Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1913-09-10
mission made a thorough investigation


and ordered reduction to SOC net to
take effect July 1st. This rate, for a
city the size of Baltimore, with it's gas
output and it's location on t1dewater and
railway connections with gas coal fields,
is not comparable to that enjoyed by
other cities located less advantageous
ly and which have secured rate con-
cessions on their gas. The most inter-
estfng part of the commissions report
in the Baltimore case, however, does not
deal with the rate question, but with
the fundamental things Of valuation,
securities, etc. The commission accept
ed the company's own appraisal, in
Guiding a large amount of watered
stock. It also recognized the necessity
for consolidation. This Baltimore COM
pany has absorbed score of other
companies, each combination giving OPP
portunity for watering the stock. The
commission reports that at the first
consolidation $1,3OO,00O Of water was
added; and that the securities exceeded
the investments by $s,5o0,Oo0. In the
three following consultations $780,
600 Of water was added to the stock Of
this company. This was allowed by
.
the plant and the rates to be charged
for service fixed accordingly. "rhe Gas
Age,' in reporting the findings Of the
Maryland commission in this regard,
declares that it is very sane way of
looking at the matter. ~ g. . :, =
VALUATION OF WISCONSIN CON-
MISSION.
. In 1910 the Commission in the state
of Wisconsin on complaint by citizens
investigated the rates charged by the
Gas Company of the city of Madison. I
wish to quote from that decision, show
ing the method of valuation Of that
plant by the Wisconsin, Commission.
The quotation can be found on page 500
of Report Of the Commission on this
Hearing: =, II
I'm the preceding discussions of the
valuations Of the plants involved, con-
sideration has thus been given to such
factors as their cost Of reproduction,
new, the cost of reproduction new less
depreciation their original cost, book
value and capitalization their gross
earnings. operating expenses and net
earnings; the cost Of building up their
business as shown by the value of the
gas plant when computed on a z " per
cent earning basis by the value Of the
electric plant, when computed on the
per cent earning basis and by the value
of both plants combined when figured
I on an s per cent earning basis. These
| are among the more important factors
which are usually considered by the
curtis in passing upon such appraisals
They accordingly fix the value of the
Madison Gas Plant at $4,000 and cleo
trio plant at $685., 0O0." 49,
You will notice that the facts. con
sidered by the Wisconsin Commission
run counter to the decision of the Su
preme Court Of the United States in tn,
! famous Minnesota rate cases. 1t ha.
been generally supposed that the Judge.
Of the Supreme Court Of the Unite,
States were more or less reactionary
but when compared with the commits
i sioners Of Wisconsin, supposed to re
present a progressive administration
the Supreme Court Of the United State
z stand forth as radical progressives
3 while the Railway Commissioners 0
Wisconsin as dyed-in-the-wool reaction
ers. . tsj +. % 5s. @s },# fs&
When I say that the Public Utilitie
Commission Of Wisconsin is inefficient
:, and this must be conceded by every. fai
5. student Of the question, we must re
member that it has existed under tn
most favorable circumstances. It ha
t grown up in an atmosphere Of progress
, sive politics, such as has not been see
!, in any other state, The administrator
that appointed it has been looked upo
! as in the front line Of the progressive
) In addition to this, Wisconsin has on
!. Of the most complete and thorough civ
:. service laws Of any state in the Unio1
+ II, as I have shown you, this is so j
= Wisconsin,. what would it become If v
!. should lift it and tack It on to the mo.
!, pernicious political machine admin.
tration OF any. state in the Union?
! Ladies and Gentlemen: The propos
{ ton is SO rank that the odor is percel
tible even to those who have paid lit
attention to his question. It is the Gu
' mination Of the control, under which u
e have been living in the state Of Mimi
s sofa for the last half century. An a
8 tempt is being made to place upon Il
& people Of this state political shack,
Il that 1T will take lit tie less than a rev
q luton to break. Shall the civic life /,
Q our big cities be quenched 3 Shall =
e have g terri orial government In Mi
81 neapolis, st. Paul, Duluth and all OF e
], lsother towns of the stat OF Minnesot,
flsWhiles the big cities have done the
q share and perhaps more to corrupt pa
~ tiles Nv ct, as Freder1 How saw s:sT]