The Washington times., 1911-06-02

serted the words. and as soon as SO
that the provision would be that the
commission shall ascertain as nearly,
and as soon as practicable, the amount
Oh money expended, etc.
And Tor the same reason, IN section 6,
which provides for the valuation of the
property of every public utility within
the District Of Columbia, the words,
as soon as practicable should. |
think, be inserted after the " ords, shall
value, IN line 20, section 6, page 9, of
the Dill These are matters OF some
substance, as to which there was quite
discussion before the committees of
tne maryland legislature which consid-
cred the Maryland law.
Going back TO section ), I suggest
tnat before the words, construction and
equipment, on lines IA and 10, OF page
. there be inserted the words, prop
erty' plant, franchises so that the sec
ton Will read that the commission shall
ascertain as nearly and as soon as prac-
tlcaDle the amount of money expended
IN the property. plant, franchises, con-
Sstructlon, 81 and equipment of every pub
lie utility
Limitation for Answer.
In section 50, page "a, line Z, l think
the limitation Of but ten days as the
time within which the commission shall
nle Its answer to a complaint against
II in court is unreasonably short The
commission will have a great deal of
work TO do. and l think should reason
ably be allowed fifteen or twenty DAYS
within which to answer.
"On the other hand, with respect to
the provisions of section "a, line % on
page "a, and line l on page 35, ! think
ninety days too long a time to allow for
beginning proceeding in court to va
cate or amend an order of the commits
sion. In my judgment sixty days will
be ample and prevent inordinate delay.
In section q, which provides that the
commission shall furnish certified copies
under seal of its orders to any person.
there should be a provision for the pay
ment of the cost thereof by the person
to whom the copy is furnished.
The most serious criticism which l
respectfully submit against Senator La
Follette's bill is in reference to section
Is, which lodges in the commission a
virtually absolute and discretionary con-
troll over the issuance of stocks, bonds,
mortgages, or other evidences of in
debtedness by public service corpora
tions. The expression which in this re-
spect / deem Objectionable, because ex-
cessiye and unbounded in its scope, is
found particularly on page 50, lines to
The commission shall thereupon de-
termine If such proposed issue be nee
essary to the proper conduct Of the bust
ness of such public utility, and II 1t shall
=
shall prescribe the amount at par value
and the terms Of such issue, 1t may
thereupon make a certificate to said
public utility stating the amount, char
acter, purposes, and terms on which
such stocks, certificates of stocks, bonds,
mortgages, or other evidences of indebt-
edness may be issued
Power in a Phrase.
THE expression necessary to tine
proper conduct of the business of such
public utility plainly vests in the COM
mission the right absolutely to deter
mine whether or not there shall be
any issue Of the securities mentioned.
I think this power is far too great, and
I deem 1t constitutionally a doubtful
power I think 1t decidedly better to
limit the discretion of the commission
in this respect by legal definitions of
the conditions upon which it shall au-
thoriZe the issuance of securities by
corporation, instead of comforting this
power without any guide or rule In the
Statute and leaving it to the unbridled
discretion of the commission. 1t seems
to me that the course followed by the
New York and Maryland statutes is
better than the broad discretionary
terms of Senator La Follette'S bill
upon this point.
1.-The conditions upon which the COM
missions of New York, Maryland, and
other States are empowered by the law
to authorize the issue of securities by
a corporation are that the issue shall
be necessary for the acquisition of
property or the construction, compile
ton, extension or Improvement of Its