Evening journal., 1911-02-11
sATURpAY. FEB. l.I9n
REGuLATED MONOPOLY.

IT HE JOURNAL has no doubt. that much good
h has been accomplished in an educational waX
at least by the various discussions that have been
going on about our public service corporations
discussions that have been brought about by the
lighting situation and the appearance Of Mr.
Crosby as a potent part of the municipal life OF
Wilmington.
The people have clearer knowledge Of the ma
ture of such corporations. They arc beginning
TO see that the proper method OF dealing with
public service corporations is by regulation Some
years ago the prevalent notion was that compe-
ttion was the great remedy for all the troubles.
IF an electric company did not give satisfactory
service if its rates TOO high or if there were
other reasons for complaint, LEI us grant a fran
chisc 70 a connecting company That was the view
The promoters we're always ready with "com-
--Pes Sion They knew that investors regarded
franchises for public service corporations as very
valuable. Investors we're eager to buy stocks and
bonds. Promoters were able 70 get nice profit.
Sometimes such promoters would really start
rival company, and sometimes they would club
existing companies into buying them out It was
a good thing for the promoters. Il proved to be
little or nothing for tae public.
Rival companies would persist for a while, doing
business often at a loss or working under CONF
pact that nullihed real competition The inevitable
tendency was toward merging and monopoly. In
the long run monopoly is the only natural condi-
ton in public service corporations
Z is pretty well settled therefore that there
must be monopoly and the question arises whether
monopoly shall be free to do as 1t pieases or
whether Il shall be restrained and regulated There
IS only one reasonable. answer-rcstrained and
regulated monopoly
That is the question which conironts the people
Of this city today. The Journal has advocated a
Public Utilities Commission lust how far such
commission should 60 is a question writer
whose letter IS printed today thinks that a Pub
lc Utilities Commission would be of little use un-
less it provided for the taking Of the actual phy-
seal valuation of the corporation properties and
fhe hasing Of such rates for service on such val
sation. That IS the proper method Of getting at
the root Of the matter, but Public Utility Com
mission, even without authority TO take the ph,-
scai valuation Of property, We think, would be
better than none ar all
Al present there is no tribunal Of appeal On
one soe Tor example, IS Mr. Crosby with his
OPINIONS. On the other side arc merchants and
others who are making complaints Unless fbere
IS tribunal like a Public Utilities Commission. the
entire situation is up in the air with no decision
OF any knd. II is better 10 have a Public Utilities
Commission, even If it has not an the authority
that we wish il should possess than to have no
commission at all
In view Of the fact that several bills will be
presented to the Legislature concerning a Public
Utilities Commission, The Journal thinks ii in-
advisable that any change should be made in the
status Of the Wilmington and Philadelphia Trac-
tion Company by the Street and Sewer Directors
at their meeting on Tuesday. Certainly no harm
can be done TO the city and none to the company,
we believe, by delaying the matter until the Leg
islature has taken some definite action with re-
gard TO the public service corporations of the
city.