The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1921-03-16
PUBLIC UTILITY REGULATION
Some Way Must Be Found to Provide
New Capital


Two of the most vital needs of the
county, 4. this time, are-frst CON
iidence in public utility securities;
second, substantial foundation for in
ivestors confidence. Public Utilities
/ have undergone strenuous four-year
period and they emerge from the dis
tessing war era the more strenuous
postwar period and four years OF in
creasing operating costs In a condition
that demands the closest and most
careful attention.
Three years ago at the height of
Iof the war period the President of the
United States, Secretary McAdoo. and
Controller John Shelton Williams call.
/ led on the utilities not to use labor.
materials and moneys except for the
most urgent requirements. This re.
Quilted in a great amount of deferred
maintenance and accruing deprecia.
tlon' The war period was Immediately
Iollowed by the word indulging in
frantic bidding for money with the re.
suit that its rental rates went clear
beyond the reach Of most regulated
utilities. This resulted In a deferment
Iof maintenance and the making good
| OF depreciation and obsolescence. On
the heels of this unfavorable condition
came the runaway market in coal and
cther operating expenses. Through
all these eras there has been the
greatest difficulty in obtaining materl.
as, supplies, and requirements of all
Kinds needed to maintain high grade
public utilities and public service
me result OF these conditions over
which the utilities and the regulatory
commission could not exercise suffjci.
emit control, for they were worldwide
influences, is that the utilities stand
today in a more or less depleted condi
ton. Services may seem to be ade.
quate and satisfactory but there is n
vast amount of substantial work to be
done to give assurance to continuous
and reliable operation.
This demands in this country hun.
dreds of millions of dollars in the
next year or two To obtain this
money at reasonabel rates, public
utiilties must have credit which will
attract the investors discernment
cannot be emphasized too strong.
ly that the establishment of such ere.
at Is reallyaof more vital concern to
the communities served than to the
utilities serving them Cities cannot
grow without vast expenditures in the
extension Of water and gas mains
street car and telephone lines and
other public services which are the
very foundation of modern municipal
lifO
These mains and lines cannot be
extended out of earning. Such a pol.
icy would result in prohibitive rates.
such lines cannot be extended and the
rates for services kept low unless
there's available to these great pub
lie servants money at reasonable and
low rates The better the credit the
more ready the supply of money and
the lower the rate for its use which.
in turn, means the lower the rate for
the service renered. For these reas.
sons, the interest Of the utilities and
of the public they serve are identical.
1t must be acknowledged that nves
tors have not been drawn, during the
past few years, to public utility invest
ments. There are any reasons for
this Money is the most solicited com
modify in the world today. With
all the world bidding it exercises dis
elimination unknown in pre-war times
WI it respond to the call of a utility
or of regulatory commissions. then
the record is one of unsound founda-
tons of credit, passed legitimate div
ends deferred payment Of obligat ons
curtailed service which leads to i'm
paired and hazardous public relations.
and inadequate maintenance inyolv-
ing a dwindling and dissipating Of
phys car assets? II it does answer
such a call it exacts usurious toll.
which means less realizatin OF cash
on the face of the securities and high
er annual financial obligations in div
idends or interest rates. All of this
as we'll as the public utility.
Practically all of the states OF the
union have recognized at least the
absolute dependence of municipalities
on plants which will furnish them with
good wholesome water and fire pro-
lection, constant and reliable eectri-
cal energy to light homes, Offices and
stores and to move the wheels OF in.
dustry; good gas. especially for cook
! ing purposes, reliable and cheap
street car service, dependable and
quick telephone service, etc. With
out such services the modern city
falls into utter confusion, stagnat!on
and death. The result of such recog
niton is that states have declared il
matter of public policy that these
public servants be closely regulated
Having adopted such state policy
/ it is incumbent on the state now tc
provide sound foundations of security
fo' the money that such public sery
ices demands. This calls for reorgan
izations Of utilities where they are
made aenem.c and their services un
reliable and weak by excess demands