Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1909-03-13
MEMBER or ASSOCIATED PRESS
4aa:&@;5n
RATE REGULATION.

The Grand Forks Herald takes oc-
casion to congratulate the legisla.
ture upon the adoption of the Duis
law, permitting cities to regulate
the gas rates, and thinks it will be
followed with a general law CIV
ing cities the authority to regulate
rates for all public utilities. The
Herald thinks this plan would work
better than that of delegating power
to fix rates to commission, such as
the public service commission in New
York, and that the legislature will
be slow to retrace the step thus TAX
en- in declaring the right of the mu-
nicipality to fix rates. r' e
This matter of the regulation Of
rates of public service. corporations
is hardly one to be lightly: dismissed
with the statement that a city coun-
Gil should have the right to fix and
finally determine the compensation
that shall be received by public ser
vice corporations There are many
things to be considered in approach
ing the matter of rate regulation.
It must be approached with definite
and expert knowledge of the cost of
doing business, and of the, rate that
will afford a fair return on invest
ment. No other kind of rate regu-
lation will be sustained, and to at
tempt any other kind will be to- dis
turb investment made n good faith.
and to- discourage others about TO
besmade. Cities, or rather the peo-
pie Of cities, cannot be expected to
sit idly by and see themselves ex--
tortionately charged for light and
heat and other necessities. j.. At the
same time, the security and safety:
Of legitimate Investment ought not
to be made the stake of campaign
in cities every year or so. There
must be some certainty in the mat
ter Of rates, otherwise we shall find
It difficult to promote the providing
of utilities in our smaller cities and
towns. H34 rs NJ. 5&E 1'#>.r
The Tribune believes it will be we'll
to cover this matter. by a. general
law, giving the courtssthe right to
make an inquiry into the reasonable
ness of rates. upon the petition Of a
fair percentage Of the users of any
utility or convenience. Provision
should be made for the getting of
accurate and expert information as
to the cost Of doing business, as to
the value of the investment in con-
troversy, and as to what rates would
constitute a fair and proper return
upon the investment. Sucn an in
quiry would be subject to an appeal
to the supreme court, and in the end
we should have the fair and unbiased
Judgment of men not Immediately
Concerned, supported upon knowl-
edge gained in fair judicial in
quiry. Such a system Of rate reg-1
ulation would preserve all the rights |
Of the people, and would at the same
time give the owners Of public utili-
ties some assurance that their in-I
vestments were protected. q -:
The danger Of rate regulation by
city councils and other temporary
bodies, not qualified by. experience
or training for the knowledge of |
detail necessary, is that other con-
siderations than the. doing Of JUS
tice to the consumers, might FREE
quently enter into the matter OF reg
uIation. The state Is hardly far
enough along yet to provide a pub
lie service commission OF experts at
high salaries to take these matters
iii hand. The principle Of the regu-
lation Of public service corporations
IS good, but we must avoid an abuse
OF the administration Of the law
when We have It.
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