The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-11-15
Regulation Of Public Utilities
Exclusively by the State
Is Condemned in Report Of
Committee on Franchises.
NATIONAL MUNICIPAL LEA6UE
Meets in Tenth Annual COnven.
ton at Toronto, Canada.
Indeterminate Franchises Are
Urged by the Committee.

Urged by the Committee.
Toronto, Nov. 15.-Regulation OF
street railways. telephones. electric and
gas plants exclusively by the state was
condemned in a report submitted to the
Nineteenth annual meeting OF the ma
tional Municipal League today by the
committee on franchises. The report,
submitted by the chairman, DR.. Delos
r. Wilcox of New York city. dealt with
the relation Of municipal home rule to
the control of public utilities.
The committee pointed out that pub
lie utilities are primarily urban IN
character and that. on general prlncl-
pies. the control of public functions
should be localized as much as possible,
in order to secure the interest ana CT
fective cooperation of citizens. More
over, as a practical matter, the more
powerful the corporations become ana
the more widespread their services. the
more important it is that they should
be directly answerable to the local
communities which they serve.
cit may easily be possible" said the
report, that an appointive state COM
mission will fall more or less COM
pletely under the domination OF the
powerful interests which control pub
lie utilities of the state. and thus the
very machinery provided for the regu-
lation of utilities be captured by the
interests presumed to be regulated by
1t. 1t may be necessary to array
against the powerful financial interests
of the companies the direct mass In
terest of the local consumers in oroer
to preserve the vitality of the regula-
tory function. Public utility corpora
lions exist to serve the people. not to
control them.
Must Be Cooperation.
However. in most cases. regulation
cannot be either logical or effective
without the active cooperation OF
both state and local authorities. The
jurisdiction of state public service
should be general over
all public utilities, so there will be
no twilight zone within which the
utilities can escape regulation alto
gether; but every ;ity Of enough inn
portance to enjoy home rule in franz
ing it's charter should have the right
to establish a separate bureau, de-
partment or commission for the SUI
pervisi of all utilities operating
within the city limits The city's jur-
isdiction should extend to matters at
the occupation OF the streets,
the quality Of service rendered and
the character of the franchise con-
tract entered into for the purpose Of
ultimate municipal owner
ship. The states Jurisdiction should
extend to matters relating to compe-
tition. stock and bond issues, accounts
and publicity. Rates and extensions
should be under municipal control,
subject to review by the state COM
The city should also have
the right to appear by its local ex-
perts before the state commission in
regard to all matters affecting local
Coming to certain important uues-
tons in connection with franchise
between cities and public
utility companies, the committee took
the ground that a public utility with
In given urban community is nat
ural monopoly and that one of the
first and essential obligations of such
a monopoly is to extend it's services
to meet all the legitimate needs of
the community. Accordingly. the
authorities ought to have
the right to initiate extensions. and
the reasonableness of any particular
should not be determined
solely by the prospective profit from
It's operation as separate unit. but
entire system.
Indeterminate Franchise.
The committee recommended the inde-
terminate franchise with a maximum tim,
limit, OF the principle of the recent trace
lion lion sert a,e franchise granted in Chi
position to me Wisconsin type OF indie
term nate permit was based on the fear
can be terminated only by purchaseNand
purchase means payment Of the full yal,,,,
IN hs cash in ina. lump sum at the time of pur-
municipalization more difficult as time
goes on.
:. The committee favored the idea Of maxi
tu1cr rYftI
selves. even under private operation. by
means or an amortization fund main
tanned out Of earnings. This fund should
franchise and other intangible elements of
capital value. so that the price at which
the actual value Of the physical properly.
The committee urged the Importance Of
. systematic campaign for the recovery
term franchises now outstanding. So long
as the util ties in the heart Of the CITY
continue to be owned and operated under
control Of the development of its Street
railways or other utilities.
The report was signed by Dr. Wilcox. as
Boston: James W, s; Peters. of Kansas
and Charles Richardson and Clinton
Edward w: Bemis; the Chicago public
committee, did not sign the report, but
signed a memorandum in which he ex-
pressed doubt Of the wisdom at the pres
ent time of givfn~ state commissions any
control over capitalization. or over rates
in the larger cities, especially in states
west of New York.
Nest on Sleeps Back.
An extraordinary story of a starling's
nest on a sleeps back comes from
auckland Brewer. near Bideford.
During sheep shearins operations on
Gournwood farm. which is occupied by
Mr.. Cox, one of the shearers cut into a
neshy substance. and examination