The Sentinel=record., 1911-09-15
CORPORATIONS IN WISCONSIN
GOVERN M'GoVERN TELLS OF PLAN OF COOPERATION IN
 HIS NATIVE STATE.
Public Utilities and. the Public Profit by the Wisconsin Plan Which Is Unique in Itself is
 Lauded.

 W'sconsin's mapner of contro ,ing anl regulating public uti!'y corpora lions to effect a two folt benefit to the consumer, better service at lower rates, 10 the producer, in creased efficiency and earnings, was eAplened in detail tolaY by uler Governor Francis E. Mc,ioyera, who ad dlitSsed the Conference of Cover nors on Stale Control of Public Utilities."
 t. utilities in " ous'n are in a more aourshing condition now than ever before,' ne said, and arc pnna Ga to extend iheir operations far ln,o the future"
 Of the consumer, Governor Me Govern said:
 Hand in hand with reduction in rates has gone an equally import ant improvement in service. Better services has been placed first and reduction in rates made to wait up-. on 1t. Transportation facilities have been vastly improved; cleanliness and sanitary precautions have been observed as never before, and more and better trains have been provid- ed. And so also of express, light ing, telephone and telegraph service. they have all responded to the de- mand for higher standard of effi- ciency in numerous ways, more for cible felt and plainly evident than 1t is possible for me briefly to de. scribe =
 Governor McGovern reviewed the origin. inception and scope of the Public U1iittlps Commission, its rulings and manner of enforcing them He cited several decisions Of the Wisconsin Supreme Court bear ing upon moot points and told Of the change in tho attitude of the corpor- ations effected fr6m- distrust and the dissatisfaction tqA tshtentment With and acquiesoance dnFthe commission's plans. In part, Said;
 What now is the basis Of a just and equitable rate? Some railway managers and superinendents of public utility plants contend that it is tho value of the service to the ehipperl and consumer. But this ma.Aod of fixing rates at what the traffic will bear has become so odi- ous and is so manifestly a cloak merely for extortion discrimination and favoritism, that extended discus sion of it is no longer profitable. Practically every commission, legis- lature and court which has seriously considered tho subject has rejected this criterion for the more definite and scientific idea of the cost of service. This basis. Is definite, fair, ascertainabe and economically justifiable.
 How now may the cost of service in a given case be ascertained?
 First of all the owners of utii- ities are entitled to a fair return up on the reasonable value of the prop es devoted to public use. This calls at once for valuation of the phy- sicar property of the plant. But this is not all. To it must be added something for the going value of an egtakusufed concern, and possibly something also for outlaws and ser vices expended in the past in up building the plant.
 But the value of the plant is not the only factor entering into the de termination of equitable rates. EX- pense Of operation. depreciation and sther sin lar items lnnst also be considered. And after there has been determination Of the gross charge hheessary for the mapten- ance of the utility and the payment of reasonable profits to its owners there vet remains the apportionment of fhis amount among tIhe various classes of consumers. It is ot the yery essence of scientific rate making for without it justice between dif- ferent classes Of consumers is im- possible of attainment
 But with accurate information as to tho value of the plant and proper distribution of the Fosi of seryace according to modern systems ot ae- counting it is possible to make rats schedules that are equitable to alt