The Birmingham age-herald., 1921-09-16
Cooper Discusses
 Utility huestn1ent
 Al Junior Luncheon
Member of Alabama Public Service Commission Urges the Same Interest Be Shown Funds Placed Here by Friendly Investors as Is Given the Local Man
 Who Also Believes in the Town

"If local citizens refuse to furnish the other fellow that efforts at con- demnation and confiscation will not be tolerated.. said B. H. Cooper. Bir- fningham member of the Alabama Public Service commission in an ad- dress to the Junior Chamber of Com merce at their semi monthly lunch con yesterday.
 MT. Cooper was referring to invest ments in public utilities by foreign capital. In the same connection he also said
 Tt is deplorable to see a utility run down, for the public will have to pay the price of stagnation in growth with the breaking down of utilities that serve it."
 Mir. Cooper's topic was the Public Interest in Utility Development" He traced the steps leading up, the final turning over of regulation of util- ities to the public service commits sion. beginning with the intrastate regulation. of railroads in 1907 and closing with complete regulation of state utilities in 1920.
 LII Hlut ptbinHlu6 IL WdS COIhpctl- ton, railroads and other utilities charging such rates and performing such service as they considered ex- pedient for their own interest. The nation and state had finally to step in. Utilities were regulated by charters and contracts made with munici- palities.
 The difficulties of municipal regu- lation were pointed out. The local street railway, for instance runs through five municipalities besides a large amount of unincorporated ter. ritory. There would be at least five different valuations of property Fairfield could fix rate in it's bor- ders and Birmingham one In it's bor- ders. Proper and scientific regula- ton Is expensive. requiring the serv- ice of experts. The small towns could not secure such service.
 The state. by taxing the utilities, secures fund sufficient 10 provide a commission that can deal with the problem not in a haphazard way, but scientifically with the help of com petent advisers and assistants.
 Mir. Cooper went on to say:
 "The legislature of Alabama
 hns recognized nlI thiS--the faiI-
 uTc OI tue Olu contract bNSten
 having become apparent-and
 has delegated to the Alabama
 Public Service Commission the
 power and duty to regulate rates
 and service irrespective of con
 tracts or franchise Limitations k on the theory that the problem
 Is one of charging reasonable
 rates for an adequate service to
 yield n fair return on the capital
 invested.
 Charge for Service
 ITO obtain good service, an ade- quate charge must be made. It would be the height of folly to refuse it, for 1t leads to bankruptcy of the serv- ice and firally of the utility. that hurts the community far more than the shareholders.
 Of all pai .ies in interest in the question ot reasonable rates for uti.- ities. the public is the on. that IS most vitally concerned in the utility having a rate that will insure good service, and reasonable return on the fair valuation of its property which will guarantee not only an un- impaired service for the future but also a development that will be suf- ficient to meet all the needs of a coEstnatly growing community.
 Interest In Expansion
 The public has special interest in the expansion of utilities because city can never grow faster nor ex- tend further than its utilities reach. The utilities of a community are the greatest developers a city ever had. New residents are attracted and old ones kept.
 Treatment of Capital
 T know of no city in the state that can finance utility developments from local capital and the financial necessities of the enterprise titere- fore carry the promoters to a for eign field for money. Is there a man anywhere. regardless Of his business interests. with surplus money foi utility investment who is going to send his money into communities where there Is preponderence of sentiment hostile to foreign capital for such investments?
 Evea werse3 will suck man