The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-12-17
FEDERAL RULE
OF UTILITIES
HELD failure
'Barons' Never Learn, View
of Prof. Willis, Indiana
Law School.
MUST CURB ARROGANCE
Government Ownership Is
Seen as Likelihood in
Future.
MUST CURB ARROGANCE

Because the "Bourbons never
learn nor do public utility barons,
government regulation Of utilities is
at the crossroads, Professor Hugh
r. Willis of Indiana university law
school declares in a challenging
article in the November number of
the Indiana Law Journal.
The Journal is the official publ
cation of the Indiana State Bar
Association.
Professor Willis writes on the
subject: HAS Government Regu-
lation of Utilities Proved a Fail
ure?"
He concludes that it has and cites
the long record of pro-utility deci-
sions of the United States supreme
court to prove it. Governmental
regulation of utilities is at the
crossroads. he declares, and the
utilities may be given another
chance, even if they haven't de-
served it, but it follows that it may
be necessary for the government
to own the utilities, to keep the
utilities from owning the govern
ment.
Cites Government Failure
Dwelling on the failure of govern
mental regulation in the past and
present the professor declares:
It would not have been difficult
to solve the problem if the public
utility owners had co-operated in
every way in helping to make the
solution possible.
Since their attitude has been an
tagonistic. it has made the problem
doubly difficult. Perhaps it would be
better to say that the public utility
companies have defeated public
regulation.
AS a consequence Of the oppoSi-
ton of public utility men, the per-
sonnet of commissions, and the in
herent difficulty of governmental
regulation of public callings, the
people of the country are begin
ming to come to the conclusion that
governmental regulation has proved
a failure.
Want Cheap Gas
"They feel that what they want
IS cheap gas. cheap electricity and
other services of public utilities at a
cheaper price than they now are
getting them
They see what cheap electricity,
for example, would do to transform
our social and economic life. They
see how all homes in the south could
be cooled in the summer time in
that case, just as now the houses
in the north are heated in the
winter time.
They know from the history of
other experiments that if the mat
ter we're managed differently, it
would be possible to obtain cheap
electricity and other services at
cheaper prices.
yet they see that the day of
cheap electricity, for example, APP
parently has passed away forever in
the United States.
Professor Willis final summary
follows:
1T will have to be admitted that
the choice is either between gov
eminent regulation under the law of
public callings or public ownership
with either public operation or
private operation under contract.
May Mean Policy Change
IF utility men had tried as hard
to obey the law of public callings
as public utility commissioners have
tried to enforce it, governmental
regulation might by this time have
proved a wonderful success.
Since this has not been the case,
either a more colossal effort must
be made on the part of govern
ment, or governmental regulation
must be abandoned as a govern
mental policy.
IF governmental regulation is
abandoned. nothing remains but
government ownership, either with
government operation or with
private operation under a contract
with the government"