The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1909-04-09

J the long run must be paid for by the pub
nc. The evil of unrestricted competition
has been recognized in every state having
a commission-save Vermont 1t is well
established principle that the introduction
OF competition is contrary to public policy
when the community is already being
served satisfactorily at a reasonable price
The bill fails to provide for uniform ac
counting-an advantage to the independ
ent telephone interests, for without uni
form accounting it is an easy matter to
make a favorable showing that may not
be justified by the facts. 1t would not
menace the New England company as it's
accounting is, of course, on uniform
basis for all its exchanges, so that intelli-
gent comparisons can be made. The en-
iorcement OF uniform accounting is OBJ
lectionable only to those who have some
thing to conceal The small companies
should, welcome it, because, if their earn
iings do not show favorably, they will
have an opportunity to go before the COM
mission for readjustment of rates.
Most of the public service men of the
| state say that they intend to abide by the
rulings, of the commission, although the
method of inflicting penalties is in such
form that punishment is next to impos-
sble. Many of them express regret that
there is no provision for uniform account
ing. All of the progressive men in the
business deplore the action taken against
iSoIiiCIlHS competition.
NO better example of the effect of the |
legislatures shortsighted policy regarding
composition could be cited than Senator
Corry's own city-Montpelier, the state
capital. 1t is a progressive community, |
made up of liberal-minded astute business |
men, the home of several important in
surance companies, and the center of the
far above the average, current being fur
nlshed at exceptionally low rates. The
city is well lighted, and has such an abun-
dance of city water that much of the sup
ply, is used for power work by printers
and manufacturers who have small shops.
The city has an aggressive business mems
association, which is working for the adj
of its members interests.
There is, as far as thorough canvass of
the business men would indicate. not the
slightest criticism of the Consolidated
Lighting company, either regarding rates
Dr service. In fact, it is universally rec
ognized that the cheap power furnished by
his company has been one of the leading
actors in the growth of the city in the
asst few years.
1t is the success of this company which
1as aroused the jealousy and avarice of
senator Cory and his associates. They
lave seen company, by fair dealing and
reasonable rates, become popular and prof
table. Both popularity and profit APP
Iedl W JOllllcldHS, 80 Ce1dlOT COTry mas
organized his company. As a nucleus he
purposes to furnish power for his street
ailway, and he also purposes to go into
he lighting business on fiat rate basis,
method which has been generally dis
arded as antiquated and unfair.
The actual results of competition in
Montpelier must inevitably come to one
nd. Charges for current must be based
n the investment per customer. If there
re certain number of customers to be
erved, duplicate investment means that
vice as much money must be earned
'om each customer in order to meet the
harges, assuming, as in the case in Mont
elier, that the original installation is ade-
uate to serve all the business coming to
]. For time competition may reduce
ties, but there will inevitably be either
n agreement between the companies, or q
ne company will buy out the other. =
It is then that the public begins to suf-
r from it's own ffolly-or from the folly in
its representatives. The rates must be at
: profitable. but will reimburse the com at
anies for former losses. But even this is III
1t all. The city is burdened with a du- ay
icate equipment, large part of which re
unnecessary. The money is invested in tn
lat equipment and cannot be taken out no
it. The charges on that investment a
ust be met, so that in addition to pay W,
g fair profit on the original plant, more -
oney must now be earned to pay charges fir
the unnecessary equipment. The re. n
1t is an decentralization for which no w(
,dy is responsible but the public itself. Mt
ompetition and overcapitalization go I'm
md in hand. When one is prevented so tn,
the other. me
Although the bill does not become eff
ctive until April, it is common knowl- phi
ge that hundreds of thousands of dol or,
RS intended for improvements in exist pa
g Vermont companies have already been me
Id up on account of the fear of compe tir
IN. The bill is so framed that compe- see
ion is practically invited, and the hold ow
er promoter is extended the same pro- wi
elton as the legitimate investor 1t is An
lily for a company to spend large sums fol
improvements which may be rendered iu1
ruthless for an indefinite period because bu1
e earning power expected of the i'm
ovements is stifed through wildcat inc
mpetition. The general effect of the bes
has been bad 1t has checked the ex- vef
nditure of new money for legitimate of
rposes, and has encouraged the eX- min
nditure Of money for competing plants. in
+ two years the state must struggle On
ing as best it can, for the legislature
rs not meet again until the fall of 1910. s
is hoped that by that time the lesson any
j have been rned.-Glenn Marston, aon
Public Service. was