The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1922-03-02
SIDE Of PUBLIC SERVICE
COMMISSION IS GIVEN
Salem, Oregon,
February 25th, 1922

Having an abiding faith in the ul-
innate fairmindedness and good,
common sense of the people when
the real truth is known to them, |
wish to make the following state
ment concerning this Commissions
recent order sustaining its former or
der allowing an increase in rates to
the Pacific Telephone and Telegraph
company.
Under the present telephone rates
Eastern Oregon cities ami towns and
farmers are still favored with lower
rates than the cities and town of Ida
ho or Eastern Washington of compar-
able size, and the increases there
have been in existence since 1918
while the increases did not become
effective in Oregon until March,
1921.
Our order gives point to what
Theodore Roosevelt said to the CAL
ifornia Commission twelve years ago
at the beginning of public utility reg
ulation in that state:
your first task will be easy, El-
ected as you will be under a move
ment responsive to the people and
independent of the corporations, you
will find il easy to reduce rates where
they are too high, and you will find
many rates are too high. Your real
task will COME later when you have
to do justice to the corporations and
raise rates in spite of the public
clamor to lower them. The test of
public regulation will be the ability
of public men to do that and to main
tain popular confidence in doing it,
Far exceeding in importance any
other question involved in present
public discussions is the fundamental
issue of regulation of public utilities
as established by the people of this
state as well as in forty-seven other
states, which have experienced a like
increase in telephone rates, Mime
sofa and Oregon being the last to
follow the lead of the federal gov
ernment in establishing increased
telephone rates in November, 1918.
The commissions of the latter states
insisted on being permitted to reg
ulate telephone rates within the
states mentioned, and, as a result,
telephone rates have been held down
during period of two years while
all other states experienced very
substantial increase. In Minnesota
the commission, on February 9, 1921,
denied an increase on the ground
that inadequate service was being
rendered. An appeal to the federal
court was had, and that court on
March II, 1921, overruled the Min
nesota commission and permitted the
increase, while the Oregon commits
sion, on February 2S, 1921, appre-
ciating its responsibility to determine
the accuracy of the revenue of pub
lie utilities generally within the state,
(said responsibility having been plac-
cd upon the commission by law
rather than shirk this duty, as mani
tested by the record, granted an in
crease uninhuenced by any other con-
sideration whatsoever, which even
now allows less than four per cent
return upon the capital legitimately
invested in the service of the public,
thus, in effect, compelling the tele-
phone company, should it desire a
greater return, to reduce its over
head and operating expenses.
An appeal from this commissions
order to the courts is provided for by
law in the event anyone thinks en-
tire justice has not been done. II
should be borne in mind that capital
invested in a regulated public utility
differs vastly from that invested in
private enterprises. The former is
limited as to its earnings to the basis
Of fair return upon the fair value