The Birmingham age-herald., 1921-09-16

send his money into cOmmunf
 fy for such investment when the
 state regulatory body refuses to
 allow rates that will earn a fair
 return on the investment in prop
 erty devoted to public uset Such
 money will never find it's wny
 Into community or state
 where confiscation of such prop
 erty Is the talk of the day.
 Why should not the public be in- terested in seeing that the same re- gard is had for the rights of the man who has put his money into utility property as is had for the rights Of the private citizen in his private property. The utility property be- longs to the stockholders who have put their money into it, as much as your home or my home is our prop erty, and when it is dealt with on any other basis than that obtaining when the rights of private property generally are considered, d wrong is done, first to the man who has in- vested his money in the utility, and second, to the public, who in the end, cannot hope to have servlce-regard- less or rates--if In the meantime the property has been destroyed by being compelled to give service at less than cost.
 Basis of Rates
 Tt Is sometimes stated that the present increases in rates are nee essary to pay dividends on waterei stock. l would like nothing better than to clear up this matter for all time, for that is far from the truth.
 "rhe amount of stock outstand-
 ing and the value of prop
 crty owned by il utility are sem
 nrate and distinct matters and in
 no why related. Rates are not
 bascd on capitalization; but are
 designed 10 yield a fair return on
 me reasonable value of property
 nsed, and necessary to serye the
 public.
 No utility ever files an appIica- ton for an increase in rates based on the amount of it's capital stock. and there IS no Justification for the be- nef that old capitalization schemes are relevant in considering what is the value Of property devoted to the puDilc use. The only factors to be considered are what is the actual value of such property; what is a fair return as a business and financial matter, and what is required to make the utllity attractive for future i'm Vestment under honest, efficient and economical management of such utility.
 Security lssueS.
 This covers the situation of money already invested. As to fu- ture security issues, the commission mas control ever all such issues, as resaros the necessity for them, the terms on which they are made, and the proper disposition of the money realized from them. The state, there- a q fA tI~ est of the public and of the share holders for all time, guaranteeing the public fair treatment, reasonable rates and good service, and assuring the shareholder of fair return on ms investment if the property can earn it.
 Public yitaIly Interested.
 The public must realize that it is vitally interested in properly dealing With this problem, and this fact should appeal particularly to busi- ness men whose prosperity depends Tn large measure on the rendering of good service by utilities
 ''It is deplorabie tossee a utility
 run down, for the public will
 have to pay the high price of
 stagnation in growth with the
 breakinE down of the utilities
 that serve 1t.
 Rights of Public.
 The people should desire efficient service. so long as it Is furnished at a reasonable price, and in ny opinion they are always willing to pay for what they get. They have a right to expect both efficient service and req sonable rates at the hands of your state commission. We all agree that we must have the services of such enterprises. We can as easily fur ther believe that if we have an ex- pansion of the present facilities or the utilities already on the ground. foreign capital is absolutely neces- sary to carry on the extension, and we can still further agree that such new and needed capital is not coming to Alabama or any other community 80 long as the public mind is in- f1uenced by propaganda directed against legitimate investment and fair return thereon. Why not decide