Imperial Valley press., 1922-10-02

when in its opinion advisable TO
meet changed conditions and shall
always keep its rates as near the
amount required to pay such cost
and expenses as practicable, and
shall fix similar rates under sub
stantially similar conditions.
Is Business Plan
This is only carefully prepared
| business plan of operation. 1t would
| seem that no iustifiabe attack could
| be made upon this section. 1t is argued
| however, that the fixing of the rate
| should not be vested in board of five
| men. The power companies, however,
| are arguing that the present system
| is alright and yet their rates are fired
| h. the Railroad Commission of five men.
| IN other words, somebody must have
the power to fir rates. Naturally the
| eommissio nwho has charge of this
| vast business will be very much inter
| ested in fixing as low rate as 1t can
consistent with the business in hand.
| The section provides what must be
taken into consideration in fixing the
rates The exact cost of the project
and the amount necessary to retire the
| bonds and pay the interest IS bound to
be known. Th only mistake the
board could make would be in its esti-
mate of the cost of the labor and ma
terials for the following period over
which rates are fixed. At the present
inie, the Railroad Commission in order
| 70 determine the rates must conduct
Exhaustive hearings at which thcspower
companies attend and endeavor to have
such rates fixed as will make the largess
possible income from their investment,
and in the end the rate is bound to be
more or less inaccurate In other words,
under the present system, we have one
boar dof five men representing the peo-
pie trying to get the lowest possible
rate. another board usually of five men,
representing individuals, trying to get
the highest possible rate. Under the
proposed act we would have one board
with the duty imposed upon 1t to make
/ rate simply to cover certain charges
which would be accurately laid wput
before it. The result of such provision
has been demonstrated i nthe Province
If Ontario, with a board Of three com
nissioners. and this board of three
commissioners reduced the rates in that
,ection of the country approximately
IS per cent, and yet covered all the
charges and have developed wonderful
industry without costing the tax payers
a cent. The only danger is that the
power compaaies viii lose the handsome
profits which they are now making and
viii in the future make at the expense
of the industries of the state
Section Nine
Section TX OF the Water and tower
Act provides;
Section ..
All revenues Of the board, ex-
ecpt proceeds from the sale OF
bonds, shall be paid into the state
treasury and shall be applied first,
to payment of the expenses OF the
board, costs of operation, manten-
ance, depreciation, insurance and
losses. and second, to the payment
of interest on and principal of said
bonds.
If at anv time the moneys in the
state treasury applicable to the pay
ment of interest or principal of
said bonds, shall be insufficient to
nav the same as it falls due, moneys
shall be Temporarily advanced from
tbe general fund for that purpose,
And there is hereby appropriated
from the general fund in the state
treasury such sum annually as VIII
be necessary to pay such interest
and principal, and there shall be
collected each year i'll the same
manner and at the same time as
other state revenue is collected sueh
sum in addition to the other reVe-
nues of the state as shall be feqnlr-
ed to pay the sums appropriated
for payment of interest and prli-
cipal as herein provided, and 1T Is
hereby made the duty of all officers
charged by law with any duty with
regard to the levy and collection
of said revenue to do and perform
each and every act which shall be
| necessary to collect such additional
sum.
All moneys paid from the general
fund in the state treasury for prin'
cipal or interest on such bonds shall
be returned into said general fund
out of the revenues of the board
as soon as the same become avail
able. together with interest thereon
from the several dates of such adj
vances until so returned at the rate
of per cent per annum compound
ed semi-annually.
Has CrculC Advantage
This section only provides for sound
financing. One of the great objects
to be gained by the state ownership
and control is that the state with all
of its resources can borrow money at
d much flower rate of interest than .
private concern. The provisions OF
this section are for the purpose of cover
ing any possible contingency that might
arise at any time effecting the credit OF
the state.
Sections X and XI provide as follows:
Section 10.
Out Of any money in the state
treasury not otherwise appropriat-
ed the sum OF two hundred and
fifty thousand dollars is hereby ap-
propriated to be credited to the
board and an equivalent amount
shall be returned into the general
fund in the state treasury out of
the first moneys available IN the
water and power revolving fund.