The Hawaiian gazette., 1913-03-21

VIII ANNNtlH fNlNNiIN NNNfIHHfNlH.
There V nothing 10 prevent The pfes
rnt passage Of a Law prohibiting SECRECY
and compelling publicity
Power and Duty 70 investigate.
Another factor, largely contributing
tn abuse Of powers by utility corpofa.
lions b. that thcfc is now no particular
person ut body ~ persons charged with
ihr duty of investigating the status and
operations OF public utilities "What
is cvcrybody's business o. nohody's
husiucss
Lot commission hc appointed. with
not only the power but the duty TO in.
Vcstigatc. on .ts own motion or on com.
plaiat the statns. physical financial
and legal OF each public utility CORPORA.
tion operating in the Territoryg public.
iv investigate any charges made and
publish their findings.
There is nothing ~ prevent this be
ing done now; aud, If proper com
mission is appointed. "a fund of infor
nation will have been accumulated
which will So clarity the present uneer!
tain and muddlcd conditions, as TO en-
able intelligent action TO be taken
without danger of starting ain avail
anchc of dispute, litigation and uncer.
tainty. rs win certainly he the ease
NJ either of the pending bills is passed
m their present form.
Power and Duty to Recommend Rates
and Remedies.
A third factor of Importance is that
no special authority is now charged with
seeking and recommending remedy
for abuses, acknowledged or discovered.
II responsible commission is not only
authorized to investigate and publish
The rates and practices of utility cor
porations, but is also charged with the
duty of making recommendations of
what changes, in their Judgment, should
be made in rates, conditions or regula-
tions, and empowered to advise corpora
lions rs to what, in the opinion of the
commission, equity and justice requires;
and is further empowered to publish the
results of such Investigations, with the
recommendations made, IN the great
majority of eases, such advice and sug-
gestion would be sufficient to accom-.
plish the desired result, even though
there is no local authority to enforce
the same.
A Massachusetts Precedent.
from Mr.. Thelen s report on public uti-
lities. When he visited the Massa-
chusetts Utilities Commission in 1911,
no power had been granted to the com.
mission to fix rates. He reports, how
ever, that "the commissioners state
that although they did not have power
to fix a rate they accomplish practical
| ly the same purpose through their power
| 70 aud T.
from his report that the Massachusetts,
commission has no control over repairs
or additions to plant or method of
operations, but is gwen power to max o
recommendations concerning the same,
with apparently satisfactory results.
| A New York Precedent.
The value of the power of recon-
mendation Is also recognized in New
York, where the board is not given
power to fix rates, or order conven.
fences and such, but only to recommend
| them.
A Wisconsin Precedent.
Again, Mr.. Thelen reports that in
Wisconsin, "marked improvements in
the telephone service" have resulted
from inspectors simply going into n
/ town, calling up certain number of
phones and noting the time which ex-
pires before central answers; the time
before the party at the other end an
swers and the frequency of "busy" aud
"don't answer" replies. "The inspec-
tors also while travelling, fill out reports
as to the service on the railroads over
which they are travelling which
are then sent to the railroads affected. -
National Commission Report.
Again, the national commission, ap.
pointed by President Taft, to report
upon whether the issue of stock and
bonds by utility corporations should be
placed under control of commission
reported, after years investigation
and study, that they did not so recon.
mend. The commission, headea by
Arthur Il. Hadley, president of Yale
University, said in discussing the pro.
priety of federal law requiring full
payment of all stock issues:
"Apart from the constitutional diff.
fculties which might stand in the way
of such a procedure, your commission
us of opinion that, as a mere matter
of expediency, the time is not ripe fol
any such immediate or forcible transfer
of jurisdiction. The local needs of diff.
ferent parts of the country are still
divergent. Many railroad problems
both of operation and of control, are
still in the experimental stage. En-.
forced uniformity under federal law
would, in the opinion of many, dis.
criminate against the development OF
new territory, and the formation of in.
dependent companies; for a we'll es.
tablished system has less difficulty in
securing the necessary capital by piedg.
ing its credit than an Independent pro.
jector wishing to develop a new dis.
trict..
"In place Of any added fed.
eral requirements concerning payment
for capital stock, your commission rec.
ommends the adoption Of provisions re-
gardhng publicity, which will show the
actual facts regarding stock and bond
Issues in the several States and the
consideration received therefor.
1.-TWO courses lie open before us: M
Either to require the express sanction
of some administrative body before
such securities are issued; or (2) to
rely on general statutory provisions un.
der which the directors may issue such
securities and be held responsible for
their proper use.
- Your commission prefers the second