The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-03-05
PUBLIC UTILITIES
MEASURE SIGNED
Governor Expected to An
nounce Members of Com
mission Soon.
TAKES EFFECT MAY
New Law Abolishes the Rail
road Commission-What
Is Included.
(National News Association)


work of the present state administra
ton, the Public Service Commission
bill, a prize package of legislation
turned out by the sixty-eighth session
of the Indiana General Assembly, was
formally approved yesterday afternoon
by Governor Ralston. The bill was
signed just before 4 o'clock in the
presence of Senator Curtis, president
pro tenn. of the Senate; Senator Shive
ly, Representative w. w Spencer
House floor leader and co-author, with
Shively, of the public utilities bill, and
John A. Lapp. legislative reference IL
brarian, who has had a large hand in
shaping the law.
Appointments Are Awaited.
1t Is now understood that Governor
Ralston will be ready in few days
to announce the names of the men he
proposes to appoint as public service
commissioners. The commissioners
will not be appointed in fact or or
ganized until after May 1, 1918. 1t is
said, however, that Governor Ralston
will try to get the appointments off his
hands without much delay. 1t is pre-
dicted that something definite will be
known within week as to the make
up of the new commission.
Governor Ralston is to appoint two
new members Of the Public Service
Commission, and the three members
Of the Indiana Railroad Commission
are, by the new law. made public SER
vice commissioners. The law declares
that it is the legislative intention to
substitute the Public Service Commits
sion for the Railroad Commission
While the new law abolishes the
Railroad Commission, it confers the
powers Of the Railroad Commission
upon the new commission and specific
ally takes over the railroad commits
sioners to serve as public service COM
missioners until their present terms
expire and carefully sets out that the
powers of the Railroad Commission
continue in the new body
Defines Public Utilities.
The new law defines public utilities
to include street railways, interurban
railways, telegraph and telephone COM
panies, heat, light, water or power
companies and elevator and ware
house companies. Steam railroads are
not called public utilities" under the
law, but are continued under the rail-
road commission law which is given
to the new public service commission
to enforce after May 1.
The new law is based on the prin-
ciple that public service corporations
are neither public nor private, but
quasi-public; that these corporations
have receaved rights and privileges
from the public and owe certain duties
to the public. Regulation is taken to
be the right and duty of the people,
acting through governmental agencies.
The law is declared by it's friends to
be entitled to first place among the
laws enacted in the United States 1t
is one among two or three laws to pro-
vide for an indeterminate permit, for a
utility corporation depreciation fund,
adequately for the control of stock and
bond issues by public utilities. and for
the future taking over of utilities by
municipalities.
Follows Wisconsin Law.
The Indiana law follows the Wiscon-
sin law in many ways and also par
takes of the New York law.
1nterurban lines, which in part are
regulated by the Railroad Commission
law, are defined as public utilities I'M
der the new law. In the important
matter of valuation it is provided by
the new law that where interurban
lines are physically valued by the In
terstate Commerce Commission, the
Public Service Commission may &C
cept the physical valuation made by
the Interstate Commerce Commission.
in addition it is provided that in valu-
'as one of the elements in such val
uation shall give weight to the
reasonable cost of bring the property
to It's then state of efficiency"
Laws Differ On Point
1t has been the custom in Wisconsin
for the commission to give weight to
going value. cost Of building I'D the
concern, good will and other Intangible
elements of value. The Wisconsin law
does not specify that such elements
shall enter into the situation. The In
diana law is not specific as to all
points considered by the Wisconsin
commission.
One big point in the law is that it
provides for a valuation of utilities
properties. The law says the commits
sion shall value" the utilities. Valua-
ton shall be one of the things on
which the commission shall base rates.
charges and tolls in the future when
it comes to regulating the utilities of
Indiana.
The law gives the utility an appeal
from an order of the commission to
any Circuit or Superior Court of the
state and to the Appellate and SUI
preme Courts, giving the Appellate
Court power to determine appeals
transferred from the Supreme Court.
Citizens May Complain.
Ten citizens or any civic body or
council may complain to the Public
Service Commission against the SER
vice. charges. rates, tolls or fares of
any public utility. and the commission
is empowered to alter schedules, after
a proper hearing, and to enforce its
orders. The law provides for the pub
Il