The Washington times., 1912-01-01
la TOILETTE IN
MICHIGAN BESTS
W|NTRY BLASTS
Coldest Day Fails to Chill
Progressive Leaders Cam
paign Tour.
tcontinued from First page.o

struction has averaged 25 per cent a
year Tor six years, the water. utilities Ii
1910 increased their new construction o1
property per cent over 1909; the tele
utilities, l6 per cent; and electric utiii.
ties 35.5 per cent Wisconsin certainl,
is not driving capital out of the STATE
Wnen the electric utilities In the single
year OF 1910, after two years of regu-
!ation by the State. made bona fide new
Investments OF % per cent greater than
Gone Steadily Forward.
All Of this remarkable development
has gone steadily forward notwith.
standing the railroad commission has
reduced the rates charged in the State
BY public utilities $25O.OOo year, and
mas required improvements in the quail
ity OF the service, costing these public
utilities $l26.00o year. total saving
TO the consumers of gas. water, and
electricity OF $375,000 year. And this Ia
but the beginning. With all of the work
involved in supervising and regulating
railroads and public utilities It has not
been possible for the commission, NOV
ing with Its recognized care and thor
ouehness, to more than establish its
control over the public utilities, and deal
"Ash SohPaiouNCiy lew OIL Inc Iudhy
cases which will be reached within the
next few years.
=. single example will show the meth
. DDS and results attained by the COM
mission In its control Of public utilities.
In APRIL 1910, following two years of
mission, after improving the quality of
ser'ice, reduced the maximum price of
electricity in the city of Madison from
10 TO IA cents per kilowat hour, and ad-
The result was that the sales OF cleo
trfc increased 16 per cent; the net earn
1ngs increased "a per cent; the com
. pany Increased it's Investment % per
comparing the new rates with the old
rates, was $ls,3OS year.
Accept Second Reduction.
In July. 1911. fifteen months later,
after such an increase in profits follow
ing the reduction of rates, the company
accerted without protest another reduc-
ton to IL cents; this made reduction
from 16 to ~ cents per kilowat hour. or
a reduction of % per cent in rates to
consumers. No additional investigation
was necessary, because the books of the
company had been kept as prescribed
oy the commission, showing every item
of expense, income. and investment
Wisce nsin is teaching the Lesson that
both the people and the investors in
public utilities may be bone itcd by or
system Of regulation. This is 81. simply
because the regulation q thorough anil
scientific. The railroad commission as
Certatns through it's enginee rs, account
ants, statisticians, and other experts,
exactly what 1t costs to build and op-
crate the roads and other public. utiii-
Ties. Watered stock and balloon bonds
got no consideration. And, az the CONF
mission knows the costs, 1t knows ex-
actly the lowest point below which rates
cannot be reduced. 1t even raises rates
when they are below the cost i,ne, In
GLIDING reasonable profit
No Inflated Profits.
The people are benefited because they
are not paying profits on inflated capt.
tai. The investors are benefited because
the commission has all the facts need
ed on which to point the way to higher
efficiency at reduced costs, and all the
facts required to prevent a reduction Of
rates below fair profit on the capital
honestly invested. More than this
The money invested in the public util-
tiles in Wisconsin is safeguarded to the
investor by wise provision in our law
which prohibits the building of new
lines. gas, water, and electric plants,
where the State or the community is
amply served.
The general business conditions in