Evening star., 1925-10-15
STATE REGULATION OF BUSES
URGED BEFORE UTILITY BODIES
Co-Ordinated Service Declared Vital-Hoover SAYS
Control of Interstate Power Projects Not
Proper Federal Function.

and municipal system of regulation is
| stea lilly building up this basis of regu-
| lation.
The argument is sometimes used
! that the power situation is parallel
| with the railroads. where Federal reg
, ulation has been found necessary. 1t
differs in several profound respects
| Power has no such interstate implica.
| tion as transportation.
Furthermore, there has been out
rageous exaggeration of the proba BILE
extent of interstate power. For eco
nomic reasons these power districts will
| in but few cases reach across State
| lines The interstate loading Of our
railway transportation probably com
prises 20 to so per cent of the total
goods carried by rail. The proportion
of interstate movement of power will
increase, no doubt. And this inter
state movement is of high importance
for economy in power production.
States Powers Ample.
But interstate problems arise only
where the activities of the operating
companies extend beyond State lines.
They fall into two classes es-first, where
the same company is engaged in gen
Grafton and distribution over a district
emhrac icing parts of two or more
States. and. second, where an operat-
| ing company purchases power gen
Grated in a foreign State. the latter
instance also embracing the inter
connection betWeen districts living in
different States. As to the first class.
ii has been we'll established by the
courts in analogous instances that
the State commissions have the power
and authority to establish 'rea asonahle
rates to their consumers. whether
the property may be wholly within
the State or not These cases take
care today of the large proportion OF
the per cent passing our state lines.
There remains. therefore, a small
fraction OF the problem. where the dis
tributing company buys power by IN
terconnection or otherwise from out
side the state. Here the question Is
simply az To whether the rate paid
for the purchased power IL reasonable.
II reasonable the commission may
refuse to allow It's full amount in set
tIing the rate base. 1t is open to the
commission To fix a rate for resale 10
consumers within It's JURISDICTION
ha sed upon what the commission con
siders n fair price.
Exceptions Improbable.
1T is difficult to conceive of sit
uarion which. So far as public inter
this simple and effective manner. II
in the passage Of time and the ac-
cumulation of experience, the unex-
pected either economic or legal.
should happen, and we find an occu-
pied field requiring regulation. IL VIII
he time enough then 10 talk of tederai
control No such condition exists to-
dav or is apparent In the future.
The third contention is that some
Of the States have not or Will not
set up adequate machinery for pro
lection of public interest. But Fed
eral encroachment for this reason is
the ultimate extinction of local gnV-
ernment.
THE fourth contention is that this
evolution of the industry has deEel-
oped trusts which do or VIII defy
public interest. | am perfectly con
rident that American States are not
going to surrender their rights and
their freedom to any trust or
trusts The American people have
not forgotten how to take care OF
themselves.