The Detroit times., 1912-01-01
lAFOlLtTTF Tells clint
WISCONSIN PROSPtRS
UNDER PROGRESSIVE RULE
Opens Campaign in Michigan
After Resting in Detroit
Sunday Night.
IN SAGINAW TONIGHT
Says Public Utilities in His State
Are Going Forward Rapidly
Under Official Supervision.

FLINT. Mich, Jan. How Wis
consin has prospered under progress
siye rule. was told here this morning
In speech by Senator LaFollettc,
who arrived from Detroit, accom-
panied by q large reception commit
tee. which went to the Michigan me-
tropolis 70 greet him, Senator LaFol-
lettc's Itinerary today takes him 10
Bay City this afternoon and Saginaw
tonight, where plans have been made
for rousing meetings.
Tomorrow he win visit several
Michigan cities, including Grand Rap
ids and Kalamazoo, on his way TO
Chicago. His throat was somewhat
hoarse today from his strenuous cam
paign In Ohio, which ended. Satur-
day night with a speech to large
crowd In Music Hall I'm that city, /.
In his speech in Flint, Senator La
Toilette said:
Having brought the steam railroads
OF wisconsin under state control We
proceeded TO extend the control OF the
railroad- comwtssion over all the other.
Rupiic utilities In the commonwealth
Thls was not accomplished until 1907
ana II was not until 1909 that the COM
mission was able TO establish over fts
counting.
going regulation OF these public utiii-
ties resulted in injury to the successful
conduct OF their business. For the
year 1910 compared with 1909. notwith-
standing reductions In rates and Inn
provement In services, the water utili-
ties increased their net earnings los
per cent; the telephone utilities y per
electric utilities 27.5 per cent These
utilities have even exceeded the rail-
roads In the rate at which they have
made cash investments in new con-
| While the increase In railroad con-
struction, has averaged 2.6 per cent
year isio TOT , six years year the water utilities
tion OF property 2 per cent over 1909;
the telephone utilities 4.s per cent; toe
gas utilities. l.s per cent: and eItctfic
tainiy 10 not. drivinK .cabitai out az
the state when the eIecfr1c util[<ies fn
the single year OF ~ 10. zafter two years
al. rssSlstiioe sM sE sss sssss 4 n5s seP
All Of this fsInsrkabls developne,,t
M has gone steadily forward notH
ss5aasS sss ses ss.ss ssse &C. a9''P''s;'ee e R
~ public utillfisA. {1tv. .661 ~ ye&<->> vi
has required improvsnnt1ts In the dual
utilities s1ss' 600 year. & ss{si 4 wins !
eiectricity OF SsS5.ooo year. And thisis
work. p.' innolysd ano n superyisins ST. ana a rs
has not been possible Tor the scsofnrnlsfa
sion. moving with its rsccgnf1ed ears
tsh its control over the public utiIttieSs
and deal with comparatively few OF the
many cases which Will be reachedt
A simple example will relow the
methods and results attaired by tile
commission In it's control Of pu11ic ut1i-
years OF careful investigation. the rail-
road commission. after fmprovfnx the
quality OF service. reduced the mai
Madison from ls TO IA cents per kilo-
watt hour, and adjusted the other rates
on a lower basis. The result was that
cent; the net earnings, Increased "a per
cent: the company increased Its Invest
ment 22 per cent: and the saving TO the
consumers, comparing the new rates
In July, 1911, fifteen months later.
after such an increase In profits fol-
lowing the reduction OF rates, the COM
redgction TO IL cents: this made a re-
dnction from l6 no IL cents per kilowat
hour. or reduction OF % per cent In
rates to consumers. No additional inves-
tigation was necessary. because the
books OF the company had been kept as
prescribed by the commission. showing
every item OF expense, income and In
Thus the state commission Is demon
strating the value OF Its supervision
and control, not only to the public. but
TO the business OF the corporation as
well. Better methods. higher efficiency
and substantial economies are achieved.
II ID the old story, unregplated monop-
oily. free TO exact prohts At viii. has
no necessity to consider the public
interest, and no incentive TO adopt pro-
gressive business methods.
Wisconsin Is teaching the lesson that
both the people and the investors In
public utilities may be benefited by our
system OF regulation. This Is so. sim
ply because the regulation Is thorough
and scientific. The railroad coinmis
sion ascertains through it's engineers
accountants and stattsticians and othsr
experts exactly what AZ. costs 20 build
and operate the roads and other public
utilities Watered stock aud balloon
bonds get no consideration. And aa
Continued On s-age Two.
------~-----------------~ r.s.ts,