Evening star., 1934-02-18
BUYING OF UTILITY.
FIRMS BY CITIES
RESTSO ON DECISION
Wisconsin Public Service
Commission Holds Hearings
on Severance Damages.
BY WILLIAM T. EvJUE.

Special Dispatch to The Star.
MADISON, Wis, February IT,
The financial possibility Of wiscon-
sin municipalities acquiring privately
owned utilities rested this week with
the State Public Service Commission
as that body held hearings on whether
severance damages should be paid pri-
vate utilities in municipal acquisition
cases.
Pending severance damage claims
before the commission amount to
$780, 900. or four times the estimated
value Of plants which are involved.
Attorneys for the private utilities
contend the claims are due and owing,
while counsel for the municipalities
deny the debt. The municipalities
claim that after municipal acquisi-
ton the utility still has other prop
erty on which 1t can secure rates in
suring fair return. To permit sew
erance damages would be to make
financially impossible the municipal
purchase OF utilities.
Movement Shows Impetus.
In the past year the municipal
ownership movement has shown a
sudden impetus in Wisconsin. and
more than a dozen municipalities will
vote on the question of acquiring OF
constructing their own utilities at the
April elections. At present there are
rs publicly owned power and light
utilities in the State, although opin-
ion Is divided as to their desirability
over privately owned and operated
plants. Madison is one of the com.
munities that will vote on purchase
Of the local electric utility this Spring
Possibility of q third party to
consist Of the liberal elements from
Republican and Democratic ranks
was stronger this week following the
speech Of Harold M. Groves, Univer-
sity Of Wisconsin economics profess
sor and La Toilette Progressive leader
Addressing q Madison Progressive
club, Prof. Groves declared that he
was absolutely in favor" OF third
liberal party and that it was a farce
for Progressives to enter the Repub.
lican party as has been the practice
in the past.
Prof. Groves was appointed special
adviser on tax matters to the United
States Treasury Department, only to
have his appointment voided by Sec
retary Morgenthau on the latter's
assumption of the Treasury secre-
taryship. Groves is q former Dane
County assemblyman and was an i'm
portant leader in the La Toilette
State administration from 1881 to
1882.
La Follettes Mentioned. l-t
Unsubstantiated rumors were prev
alent. too, that Senator Robert NJ.
La Toilette, jr.. will seek reelection
as a candidate heading the thire
party ticket. The third party move
ment has made large headway among
farmers throughout the State. Al
their gubernatorial candidate the!
favor former Gov. Phil La Toilette
according to their spokesmen.
That both Mrs. Gertrude Bowlel
of Sheboygan Democratic nationa
committeewoman, and Charles e
o1OukiitoA, 0uCbOySoh 1ASoo Cehsoa
and q Democratic national committee
man, will not seek the senatorial nom.
ination was made clear this week by
Mrs. Bowler, whose candidacy ha
already been announced. Questioned
as to Mr.. Broughten's reported can
didacy, Mrs Bowler said, both
Charlie and I won't run; We'll havt
to get together on this"
Mrs Bowler told q group Of Univer.
sity OF Wisconsin Democratic Clul
members that they should not clamol
for Jobs. but should be willing to wait
until old party wheelhorses had beer
rewarded.
With the Legislature adjourned
after voting liquor control law
municipal councils and county board
began enacting final ordinances re-
garding taverns and liquor stores
Licenses for the sale Of hard hquol
varied from SIS to $500, depending
on the size OF the town.