The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-02-02

nave duIAlOI1Cys TO examine the DOCKS
or the. corporations. So far as our
company IS concerned our hands are
clean and we have nothing to conceal.
me worst effect of the bill will be its
damage to- the state, in frightening
away capital and besides the expense
that will be entaiIed in properly adj
mfnistering such law The members
or the commission must be experts
ana competent men or the law viii
be no good, and competent men can
not be secured for such small sal
aries as are proposed. 1 believe the
bill VIII discourage investments, but
buyers OF bonds of public utilities in
! the state will be glad The law, if
| enacted, will make market for linn
tied issue of bonds''
Mr.. Myers declared that he has failed
| to discover any great public demand
for any such law in Kansas. In New
York the. financial practices, the trad
ing in "frothy'' securities created
necessity for a public service commits
sion and the idea started there. La
Toilette in Wisconsin. he declared. had
| a grudge to settle against the fellows
who opposed him. and he passed pub
| lie utilities law in that state as a per-
sonal punishment and for revenge upon
! his enemies. Mr.. Myers also criticized
| the salaries proposed for the members
of the commission.
I don't know where you are going
to get competent, scientific men for 81
| 500,'' declared Mr.. Myers. I'VE can't
get them to run our companies for that
amount and L don't see how the state
can get them. In consequence the
members of the commission will not be
qualified to pass upon matters that
should come before them and injustice
will be done"
Taking up various provisions of the
measure, Mr.. Myers stated his objec-
tions to them With reference to the
filing of complaints he said:
THE provisions of the bill designed
to prevent filing of frivolous complaints,
by requiring associations or % persons
to make complaints, will not stop any
body who gets sore from going before
the commission. Three men can form
an association. Why, say 1 get mad at
the Topeka Edison company about their
service, I can get two other men and
myself and we can form the Topeka
Central Singing society," and go be
fore the commission and complain
against the company and the commits
sion will have to investigate and spend
money and the company will be put
to great annoyance and more or less
expense. And who pays for it? After
lit is decided in favor of the company,
the consumer pays for the investiga-
ton.
changed about and where the bill now
provides for appointing men, in anoth-
er two years it may be decided by the
legislature to elect them. The state
good men, appointed to their positions,
but there is now before the Legislature
a bill to elect them. Instead of getting
good men and competent by appoint
ment, we will probably elect incompet-
ent tax commissioners who are good
at running for office.
considering the provisions of this
bill and referring to section 76, I can't
conceive of our bondholders cOnsenting
to our giving UP our rights to do bust
ness in Topeka and going in under an
'indeterminate sentence as I've heard
that provision called"
Senator Hamilton asked Mr.. Myers
as to the value of franchises.
isn't it true asked the author of
and put into the business at large
sum in valuing the property to issue
bonds?" rnie
mo, think not. I. don't consider a !
franchise worth anything until 1t is
given value" was the reply.
"Don't you know dthat corporations
water their stock and initiate real val
ues beyond their worth and borrow
you've got to get somebody to loan
you the money before you can do that, |
haven't you?" asked a gentleman near !
'eThat is an unimportant and ines |
sential detail that has no place for |
consideration here remarked MI.
Myers with sarcastic smile.
81 am friendly to this bil1,' began |
''oh, yes" interjected Senator Ganse.
we ali see you e1It II lCAANAS ~ ~ anu |
there was a general laugh.
ST should have said,' corrected Mr.. |
Myers. ''that I am friendly to the idea |
of such legislation"
In response to Chairman Prices
question as to the chief fault of the |
measure, Mr.. Myers declared that he |
considered, the bill was radically |
return on the investment. He thought |
it should be amended SO that there can |
be some certainty as to returns on in |
ion Oh Il
be allowed to reduce rates of public |
utilities so that they can earn only an |
ordinary rate of interest. If it were |
so amended, he thought it would be |
also for all other states.
Its hard to imagine this said Mr.. |
Myers with smile, but III use the |
illustration, anyway. But just sup |
pose-I wish it were true-suppoSe we
were making in our company 20 per |
cent on our investment Ca ripple of |
Anyway, suppose we were making |
that and the commission cut us down
to 6 or per cent That would not be
fair. The bill ought to fix fair rate
of interest and not permit the COM
mission to cut down profits too low"
In closing Mr.. Myers declared that
ne is anxious to lend his humble as
sistance to frame a utilities bill that
will be just and fair"
Fears Bad Commissioners.
Mr.. D. R. Gwinn of Chicago, who
is connected with the waterworkS
company at Pittsburg. declared that I
if the commissioners should be in
competent or prejudiced they could
easily put the corporation out of bust
ness under the act. He thought the
two members of the commission in
addition to the railroad commission
ers should be a hydraulic and cleo
trical engineer, with salaries not less
than $4,000 a year each. Mr.. Gwinn
believed the commission should have
power to approve and not prescribe
forms of bookkeeping for the utilities,