The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1912-12-17
UTILITIES BILL
BEING DRAFTED
Rines Plans To Extend Power Of
The Present State Tax
Commission.
MAY CONTROL ALL RATES.
Present Wisconsin Law May Be
Adopted Here-Conferen Set
For This Week.

For This Week.
ST. Paul, Mimi, Dec. 10: Creation of
state Public Utilities Commission
by the enlargement of the State Tax
Commissions scope is practically as
sured for Minnesota by the state
legislature this winter.
Rines and Lord Confer.
When Henry Rines of Mora, the
next speaker of the Legislative House,
held conference few days ago with
Commissioner Samuel Lord of the
State Tax Commission it was current
ly reported that it was for the pur-
pose of making preliminary plans for
the drafting of bill for the enlarge
ment of the present commissions
powers. 1t is believed that the crea-
ton of such commission, giving it
rights to control all utility corpora
tons just as the present Railroad and
Warehouse Commission controls rail-
roads and warehouses, would do away
with much of the litigation and dis
satisfaction in many cities now over
rates.
Commission Would Make Rates.
The proposed commission would be
empowered to make thorough in
vestigation into receipts, expenditures
and operating expenses and upon its
figures establish the rate to be charg-
ed the public for the commodity, al
lowing a reasonable interest on the
investment to stockholders.
Corporations have come quite gen
orally to accept absolute publicity
and truthfulness of their business
with a fair return on their investment
as profit, ever since few years ago
when Theodore E. Vail, on becoming
; president of the American Telephone
Company, published the truth about
the company's business-discouraging
facts which the directors feared
would run down the value of stocks
and wreck the company.
Truth however, worked differently
The value of stocks went up and the
| $4,000 stockholders increased in num-
Der to $4,000. Since that demonstra-
ton corporations generally have be-
come convinced that the public should
know the truth and be taken into
their confidence. A law that will as
sure them definite profit and GER
tain per cent on their investment, will
put their stocks and bonds upon such
a firm financial basis, it is claimed
that small investors will eagerly buy
them when they are issued for ex-
tensions and improvements and there
| by the people will actually become
owners of the utilities, with the state
supervising and guaranteeing econo-
mic and honest management.
Studies Cost of City Government.
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. 1t will show that while the
rates are sometimes pointed out as
lower under city ownership the fact
remains that the service is costing
the taxpayers more in the somewhat
hidden means Of a large tax levy
caused by the toll demanded to pay
interest on large bond issues put out
by the city to purchase, improve anc
maintain the utilities plant, and in this
extravagant operation, due to political
influence.
! Another Conference This Week.
Another conference with all the
members of the Tax Commission has
been arranged for this week by Mr.
Rines and C. FL. Warner Of Aitkir
when, it is said, the subject will be dis
cussed further. It is quite likel,
members of the Public Utilities Com
mission in Wisconsin, New York ant
other states where it Is In operation