The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-03-06
THERE is A CLASH
Governor and Administration
Leaders Do Not Agree.
Executive Not Satisfied With
Conference Measure.
SAYS BILL is VAGUE.
Keene, of Bourbon, Points Out
Weakness in One Section.
House Members Take a Shot at
John Brown.
SAYS BILL is VAGUE.

The difference of opinion between
tho governor and the administration
leaders of the house over section
twenty-five of the utilities bill as re-
ported by the conference committees
is something to marvel at. The gov
ernor has given out a statement that
the conference bill lis vague and in
definite while Keene of Bourbon, an
administration leader of the house.
has declared that the conference bill
gives the commission all the powers
over stock and bond issues that the
law will allow"
When the conference report was
before the house Saturday morning
1t was Keene, one of the house con-
ferees on the bill, who made the par
ticular explanation regarding section
twenty-five which had to do with
stock and bond issues. Mr.. Keene de-
clared that the house conferees had
held out to the end for the house idea
on this section and had yielded in all
else to the senate. He said that the
language of the section in question
was explicit and gave the commission
adequate powers as it required a prop
er and bona fide showing to be made
before the permission to issue bonds
need be granted. By proper showing
one that would warrant the commits
sion in granting the prayer He said
the standard on bond issues was fixed
higher by this conference bill and
warranted honest bond issues that re-
quired the money raised to be used
in betterments for the railroad or
utility plant.
Governor Stubs. in his stat ement
criticising the conference bill threat
ems special session and says:
The controversy in this matter, be-
tween the senate and house. as I un-
derstand it, refers wholly to the right
of the state to regulate the issuance of
stocks. bonds and other forms of in
debtednes9 by public service corpora
tions. The provisions covering this
subject recommended by the confer
ence committee. are so vague and in
definite that many good lawyers and
members of the legislature disagree
az to their meaning.
1T is claimed by the senators who
voted against the conference commit
tees report that the enactment into
law of the provisions recommended by
the conference committee covering
this subject would deprive the public
utilities commission of all discretion
airy power and compel the state to au-
thorize the issuance of stocks, bonds
and other forms of Indebtedness by
railroads and public service corpora
tons that might far exceed the rea-
sonable value of their property. 1t is
also claimed that after the state has
authorized the railroads and public
service corporations to issue stocks
and bonds, it is by this action estopped
from disputing the right of these cor
porations to charge rates high enough
to pay interest and dividends on the
full amount of the bonds and stocks
SO issued, regardless of the true value
of the property.
THE proposed conference commit
tees report would make it mandatory
and compel the public utilities com
mission to authorize the issuance of
stocks and bonds upon request from
the railroads and public utilities. and
does not in stated terms vest discre-
ton. in the commission to ascertain
the reasonable value of the property"
he continued.
THE New York law. Oh the con-
trary. provides as follows:
For the purpose of enabling it
(meaning the public utilities commits
sion) to determine whether it should
Issue such an order (authorizing the
issuance of stocks, bonds. etc.) the
commission shall make such inquiries
or Investigations, hold such hearings
and examine such witnesses, books,
papers, documents or contracts as it
may deem of Importance il enabling
1t to reach a determination
THE Wisconsin law covering the
issue of stocks and bonds has the fol-
lowing provisions:
1.-The commission shall determine,
according to its best Judgment. the
true value of the property, services or
other consideration for which it is pro-
posed to issue such stocks. certificates
of stock, bonds or other evidences of
indebte dness'
In view of these facts, and the
vast importance of the measure. ii
seems to me that it would be ner-
ritphf 70
ence committee. representing the SEN
ate and house, to further consider this
subject
The present status of the utility bill
IS this; The conference report was re-
1ected by the senate and accepted by
the house Saturday morning The SEN
ate named a new conference committee
and so informed the house. The house
has taken no action whatever in re-
gard to the naming of another confer
ence committee The bill will die today
unless the house names a conference
committee or the senate reconsiders its
action of Saturday and concurs in the
conference report. The house mem
hers, Democrats. regular and insur-
gents alike. seem to stand firm for the
house idea on bond issues. Sixteen
house members will likely vote against
both the house and senate bills.
Ralph Faxon and r. E. Stotts. two
Garden City boosters who are here
working for the new normal school for
their town, have gathered the follow
ing intere-tin statistics regarding The
growth and development of the south
west part of the state during the last
ten years:
In behalf of southwest Kansas ant
its recognition-for the merits of thG
measure from an educational stand
point certainly must be conceded
there is cited the following statement
of facts. Statistics on which the com.
putation is based are obtained from tht
federal census reports for Kansas fol
1900 and 1910; and from Secretary Co
burns office for the same years.
while Kansas gained Is per cent j.
population in the last decade, the 2
southwest counties gained 12s per cent