The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1913-01-14
REGULATION OF RATES

The real importance of the announcement that the Mil
waukee railway is to be electrified over a considerable por-
ton of its line did not lie in the fact that this step is prob
ably the first movement toward the complete substitution of
electric power for steam on the great railway system. I'M
|portant as was this feature of the news, the great signifi-
canoe of the announcement lay in the means by which the
step was made possible.
The application of the power from the Falls of the Mis-
souri, to the operation of the Milwaukee railway system was
made possible through a grant from the department Of the
interior and this grant, in turn, was made possible by the
agreement of the railway company and the power company
to the terms of regulation laid down by the secretary of the
interior.
A Washington newspaper tells us that the agreement was
reached ~amicably; the two companies and the department
found it possible to cooperate cordially and effectively in
working out the terms of a grant SO as to recognize both
public and private interests and rights. The rules and
regulations were agreed upon without difficulty. 1t is
stated that the department wishes to commend particu-
larly the candor and public spirit shown by the representa-
tives of the companies in the negotiations which led to the
issuance of the grant
Herein lies the far-reaching significance Of the permit
which was granted by the interior department to the two
operating companies. 1t has shown that it is possible to
have government regulation of such affairs without work
ing any injury to the concern involved and without impair
ing the rights Of the public. The fact that the company is
willing to accept the fullest provisions for the protection OF
public interests shows that the regulation" bugaboo has
lost its terrors.
The experience of the railways in this matter of regula-
ton was that it was to their advantage, although it had
been resisted to the uttermost as inimical to the welfare OF
the transportation companies. The railway men have
found that they have really been the gamers in the regula-
ton OF rates. ReOatlng allu the ISSUE VI passes oeIh
stopped and the thousands Of dollars thus saved to the
companies more than compensate for the curtailment fol-
lowing regulated rates.
In the agreement which led to the issue of the permit to
the Milwaukee company and to the Great Fails power con-
Germ, there is mutual recognition OF rights. me depart
ment reserves the right to inspect the rates of service;
there is provision for the inspection by the government OF
all the books Of the company; the sale OF power to the
United States, to the state of Montana and to mun1c1pal1-
ties in the state, must be at as low a rate as is made to the
railway company; there is no transfer permitted OF the
grant; the company is forbidden to claim any earning value
for the permit. On it's part, the company has the right to
protest in the courts any rate which the government tixes,
if it is regarded as unreasonable.
Here is a practical instance of rate regulation. 1t has
been worked out by practical business men. They have
found it to their advantage to recognize the rights OF the
public. The public, through the government, gives fll
recognition to the rights of the corporation. Big business
has nothing to fear from the public if Big Business recog-
nizes the pubic's rights and obeys the law. The regulation
of Big Business is the safe and sane solution of the trust
problem.