Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-12-08
MOODYFLAYS
UTILITIES IN
ADDRESS
Claims Companies Are
Getting Throttle
Grip On State

GtLb Ed A O4Ns 4CA.t 1fCC. t-iHj
The large public utilities oper-
ating in Texas have swallowed up
the smaller ones and become larg-
er until in nearly every town they
are without competition and have
a monopoly Of their particular
business, Governor Moody declared
today in an address before the con-
vention of city attorneys Of Texas.
He said the necessity for regula-
ton and control l. evident. and
somebody should stand between
the consuming masses and the COM
pany, or companies, furnishing uti-
lity service to the public"
The power and duty to regulate
the conduct Of such companies. and
the rates TO be charged, under O
holding of the supreme court of the
United States. rest upon the state
legislature" he said. Some of the
larger cities have the power Of reg
ulation. but with this exception and
the limited control which the rail-
road commission has over gas COM
panies. there is practically no reg
ulation OF this big industry.
Towns Helpless
IL exorbitant rates are Being
charged the consumers. the average
city or town is practically without
the legal power and finances, under
existing law, necessary TO correct
the abuse or to make an inquiry
into the matter and bring about an
adjustment. Our statutes we're writ
ten when there were few utilities
in this state, and for the most part
such as existed were local concerns"
Governor Moody said the analys-
is prepared by former Governor
Pinchot Of Pennsylvania Of public
utility companies Going business in
the United States, showed only two
companies in Texas as independent
Of the larger utility organizations.
Unincorporated villages and inc
orporated towns with q population
OF less than 1000 were without
regulatory power, he said, declar-
ing:
Small Towns Suffer
These communities have 70 pay
any rate fixed by the utility COM
pany. The consolidation and extern
sion OF public utility lines from
community TO community and from
town TO town, has created a situa-
ton which practically destroys the
effectiveness of the power given
any class of cities or towns to
regulate rates. Many cities and
towns are but stations on the lines
Of the utility companies furnishing
them service. They do not have the
means or facility for determining
what proportion Of the expense Of
the company or OF its investment
is necessary TO the service OF that
town, or what would be a fair re-
turn upon the investment neces-
Sary to the service furnished the
particular towr. Therefore, they
are without the information to fix
the rate and without facilities and
funds .uired to gain the neces-
sary information.
Regulation Urged
Every public utility company Is
entitled to a fair return on the
reasonable value of the property
used in the public service. after the
legitimate cost Of operation is de-
QuGLtUs DuL IL - Impossible LOT any
city, without tremendous expense,
to make the necessary inquiry TO
determine what rate would yield
sch ret--n. Experience has proven
in litigation which the larger cities
of Texas have had with utility COM
panies in an effort to adjust rates
that the expense OF the litigation
is more than any city in Texas can
pay. except these larger cities"
He said "the helplessneSs OF q
city commission In a city or town
of 10000 or $1,000, or less. in under
taking to fix a rate which q utility
company may charge. furnishes the
most conclusive evidence of the
necessity for further regulation OF
public utilities"
The time has come In Texas
4 steps should be taken for the
supervision and regulation of these
utilities" he said. The masses of
consumers shou- be given a meas
ure Of legal protection from exces-
Sive rates"