The Washington herald., 1912-02-08

ed that the word unlimited" be insert
er before Temporary use"
Senator Bailey criticised the wording Of
another section. which, he declared. al
most gave authority to street railway
corporations to engage IN other business.
The wording OF the sentence to which the
senator from Texas took exception was
as follows:
Paragraph Objected To.
Every public utility engaged directly
or indirectly in any other business than
that OF the conduct OF a street railway,
or the production, transmission, or fur
nishing OF heat. light, water, or power,
or the conveyance Of telegraph or teIe-
phone messages, shall II required by the
commission keep and render separately
TO the commission in like manner and
form the accounts OF all such other
business, in which cases all provisions
OF this act shall apply with like force
and effect to the books. accounts. papers,
and records OF such other business"
Senator GallinEer declared that IL was
not the intention OF the bill TO make
such authorization as suggested by Sena-
tor Bailey, the section being taken from
the Wisconsin law. He said the Wash
inSton Railway and Electric Company
controls the lighting OF the city, he had
been Informed.
Senator Bailey then intimated that he
had an amendment to offer to prevent
street railway companies from engaging
In other business, whereupon Senator Gal
linger declared that the District code
made It unlawful TO use the funds of a
public service corporation for the control
OF other business. He said he was not
opposed to an amendment prohibiting in
the future any public service CORPORA
tion from engaging in any other busI-
ness. but because he had been Informed
that the Washington Railway and Elec-
trio Company had engaged in the busi-
ness of furnishing light before the adop-
ton of the code. he thought Il well to
leave alone conditions as they exist at
present.
Senator Bailey then expressed his dis
approval OF street railway companies en-
gaging in business enterprises other than
those provided for in their charters. He
said he was not Informed as to the exact
conditions in the District, but believed
that thorough investigation should be
made
Senator CummIns Takes Hand.
Senator GanInger then stated his in
tention OF having the matter looked into.
adding that the matter would work out
satisfactorily in any event under other
sections OF the bill. After this, Senator
Bailey did not press his point.
Senator Cummins got into the discus
sion when the section was reached which
states that THE commission shall pro-
vide for such depreciation in fixing the
rates, tolls, and charges 20 be paid by
the public. All moneys in this fund may
be expended in new constructions, ex-
tensions, or additions TO the property
OF such public utility. or invested, and,
II invested, the income from the invest
ments shall also be carried in the depre-
citation fund"
The Iowa Senator declared that this
provision made II possible for the COM
panies to raise capital through the rates
charged the public. intimatinE that they
might charge up the cost Of extension
in fixing the rates charged the public.
He said that It made Il possible to take
capital from the people to swell the capt
dends and making It a plausible excuse
for raising rates. Senator Gallinger
stated that the provision was identical
with the Wisconsin law. and nothing was |
done in the matter of a change.
Senator Gallinger then offered an
TO take the place OF a para
graph ordered stricken out before the |
bill was called up for a reading. His
was as follows:
1T shall be unlawful for any street |
railroad corporation, gas corporation, |
electrical corporation. telephone corpora |
tlon, telegraph corporation, or other pub |
lie utility corporation, directly or indi- |
rectly. TO acquire the stock Of any other |
unless authorized by exist |
ing law, and every contract. transfer. |
agreement for transfer. or assignment OF
any such stocks or bonds without such |
statutory or written authority shall be |
void and OF no effect"
POmerene's Suggestion.
The amendment will be voted upon when |
the bill again comes up for consideration. |
A striking amendment, which would |
take the burden of responsibility for the |
conduct OF the public utilities cognmis-
sion from the shoulders of the District |
was offered by Senator
Pomerene He suggested that the orig
lnal proposition, which invested the Dis
trict Commissioners with the duties i'm
posed in the act authorizing utilities
be stricken out He offered
as a substitute an amendment providing /
that the utilities commission consist OF
three men. the first to serve for one year,
the second for two years. and the third
for three years, these men to be appoint
ed by the President and to receive q
salary of 5000 a year.
Senator Gallinger Immediately took the
floor and said he hoped the amendment
would not be agreed TO. but that II II
should be, he hoped provision would be
made for an additional working force.
He stated that he would be glad II the
Senator's desiring to offer amendments
would do so as quickly as possible, that
they might be printed and given consid-
Grafton. He declared he did not intend
that the bill should be railroaded
through, as II was his desire that the
measure be made as perfect as pos
sible, and to this end, every change sug-
gested would be given thorough and
careful consideration.
Pomerene Urges Investigation.
Senator Pomerene then offered his sug-
gestion that the passage OF the meas
ure be expedited in every possible man.
ner. saying that there existed a grave
for the appointment Of the
utilities commission, that an investiga-
ion might be made Of the affairs OF the
various street railway companies
In this connection he made special
mention of the Capital Traction Com
Dany, reciting figures to show the~num-
per of miles of track In the District and Ii
he capitalization per mile, which capi-
Ialization he said was excessive. He
Said that the presidents OF the compa-
lies. when before the committee having
he bill in charge, did not tell Of the
cost per mile for operation and install
alton, but that the statement had been
irish the companies. He declared that
lest opportunity to see whether the peo-
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