The Richmond palladium and sun-telegram., 1916-10-14
GOODRICH GIVES
his PROPOSALS
|. ON UTILITY Law

SOUTH WHITLEY, Ind, Oct. IL
ines p. Goodrich, Republican candi.
tie for Governor, in an address here.
,voted himself altogether to a dis
,ssion of the public service commits
on OF Indiana, and the failure of its
iministration. In his speech here
r. Goodrich said:
"ln 1918 the Democratic legislature,
ecause of the movement set on foot
b the Republican party in 1912. was
breed to enact the present public
tility law. The law has been pro-
ounced. with minor exceptions. to be
good law. and it is a good law, not
ecause 1t was enacted by the Demo
ratio legislation, but because the law
as drafted by students who under
| TODD the subject and literally forced
down the throat Of the Democratic
arty.
Cause Of the Criticism
This new public utility law went
nto effect on May'1, 1918, but despite
he fact that it has been in operation
or more than three years, people are
ondemning the law. What is the
rouble? Surely 1t is not the law. 1t
not the system of regulation pro-
ided for by the law. The trouble
les in the administration of the law.
Although the law was passed in or
Ter to take the public utilities out OF
politics, politicians were charged with
fhe administration of the law, and the
majority commissioners have so far
FAILED to understand the purpose and
spirit OF the law, in this respect, that
we have seen them on the Democratic
stump appealing for support as mere
political partisans. We have not only
seen members of the commission en-
gagged in the active work of political
campaign, but ! rs been suggested
TO persons hat sauses before the
commission thf y would find 1t ex-
pedient. IL the erests were to be
properly protet to employ certain
Democratic lawyers; in fact, they have
actually been requested to do SO by a
member of the commission.
Spirit of the Law
at was not intended by the law to
set up a court with all Of its rules OF
procedure, but to set up board OF in
uuiry with power to set on foot an IN
vestigation on its own motion. Ap-
peals were provided in order to pro-
tect the rights of both the utilities
and the people served. The spirit OF
the law contemplates informallty and
simplicity. Any ten people or even
a civic organization are supposed TO
be able TO present grievances to the
commission. Yet not only has the
commission been made up largely OF
politicians, but also OF lawyers trained
in the atmosphere Of court and some
of them unable to grasp the idea OF In.
formal determination of economic and
social questions outside the establish
ed judiciary This is a lawsuit, sald
the chairman of the commission IN
a recent hearing.
"The result has been that the peo-
pie served by the utilities, unorganlz'
ed and unfinanced as compared with
the companies, And themselves pretty
much in the same position as before,
compelled at large expense to employ
lawyers and to become involved IN all
the mazes of a lawsuit.
Rights Of the Public
while the law as intended to give
stability to public utility securities,
and while it was contemplated that
the states approval Of bond should
be taken as evidence that there was
behind the security issued property OF
at least equal value to the amount OF
the issue, yet the commission IN at
least one instance, according TO ns
own records. has issued securities OF
more than $1,O00.000 in excess OF the
physical. value Of the property. Ger
tainly the investing public has right
to demand that the states approval
not only imply the legality OF the Sc
curity but also that the property be-
hind it, and the net earnings are ample
to guarantee the payment OF both
principal and interest. This Is one OF
the advantages flowing to the utilities
from the administration OF the law
by making it easy to find market for
securities issued under the approval