The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1929-07-24
LAURISCH TALKS


LAURISCH TALKS
C. J. Laurisch, Mankato, elected to the Railr,
d Warehouse Commission at the last general ell
n, is keeping faith with the people who put him
fee. Only recently the Tri-State Telephone r
rty was Sold 1t was sold for over twice as m,
the same property was sold for recently. The r
n for this tremendous figure is carefully explain
Mr.. Laursch when he states that telephone ra
e based upon the valuation of property, the
Knitting a fair and just return upon investmt
:. Laurischs letter to the press follows:
II notice with interest the purchase of Tri-
State Telephone stock and the sale thereof at
a most unusual price. This looks as though
large company in the same business has
quired this property. l am astonished. have
but admiration for the ability of the men who
have put across this large business DEAL In
fact, l feel like congratulating them for their
financial achievement. But that is. not the
thing that commands attention
"The law contemplates that the Railroad
and Warehouse Commission have control over
the phone rates. We expect investors in pub
lie utilities, such as telephone companies to
have a reasonable return for their invest
territory. They are practically insured again
st loss and they are permitted to make
charges so that they are sure of a reasonable
income. They are favored class as against
the individual person in his business, or the
farmer, who have such sheltering law to
protect them, for know of no more hazard
Gus business than that of the farmer
Il supposed the time had come when tele-
,~l1,
and that they did not expect to infict upon
the people bunch of watered stock. guess
l am wrong. The temptation to make money
is great.
"Only few months ago the Tri-State Com
pany was sold for considerable less than half
for what it has now been sold. 1 am so con-
WINGED that its assets have no such value as
its present selling price, yet the owners will
expect the people to pay charges so as to
get returns upon this inflated value. The time
has come for our Commission to investigate
the assets of the company and fix it's rates
on the real value and protect the people of
this state from being "duped' by excessive
local and long distance rates to which they
are now apparently subjected. If an IMPOSE
ton of this character is to be imposed upon
the people OF this state, it is time to call
halt. purchase of public utility under
: our commission form of control as such an ex-
cesslve price in anticipation of returns upon
the investment can not be justified but on
the contrary, it is so out of sympathy with
the spirit of the Commissions control of rates
for the protection of the public that it calls
Tor public resentment and censure. 1t calls
for action by our Commission of which l am
one. 1t calls for legislation and executive ac-
ton. 1t calls for showdown as whether the
people are to have the protection the law con-
templates or whether they are to be mulcted
by the public utilities in the state. Such
transaction is intolerable and is an imposition
upon the people who are the patrons of the
company. Since we have eliminated COMPETE
ton no telephone company or other public uti-
lily should expect to make any profit other
than a reasonable return on the money invest
ed Its profits, as involved in this sale, show
little appreciation of the law which practical
~ lnsures them reasonable return and pro-
tects them from loss Such protection is
supposed to give the people protection from
rates requiring payment of more than is re-
CURED to pay the reasonable return on money
actually invested. To my mind the whole
transaction is an outrage and shame and
am ready to give my strength and raise nv
voice as member of the Railroad and Ware
house Commission to enforce the spirit of the
law"
a*
THE HOOVER FARM PLAN GETS GOING
If one would understand the Hoover farm plan
S but to note the very brief statement which Pr
mt Hoover made to the farm board at its initial M
g this week..
He said
'eYour fundamental purpose must be to detern