Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-09
WANTLAW TOBEFA|R
Senators Engaged in Perfect
ing Public Utilities Bill.
HOPE FOR MODEL MEASURE
Interstate Commerce Commissioner
to Make Suggestions.
PROVISIONS UNDER DEBATE
Senator Works Modifes Oldfeld
Bill as Substitute for That
of Senator Gallinger.
HOPE FOR MODEL MEASURE.
PROVISIONS UNDER DEBATE

To make sure that the public utilities
bill to be passed by the Senate will be
sufficient in all respects to carry out the
purpose in view and will he fair
both to the corporations and the public.
Interstate Commerce Commissioner
Franklin X. Lane may be asked to go
over the bill and make suggestions for
any changes he may think are necessary
to improve it.
Several senator's. who have been taking
special interest i'm the public utilities bill
for the District and who think any law
on the subject that may be passed by
Congress will to "a large extent be re
garded as a model have suggested SUCH
course. Senator Pomerene. who has
offered an important amendment to the
bill. and Senator Hoke Smith of Georgia.
who gave il close attention when 1t was
under consideration the other day in the
Senate, are In accord with this plan.
Senator Gallinger, chairman Of the
Senate District committee and author
of the measure now before the Senate
with the committees approval. said to-
day the suggestion had been made To
him and II may be carried out The
senator is known to feel that the bill
was prepared with great care and
after much study on the part Of per-
sons familiar with local conditions.
Substitute by Senator Works.
Senator Works Of California has Of
fered the Oldfeld public utilities bill
modified in some degree, as a substi-
tute for the Gallinger measure, and
he is expected to make a speech urg-
ing it within few days.
The Oldfeld bill was based on the
Gallinger measure and gives the Dis
trict Commissioners the powers OF the
public utilities commission. But many
of its sections are more radical than
the Gallinger measure. and very differ
emit. The Senate bill, for instance.
adopts, in modified form. the Maryland
provision for a valuation of the prop
critics Of the public utilities corpora
ton, while the House bill adopts the
Wisconsin provision. In the Senate
bill the commission is to find the fair
value" and in the substitute TIE COM
mission is to find the fair value. in
vestment cost and cost of production.
The regulations for the issue Of stocks
and bonds are different in the two bills.
and the substitute follows the stringent
and radical provisions of the Wisconsin
law. There Is a paragraph in the sub
stitute. too. that provides for universal
transfers. That is omitted from the Gal
linger bill. because the Senate has passed
a separate measure for that purpose
Use of Tracks and Equipment.
linger bill and the substitute as regards
the use of the tracks and other similar
equipment Of one company by another.
the Gallinger bill allowing unlimited teu:-
porary use and permanent use Tor only
$500 feet; the substitute fixes no limit.
One section Of the substitute has no
80 to-, 1nyl ~ a.
regarded as a unique provision i'm such
legislation. That section specifies:
THAT II shall be the duty of the cohi-
mission in fixing and determining rates.
in directing extensions and improvements.
and in general when making requirements
under the provisions OF this act that in
volve expenditures by or lessen the re-
ceipts of public utilities, and notwith-
standing any other Of the provisions OF
this act, having in mind the public inter
est. to require the utmost of the public
utility that will not trench upon rs con-
stitutional right to earn a fair net return
upon the fair value of its property used
for the convenience Of the public
The provisions Of the Gallinger bill and
of the Oldfield bill, which the Works
substitute follows closely. as regards
depreciation account and the uses to
which it can be put, were practically the
same. Senator Cummins criticised that
feature of the Gallinger bill on the floor
of the Senate the other day. and Senator
Works has modified the Oldfield bill, in
framing his substitute, in an effort to
meet the objections of Senator Cummins.
Provision for New Construction.
Both the Gallinger and the Oldfield bills
provide that the depreciation account may
be expended Tin new constructions, ex-
tensions or additions to the property OF
the public utilities. But Mr. Works pro-
poses that this shall be changed so that
the depreciation fund may be used lin
keeping the property Of such public util-
tiles in repair and good and serviceable
condition for the use to which it is de-
voted"
In the Oldfield bill the commission was
given power. when il found rates or
charges to be unjust or discriminatory
otherwise in violation Of the act, to fix
rates or charges that would be "just."
Senator Works proposes that the rates
shall be lust and reasonable
Senator Works strikes from the Oldfield
bill, in his substitute, the specific pro-
vision allowing the commission to employ
special attorneys to aid the commission
as assistants to it's general counsel.
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