The labor world., 1913-08-09
N { I. ! I Want
UTILITIES LAWS
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sent no tangible, value, Of course 1t
was nice for the commission. to de-
plore the outrageous watering OF lts
securities by the Baltimore company,
but such depreciation has no practical
value to the Baltimore public. (
The Baltimore company has, aD-
sorbed a score Of other companies,
each combination giving opportunity
for, additional capitalization. The
commission reports that at the first
consolidation $1,SO0,OO0 was added
and that the securities exceeded tho
investment by $3,523,0OO Of "a per
cent. The three following consolida-
t1ons Increased this excess to $780,
900. ~ $500. =. ,.-'-.. .>.,~ >,- =. .'. =.
The commission sustained the con-
tention OF the company that its ease
ment was real property, that it was an
asset and might be capitalized. An
easement is equivalent to a franchise
permit to occupy a public street. In
other words, the Maryland commits
sion endorsed the principal Of capt.
talization Of franchises. :.
Old Bond Issues Upheld.
The Maryland commission law pro-
vided that bonds issued previous to
it's existence should not be disturbed.
The company has outstanding $685.
5000 of bonds and $14,160,0S8 of
stock, a total of $34,51S,OSS capitali-
zation, for the combined gas and elec.
trio plant. The commission depre-
Gated the fact of over-capitalization.
but it refused to impose on the COM
pany penalty for what their prece-
cessors we're responsible for. declar-
ing that such a course would seri-
ously impair its ability to meet the
just demands of the community for
service"
The commission contended that, in
applying remedies we must keep in
mind not only the conditions which
We are striving to correct, but also,
as far as our foresight permits. the
consequences that might fall from thA
remedies themselves
The Gas Age" official organ o.
the gas interests, In reporting this de-
cision declares, that it is very sane
way of looking at the matter.
It should be explained that the
Maryland commission in allowing
easement valuation follows the de-
cision Of the court of appeals, which
declared that the company's ease
ment was real property assessed at
$5,000,000, and SO taxed.
New York Sorry Too.
The attitude of the public service
companies toward state commission
rule is we'll illustrated by an editorial
in the Gas Age, published in New
York city, the official organ Of the gas
! companies in the United States.
The Gas Age was commenting on
| tho disposition Of the New York: leg
| islature to go over the heads of the
public service commission to give the
public some relief from alleged pub
lie service commissions to give the
public some relief from alleged pub
| lie service expressions, among other
bills passed being one to regulate
| railway fares in New York city, fixing
! the price of gas in Brooklyn and fix
| ing telegraph rates in Greater New
York and Syracuse.
| The Gas Age said that-"The
! function of the public service com
missions is to stand between the peo-
! pie, or their representatives. and the
! corportions serving them" 1t: COM
! plains that the legislature wields the
big stick on the corporations in re-
! sponse to a supposed prevalent serti-
! ment of constituents This is a: bad
thing, the Gas Age insists. as the leg
| islature can have no knowledge OF
| the real merits of the proposition
| The commission, it says, docs things
| differently and that is why it costs
SO much money to run It,
! In conclusion. the Gas Age says:
| This studied effort on the part Of
the state legislature to break down
! the public service law and revive ar
! bitrary rate reductions Is dangerou.
| and should be. resisted. Governor
Sulzer should be importuned to veto
any such; bill on the grounds that the
! matter is properly and adequately
| taken care Of now by state officials.
| THE SIX YEARS OF COMMISSION
RULE HAVE LEFT ALL CORPORA
! TIONS AFFECTED IN BETTER
SHAPE THAN THEY EVER WE'RE;
why permit the legislature to 80 back
I to the days of corporation batting and
| expensive lobbying
| hta kaheH