Imperial Valley press., 1919-01-09
STATE RAILROAD
Commission IN
ANNUAL REPORT
The Work of the State Rail-
road Commission Has Not
Diminished Under Fed
eral Control.
(By Associated Pressl

control of interstate railroads has not
diminished the work of the State
Railroad Commission appreciably, and
unless this control continues psrma-
nently there will be but little release
for the Commission from duties re-
lating to railroad administration, ac-
coriing to the Commissions annual
report for the fiscal year, which has
bcen submitted to Governor William
d. Stevens today.
ut must be remembered, the re-
port asserts that irrespective of
whether complete control will finally
lodge in the Federal government the
State will he vitally interested in a
graet many steam railroad transpor-
tation and rate problems, and the only
body through which Representations
properly can be had is this Commits
sion"
Quoting from statistics of the
United States Labor Bureau to show
the deere ase in the purchasing value
of a dollar from 1918 to May, 1918, the
report continues:
"The government after taking over
the. railroads, found it necessary to
order sweeping increases in all freight
and passenger rates on all roads un-
der Federal control, which increases
were much greater than those made
by the Commission on other utilities.
The average increase of prices for in
dustrial, commercial and domestic
products exceeded so per cent up to
June, 1918. The increase of utility
rates did not exceed Is per cent on
the average.
at is a fact. therefore, that the
consumer of public utility products in
this state was compelled to pay but
a very small increase for the COM
modify and. service furnished, as he
was required to paw for all other 'serv-
ices an5 commodities.
Low rainfall during 1913, accord
ing to the report, intensified the prob
lens CT public utilities and revealed
a close relationship existing between
water supply and public utilities.
In commenting on this, the report
says:
"Water shortage required curtail-
ment of the use of water for irriga-
tion purposes; reduction of delivery
brought reduction of income to irri-
cation utilities. necessitating such in
creases in rates as would enable the
water utility to continue its functions.
Increased cost of rcv'2r in time was
visited upon electric street and inter
urban railroads. Here is a clear in
stance Of how the disturbance of our
important operating utility factor
i,,-,, io-o .ffoo4- .,f a4La,. 60 OF
with result that well be disastrous
to consumers in the absence of effect
i've regulation.
"That the effect of public regulation
was of the greatest possible benefit
to the utilities themselves during this
period Ca period that might well be
considered the cid test of the effici-
ency of regulatlon) is evidenced by
the fact that during that period not a
public utility in the stae of California
went into bankruptcy or receivership.
The securities of the California utili-
ties were as well able to withstand
those of any utilities in the nation and
better than many similar utilities and
all oher securities in sister states.
"In addition to preparing the legis-
lation which resulted in furnishing
water to many thousands of acres,
thus accelerating food production, the
Commission put into effect a plan
under which the electric energy of all
companies operating in Northern and
Central California was pooled and
directed from one administrative con-
troll"
Telephone and telegraph companies,
according to the report, are in situa-
tion analogous to that Of the rail-
roads.
when the question of the continued
jurisdiction Of the Commission under
the new regime came up the Commits
sion was entered into direct communi-
eaticn with the postmaster general
and inquired whather it was his un-
derstanding and desire that the Com
mission should continue with it's nor
NAL functions in relation to these
utilities" it says.
"The postmaster general answered
that this was his wish ana gave it as
his Interpretation of the Federal con-
troll law that the Commission should
sNcfCls- all lCS IuHCLlOIlS dS neIeIO-
fore, but that in cases where the
Commission might see fit to operate
charges they should not be put into
effect without his approval.
"Under the circumstances, the
Commission has not felt at liberty to
discontinue its regulatory work with
tnis class Of utilities, and the numer-
GUS telegraph cases now before the
Commission, including the cases in
volving all of the rates of the Pa
cifc Telephone and Telegraph com
pany in that state, are being prose-
cuted as heretofore"
In the event the postmaster gem
erals recommendations TO Congress
for complete Federal ownership and
operation Of wire utilities should be-
come law the Commission expresses
the belief it still would be necessary
ard desirable for California to be rep
resented, at least during the period Of
reorganization and adjustment that
would precede complete Federal own
ership. at would be logical" the re-
port comments, "that to this Commits