GIFT OF -rh' bill jirohibits the exercise of any right or privilege under any francliise hereafter granted, or under any franchise heretofore granted but not actually exercised, without authority of a commission. (Section 68.) This gives the New York commission full power to pro- hibit competition. 'I'lir JVisconsin hill gives power to the commission to require, for a reasonable compensation, the joint use by any public utility of any con- REGULATION OF PUBLIC UTILITIES. 5 duits, subways, poles or other equipment on, over or under any street or highway. (Section 4 — i.) It also provides that "no license or franchise shall be granted where there is in operation, under an inde- terminate permit, a public utility engaged in a similar service without first securing from the commission a declaration, after hearing, of rea- sonable necessity," and that "any existing franchise which shall contain any terms interfering with the existence of such second public utility is hereby amended to permit municipality to grant license or permit for operation of second public utility." (Section 74.) Telephone companies are not included in these provisions since they are by law permitted to operate without franchise. This gives the Wisconsin commission full power to prohibit compe- tition, subject to review by the courts. MUNICIPAL OWNERSHIP. TJie Nezv York bill provides (section 68) that no municipality shall build, maintain and operate for other than municipal purposes any works or system for the manufacture and supplying of gas or electricity for lighting purposes without a certificate of authority granted by the commission. This gives the New York commission full power to prohibit munici- pal ownership. The JVisconsin bill provides (section 76) that "every license, permit or franchise hereafter granted to any public utility shall be subject to the provision that the municipality in which it is situate may purchase the property of such utility within said municipality actually used and useful for the convenience of the public, at any time as provided herein, paying therefor the then value of such property as determined by the commis- sion. Any such municipality is authorised to purchase such propert)', and every public utility operating under such indeterminate franchise is required to sell such property at the value and according to the terms and conditions determined by the commission, subject to appeal as herein provided." Section yy provides that a public utility operating under an existing franchise may by filing a written surrender thereof, receive by operation of law an indeterminate permit, and that the filing of such surrender constitutes a waiver of the right to insist upon the fulfillment of any contract relating to i:ate, charge or service regulated by the act. Section 78 provides that the acceptance of an indeterminate fran- chise shall be deemed a consent to a future purchase of the property by the municipality in which the major part of it is situated at the value and under the terms and conditions fixed by the commission and shall be deemed a waiver of the constitutional right arising under a provision (; i.i-(;i>iiy i>t' the taking to be estab- lislied by the verdict of a jury. Section 79 gives the municipality power: (i) to construct and operate a plant; (2) to purchase by agreement with any public utility any part of any plant on terms approved by the commission after hear- ing; (3) to acquire by condemnation any plant operated under a fran- chise existing at the time the act takes effect; (4) to acquire property of a public utility operating under an indeterminate permit. Section 80 provides for an action to condemn the property of the public utility operating under a franchise granted prior to the tiine this act takes eflfect. Section 81 provides that if the municipality shall have determined to acquire a plant and the public utility has consented to the taking over of such plant by the acceptance of an indeterminate permit, or iri case the public utility shall not have consented to such taking by such accept- ance, if a jury shall have finmd that a necessity exists for the taking of such plant, then the municipality shall give notice of such determina- tion and of such consent or such verdict to the public utility and t<» the commission. Section 82 provides that llic coni'iiission shall thereupon, after public hearing and within three months. Fix and determine the then value of the property and all terms and conditions of sale and purchase. This value and thie terms and conditions shall ci»nstitiUe the comiiensation and terms and conditions of sale. Section 83 provides that the public utility of the municipality may prosecute an action to alter or amend the determination of the com- mission. VALUATION or UTILITIF..^;. The New York bill contains no provision for the valuation of utilities. The Wisconsin 1)111 provides in sections 3 to 7 inclusive, for the valuation of the property of public utilities, i)ublic hearings on the subject of valuation, final deterniination of value and re-valuations. Section 19 provides for full publication of values. Section 86 provides for a re-hearing and re-valuation if the value for the purposes of mimici- pal purchase fixed by the prc\ious order ni the commission be adjudged t(j be unlawful. CONTROL f)F C Al'lTALIZATION. The A^'cTC York hill in sections 54. -^^^ 69 & 70 gives power to the commission to control the issue and transfer of stocks, bonds and other evidences of indebtedness as a uuans of controlling the capitalization of public utilities. ki-:(;l'I-.\ii()\ (if I'lntuc utilities. 7 The IVisconsin bill has no ])rovision to prevent stock-wateringl Under its provisions rates are to be computed on true value and it was regarded better to permit capitalization to be regulated by other measures now pending before the legislature. UXIFORM SYSTEM OF ACCOUNTING. The Nczv York bill prtjvidcs in section 52 that "each commission tnay, whenever it deems advisable, establish a uniform system of accounts to be used by railroad and street railroad corporations or other common carriers, and may prescrilie the manner in which such accounts shall be kept." It provides in section C^C^ — 4 that each commission shall "have power, in its discretion, to prcscrilje uniform methods of/ keeping accounts, records and books, to be observed by the persons, corporations and- municipajities engaged in the manufacture, sale and distribution of gas and electricity for light and power." It will be observed that these provisions are permissive, not manda- tory. The Wisconsin bill provides: Section 8. i. "Every public utility shall keep and render to the commission in the manner and form prescribed by the commission uni- form accounts of all business transacted." 2. Every public utility engaged directly or indirectly in any other business than that of the production, transmission or furnishing of heat, light, water or power or the conveyance of telephone messages shall, if required by the commission, keep and render separately to the commission in like manner and form the accounts of all such other business, in which case all the provisions of this act shall apply with like force and efifect to the books, accounts, papers and records of such other business. Section 9. "The commission shall prescribe the form of all books, accounts, papers and records to be kept for this purpose, and every public utility is required to keep and render its books, accounts, papers and records accurately and faithfully in the manner and form pre- scribed by the commission and to comply with all directions of the com- mission relating to such books, accounts, papers and records. Section 10. The commission shall cause to be prepared suitable blanks for carrying out the purposes of this act, and shall when neces- sary, furnish such blanks to each public utility. Section 11. No public utility shall keep any other books, accounts, papers or records of the business transacted than those prescribed or approved by the commission. It will be observed that all of these sections are mandatory. Their enforcement will make intelligent regulation possible. 8 LEGISLATIVF. REFF.RENCE DEPARTMENT. OHIO STATE LIBRARY. PUBLIC UTILITY REPORTS. The A'cic York bill i)rovi(les in section 46, that "each commission shall prescribe the form of annual reports rcciuirerl to be made by com- mon carriers, railroad and street railroad corporations ; may require such reports to contain information in relation to rates or regulations concern- ing fares or freight, agreements or contracts affecting the same, so far as such rates or regulations pertain to transportation within the state. The commission may also require such corporations to file monthly reports of earnings and expenses within a specified p^iod." In respect to gas and electricity, section 66 — 6 "requires every person and corporation under its supervision to submit to it an annual report showing in detail : 1. Amount of authorized, issued and outstanding capital stock. 2. Amount authorized bonded indebtedness, and amount of bonds and other forms of indebtedness issued and outstanding. 3. Receipts and expenditures during preceding year. 4. Amount paid as dividends on stock, and interest on bonds. 5. Name of. and amount paid as salary to, each officer, and the amount paid as wages to its employes. 6. Location of plants and systems, description of property and franchises, and how each franchise was acquired. 7. Any other facts as may be required by the commission. The Wisconsin bill provides in section 18 that "each public utility shall furnish to the commission in such form and at such times as the commission shall require, such accounts, reports and information as shall show in itemized detail : 1. The depreciation per unit; 2. Salaries and wages separately per unit ; 3. Legal expenses per unit ; 4. Taxes and rentals separately per unit ; 5. Quantity and value of material used per unit; 6. Receipts from residuals, by-products, service or other sales separately per unit ; 7. Total and net cost per unit ; X. Gross and net ])rofit per unit; i). Dividends and interests per luiil ; H). Surj)lus or reserve per unit ; 11. Price jier unit paid by customers; and in addition such other items, whetluT of a nature similar to those hereinbefore emnnerated or otherwise, as the couiinissinn may prescribe in order to show completely and in detail tlie entire operation of the pMbbe nlilitv in furnishini: the unit of jtN prDiIuct nr service to the public 1 RF.(;il..\-n()\ OF Pl'liLIC UTIl.ITIKS. . 9 vSection 42 provides that : 1. Every piiulic utility shall furnish to the cor.inii.^sioii all infor- mation re(|uire(l. 2. Any public utility receiving from the commission any blanks with directions to fill the same, shall cause the same to be properly tilled out so as to answer full}- and correctly each question therein propounded, etc. 3. Whenever rec|uired Ijy the commission, every public utility shall deliver to tlie commission, any or all maps, profiles, contracts, re]j(jrts of engineers and all documents, books, accounts, pa])ers and records or copies of any or all of the same, with a com])lete inventory of all its property, in such form as the commission may direct. rI':.\.sonai;le rates of ciiarcfs. ' The A'czc York bill i)rovides in section 26, that "all charges made or demanded by any person, corporation or common carrier shall be just and reasonable and not more than allowed by law or by order of a commission." Section 28. "Kvery common carrier shall file with a commission and shall print and keep open to ])ublic ins])ection schedides showing the rates of fare and charges, and separately all terminals, storage, icing and other charges." Section 29. "Unless a commission otherwise orders no change shall be made in any rate, fare or charge which shall have been filed and published by a common carrier except after thirty days' notice to the commission and publication for thirty days. The ccMumission, for good cause shown, may allow the changes in rates without recpiiring thirty days' notice." Section 30 requires filing with a commission "the name of the several carriers which are parties to a joint tariff and copies of every contract, agreement or arrangement with any other carrier or carriers relating in any way to the transportation of pas.sengers, property or freight." Section 49 provi" notice to commission. Section 32, for new schedules to be filed for inspection by consumers. Section 33, declares it to ])c unlawful to charge a greater or less rate than shown on schedules. Section 34, that commission may i)rescril)e changes in form of schedules. Section 35, that commission sliall proviik- comprehensive classifica- tions of service that shall be uniform throughout the state. Section 46, that substitute rates and regulations may be ordered after investigation. Section 47, that if, after hearing, the public utility has been found at fault as to any rate or service it shall i)ay the expenses incurred bv the coiuniission upon the investigation. REGULATION OF PUBLIC UTILITIES. 11 Section 48, that separate hearings may be had on each rate. Section 60, that orders fixing rates and regulations, certified to Litihty, take efifect in twenty days, unless otherwise specified. Section 62, commission may rescind, alter or amend orders. Section 63, rates and regulations fixed by commission remain in force until otherwise ordered. Section 99 provides that the commission shall have emergency power to temporarily alter, amend, or, with the consent of the utility concerned, suspend any existing rate and to apply the change to one or more utilities in any portion of the state. Section 100 gives commission full power to regulate unreasonable, unjust or discriminatory rates in case not specifically mentioned. Section 105. i. Unless the commission shall order otherwise, it shall be unlawful for any public utility to demand, collect or receive a greater compensation for any service than the charge fixed in the lowest schedules of rates for the same service on the first day of April, 1907. 2. Every public utility shall file copies of all schedules of rates and charges, including joint rates, in force on the first day of April, 1907 and all in force at any time subsequent to said date. 3. Every public utility desiring to advance or discontinue any rate may make application to the commission. 4. If the commission find the change applied for reasonable, it shall grant the application, either in whole or in part. 5. Any public utility being dissatisfied with any order of the commission made under the provisions of this section, rnay commence an action against the commission in the circuit court in the manner pro- vided in sections 64 to y-^ inclusive, of this act. EXTENSIONS, IMPROVEMENTS AND REPAIRS. The New York bill gives the commission power, in section 27, to order the construction of switches and sidetracks for the accommodation of shippers and to specify the reasonable compensation for the con- struction, establishment and maintenance of the same. Section 37 requires sufficient cars and motive power, and that "the commission shall have power to make, and by order shall make, reasonable regulations for the furnishing and distribution of freight cars to shippers, for the switching of the same, for the loading and unload- ing thereof, for demurrage charges in respect thereto, and for the weigh- ing of cars and freight offered for shipment. Section 39 requires continuous carriage from place of shipment to place of destination. 12 i.i-:r.isLATivi-: ki:i"i:ki:.\( i-. di i-nkimi- .\ i . >>\\\n mmi. i.ii-.k\K\. Section 50. to order repairs, improvements, changes or additions to promote the security or convenience of the pubHc or emplo\'-. '^r in order to secure adequate service or facilities. .Section 51. to order changes in time schechiles. the running oi train.-.. adcHtional cars and trains. Section 66 : 1. General sui)ervision of all i)crs()ns and corporations having authority for the purpose of furnishing gas or electricity, or maintaining underground conduits or ducts for electrical conductors. 2. Investigate quality, methods employed in manufacturing and su]i])lving. and order improvements. 3. Power to ti.x standards of illuminating power and purity of gas; methods of regulation of the electric supply .system; require gas to equal standard ; regulations as to pressure, and of its own motion, examine and investigate methods employed in manufacturing, delivering and supplying gas. 5. See tliat jjroperty is ])r()])crly maintained and operated. 8. To enter in or upon and to inspect the proi)erty, buildings, plants, factories, power houses and offices. Section 67. to appoint inspectors and ])n)hil)it the use of gas and electric meters not inspected, approved, stamped or marked by an in- spector of the commission ; every gas and electric corporation shall pro- vide and keep suitable ai)paratus to be approved, stamped or marked by the commission to be used in testing, etc., and shall make tests in presence of consumer if desired. Section 71. investigate com])laints as to quality or price of gas and electricity. Section J2, after investigation may. by order, order such imprt>ve- menls in the manufacture. supi)ly or transmission or in methoc'.> em- ployed, as will in its judgment improve the service. Tlu- iriscoiislii hill provides in section 4. that the commission may order joint use of conduits, subways, poles or other equipment, and by order prescribe reasonable conditions and compensation therefor. Section 16. keej) informed of all new constructions, extensions and additicMis to property. Section 22. ])rescribe for each kind of utility a convenient standar>uremeni-<. (juality. pressure, initial voltage and prescribe regulations for examina- tions and testing: iiiles. regulations, specifications and standards tovse- cine accuracy in meters anI..\ I 1\ I Kl.l I KI-..\( I IH-.l' \KIMI..\ I , iillln S lATI-. I.ll'.UNKV. 3. To provide for a 1 enaity for non-compliance with the provisions of any ordinance or resohition adopted pursuant to the ])rovisions hereof. 4. The power and authority granted in this section shall exist and be vested in said municipalities, anything in this act to the contrary not- withstanding. Section 97, fine or imprisonment for destroying, interfering with or injuring apparatus belonging to commission. I.WESTIGATIOX OF ACCIDENTS. The Nezv York bill provides in section 47, that "each commission shall investigate the cause of all accidents on any railroad or street railroad within its district which result in loss of life or injury to persons or property, and which in its judgment shall require investigation. Every common carrier, railroad corporation and street railroad corporation is hereby required to give immediate notice to the commission of every accident happening upon any line of railroad or street railroad owned, operated, controlled or leased by it, within the territory over which such commission has jurisdiction, in such manner as the commission may di- rect. Such notice shall not be admitted as evidence or used for any pur- pose against such common carrier, railroad corporation or street railroad corporation giving such notice in any suit or action for damages growing out of any matter mentioned in said notice. The IViscoiisiii bill provides in section loi, that: 1. Every public utility shall, whenever an accident attended with loss of human life occurs witliin this state upon its premises or directly or indirectly arising from or connected with its maintenance or opera- tion, give immediate notice thereof to the commission. 2. In the event of any such accident the commission, if it deem the public interest require it,«shall cause an investigation to be made forth- with ; which investigation shall be held in the locality of the accideni. unless for greater convenience of those concerned it shall order such investigation to be held at some other place ; and said investigation may be adjourned from place to jilace as may be found necessary and con- venient. The commission shall seasonably notify the ])ublio utility (^f the time and place of the investigation. LIAIill.lTV FOR LOSS OK DA.MACI". HV VIOLATION OK ACT. The New Yorh hill in section 38 fixes liability for damage to property while in transit, and gives provisions to be incorporated in bills of lading. Section 40 fixed liability for loss or damage caiLsed by violation of this act, the laws of the state or the orders of the commissioiL The IViscoiisi)! In'tl ])r(^vidcs in section 03, that "if any public utility shall flo or cause to be done or permit to be dtly (liscriniinatorx or otherwise in violation of any of the ])rovisions of this act : or shall find thai any service is inadequate or that any service which can he reasonahly demanded cannot be obtained, the commission shall determine and declare and by order fix reasonable measurements. regidatii>ns. acts, practices or service to be furnished, imposed, observed and followed in the fiUure in lieu of those found to be imjust. unreason- able, insufficient, preferential, unjustly discriminatory. ina i)ro\i;k's I'lncs for any oflicer of town, village or city who fails to ob'c\- orders of i-onimissii>n. REGULATION OF PUBLIC UTILITIES. 23 Section 97 provides fine or imprisonment for destroying, interfering with or injuring apparatus belonging to the commission. Section 98 provides that every day's failure to comply with an order of the commission shall be a distinct offense. Section 102. 3. Any forfeiture or penalty herein provided shall be recovered and suit therein shall be brought in the name of the state of Wisconsin in the circuit court for Dane county. Complaint for the collection of any such forfeiture may be made by the commission or any member thereof, and when so made the action so commenced shall be prosecuted by the attorney general. Section 104. All penalties and forfeitures accruing under this act shall be cumulative and a suit for any recovery of one shall not be a bar to the recovery of any other penalty. COMPLAINT AGAINST UTILITIES. The New York bill section 27 provides that, "If any railroad cor- poration shall fail to install or operate any switch connection with a lateral line of railroad or any side track and switch connection after written application thereof had been made to it, any corporation or per- son interested may present the facts to a commission by written peti- tion, and the commission shall investigate the matters stated in such petition, and give .<^uch hearing thereon as it may deem necessary and proper. If the commission be of opinion that it is safe and practicable to have a connection, substantially as prayed for, established or main- tained, and that the business to be done thereon justifies the construction and maintenance thereof, it shall make an order directing the construc- tion and establishment thereof, specifying the reasonable compensation to be paid for the construction, establishment and maintenance thereof." Section 48. 2. Complaints may be made to the proper commission by any person or corporation aggrieved, by petition or complaint in writing setting forth any thing or act done or omitted to be done by any common carrier, railroad corporat'on or street railroad corporatioi'. in violation, or claimed to be in violation of any provision of law or of the terms and conditions of its franchise or charter or of any order of the commission. Upon the presentation of such a complaint the com- mission shall cause a copy thereof to be forwarded to the person or cor- poration complained of. accompanied by an order, directed to such person or corporation, requiring that the matters complained of be satisfied, or that the charges be answered in writing within a time to be specified by the commission. If the person or corporation com plained of shall make reparation for any injury alleged and shall cea-e to commit, or to permit, the violation of law, franchise or order charged in the complaint, and shall notify the commission of that fact before the time allowed for answer, the commission need take no further action 24 IJ-.<.I>I..\ I 1\ I-. Kl.l I Kl .\( I-. Dl.l- ARTMKNT. (»lll(» SI. Ml-; l.ll'.NAKV. upon tlie charges. If. however, the charges contained in such petition he not tlius satislied. and it shall appear to the commission that there are reasonable grounds therefor, it shall investigate such charges in such manner and by such means as it shall deem proper, and take such action within its powers as the facts justify. 3r Whenever either commission shall investigate an\ matter com- plained of by any person or corporation aggrieved by any act or omission of a common carrier, railroad corporation or street railroad corporation under this section it shall be its duty to make and file an order either dismissing the petition or complaint or directing the common carrier, railroad corporation or street railroad corporation complained of to satisfy the cause of complaint in whole or to the extent which the com- mission may specify and rc(|uiro. Section 49 provides for the hearing of complaints regarding rates, fares or charges. Section 51 provides for the hearing of complaints regarding time schedules and the running of additional cars and trains. Section 67. 2. Xo cor])oration or pers(Mi shall furnish or put in use any gas meter which shall not have been ins]iected. proved and sealed, or any electric meter which shall not have been inspected, approved, stamped or marked by an insjjector of the commission. Every gas and electrical corporation shall jirovide or keep in and ui)on its premises a suitable and proper a])paratus, to be approved and stampefl or marked by the commission for testing and proving the accuracy of gas and electric meters furnished for use by it. and by which apparatus every meter may and shall be tested, on the written request of the consumer to whom the same shall be furnished, and in his presence if he desires it. If any consumer to whom a meter has been furnished, shall recpiest the commission in writing to inspect such meter, the commission shall have the same inspected and tested; if the same on being so tested shall be found tcj be. four ])er cent, if an electric meter, or two per cent, if a gas meter, defective or incorrect to the ])reiudice of the consumer, the inspector shall order the gas or electrical cor])oration forthwith to re- move the same and to place instead thereof a correct meter, and the ex- pense of such ins|;ection and test shall be borne by the cliall be found to be correct the expense of such ins])ection and test shall be l)ornc by the consumer. .\ uniform rea- sonable charge shall be fixed by the commission for this service. .Section 71. I'pon the complaint in writing of the mayor of a city, the trustees of a village or the town board of a town, or upon the coui- plaint in writing of not less than one Inmdred consiuners or purchasers of gas ()!• electritity in cities o|' iIk- fust and second class, or of not les> than fifty in cities of the third class, or not less than twenty-five else- where either as to the illuminating j)ower, puritv. ]>ressure or price of REGULATION OF TURLIC UTILITIKS. 25 gas or the initial efficiency of the electric incandescent lam]) sup])ly, or the regulation of the voltage of the sup])ly system used for incandescent lighting, or the price of electricity sold and delivered in such munici])ality, the commission shall investigate as to the cause for such complaint. Section yi. IJefore proceeding under a complaint presented as pro- vided in section 71. the commission shall cause notice of such coni])]ainl. and the ])urpose thereof, to he served upon the person or corporation affected therehy. Such person or corporation shall have an opportunity to be heard in respect to the matters complained of at a time and place to be specified in such notice. After a hearing and investigation, the com- mission within lawful limits may. by order, fix the maximum i)rice of gas or electricity to be charged by such corporation or person, or may order such improvement in the manufacture or supplv of such gas, in the manufacture, transmission or supply of such electricity, or in the methods employed by such person or corporation, as will in its judgment improve the service. The Wisconsin bill: Section 43. Upon a complaint made against any public utility by any mercantile, agricultural or manufacturing society or by any body poli- tic or muncipal organization or by any twenty-five persons, firms, corpora- tions or associations, that any of the rates, tolls, charges or schedules or any joint rate or rates are in any respect unreasonable or unjustly dis- criminatory, or that any regulation, measurement, ])ractice or act what- soever affecting or relating to the production, transmission, delivery or furnishing of heat, light, water or power or any service in connection therewith or the conveyance of any telejihone message or any service in connection therewith is in any respect tinreasonable, insufficient or un- justly discriminatory, or that any service is inadequate or cannot be ob- tained, the commission shall proceed, with or without notice, to make such investigation as it may deem necessary or convenient. Hut no order affecting said rates, tolls, charges, schedules, regulations, measure- ments, practice or act complained of shall be entered by the commission without a formal public hearing. Section 44. The commission shall, prior to such formal hearing, notify the public utility com])lained of that a complaint has been made, and ten days after such notice has been given the commission may ])ro- ceed to set a time and place for a hearing and an investigation as herein- after provided. Section 45. The commission shall give the jiublic utilitv and the complainant, if any, ten days' notice of the time and place when and where such hearing and investigation will be held and such matters con- sidered and determined. Doth the pul)lic utility and complainant shall be entitled to be heard and shall have process to enforce the attendance of witnesses. 26 LEGISLATIVE REFERENCE DEPARTMENT, OHIO STATE LIBRARY. Section 51 provides that in case of iiivestigations on the motion of the commission "Notice of the time and place for such hearing shall be given to the public utility and to such other interested persons as the commission shall deem necessary as provided in section 45."" CO.MPLAIXTS BY UTILITIES. The A^eio York hill in section 27, provides that the commission may upon the application of the railroad corporation in interest, order the discontinuance of a switch connection. The Wisconsin hill, section ^2. Any public utility may make com- plaint with like effect as though made by any person, firm, corporation or association, mercantile, agricultural or manufacturing society, body politic or municipal organization. See section 43. Section 105. 5. Any public utility being dissatisfied with any order of the commission made under the provisions of this section, may com- mence an action against it in the circuit court in the manner provided in sections 64 to 72, inclusive of this act, which action shall be tried and de- termined in the same manner as is provided in said sections. COMPLAINT AGAINST COMMISSION. The Nezv York hill, by implication, recognizes the right of a public utility to complain against the orders of a commission, in the following clause in section 59: "If the defendant in such action f to recover penalties or forfeitures) shall prove that during any portion of the time for which it is sought to recover penalties or forfeitures for a violation of an order of the commission that defendant was actually and in good faith prosecuting a suit, action or proceeding in the courts to set aside such order, the court shall remit the penalties or forfeitures inciirred during the pendency of such suit, action or proceeding." Tlie Wisconsin hill: Section 64. The utility or any person in interest may have recourse to the courts when dissatisfied with any order of the commission fixing rate or regulation. Section 83. The utility or the municii)ality may have recourse to the courts when dissatisfied with determination of the commission relative t(» price or terms for municipal purchase. 5;iMMARY PROCEEDINGS TO ENFORCE OBEDIENCE TO ORDERS OF COMMISSIONS. The New York hill: .Section 21. All actions and proceedings under this act, and all ac- tions and proceedings commenced or prosecuted by order of cither com- REGULATION OF PUULIC UTILITIES. 27 mission, and all actions and proceedings to which either comrnission or the people of the state of New York may be parties, and in which any question arises under this act or under the railroad law, or under or con- cerning any order or action of the commission, shall be preferred over all other civil causes except election causes in all courts of the state of New York and shall be heard and determined in preference to all other civil business pending therein excepting election causes, irrespective of po- sition on the calendar. The same preference shall be granted upon appli- cation of counsel to the commission in any action or proceeding in which he may be allowed to intervene. Section 57. Whenever either commission shall be of opinion that a common carrier, railroad corporation or street railroad corporation sub- ject to its supervision is failing or omitting or about to fail or omit to do anything required of it by law or l)y order of the commission, or is doing anything or about to do anything or permitting anything or about to permit anything to be done, contrary to or in violation of law or of any order of the commissi(in, it shall direct counsel to the commission to commence an action or proceeding in the supreme court of the state of New York in the name of the commission for the purpose of having such violations or threatened violations stopped and prevented either by mandamus or injunction. Counsel to the commission shall thereupon begin such action or proceeding by a petition to the supreme court alleging the violation complained of and praying for appropriate relief by way of mandamus or injunction. It shall thereupon be the duty of the court to specify the time not exceeding twenty days after service of a copy of the petition, within whic'i the common carrier, railroad corporation or street railroad corporation complained of must answer the petition. In ca.'^e of default iti answer or after answer, the court shall immediately inquire into the facts and circumstances in such manner as the court shall direct without other or formal pleadin.gs, and without respect to any technical requirement. Such other persons or corporations as the court shall deem necessary or proper to join as parties in order to make its order, judgment or writs effective, may be joined as parties upon appli- cation of counsel to the commission. The final judgment in any such action or proceeding shall either dismiss the action or proceeding or direct that a writ of mandamus or an injunction or both issue as prayed for in the petition or in such modificI. \ I l\ I Kl I l.KI.NC I Dl- IV\!M MIX r. Ollld SIA IK I.IIIKAKV. county to aid in any investigation, hearing or trial had under the pro- visions of this act. and to institute and i)rosecute all necessary actions or proceedings for the enforcement of this act and of all other laws of this state relating to |)uhlic utilities and for the inmishment of all violations thereof. 3. Any forfeiture or penalty licrcin ])rovi(k'd shall be recovered and suit therein shall be brought in the name of the state of Wisconsin in the circuit court for Dane county. Complaint for the collection of any such forfeiture may be made by the commission or anv member thereof, and when so made tlie action so commenced shall be ])rosecuted by the attorney general. 4. The commission shall lia\e authority to em])loy counsel in any ])rocee(ling. investigation, hearing or trial. POWKR.S OF RKGUI. ATIO.X C'O.VFIKM KD TO M U.N' ICIP \LITIi:S. The Nc2v York Bill: Section yy. If in any city of the hrst or second class there now exists or shall hereafter be created a board, body or officer having juri-sdiction of matters pertaining to gas or electric service, such board, body or officer shall have and may exercise such power, jurisdiction and authority in enforcing the laws of the state and the orders, rules and regulations of the commission as may be prescribed by statute or bv the v'ommission. The Wisconsi)! Bill: Section 87. Every municipal council >liall have power : (t) To determine, by contract, ordinance or otherwise the (luality and character of each kind of j^roduct or service to be furnished or rendered by any public utility furnishing any ])roduct or service within said municipality and all other terms and conditions not inconsistent with this act u])on which such public utility may be permitted to occupv the streets, highways or other i)ublic property within such municipality and such contract, ordinance or other determination of such municipality shall be in force and prima facie reasonable. Upon complaint made by such ])ublic utility or by any (|ualilied com|)lainant as provided in sections 1797m — 43. the commi>>^ion >liall set a bearing as provided in sections 1797m — 45 and 1797m — 4(» and if it shall lind such contract, ordinance or other determinati<»n to be unn-asonable. such tniuract, ordinance or other detenuination >hall be void. (2) To i\<|iiire of any public utility by ordinance or otherwise such additions and extensions to its physical plant within said munici- pality as shall be reasonable and necessary in ilie intiiest of the i)nblic, and to designate the location and natvue of all such additions and cx- tensit)ns, the time within which they must be completed aiid all conditions REGULATION OF PUBLIC UTILITIES. 29 under which they must be constructed subject to review by the com- mission as provided in subdivision i of this section. (3) To provide for a penahy for non-comphance with the pro- visions of any ordinance or resokition adopted pursuant to the provisions hereof. (4) The power and authority gi'anted in this section shall exist and be vested in said mimicipalities. anything in this act to the contrary notwithstanding. COURT REVIEW. The Nczv York hill is drawn on the assumption that the rights of persons, corporations and bodies politic to resist the enforcement of orders issued by the commission are ampl}^ protected by provisions in existing laws. The only recognition of such a right to be found in this bill is in the clause in section 50 above quoted. The Wisconsin Bill: Section 64. ( i ) An}' public utility and any person or coporation in ' interest being dissatisfied with any order of the commission fixing any rate or rates, tolls, charges, schedules, joint rate or rates or any order fixing any regulations, practices, act or service may commence an action in the circuit court for Dane county against the commission as defendant to vacate and set aside any such order on the ground that the rate or rates, tolls, charges, schedules, joint rate or rates, fixed in such order is unlawful, or that any such regulation, practice, act or service fixed in such order is unreasonable, in which action the complaint shall be served with the summons. 2. The answer of the commission to the complaint shall be served and filed within ten days after service of the complaint, whereupon said action shall be at issue and stand ready for trial upon ten days' notice to either party. 3. All such actions shall have precedence over any civil cause of a different nature pending in such court, and the circuit court shall always be deemed open for the trial thereof, and the same shall be tried and determined as other civil actions. Section 65. Every proceeding, action or suit to set aside, vacate or amend any determination or order of the commission or to enjoin the enforcement thereof or to prevent in any way such order or determina- tion from becoming effective, shall be commenced, and every appeal to the courts or right of recourse to the courts shall be taken or exercised within ninety days after the entry or rendition of such order or de- termination, and the right to commence any such action, proceeding or suit or to take or exercise any such appeal or right of recourse to the courts, shall terminate absolutely at the end of such ninety days after such entry or rendition thereof. 30 LEGISLATIVE REKEREXCK DEPAk I M i.N i . mi 10 STATE l.lnKAKV. Section 66. No injunction shall issue suspending- or staying any order of the commission, except upon application to the circuit court or presiding judge thereof, notice to the commission, and hearing. Section 67. i. If, upon the trial of such action, evidence shall be introduced by the plaintiff which is found by the court to be different from that offered upon the hearing before the conmiission or its an- , thorized agent, or additional thereto, the court, before proceeding to render judgment, unless the parties to such action stipulate in writing to the contrary, shall transmit a copy of such evidence to the commission and shall stay further proceedings in said action for fifteen davs from the date of such transmission. 2. Upon the receipt of such evidence the commission shall consider the same and may alter, modify, amend or rescind its order relating to such rate or rates, tolls, charges, schedules, joint rate or rates, regula- tions, practice, act or service complained of in said action, and shall re- port its action thereon to said court within ten days from the receipt of such evidence. Section 68. i. If the commission shall rescind its order com- plained of, the action shall be dismissed ; if it shall alter, modify or amend the same, such altered, modified or amended order shall take the place of the original order complained of, and judgment shall be rendered thereon as though made by the commission in the first instance. 2. If the original order shall not be rescinded or changed by the commission judgment shall be rendered upon such original order. Section 69. Either party to said action within sixty days after service of a copy of the order or judgment of the circuit court, may ap- peal to the supreme court. Where an appeal is taken the cause shall, on the return of the papers lo the su])reme court, be immediately placed on the state calendar of the then ])en(liiig term and shall be assignetl and brought to a hearing in the same manner as other causes on the state calendar. Section 70.' In all trials, actions and proceedings arising under the provisions of this act or growing out of the exercise of the authority and powers granted herein to the commission, the burden of proof shall be upon the party adverse to such commission or seeking to set aside any determination, requirement, direction or order of said commission, to show by clear and satisfactory evidence that the determination, require- ment, direction or order of the commission complained of is unreasonable or unlawful as the case may be. Section 83. Gives the right to the public utility to appeal i*> the courts for review of value or terms fixed by the commission for pur- chase by miuiicipality. REGULATION OF PUBLIC UTILITIES. 31 ANNUAL REPORTS OF COMMISSIONS. The Nezv York bill : Section i6. All proceedings of each commission and all documents and records in its possession shall be public records, and each commission shall make an annual report to the legislature on or .before the second Monday of January in each year, which shall contain copies of all orders issued by it, and any information in the possession of the commission which it shall deem of value to the legislature and the people of the state. Five hundred copies of each report, together with abstracts of the reports to such commission of common carriers, railroad corporations and street railroad corporations, and gas and electrical corporations, in ad- dition to the regular number prescribed by law, shall be printed as a public document of the state, bound in cloth, for the use of the com- missioners and to be distributed by them in their discretion to railroad, street railroad, gas and electrical corporations and other persons inter- ested therein. The Wisconsin bill: Section 19. i. The commission shall publish annual reports show- ing its proceedings and showing in tabular form the details per unit as provided in section 1797m — 18 for all the public utilities of each kind in the state,- and sucli monthly, or occasional reports as it may deem ad- visable. 2. The commission shall also publish in its annual reports the value of all the property actually used and useful for the convenience of the public and the value of the physical property actually used and useful for the convenience of the public, of every public utility as to whose rates, charges, service or regulations any hearing has been held by the commission under section 1797m — 45 and 1797m — 46 or the value of whose property has been ascertained by it under section 1797m — 5. Section 20. All facts and information in the possession of the com- mission shall be public and all reports, records, files, books, accounts, papers and memoranda of every nature whatsoever in their possession shall be open to inspection by the public at all reasonable times except as provided in section 21. Section 21. i. Whenever the commission shall determine it to be necessary in the interest of the public to withhold from the public any facts or information in its possession, such facts may be withheld for such period after the acquisition thereof not exceeding ninety days as the commission may determine. 2. No facts or information shall be withheld by the commission from the public for a longer period than ninety days nor be so with- held for any reason whatsoever other than in the interest of the public. 32 LEGISLATIVE REFERENCE DEPARTMENT, OHIO STATE LIBRARY. PAYMENT OF THE EXPENSES OF COMMISSION. The New York bill: Section. 13 fixes the salaries of the commissioners; counsel to the commission; secretary to the commission, and provides that all officers, clerks, inspectors, experts and employes of a commission, and all persons appointed by the counsel of a commission shall receive the compensation fixed by the commission. The commissioners, counsel to a commission and the secretary to a commission, shall have reimbur.sed to them all actual and necessary traveling and other expenses and disbursements incurred or made by them, their officers, clerks, inspectors, experts and other employes, in the discharge of their official duties. Section 14. i. The salaries of the commissioners, the counsel to the commission, and the secretary to the commission in the first district shall be audited and allowed by the state comptroller, and paid monthly by the state treasurer upon the order of the comptroller out of funds pro- vided therefor. "All other salaries and expenses of the commission of the first dis- trict shall be audited and paid by the city of New York." 2. All salaries and expenses of the commission in the second dis- trict shall be audited and allowed by the state comptroller and paid monthly by the state treasurer tipon the order of the comptroller, out of funds provided therefor. Section 88. There shall be appropriated for the use of the com- mission, and for the payment of salaries and disbursements under this act, from money not otherwise appropriated, the sum of three hundred thousand dollars, or so much thereof as may be necessary. The Wisconsin bill: Section 14. i. The commission shall provide for the examination and audit of all accounts, and all items shall be allocated to the accounts in the manner prescribed by the commission. 2. The agents, accountants or examiners employed by the com- mission shall have authority under the direction of the commission to inspect and examine any and all books, accounts, papers, records and memoranda kept by such public utilities. Section 107. A sum sufficient to carry out the provisions of this act is appropriated out of any money in the state treasury not otherwise appropriated. REGULATION OF PUBLIC UTILITIES. 33 EXPENSES OF COMMISSIONS. (From official sources.) Wisconsin. The expenses of the \\ isconsin commission last year were, in round numbers, $100,000. New York. As will be seen by reference to Mr. Lapp's analysis of the law, New York has two public service commissions ; the commission of the first district, with jurisdiction limited to New York city, and the com- mission of the second district, with jurisdiction over the remainder of the state. The expenditures are here given separately. FIRST DISTRICT. The expenditures for this district in 1908 were $983,000, of which $747,000 was paid in salaries. Following is the latest statement from the commission : '"The emplo)'es of the commission number more than 600 and the total pay-roll is about $70,000 per month. The annual ex- penditures of the commission amount to about $1,000,000 of which amount $91,000 is paid by the state and the balance by the city of New- York. Fully 60% of the expenditures of the commission go to the maintenance of a large engineering force engaged in the preparation of plans and supervision of construction of subways." - SECOND DISTRICT. The expenditures for this district are reported as follows: For 1908, $307,734.05 ; for 1909, $276,575.41 ; for 1910, $295,443.08. Ap- propriation for 1911, $372,830. These sums do not include the state's portion for grade crossing elimination. There was appropriated for this purpose in 191 1, $350,000. RESULTS. The New York Public Service Commission of the first district claims in two years to have saved the railway companies and the people of New York city $3,000,000 in the prevention of accidents alone. The general opinion seems to be that the commission has more than paid its way. Periodical literature on the subject, almost without exception, is favor- able to the commission. There are a few dissenting voices, however. Charles H. Young, of New York city, is quoted in Colliers IVcckly. October 22, 1910, as saying: "We need more economy in state manage- ment and the abolition of useless and extravagant frills. For example, the Public Service Commission costs the tax payers more than $1,000,000 a vear and does nothing." 34 LIXISLATIVI-: REFERENCE DEPARTMENT, OHIO STATE LIIJRARY. PUBLIC UTILITIES COMMISSIONS. SELECT LIST OF REFERENCES. Bruere, Henry. Public utilities regulation in New York. (Annals of American Academy of Political and Social Science. 1908. v. 31, P- 535-5I-) An impartial discussion of the New York Law by the director of the New York Bureau of Municipal Research. Commons, John R. How Wisconsin regulates her public utilities. (Re- view of Reviews. 19 10. v. 42, p. 215-22.) Describes and Approves the work of the Wisconsin Commission. , . Physical valuation of public utilities. (Independent. 1908. V. 65, p. 582-5.) , . The Wisconsin pubHc utilities law. (Review of Re- views.* 1907. V. 36, p. 221-4.) Foote, a. R. Address delivered before the Wisconsin Legislature, June 5. 19070 A pamphlet of 21 pages in which a comparison is made of the public utility bills of New York and Wisconsin. GoNGVVER, C. S. How New York, Massachusetts and Wisconsin regu- late and control public utilities. (Ohio Journal of Commerce. Dec. 10, 1910 — Jan. 21, 1911.) A series of articles based on an investigation of the utilities laws of the three .states. The purpose is "to present concisely and impartially what other states have done and arc doing." Gray, J. H. Public service commissions. (Proceedings of American Political Science Association. 1907. v. 4, p. 324-35.) Hatton, W. H. Public service commissions. (Proceedings of .Amer- ican Political Science Association. 1907. v. 4, p. 305-15.) Hudnall, G. H. Public service commission law of Wisconsin. (Pro- ceedings of American Political Science Association. 1907. v. 4, p. 316-23.) Kennedy. J. S. New York public service. (World To-day. 1910. v. 19. p. 1081-4.) An interesting descri])lion of the work of the "up state" or second district Public Service Commission of New York, by the secretary of the commission. Lapp, T. A. Public utilities. (American Political Science Review. 1907. V. I. p. 626-38.) A careful comparison of the laws of New York and Wisconsin creating i^iblic service commissions. REGULATION' OF PUULIC UT1L1TI'}£S. 'j^)' — , • Public Utilities. (American Political Science Review. 1908. V. 2, p. 592-5.) Public service commission laws. A comparison of the laws of New York, Wisconsin, Massachusetts, New Jersey and Maryland. 191 1. A pamphlet of 18 pages. A concise and impartial comparison, pub- lished by the Legislative Reference Department of the Ohio State Li- brary. Marcosson, L F. Curb on corporation abuses : how New York is solv- ing a national problem in her new commission. (Saturday Evening Post. 1908. v. 180, p. 3-5.) • — '■ ," . Tribunal for all the people. (Munsey's Magazine. 1910. V. 43, p. 731-43.) Sets forth appreciatively "how the public service commissions oT New York have put an efifective curb on corporate abuses." Malthie, Milo R. Public utility commission of New York City. (City Club Bulletin. 1909. v. 2, p. 235-50.) An address, delivered before the City Club of Chicago, January 16, 1909, by Dr. Milo R. Maltbie, a member of the New York Public Ser- vice Commission, first district. A straightforward and popular presen- tation of the work of the commission. New York Public Service Commission-, first district. Jurisdiction and work. (1909.) A pamphlet of 15 pages setting forth clearly what the commission has done for the city of New- York. New York utilities bill. (Outlook. 1907. v. 86, p. 221-24.) A brief editorial discussion of the principles of the New York law. New Y.ORK utilities commission. (Review of Reviews. 1907. v. 36, p. 521-4.) An editorial review o^ the work of the commission for the first district. OsBORN, T. M. Public service commission law of New York. (Atlantic. 1908. V. loi, p. 545-54.) , . The ])ublic service commission law of New York State. (Proceedings of American Political Science Association. 1907. V. 4, p. 287-304.) ' A discussion by a member of the New York commission, second district. Pollock, H. M. Public service commissions of the state of New York. (Annals of the American Academy of Political and Social Science. 1908. V. 31, p. 649-58. S6* LEGISLATIVE REFERENCE DEPARTMENT, OHIO STATE LIBRARY. PoMERENE, Atlee. Plca for the enactment of a public utilities commis- sion law. (In his address on the occasion of his election to the United States Senate, January ii, 191 1.) Public utilities: two methods of control. (Outlook. 1907. v. 86, P- 532-3-) A brief editorial comparison of the Xew York and Wisconsin laws. Solving a great city's transportation problem : New York's mil- lion-dollar-a-year attempt to regulate its street railways by the public utilities commission. (World's Work. 1907. v. 15. p. 9594-9.) Stowe, L. B. How New Y'ork deals with her public service companies. (Review of Reviews. 1910. v. 42, p. 21 1-5.) An interesting account of the good work accomplished by the Public Service Commission of the first district. (New York City.) , . Public ser\'ice companies and the people. (Outlook. 1910. V. 95, p. 515-21.) Van Norman, L. E. New transportation era for New York. (Review of Reviews. 1910. v. 42, p. 433-44.) Whitney, T. H. Public service commission act of New York. (Green Bag. 1907. V. 19, p. 412-24.) A detailed analysis of the New York law. Laws and Bills. Copies of public service commission laws of the different states and of bills introduced in the General Assembly of Ohio and of other states are kept on file in the Legislative Reference Department of the Ohio State Library. Reports of the New York and Wisconsin commissions may also be consulted there. 29:^VHi9 UNIVERSITY OF CAIvIFORNIA LIBRARY