The Bridgeport evening farmer., 1912-01-01
MORE BUSINESS FOLLOWED RATES
 MADE CHEAPER
Senator LaFOllette Tells of Elf feet of Rate Regulation
 in Wisconsin
PrOgresSiveS in Ohio Expected to Endorse Senator Though
 PinchOt Opposes
(special from united Press.)

Detroit Jan. 1-The co1dest wave
 of the year, today. failed to cool the
 ardor of the LaFollette boomers when
 the Wisconsin Senator reached Micl1>
 igan for a three days campaign. preaching the doctrines of progressive republicanism. LaFollette speaks, to
 night, at Bay City.
 The progressive leader was greatly
 elated, when he left here, early this morning for Flint. Promises of 8
 big reception in this state and recol- lections of the monster crowds that had greeted him in President Taft's
 Senator, too, today. entered the 31st year of his married Hfe,e celebrating
 the event by. sending a lengthy tele> gram to Mrs. LaFollette.
 Senator LaFDllette, who arrived here from Cincinnati, last night, was
 met by large reception committee. He spent the night here but made no address.
 of 100 prominent citizens of Flint ar rived to escort the progressive leader to that city. The comnittee promised him a great crowd of common peo- ple'' for his audience here.
 LaFollette begins his campaign in in this state handicapped, physically His throat is. badly A swollen and his his my hand off in Cincinnati, Saturday night he said.
 Before leaving here, Senator LaFol- lette arranged to receive the returns from the progressives convention in Columbus, O., today, where the inde- pendent members of the party met to organize. John D. Fackler. of Cleve- land, secretary of the Ohio Progress sive League; is leading the LaFollette forces in the convention. It is not believed there will be any endorse ment of LaFoIlette, the Senator ask n I7ig friends Y-nfV-Q In fr-nrn taking that action at this time.
 LaFollette's friends. who have fol- lowed him through Ohio. declare the tide in the Badger State has turned
 Speaking at Flint. Senator LaFol- lette, said: of Wisconsin under State control we proceeded to extend the control of the Railroad Commission over all the oth- CT public utilities in the Common until 1907, and 1t was not until 1909 that the Commission was able to es- tabIish over it's public utilities a reli- able system of accounting.
 Let us see now whether through going regulation of these public utili-a ties resulted in injury to the success full conduct of their business. For the year 1910 compared with 1909, notwith-| standing reductions in rates and inn proYenent in services, the water utfl- ities increased their net earnings 10.5s per cent. the IG1GpnOQGa uIll1L1GS 5.S per cent; the gas utilities 7.7 per cent;s and electric utilities 27-5 per cent These utilities have even exceeded the railroads in the rate at which they have made cash investments in new construction.
 While the increase in railroad con struction has averaged 2-5 per cent a year for six years, the water utilities in 1910 increased their new construc- tion of property per cent over 1909; the telephone utilities 4.9 per cent; the gas utilities Is per cent; and electric utilities 35.5 per cent. Wis consin certainly is not driving capi-' tai out of the State when the electric utilities in the single year of 1910. State, made bona fide new invest ments of 35 per cent greater than 1909.
 All of this remarkable development has gone steadily forward notwith- reduced the rates charged in the State by public utilities, $250.o0O a year, and has required improvements in the quality of the service, costing these saving to the consumer of gas, wa ter and electricity of $315.O0o a year. And this is bNt the beginning. With all of the work involved in superviS- ing and regulating railroads and pub lie utilities, it has not been possible for the Commission, moving. with its more than establish it's control over the public utilities, and deal with conparatfvely few of the many cases which will be reached within the next few years.
 A single example will show the methods and results attained by the Commission in it's control of public utilities In April, 1910. following two Railroad Commission, after improving the quality of service, reduced the maximum price of electricity in the city of Madison from 16 to If cents per kilowat hour, and adjusted the other rates on a lower basis. The1 result was that the sales of electricity increased Is per cent; the net earnings increased 24 percent; the company increased it's investment 2 per cent; and the saving to the consumers, com pairing the new rates with the old rates, was $1S,30S a, year.
 In July. 1911, fifteen months later. after such an increase in profits fol lowing the reduction of rates, the company accepted without protest made a reduction from Is Co F cents per kiIowat hour, Or a reduction of 25 per cent in rates to consumers No additional investigation was neces- sary because the books of the com pany had been kept as prescribed by showing every item of expense, income and investment
 Thus the State Commission is dem onstra ting the value of it's supervision ard control, not only to the public, but to the business of the corporation, nciency. and substantial economies are achieved. It is the old story, uli- regulated monopoly, free to exact profits at will has no necessity to con slider the public interest, and, no fn- centive to adopt progressive business methods.
 Wisconsin is teaching the lesson that both the people and the investors in public utilities may be benefited by our system of regulation. This is so, l simply because the regulation is thor
 e-sra Dot fTr-.a.a a Commission ascer tains through it's en- 1 gineers, accountants. stattsticians and other experts. exactly what it costs to build and operate the roads and 1 other public utilities. Watered stock