The Canon City record with which is consolidated the Canon City cannon., 1916-02-10
FUNCTIONS Or PUBLIC
UTILITIES COMMISSION
.4ddress DeHoered by Sheridan s. Kendall
Before Colorado Editorial Asso ciofion

and it is impossible to cover every
phase of regulation in franchise or
to take into consideration new appli-
ances which may be invented and used
during the life of franchise which
might materially lessen the cost OF pro-
duct!on 1t is usually the case that
those who represent the mrricipality
in franchise negotiations know abso-
lutely nothing about standards of ser
vice or fair schedule of rates: the
result is that. they are generally i'm
posed upon and the people are forced
to abide by the terms OF the franchise
no matter how unfair it may lie.
Another important reason why. the
state has assumed control over pub
lie utilities is because of the vast ex-
pansion in the field served by utility
concerns, the control of v hich has pass
ed beyond the limits of the jurisdic-
tion of local officers. AS an illrstra-
ton: The street car Lines in Colo
RADIO Springs operate in three cities,
as well as to points in FL Paso county
outside the limits of any city, and
while the inhabitants of each city
have u common interest in the SER
vice, their respective jurisdiction eN-
tends only to the limits of each city;
the same conditions exist in the City
of Denver where the Tramway lines
extend into three counties Electric
4 tire nsmission lines operate through
many towns ard counties; in some
cases electric lfght companies are
! serS ing several municipalities; there
/ are many such cases in Colorado. the
| principal case being that of the Moin-
tain States Telephone & Telecrauh
O, whose lines extend to almost
/ l. s@f I,nH ct To
II is obvious that the city subscriber
has an interest in the service afforded
the rural subscriber and the rates ap-
plying between the variors communi-
/ ties, yet the regulation and supervi-
sion of the same was beyond the pow
er of local officials. There are a
great many reasons in favor of the
sta'e assuming control over local
utilities. but of this subject it will be
sufficient at this time to say, that the
method of regulating public utilities
Ey state commission is approved by
practically all students of the subject
and the method adopted by practical
ly every state in the Union.
The Public Utility law of this state
is the result of long and bitter
struggle and the elimination of Sc
ries of legislative enactments begin
ming in 1885 and ending at the last
session of the General Assembly. and,
like the history of most states. is the
outgrowth of efforts made in the first
instance to regulate common carriers.
1t may not be known to all of you
that in 1885 the legislature created the
office of Railroad Commissioner. but
like the original Interstate Commerce
Act. his duties we're only advisory and
lot
law proved to be an utter failure and
was later repealed. Nothing more
was attempted along this line unti!
1907 when the legislature passed a
Railroad Commission Act, which gave
the commission a very limited amount
of authority and power. The consti
tutionality OF this act was immediate
ly attacked by the railroads. and the
question OF its validity was not de
termined until 1912. or five years
later. In the meantime, at a special
session OF the legislature held in Oc-
tober, 1910, another Railroad Com
mission Act was passed, which in
many respects was an Improvement
over the Act of 1907. Under this Act
the powers OF the Commission were
broad and general. although the
method of procedure and appeal was
SO cumbersome that the Commission
was greatly hampered in its work.
notwithstanding this. the Commits
sion was able to do many things
which were distinct benefit to the
people OF this state,
When the General Assembly con-
vened in January. 1913. the present
Public Utility law was introduced and
adopted by the legislature This was
Immediately followed by referendum
petition being filed. which prevented
the law from becoming effective. In
1914 the Attorney-General brought
proceedings apainst the Secretary of
State to enjoin him from certifying
the bill on the ballot on the ground
of fraud. and a permanent Injunction
was granted by the Court. Thereup-
on the law became effective on Aug
ust 18th. 1914 and the Railroad Com
mission with it's long history of liti-
cation passed out of existence.
The present Public Utility law was
drawn by one of the present members
of our State Supreme Court. II is
patterned very much after the Cali
4 fornia law and embraces many of the
features of the New York and Wis
consin laws, which states are suppos-
ed to have the most modern laws on
this subject OF any state in the Union.
Its provisions are broad and compre.
hensive and the Commission is given
ample power to carry ont its provis.
ions. 1t was drawn with the idea OF
furnishing speedy and inexpensive
method of righting wrongs in all
cases where the rates. service, and
practices of Public Utilities are con
cerned.
The bill as passed by the .legisla.
ture contained three sections which
were afterward referred under the
Referendum Act and failed OF adop.