The Indianapolis times., 1924-09-02

La Toilette Is Overwhelmingly nominated
and elected in 1900 The political bosses
buck the administration at every turn.
In the State campaign of 1904 the ma
chine men organize bolt and carry the
validity of the regular convention into
the Supreme Court, which uphOlds the
Progressives. At the end Of a whlrl-
wind speaking tour throughout Wlscon-
sin La Toilette is reelected. When the
Legislature passes a railroad regulation
law, a railroad commission Is organized.
This progressive legislation does not
hinder new construction. and by stopping
rebates alone. the railroads gain at least
$1,000 600 year.
How has it been possible that both
the people of Wisconsin and the in
vestors in public utilities have been
so gretly benefited by this regula-
on?
Simply because the regulation is
scientific.
The railroad commission has
found out through its engineers, ac-
oountants and statisticians what it
actually costs to buil0 and operate
the road and utilities.
Watered stock and balloon bonds
get no consideration. On the other
hand, since the commission knows
the costs, it knows exactly the point
below which rates cannot be re-
duced. 1t even raises rates when they
are below the cost, including rea-
sonable profit.
The people are benefited because
they are not now paying profits on
inflated capital. The investors are
benefited because the commission
has all the facts needed to prevent
reduction Of rates below fair
profit on their true value.
So honestly. capably, and scien-
tifcally has the work of our com
mission been done that the railroads
and other utility corporations have
accepted their reductions without
any contest at all. Our law makes
ii perfectly easy for the railroads to
seek redress in the courts if they
feel wronged in any way. Yet it IS
significant and there has never been
an appeal taken in any railroad rate
case decided by the railroad com
mission.
In Wisconsin We regulate service
as we'll as rates. When the services
Of a railroad are not satisfactory to
the public, complaint can be made
to the Railroad Commission.
Under our law that complaint does
not need TO be a formal legal docu-
ment, but a simple statement Of
grievance by letter or postal card.
In other ways our progressive
legislation has materially benefited
all the people Of the State. For ex-
ample. beginning In 1908. I secured
in every water-power franchise the
insertion of a provision that the
rates charged should be regulated by
arbitration.
Since that time the water powers
Of the State serving as public utili-
ties have been placed under the con-
troll Of the Railroad Commission. and
a great corporation. supervised by
the Railroad Commission. with its
profits limited 10 per cent on actual
cost. has been created and has i'm
proved the headwaters Of the Wis
consin River in order to secure a
steady flow through the year.
Several enormous power dams
have been constructed, and through
these means the state has gone far
toward utilizing it's 100000 avail
able horsepower. while protecting
the State against water power mon
opoly.
Wisconsin began in 1905 to build
up a State forest reserve on the
headwateys Of it's principal rivers. It
now ranks next to New York and
Pennsylvania in its area OF forests
belonging TO tho State. and has
adopted a permanent policy Of ad-
ding annually 10 the reserve.
Wisconsin has also taken hold Of
the insurance problem with vigor
The special session Of the Legisla-
ture, which I called in 1905. provided
FOR a committee To investigate in
surance corporations.
This was about the time Of tho
Hughes investigation in New York,
and the committee appointed pur-
suant to that legislation rendered a
very signal service to our State.
AS a men ber of that committee,
Fl. L. Eker1, who was then speaker
Of the Assenibly--a legislator of real
creative power-developed very re-
markable aptitude for the insurance
problem.
Ekern is a Norwegian. university
graduate. a lawyer. In the Legis-
lature of 1907 he appeared before the
committee having charge Of the in
surance legislation, and there demon
strated his ability to hold more than
his own against the ablest actuaries
and lawyers representing the largest
insurance companies in the United
States.
In 1910 he was elected Insurance
Commissioner of the State and in the
Legislature of 1911 he brought about
a complete recodification of our in
surance laws. He practically laid
the basis for a system of State in
surance-the first. I think, in the
United States.
The public service of the State has
AMUSE
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