Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-11-17
SCORE REGULATION
OF UTILITIES BY
THE STATE

" N"AaAtNAA " N'--NN 49,
demned at Municipal
League Meet.
Tny Lcescd Wire 60 Evening fserald.l
Toronto, Nov. Regulation Of
street railways, telephones, electric
and gas plants exclusively by the state
WAS condemned Ina report submitted
to the nineteenth annual meeting OF
the National Municipal league ny the
committee on franchise. The report,
submitted by the chairman, Or. Delos
r. Wilcox OF New York City dealt
with the relation Of municipal holae
rule to the control % public utilities.
Tho committee polutod out that
public utilities are primarily urban
in character and that. on general
principles. the control Of public func-
lions should be- localized as much as
possible. IN order 90 secure the lntor-
est ana effective cooperation OF cit
liens Moreover, as "a practical mat
ter, tho more powerful the corpora
lions become and the more wide
spread their services, the moro im-
portant a Is that they should be d.
roctly answeruhio 60 the local com
muniiies which they serve.
III may easily be possible said the
report. chat an appolntivc state COM
mission Will fall moro or less COM
pletoiy under the domination of tho
powerful interests which control the
pubic utilities OF the state, and thus
tho very machinery provided for the
regulation of utilities be captured Dy
the Interests presumed 90 be- regulated
by g. II may he necessary 10 array
against the powerful financial inter
csts of the companies the direct mass
interest OF tho local consumers In
order Co preserve tho vitality uf the
regulatory function Public utility
corporations exist 90 serve the people,
not ,o control them.
However, in most eases regulation
cannot Dee either .ugica, or effective
without the active cooperation ot
both state and local authorities. The
Jurisdiction 81 state public service
commissions should be general over
all public utilities. so that there VIII
no no twilight zone within which tho
utilities can escape regulation alto
pother. but every city of enough inn
portanco Go enjoy home rule in franz
ing its charter should have the right
10 establish separate bureau, dee
partmcnt or commission FOR che sue
pcrVision of AN utilities operating
within the city limits The city's jur-
sdctiun should extend to matters Of
fcctng the occupation of the streets
the quality Of service rendered and
the character Of the franchise con-
tract entered into for the purpose of
| facilitating ultimate municipal own
crship. The states jurisdiction should
extend 10 matters relating to cOmpc'
tltion. stock and bond issues, acc
counts and publicity Rates ana exc
tensions should be under municipal
/ control subject Co review hy the stat,
commission. The city should also
have the right to- appear hy is Local
experts before the state commission
in regard Go all matters affecting Dos
cal interests
Coming Co certain important ques'
tions ln connection with innch.s,
contracts between cities and public
utility compauies the committee iuof
the ground that "a public utility "ith'
/ in "a given urban community Dos nat
ural monopoly ana l1at one oi the
nrst ana essential ohlisations Of s1r'
ID monopoly BIS Geo oXtcud lbs service.
To meet AIN the legitimate needs of
the community Accordingly the
municipal authorities ought Co have
the right % initiate extensions. and th,
reasunahlencss OF any particular Csc
tension should not bee determined SOLELY
hy the prospective proht from its op-
| Grafton as separate unit but 1y it
oncct upon the profits Of the entire
system.
The committee recommended the
Iudctcrmin1te franchise with a. max
mum time limit, ou the principle oI
tho recent tradition settlement irln-
chises granted in Chicago. Cleveland
and Sew York city. Opposition Ga
| the Wisconsin type OF indcl'rmin'l'
| permit WIS based on the fear That 81
tends 90 become perpetual ns il ear
| ho terminated only Pos purchHs"-tu'
purchase means payment of tn" iuI
/ value in cash in lump sum zoo tn'
| time of purchase This. 10 Was said
| tends 90 make manipulation more
| difficult as tsuc goes un
The committee favored tho idco o'
/ making utilities commence o." pay i"I
] themselves oven uuurr private np'I
| alton. by mems of an amortization
! fund maintained out of earning
This fund should bc large cnoueh o
| loaat 90 wipe out all franchise un'
| other Intangible elements of capita
| value. $50 that the price at which the
| city can buy wil Doe kept wril Within
the actual value or tho physical prop
| trtv
Tho committee urged the import
! ancc of "a systematic campaign for the
| recovery of control over tho ucrprtm
! ana iong-torm franchises now out
| standing. So long us the utilities Dol