indebtedness or for the provision of proper working capital" What greater powers could be devised? Yet later in the section it is expressly pro vided that under certain circumstances a corporation "may issue and sell its full paid stock at a price less than par to be determined by its directors; and
  bid such issue under any circum- stances Accepting property in pay ment for securities at an over-valua- tfon is not prohibited, and is punish abIe only when a Stockholder of the corporation fraudulently profits there by How does this limit the use of fake construction companies for pro moters' profits? The commission has power to "approve'' the issue of mort | gage bonds in unlimited quantities; but no penalty is provided for the issue of such bonds without such approval. No restrictions whatever are placed upon the issue of debenture bonds or coupon notes. It Is impossible to see | what effect this section has other than | to extend the powers of corporations | now subject to charter limitations.
 Sections and vest in the commits | sion the final power to determine the | locaticn of poles and wires in the | highways and to apprafse the damages | suffered by adjoining proprietors. These powers are now vested in the judges | of the Superior Court. Is this public | benefit?
 Section 10 reduces the legal standard | for gas from sixteen to fifteen candle | poweri |
 Truly the majority bill is strangely and wonderfully made! Is not it's pre- sentation through the medium of | majority of a legislative committeess an insult to the General Assembly; an ex- pression of utter contempt for the | genuine public demand expressed at the hearings for rational and effec- tive utilities bill?
 $ The public asked for bread; they are l. offered a stone.
 Yours very truly,
 D