The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-14
mitchell PROPOSES
CITY SERVICE BOARD
Tells Conference of Mayors
state Commission Lacks
.Aggressivcness.
LOCAL NEEDS NEGLECTED.

, PHILADELPHIA. Nov. 1s.-"Public own
ership no longer is a creed or IA propa.
ganda directed against an intrenched
ana irresponsible policy public be
damned utility companies. but II IL n
reserve power of which the cities are
4 conscious to he called on IN case private
management fails to meet the standards
d Of service which contemporary public opin-
/ ion demands" declared Mayor John pur-
1 roy Mitchell OF New York before to-
nights session OF the conference Of
4 Mayors here.
The New York Mayor characterized the
| conference a. clearing house of infor-
nation for cities in the handling of the
= public utility problem and declared that
| New York has long felt the necessity for
acquiring such Information In It's dealing
, with the complex public corporation sys-
TEN.
Speaking Of the New York state Pub.
lie Service Commission. Mayor Mitchell
said
"Tne Public Service Commission has
+ been a great benefit to New York city,
but some OF ny have felt at times that II
lacks In aggressdvencss that Il IL In
sufficiently constructive that IL speaks
not SO much OF the spirit and purpose OF
the community az IL does OF the mnnda- b
| tory laws that created H. We do not
feel that Il II close enough IN touch with
public thought For this reason ! have
| thought of u plan TO establish Il local
commission which will be responsible tn
the people OF the city which Will spean
the voice and interest OF the people OF the
locality and be ai!w, to the demand ana
| necessity OF the community It is estab-
| lished 10 serve"
Neither state or local regulation are thu
best methods for the control OF utilities,
according 20 Milo r. Maltbie Of the Pub
IL. N,.t he "A
trict of New York.
/ Mr. Maltble advocated u middle ground.
which would include both forms of con-
troll. The best plan for regulation. he
said. is one IN which local authorities
would continue 20 exercise the control
now vested In them 10y statutes and city
charters. but TO provide thar In case OF
conflict between different local reEula
ltiNns. OF between losI. and State sesu-
lIatons IN" action of 5nc State regulatory
body should be controlling
Reciprocity between tho giant utility
corporations of the country and the mu-
inequalities OF many Commonwealths, from
Maine to California ana from Canada 10
Mexico, In a Humanitarian effort to get
justice for both the corporate Interests
and the people In the matter Of ultilitariau
iuecessities of modern life doomed high az
Ia keynote OF common Sldeayor AZ IN,
lccnfereucc earlier in the day.
Prominent among the leaders OF munich
pal reform were Louis Brande!s Of Boston
who declared water stock corporations and
| INTERPRETING directorates should b" abol'
ished because they obscure truth and eff
lclency Mayor Carter Harrison Of Chicago
vino told how Chicago had obtained practi.
cable results through the application OF
public ownership Edward Bemis OF Chi
cago and stiles Jones Of Minneapolis. VIII,
also advocated municipal ownership.
Bg business projected into the meeting
the contention that IN all regulation al
corporations and business concerns privat,
capital righ,fuly earned 10 deserving
fair return In profit Nathaniel Gucrnse,
Of New York general counsel for tn,
American Telephone and Telegraph Com
pany, struck tina note when he argued
that regulation costs money and the bur
den falls upon the people. He favor",
state control. but cautioned that regula
tiuns must at all hazards he IN the handi
OF men who are free o' outside eutau
clements
Taking up ,nterlocking dirsctorates Mr.
Brandeis asserted that no man could give
his attention to many concerns and have
a definite knowledge OF each
1T is obvious" he said. that in any
) trade there should be two sides. Men
should deal with each ether at arms
length to get the best prices and Re,
, suits through the operation Of more than
: one mind. The only return for the exist
ence OF a director is not merely TO manage
= property but to give fair and intelligent
advice and criticism of an enterprise
I'm dealing with public service corpor,
ations we must gee to II that there a.
not arise conditions where the power nj
men on one side Is so great that the con
scientious judgment or actions OF thos'
dealing with those hig problems is pre-
. vented from being clear and right.
"One OF the greatest objections to inter
locking directorates Is that they have ere
ated II financial power 80 great that ever
men whom We have regarded as the hes
in morals have found themselves innu
, enced by a great wall Of power"
Delos T. Wilcox, franchise expert o
New York. said Public utility invest
0 rnents should be placed upon non-spe"u
Y llative basis and their security shoul,
r approximate that of municipal bonds. Il
r the establishment OF the non-speculativ
y. character ~ these investments ctle
V should not undertake TO make good pas
), losses"