The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1920-06-26
The new UTILITY
2oI.sa1 ERA

Il The epoch making address of Pres
ident Edwin A. Edgerton OF the Cal
Iifornia Railroad Commission before |
the recent convention OF California
State Bankers association should be |
read by every editor. banker and |
public spirited citizen in this country
for II certainly indiactes an unmis.
taxable language, that the railroad |
commission OF California is welded |
to the broad, constructive policy o.
building UP the hydro electric and !
other public service corporations OF
the state by allowing them very lib
eral rates.
i The most important clause in this |
remarkable speech reads as followr:
"A very long step in the direction
Of stabilized public utility securities |
would be taken is reasonable issue
Of stocks and bonds could be agreed |
upon and recognized by the regulai
Ing authorities and thereafter rates
fixed to obtain interest on the bonds |
and dividends on the stocks, and 10
carry over periods Of sudden and NC
expected increases in operating Ak
penses resulting in fluctuating net
revenues, the setting up OF cash
reserve held rigidly for the purposc
of paying bond interest and dividends
when net revenue temporarily was
not sufficient and to build up against
as net revenue Increased above tho
demands for bond intesest and divi
dends. thus having at all times ac-
: tual cash as an assurance of pay
- ment to the creditors and returns t,'
: the owners.
II in addition TO all this reward 7
for efficiency OF operation ara ac-
corded to the company. 30 that an
incentive would constantly be prescnt
toward progress in the production
and delivery of service. II seems t.
EN- that we would have approache !
a. a condition where our public utilit,
IN companies would be placed in sta
TO tus where all necessary money woult
10 be available and the need for inten
IT. sive regulation would be minimisei
dy Such q clean cut endorsement o
Il. this doctrine for which the public
~ utilities Of this state have been striv
~ ing ever since the railroad commits
ch sion was organized in 1912. will oe
casion surprise to number of per
sons who have not kept track Of tn;
recent decisions OF the commission
n. enunciating liberal policy with re
To- gard to artes. VI W
~ In the following paragraph Presi
or dent Ederton emphasizes the stant
% he has taken and pays his respec.
to those who are constantly urginl
that rates be reduced
II so true is this that the puoii
. ought not merely ID. agree that ado
Quate revenues be produced out o
rates to maintain the credit OF IT,
companies, but It should affirmativel.
insist that his be SO and instead Q
listening to sympathy to the dema
gogues who attempt to persuade tn
public that its best interest lies al
ong the line of attack Of these in
stitutions. It should cry down thes
demagogues as public enemies
How wide q departure on the pa
OF the commission is the policy ou'
lined by President Edgerton froI
that in force during the incumbenc
OF President Max Thelen apparent
has occurred to Edgerton, for h
speech embodied the following COZ
fession:
II have no apologies to make II
regulation in California and fraul
LIZ admit that some Of the ideas an
conceptions of 1912 have been ABA
doned or seriously modified"
1t is Of course, to the vital int
est of everybody in this state at II