The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-11-10

me National Civic Federation has
just issued report by President Seth
proposed model bill drafted BY the
federntion's department on regulation
of public utilities.
The drafting OF this bill is the logi-
cal sequence OF the work done by the
federation's commission, which made
report in 1907 on the comparative
merits OF public and private operation
of municipal utilities In this country
and England. Tint commission, the
chairman OF which was the late Mel
Vile E. ingalls,, and which was com
posed OF advocates and opponents OF
municipal ownership md operation
together with economists and disin-
tercsted students of the question. prac-
tically agreed that in this country.
under the conditions OF municipal pol
tiles. private operation would be pre-
ferable to public operation, provided
that there were adequate regulation
to protect the people from cXtortion-
ate rates and improper service 1t
was also declared in that report that
public utilities from their nature tend
to become and ought to be monopo-
lies; and that unrcgulatcd monopoly
in so important field is impossible.'
1t was to study the question NJ whrt
"o-'titutes adequate regulation fair
alike to tho investor, the operator
and the public, that the department on
regulation of public utilities was or
ganized.
The executive council of nine under
TOOK the work of preparing IL tenta-
tive draft OF a model bill II also col
lected and published in a codihed form
all the laws enacted by the United
States and by the several States of
the Union for the regulation of pub
lie utilities.
The differences in regard TO tic bill
reflect the difference in the points of
view OF those who make them. The
radicals are inclined to press reguia-
ton to the limit, even If II makes II
impossible 10 secure private capital
for the construction and conduct OF
public utilities. In the minds of many
OF them public ownership and opera
ton loom up as not Objectionable al
ternat!ves. Those who have to do
with the procuring OF private capital
for public utilities believe that too
much regulation will easily make pri-
vatn capital unavailable. These. there.
fore. lean towards limiting regulation
MS much as possible. In this conscrya-
tive element there are again great
differences of opinion Some believe
in public regulation and wish to make
1t practicable and successful Others
accept II reluctantly and are fearful
of any limitation which may interfere
with established practices
The National Civic Federation, il is
stated, cannot pass Judgment on al,
the Issues thus raised II undertakes
to present to the public as fully and
as fairly as possible the different
points Of view which are involved be-
lievng that it will make valuable
contribution to the solution of the i'm
portant problems in the regulation OF
public utilities. The bill itself Isl not
officially Endorsed by the National
Civic Federation. but il the product
Of the executive council of the de-
partment.
The model bill Is a somewhat elab-
orate measure. divided into eleven
main articles. Apart from the usual
cles deal with the organization OF a
public service commission, with tho
general powers of the mission
With the regulation of stock and hond
issues, with intercorporate relations,
with rates, with adequacy OF service
with the regulation of accounts and
reports, with franchises, with proce-
dure before the commission and with
tho enforcement of the act These
several titles Indicate the comprehen-
siye scope of the proposed measure
In concluding their report Messrs
Low and Wilcox emphasize the fact
that the issue is between the public
ownership and operation of public util-
;ties and the private ownership of such
utilities under proper regulation. They
hoio that TINS question is not wholly
ami perhaps not primarily one of eco
Monies. They say: Grave and far
reaching social ana political questions
are inevitably involved. The public
ownership and operation of public
utility here and there is Il matter OF
comparative unimportance; but the
adoption of such a policy by large
AID populous State Is very different
matter. For example, in San Fran
cisco street railway system has been
taken over by the public and Is now
publicly owned and operated. BY con-
sequence 1t comes under the operation
of the State civil service law The APP
plieation OF this law to the men en-
ployed by the private company when
taken over resulted In the loss OF their
places by many members of the local
union of street car employees. The ef-
feet upon the union was so serious
that the American Federation of Labor
has sent n commission to Europe this
year TO study particularly this ASPECT
of tho question. Without attempting
to anticipate the report of ,his com
mission, IL seems to lie upon tho sur
face that the civil service system and
regulation of rates OF pay by law are
Inconsistent with the methods end OBJ
jects of collective bargaining by or
ganized labor. In this apparently ir-
reconcilable conflict which system in
this country would be likely to 20 by
the board. the civil service system or
that Of collective bargaining IL the
civil service system were TO be broken
down. the country would be in dan
ger of returning to the demoralizjng
doctrine. TO tho victors belong the