The Oskaloosa herald., 1913-02-27
PUBLIC UTILITY
TO Be STUDIED
MEMBERS TAKE PRINTED COPY
TO SHOW FOLKS AT HOME.
SQUEESe WATER OUT OF STOCK
The Proposed Measure Contains Fifty
Seven Printed Pages and Attempts
to Cover Everything Privately
or Municipality Owned.

Des Moines, Feb. 2G.-The proposed
Public Utility measure, fifty-seven
printed pages, reached the legislature
today and members are taking copies
home with them during the five days
vacation to study the provisions and
consult the folks at home" as to
their opinions in the matter.
The bill makes a stern demand for
putting public utilities, both munich
pal and privately owned upon a solid
business basis. 1t provides for ply
! steal valuation of all plants and the
charging of rates sufficient to create
a sinking fund to meet depreciation.
1t throws up safeguards against over
capitalization and provides thumb
screws to squeeze every bit of water
out of the utility organizations. 1t
provides the commission shall have
strict guard over the issuance of capt.
tai stock, and holds down the rule
pretty tightly as to the issuance of any
bonds except for actual necessities.
IL any bonds are issued that may not
be charged to capital stock it is pro-
vided a sinking fund must be created,
into which It shall make pay annually
from its net income such a sum as
shall make the total amount of the
sum to pay the bonds at their matur-
ity. 1t is plainly provided:
mo public utility shall hereafter
Issue any stocks, certificates of
stocks, bonds, notes or other evidence
OF Indebtedness, except such as are is
sued for money only and payable with
In one year from date thereof, until
it shall have first obtained authority
for such issue from the commission
as herein provided.
with its application to the COM
mission for a certificate of authority
for such issue, the public utility shall
file with the commission a statement
verified by its president or yice-presi-
dent and its secretary under the cor
poral seal, setting forth the amount
and character of stocks, certificate OF
stocks, bonds, notes or other eviden-
ces OF Indebtedness proposed to be is
sued; the purpose or purposes for
which. theysare to be issued, and Il Tor.
property or labor or other considera-
ton than money, q description in de-
tail and the estimated value of such
property or labor or o,.er considera.
ton; the total assets and liabilities of
the public utility. and statement of
it's previous financial operations and
business, in such detail as the COM
mission may require
This Is considered by the sub-com-
mittee that drafted the bill one of the
chief provisions of the measure. 1t Is
designed to keep out ali fictitious val
ues Irom the corporation and to keep
the capital stock down as near as
possible to actual cash value upon
which to base the question of rates
and proper returns for investment.
The following safeguard, however,
is given present stockholders:
Nothing herein contained shall be
construed to prevent the holding OF
capital stock heretofore lawfully &C.
quired, or to prevent, upon surrender
or exchange of said stock, pursuant to
a consolidation or reorganization plan,
the purchase, acquisition, taking or
holding Of proportionate amount Of
stock of any consolidated corporation
or of new corporation organized to
take over on foreclosure or other sale
of property Of any public utility whose
stock has thus been surrendered or
exchanged"
esting phases OF the proposed new
measure. 1t refers to those holding
stock or who may in the future hold
stock. Other phases of interest are
the relations of the municipality, the
control by the commission of rates
the supervision of transmission, etc.