The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1911-05-30
HITS UTILITY BILL
Standard OIL Interests Argue
Against State Regulation.
REAL CONTROL BILL IN MAKING

Conference Committee Works Hard
and Promises to Report a Measure
That Meets Demands Of Party
Platforms.
Columbus, o. Especially - During
the legislative recess the conference
committee, consisting OF Senators Nc
CURE, Bader and Stockwell and Rep
resentatives Fitzpatrick, Langdon and
Winters has been engaged in work OF
framing up utilities bill for pres
entation to both houses Of the general
assembly simultaneously on May 81.
One afternoon was given up almost
entirely to the arguments Of the rep
resentatives Of the Standard Oil con-
trolled natural gas companies. These
companies we're represented by q
powerful lobby, who did not mincc
words as to their opinion of state
regulation, particularly of their own
business.
They are against the utility bill and
against any regulation Of their busi-
ness, and did not hesitate to say so
boldly to the conference committee.
The fight OF the Standard Oil rep
resentatives was directed particularly
against sections 3S, "a, 35 and 36, In
the bill as II passed the senate. These
are the sections which provide for
review by the commission of any ac-
tion taken by city councils and makes
impossible the repeated threat Of these
companies to turn of gas and take 1t
elsewhere when unable to secure .
higher rate from the consumer.
James S. McMahon Of Telofo, who
represents many of thu Standard Oil
natural gas companies. stated frankly
| TO the committee that he did not be-
| lieve the bill could pass with these
provisions in it.
The committee practically agreed
upon the law so far as it applies to
all utilities except natural gas COM
panies. The sentiment is strongly in
favor Of regulation of this important
industry. which affects some AGA, 1000
users in the state, the same as any
ether utility.
So far the committee has agreed
upon actual valuation as the basis for
fair and reasonable rate. 1t mas cut
all reference to stocks and bonds and
earning capacity as basis for rates.
If any expenditures by any utility
have been improperly made and ac-
counted for, the commission has full
power to have such entries changed
The commission can also terminate
any contracts, subject to notice, at
any time it may see fit If these con-
tracts are improper or disadvantage.
Gus to the public.
Another amendment provides that
the rights of the consumer to com.
plain about a rate or charge or any
method of doing business by utility
is not affected by the acceptance by
the utility OF any contract with a mu-
nicipality; for example, should a util-
ity accept a franchise from the city
council it does not prevent the con.
sumer from taking the matter to the
commission, although the utility, by
the fact Of its acceptance. is barred
from an appeal.
Furthermore, no utility can com.
plain about any rate or order of the
commission unless it first continues
to furnish its service during thu hear
ing of the complaint.
No stocks and bonds shall be IS
sued without first securing the con-
sent of the commission. This puts
the commission in full control of the
business of the utility and also abso-
lutely prevents the injection OF water
into the securities.
Provision is also made for the COM
pulsory interchange of long-distance
service between companies, so that
in the event of merger any little COM
panies that might possibly be left out
can not thereby be deprived OF proper
long-distance service.
No mergers, leases or sales OF prop
erty can be made without the consent
of the commission after public hear
ing of all parties interested
The law is to take effect June 30,
instead of Sept. /, as proposed in the
amendment made part of the bill by
Senator David Tod of Mahoning.
Governor Harmon is taking most
active interest in the bill and has
gone over all of it's provisions very
carefully, for the reason that he be-
leves The sentiment of the people of
the state demands legislation in Ohio
which will put the state abreast Of
other states which have gone on rec
ord as favoring such legislation.
From other arguments presented to
the legislature in its different COM
mittees during this session it has been
made clear that the people of the
state are opposed to useless duplica-
tion OF plants and the double burden
upon the consumer which such dupli-
cation entails.
Particularly is this true in regard
10 the telephone situation with it's two
plants its two systems OF telephones.
and the two bills for service which go
hand In hand with this duplication. Tel
sphone users all over the state have
made themselves plainly heard in this