The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-02-20
RUSSELL URGES PUBLIC
UTILITIES COMMISSION

Little Falls, Mimi, Feb. .19.-Atty.
Charles A. Russell, of Brainerd, ad-
dressed the commercial club Of Little
Falls at their annual banquet, using
Public Utilities as his topic. In the
course Of his address he said: Public
utilities are commercial, not political.
The fact that a franchise Is not self
enforcing and that, naturally, provis-
ions regulating the furnishing OF mum
tcipa public utility service are not self
effectinE Is ample justification for pub
lie commissions involving, as such
business does, the most technical and
intricate matters of business admins
tratlon. Sue a commission composed
as it must be Of trained business and
professional experts along this particu-
lar line not only forms the best and
most efficient method for regulating
the business. but, by separating it from
other municipal affairs and political
considerations, relieves it of the great
est practical objections and failures,
which now too often attend the admin
istration of such technical. business
matters by the ordinary municipal off,
GER.
"Such a commission should, be APP
pointed and not elected, because under
an elective commission it is the politi-
clans who attempt intricate and tech
nical administrations, and owing to the
A0SS &ii"k 4AS 40 ANt q LII =
time Of service he cannot become an
expert on the subject.
There should be no. competition in
the service Of public utilities, because
competition2requires the public to pay
a rate for such service as will neces-
sarilyJ. support a. duplication of equip
ment and plant. State regulations re-
move the necessity for competition
eral public from the expense; of carry
ing the.load. Of double equipment.
THAT state regulation of public
utilities Is a natural monopoly is abso-
reason that if the public can, control
the service n rates, then there is no
need for protection to a company for q
certain given period. If the public serv-
Ice company fails to render the service
and comply with the rates and rules
laid down by the commission, then
their franchise becomes void, and it
ought to be made void. Who is there
living today that could draft a fran
chise for a public utility that will fit
into the business conditions and the
physical situation Of a city thirty years
from today. 1t is impossible for any
living man to so construct and draft
such a franchise. Under state con
troll and regulation the utilities would
be required to meet the changed condi-
tions from time to time and all diff
Guilty with reference to service and
changed conditions. Public utility
claim that they must have a
for the purpose of making
their bonds q saleable commodity, but
1t is absolutely true that the bonds OF
public utilities of Wisconsin issued
no franchise Is given are selling
today at par throughout the bond mar
kets Of the country. State control and
means that the utilities
must have such a rate as will return a
fair rate on the investment, and in
in such bonds now that by
state regulation and control such re-
turn Of rate is practically guaranteed.
1.-THE abuse Of municipal regulation Is
SO plain, when conditions are examin-
ed, as to make it absolutely imperative
there should be some law, some
equipped with experts and en-
to assist municipalities in regu-
lating their own utilities" Mr.. Russell
out a great man. abuses
throughout the state in municipality
managed plants n stated that no
plant in the state was run
on such a basis as would commend the
attention of not only a public. utility
commission but good, live business men.
Mr.. Russell criticised severely the
position Of the anti-Eberhart faction
and the so-called progressive party,
and stated that of all the pertinent
questions before the citizens of
the state today the most important was
OF regulation and control of public
utilities, and that neither the faction
nor the party mentioned were in favor
such a progressive law, but on the
contrary were fighting such a. move. IF
the. progressive party Of the state Of
claims that state control Of
public utilities is not progressive, then
party should seek another name,
and not undertake to hoodwink the vot-
ers into believing that the name indi-
Gates the platform of the party"