The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1912-12-12
Have Come to Recognize it il Coed
Business Policy Since Vail First =
Started the Custom.
ROBINSON IS INVESTIGATING
University Professor Has Been Look
ing Into the Cost Of Municipal
Ownership for Some Month";.


Nv qua AAAAA.S ACC. 4z--NISALIOn
OF state public utilities commission
by the enlargement of the state tax
commission scope Is practically rs
sured for Minnesota by the kegds-
lature this winter. Recognition of
the commercial menace in Socialism
and municipal ownership is said to be
responsible for this fact. All factions
of the Republican party apparently
concede that state regulation Of pdb-
lie utilities is far more to be desired
than permitting the growth Of a So
ciaMstic proganda which is starting
in municipal ownership, the practice
of which principle has proven so dis
astrous in many foreign countries.
When Henry Rines of Mora, the
next speaker of the legislative house.
held a conference few days ago
with Commissioner Samuel Lord of
the state tax commission it was cur
rently reported that it was for the
purpose Of making preliminary plans
for the drafting of bill for the en-
largement Of the present conmis-
powers. It IL believed that
the creation of such q commission,
giving them rights to control all util-
ity corporations just as the present
railroad and warehouse commission
controls railroads and warehouses,
would do away with much of the liti-
cation and dissatisfaction in many
cities now over rates.
The proposed commission would be
empowered to make thorough in
vestigation into receipts, expendi-
lures and operating expenses and up
on its figures establish the rate to be
charged the public for the commodi-
ty, allowing a reasonable interest on
the investment to stockholders.
Corporations have come quite gener-
ally to accept absolute publicity and
truthfulness of their business with q
fair return on their Investment as
profit, ever since a few years ago
when Theodore e. Vail, on becom-
ing president of the American Tele-
phone company, published the truth
about the company's business-dis-
couraging facts - which the direc-
tors feared would run down the value
of stocks and wreck the company.
TRUTH however, worked different
ly. The value of stocks went up and
the $4,000 stockholders increased in
number to $4,000. Since that demon
stration corporations generally have
become convinced that the public
sh ould know the truth and be taken
into their confidence. A law that
| will assure them definite profit of
certain per cent on their investment,
will put their stocks and bonds upon
such firm financial basis, 1t IS
claimed that small investors will
ca gerly buy them when they are is
sued for extensions and improve
ments and thereby the people will
actually become owners Of the util-
tiles, with the state supervising and
guaranteeing economic and honest
management. -.- --.. -,
| FOR some months Professor Robin
son Of the University of Minnesota
economics department has been max
ing an exhaustive investigation into
the cost-of municipal government un-
der the direction of the tax commits
sion, and will soon make his report
to that body. It is said that this re-
port will reveal some interesting
facts concerning the cost of NUM-
cipal operation of utilities. It will
show that while the rates are some
times pointed out as lower under
city ownership the fact remains that
the service is costing the taxpayers
more for services in the somewhat
hidden means of large tax levy,
caused by the toll demanded to pay
interest on large bond issues put out
by the city to purchase, improve and
maintain utilities plant, and in the
extravagaant operation, due to polit-
ical influence. D.:
Another conference with all the
members of the tax commission has
been arranged for this week by Mr..
Rines and c. H. Warner Of Aitkin