Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-03-23

proponents. OF this measure a. to
whether or no they would have any
objection to Incorporating into the
act that very provision. His answer,
given Immediately. was. mot the
by Mr. Weeks. would you have any
objection to q two-year limit? mot
the slightest" was the answer. but
we would want the two-year limit
within which the company must be-
gin operations. to date from the time
that the act went into effect" That.
then, was the position. Of the pro-
ponents; not the slightest objection,
in fact. welcome, to their entire sat
isfaction.
The committee discussed that very
phase of 1t In executive session and
it was the unanimous opinion of the
committee that either this measure
was a meritorious and serious pro-
position to develop and to help utilize
the great natural resources. OF this
Kennebec, or else it was not; either
that it was q thing Of substance and
Of value or 1t was not: and that II it
was. it was simply carrying Goals to
Newcastle to tack on to this thing OF
great value. this thing Of enormous
1t would not be of any worth to them
unless they started operations within
two years. 1t was simply considered
that 1t was unnecessary. and there
was never an objection on the part
Of the proponents, or dfssention, or
any disagreement in all that board.
The committee deemed that Is was
simply an unnecessary addition to
the act itself. And furthermore. that
the non-use of the franchise granted
by this enabling act could be alb
solutely met by any succeeding Leg
islature, if there were no disposition
to avail themselves of that which we
all believe is OF substantial worth
and which some, people say is Of
enormous value.
The only other objection to the
form of the bill that have heard.
flowing from the objection as set
forth by His Excellency. is that there
is no control of the rates Of this
company in the Public Utility Com
mission. Now. gentlemen. that is
catching on its face IL it is sound. Is
it sound? This is not a profit making
company nor a profit-making plan.
This is the cooperative development
by the power users on this river. and
it Is not conceivable that those power
users on the river are going to need
the protection of any regulatory
commission. the Public Utility Com
mission. to regulate themselves, as a
corporation created under this act,
from overcharging themselves as
corporate users and individual users
of the power. They do not need to be
protected from themselves. They are
never going to make rates so exhor-
bitant as to cripple and destroy the
very ends OF the development.
All! Then comes in this objection
by public utility; one OF the incor-
porators here might make a contract
with itself in the shape Of one of the
incorporators of this act. it might
make an unfair contract with regard
to the price which it would pay for
power. 1t might be perfectly willing
to quote a price which would be UNI
fair, and that price that it would pay
for power to that company, II it was
incorporated. would have to be passed
on to the consuming public
and that would be reflected
in the increased cost Of electric
lights. or Of the electric power which
is sold in the various communities.
Now that objection, If it is sound, is
a very serious objection. Let me
ctdlS tHdL d6 diHs II mas Deen SERIOUS
ly urged. as an objection by one who
Is leading authority upon the prop
osition of public development, that
this act is faulty in this regard; that
it does not provide for the Public
Utilities Commission to have author
ity to regulate the rates, and it is
said, by public utility company
down the river. that one Of the in
corporators here can make a con-
tract with this great Kennebc Reser-
voir Company for power to be furn-
ished it at rate that will be I'M
reasonably high and. inasmuch as
that corporation or public utility will
not have to pay this. whatever the
price is, that will be passed on to the
public and thereby there will be
made indirectly an unfair profit out
Of the public.
Now. gentlemen. that is serious IL
sound, but 1t Is unsound. and it is as
unsound as the most of the objections
which I have heard bruited to this
measure, and here is the reason-and
every lawyer in this body, and. I
believe. almost every layman in this
body, will at once perceive the under
lying fallacy, the sophistry of that
objection; a public utility. such, we
will say, as the Central Maine Power
Company, one Of the incorporators,
in common with every other public
utility, is under the direct rate max
ing and control of our Public Utili-
ties Commission and will continue so
to be, and that public utility cannot
make contract. either for wages
for its president, or for its secretary,
or for any Of it's officers. nor can it
make any contract which enters into
the basic elements Of rates, that is
not subject to the revision, control,
and direction of the Public Utilities
Commission. Why. gentlemen, If that
objection were sound a public utility
SO minded, could make |
unfair rates, could vote a salary of |
100000 year to Its president and !
a salary of $4,000 a year to its first |
and so on, and could !
pass the cost of those outrageous sal |
aries to the consuming public; and |
would not all of those contracts enter |,
into the basic question of rates; and |
how long do you think that the Pub |
lie Utilities Commission would per-
NIT such contract for wages, such !
That contract would be vitiated. |
would be approved. and the |
rates would be ordered to be brought |
to what would be fair with refer
ence to a fair contract for the pow
err that public utilities company
would be getting from this Reser-
voir Company So. in the last analy-
sis, the objection that this develop
nent company, this Storage Reser-
voir Company. Is not under the con-
troll of the Public Utilities Commits
sion. fails. 1t is not sound.
The Public Utilities Commission
has no right now to control the prof
It's of the Lockwood Company. it has
no right to control the profits of any
private cOrporation but 1t does con.