Los Angeles herald., 1910-12-18
STATE UTILITIES
BOARD IS URGED
San Francisco Man Tells Scope
of Bill He Is Assisting
to Draft
CITY CLUB HEARS ADDRESS
Commission Similar to Those
Operating in New York and
Wisconsin Advocated
CITY CLUB HEARS ADDRESS


tiles commission and the power it
should have was the subject of an ad-
dress given yesterday before the City
club by Thomas e. Haven, assistant
city attorney of San Francisco. Mr..
Haven is assisting to draft bill the
legislature is expected to adopt that
will provide for this state commission.
He advocated u commission similar
to the ones that have been doing et-
fectiVe work in New York and WIS
consin That such a commission can
be esta blished in California by legisla-
ton and without the necessity OF a
constitutional amendment was clearly
shown by the speaker In part ne
said:
an California the public is offered
the securities not only of steam rail-
roads, street railways hydro-electric
power plants, but latterly of companies
developing oil lands. Oil pipe lines
have already been declared to be a
public use, and the furnishing of tueI
oil will soon be regarded as a puonc
utility. if it is not at present. A prac-
tical and important service could be
rendered by a commission of experts
empower examine the regularity
of the issuance of all these stocks ana
bonds and the sufficiency of their Sc
curity, The governmental protection
ternal, but no one who has followed
modern promotion schemes can DOUBT
its necessity.
"Allied to this power of supervision
of the issuance of securities is the
necessary power to enforce publicity
of accounts and establish a uniform
system of accounting. This is provided
for in both the New York ana WIS
consin laws.
PUT CHECK ON FRANCHISES
"a further power which is now eXer-
cised under the public utilities laws OF
both New York and Wisconsin,, ana
which is permissible under our constl-
tuition, is the supervision of the grant
ing of franchises. In both OF these
states no franchise can be granted to
certain designated public utility cor
porations until q certificate of PUBIC
convenience and necessity has been
granted by the proper commission rms
certificate is refused when the pubic
needs are already adequately supplied.
When the certificate is granted, per
1nanent responsibility to public author
ity is secured by indetermnate per-
nits instead of limited franchises. These
permits confer the right to continue IN
the public service business until such
time as the municipality or olher pun
lie authority exercises its option TO
purchase the property at just COM
nensation to be determined by the state
commission In return for this permit
the corporation receives protection
against unnecessary competition, either
on the part of another corporation or
a municipal plant. If California had
had such a law we should have been
shared the inconvenience of the in
struments of two rival telephone COM
NAMES upon our office desks, and rate
wars over such necessities as water
and light, the cost of which IS even
tually charged to the public when the
inevitable consolidation takes place.
would have been prevented.
CoMPELs SERVICE RETIREMENT
coupled with this power over fran
chises is the additional duty which
devolves upon the commission of COM
peling the owners of public utilities to
supply the best service obtainable, thus
protecting both the safety and the con-
Venience of the public. The exercise of
this power in New York city has re-
suited in the increase of the daily ca
Imcity of the subway in that city from
4Oa,O 900 passengers to more than double
that amount, and a considerable por-
tiou of this increase of capacity has
resulted from such simple devices as
the installation of side doors midway IN
the cars, and the lengtheninS of station
platforms to accommodate longer
trains. All of these have been obtained,
however, upon the demand of the COM
mission. StraphangerS may not be as
numerous in Los Angeles as they are
in San Francisco. but it is doubtless
true that in nearly all of the California
municipalities the patrons OF street
RAILWAYS during the rush hours of the
afternoon have frequent occasion to
wish for some further and energetic
exercise of the power to compel the
furnishing of adequate facilities for
travel. The supreme court of this state
has decided that the provisions OF the
constitution and statutes referring to
the railroad commission do not give
that body jurisdiction over street rail
Yays. The way is open, therefore, for
efficient control of this class of public
utility without constitutional amend
ment.
"A further and very important power
which may be conferred upon a public
service commission under the present
constitution is that of advising and as
sisting in the fixing of public service
rates AS the constitution now stands
rates for water and light must be fixed
annually by boards of supervisors, or
the governing boards of municipalities.
BODY OF EXPERTS NEEDED
"The reasonableness Of rates depends
chiefly upon the value of the property
upon which the rate is based. How is
it possible for the members of a board
of Supervisors, most of whose time is
occupied with other matters and none
of whom are experts with regard to
the matter under consideration, within
n few weeks time to intelligently fix
the value of varied properties the ac-
ouisition of which has ben scattered
over q long period of years. and con-
cerning whose value experts radically
differ?
1.-THE annual fixing of rates by public
bodies was adopted for the laudable
purpose Of vesting in public authority
constant control of these natters- of
everyday Importance In practice, how
ever, as has already been said. this
system has not fulfilled the eXpecta-
tions of its sponsors Not only do
boards of supervisors and other gov
erning bodies frequently act upon in
sufficient information, but there is no
good reason why rates Of this character
should be the subject Of annual inYes-
tigation, wrangle and change. Better
far would be a more thorough and more
scientific investigation and establish
ment OF rates which would remain in
force until a properly constituted COM
mission of experts, upon complaint OF
either tho public service company or
stated number Of consumers, and after
complete and expert investigation,
should decide that a change Of rate is
necessary.