GIFT OF
-<o
Ohio State Library
Legislative Reference Department
REGULATION OF
PUBLIC UTILITIES
A Comparison of the New York and
the Wisconsin Public Utilities Bills
REGULATION
OF
PUBLIC UTILITIES
A COMPARISON OF THE NEW
YORK AND THE WISCONSIN
PUBLIC UTILITIES BILLS
BY
ALLEN RIPLEY FOOTE
Published by the
LEGISLATIVE REFERENCE DEPARTMENT OV
THE OHIO STATE LIBRARY.
Columbus, O. :
The F. J. Heer Printing Co.
1911
4"^^
\\^^n
This comparison was originally published by the Legislative Ref-
erence Department of Wisconsin. The appendix to this reprint was
prepared by the Legislative Reference Department of the Ohio Sta*-*
Library.
REGULATION OF PUBLIC UTILITIES.
NEW YORK PUBLIC UTILITIES BILL.
WISCONSIN PUBLIC UTILITIES BILL.
COMPARISON OF PROVISIONS.
Note: This comparison was made in 1907. before either the New
York or the Wisconsin bill was enacted into law. Each bill was subse--
quently amended before passage, and the laws have also been amended.
MOTIF.
The motif of the Nezv York hill is arbitrary power — a club. It
is destructive. It abolishes the state board of railroad commissioners;
the state commission of gas and electricity; the state or city office of
inspector of gas meters, and the New York board of rapid transit rail-
road commissioners. It gives all the powers of these boards, officers
and commissions to two new commissions, one for New York City and
one for all other counties of the state. The members of these com-
missions are appointed by the governor, with the consent of the senate,
for a term of five years, after the initial term, and removable by the
governor for cause.
The motif of the Wisconsin bill is the establishment of the prin-
ciples of reciprocal justice between public utilities and the users of the
services they render. It gives additional powers to the existing board
of railroad commissioners, a board composed of three commissioners,
appointed by the governor with the consent of the senate, for a term of
six years, after the initial term, and removable by the governor for
cause.
JURISDICTION.
The Nezv York bill places under the jurisdiction of its commissioners
all railroads; street railroads; common carriers; the manufacture and
distribution of gas and electricity for light, heat and power; underground
conduits or ducts for electrical conductors (section 66 — i) ; all trans-
portation of persons or property ; and all persons, corporations and
2^33^69
4 LEGISLATIVE RLFEKFNC;-: OEPARTMFVT, OHIO STATE LIBRARY.
municipaiitieG ( scelion 66 — 4, 5, 6, 7. 8, & 9) owning, leasing, operating
and controlling the same. Street railroads are included in the provisions
for railroads and common carriers. Telephone and water utilities are
omitted.
The iyisco)isiii bill places under the jurisdiction of the state board
of railroad commissioners the manufacture and distribution of gas and
electricity for light, heat and power ; telephone and water services ;
and all persons, corporations and municipalities owning, leasing, oper-
ating and controlling the same. The commission has complete juris-
diction of railway companies (chapter 362, laws of 1905) and is given
complete jurisdiction of street railways by a bill now pending.
ORGANIZATION' AND EQUIPMENT OF COMMISSIONS.
Provisions in both bills are ample for the organization and equip-
ment of commissions to enal)le them to do effective work; and for all
purposes of investigation and examinations to obtain information by
which to guide their actions and formulate their decisions, their powers
are sufficient ; and the means provided for the exercise of such powers
are ample.
PURPOSK OF THE COMMISSIONS.
The purpose of the commissions in both states, is declared in both
bills to be the securing of adequate service and reasonable rates. To
this end all rebates, discriminations, special privileges and favors to any
officer, agent or employe of the commission, or to any person, firm,
corporation or association arc declared to be unlawful and are strictly
prohibited. All equii)nient and methods of manufacturing, distributing,
measuring and charging for services are placed under supervision and
examination, and the quality, purity and pressure of the product sold
are made the subject of continuous tests and observation. The publica-
tion of schedules for inspection by consumers or users is required, and it
is made unlawful to charge greater or less rates than those shown on
published schedules.
COMPETITION AS A MEANS OF SECURING ADEQUATE SERVICE AND REASOX-
ARl.E RATES.
The New }'<>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<i, A ri\i: ki-.i-i;ki- \< i' m- 1- \immi.nt. oiini stati-: i.ibrarv.
of the stale cnnstitutiDii re(|uiriii^ ilic iKcc>>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<les that "whenever a commission shall be of opinii)n,
after hearing upon a com])laint, that the rates, fares or charges demanded,
exacted, charged or collected, or that the regulations or practices, are
unjust, unreasonable, imjustl)' discriminatory or unduly preferential, or
in any wise in violation of any provision of law. the commission shall
determine the just and rea.sonable rates to be thereafter observed and
in force as the maximum, and shall fix the same by orders to be served
upon the common carriers."
Section 71 provides that com])laints as to (|uality and price of gas
and electricity may be made in writing by the mayor of a city, the
trustees of a village, or the board of a town, or by not less than one
10 LliGISLATIVE REFERENCE DEPARTMENT. OHIO STATE I.II'.RARY.
Inindrecl consinncrs in cities of the first and second class, not less than
fifty in cities of the third class, or' not less than twenty-five elsewhere,
and the commission shall investigate the coni]ilaint.
Section 72 provides that the commission shall cause notice to be
served upon any person or corporation affected by the complaint and
give them opportunity to be heard. The same procedure when an in-
vestigation is instituted on motion of the commission. After hearing
and investigation, the commission within lawful limits may, by order,
fix the maximum price of gas or electricity or may order improvements
in the service. The price so fixed shall be the maximum price to be
charged until the commission upon complaint, or u])on an investigation
conducted by its own motion, again fix the maximum price.
In determining the price the commission may consider all facts
which in its judgment have any bearing ui)on a pnjpcr determination
of the question, altliough not set forth in the com])laint and not within
the allegations contained therein.
Section 75 provides "if it be alleged and cslablisled in an action
brought in any court for the collection of any charge for gas or elec-
tricity, thai a ]:rice has been demanded in excess of that fixed by a
ccmniission or ly statute, no recovery shall Ijc had therein, but the
fact that such excessive charges have l)een made sliall ho a complete
('efense to such action.
7//(' IVisconsin bill provides:
Section 27, for the filing of schedules showing all rates, tolls and
charges in force at the time for every service performed, which shall
not exceed the rates in force April i, 1907.
Section 28, for the filing of rules and regulations afTecting charges.
Section 29, for copies of schedules for inspection by coiishhuts.
Section 30, for schedules of joint rates or charges.
Section 31, no change to l)e made excc])t on ten (lay>" 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<l
unit of product or service.
Section 23. fix ade(|uate and serviceable standards of mea>>uremeni-<.
(juality. pressure, initial voltage and prescribe regulations for examina-
tions and testing: iiiles. regulations, specifications and standards tovse-
cine accuracy in meters an<l appliances. Nothing contained in this sec-
tion shall limit in any manner any powers or authority vested in nnmicipal
corporations as provi<led in section i^J.
Section 24. ex.iniine and test all measurin;; devices and test the same
RI'X.ULATJON OK PUI'.LU: UTILITIES. 13
upon request of consumer ; any consumer may liave tests made on pay-
ment of fees fixed by commission. — fee to he paid by utility if the
appliance is found to be defective.
Section 25, commission ma\' purchase a])i)aratus and measuring in-
struments.
Section 26, may eiUer premises for the ])urposc of making examina-
tions and tests, and to set u]i a])paratus needed for tests.
Section 36. adopt rules to govern all inspections, tests, audits, in-
vestigations and hearings.
Section 37, inquire into management of business and kec]:) informed
as to manner and methods.
Section 46. if any rates, tolls, charges or schedules, or regulations,
measurement, practice, act or service complained of shall be found to
be unjust, unreasonable, insufficient or preferential, the commission shall
have power to substitute therefor such other regulation, measurement,
practice, service or act and to make such order respecting the same as
shall be just and reasonable.
Section 60:
4. Orders fixing regulations to take effect in twenty days unless,
otherwise specified.
Section 63, regulations fixed by commission to remain in force until
otherwise ordered by court.
Section 87. every municipal council shall have power,
1. To determine by contract, ordinance or otherwise, the quality
and character of each kind of jjroduct or service to be furnished or ren-
dered by any public utility furnishing any product or service within said
municipality and all other terms and conditions not inconsistent with
this act upon which such ])ublic utility may be yermitted to occupy the
streets, highways or other public 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 qualified complainant as provided in sec-
tion 1797m — 43, the commission shall set a hearing as provided in sec-
tions 1797m — 45 and 1797m — 46, and if it shall find such contract, or-
dinance or other determination to be unreasonal)lc, such contract, or-
dinance or other determination shall be void.
2. To require of any public utility by ordinance or otherwise such
additions and extensions to its physical plant within said municipality
as shall be reasonable and necessary in the interest of the public, and to
designate the location and nature of all such additions and extensions, the
time within which they must be completed and all conditions under which
they must be constructed subject to review by the commission as pro-
vided in subdivision i of this section.
14 LK(..I>I..\ 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 d<Mic any matter, act or thing
RKOri.ATlOX OF PUBLIC UTILITIES. 15
in tliis act i)rohibite(l or declared to be unlawful, or shall omit to do any
act, matter or thing re(|uired to be done liy it, such ])ublic utility shall he
liable to the person, firm or corporation injurel thereby in treble ihi;
amount of damages sustained in consec|ucnce of such violation ; pro-
vided that any recovery as in this section provided shall in no manner
affect a recovery by the state of the ];cnalty prescribed for such violation."
SERVICE AND EFFECT OF ORDERS.
The Nczv York bill in section 23, provides that, "Every order of
a commission shall be served upon every person or corporation to be
affected thereby, either by personal delivery of a certified copy thereof,
or by mailing a certified copy thereof in a sealed package with postage
prepaid, to the person to be affected thereby, or, in the case of a cor-
poration, to any officer or agent thereof upon whom a summons may be
served in accordance with the provisions of the code of civil procedure.
It shall be the duty of every person and corporation to notify the com-
mission forthwith, in writing, of the receipt of the certified copy of
every order so served, and in the case of a corporation such notification
must be signed and acknowledged by a person or officer duly authorized
by the corporation to admit such service. Within a time specified in
the order of the commission every person and corporation upon whom
it is served must, if so required in the order, notify the commission
in like manner whether the terms of the orrlcr are accepted and will be
obeyed.
"Every order of a commission shall take effect at a time therein
specified and shall continue in force for a period therein designated
unless earlier modified pr abrogated by the commission, or unless such
order be unauthorized by this or any other act or be in violation of a
provision of the constitution of the state or of the United States."
The Wisconsin bill in section 60, provides that,
"i. Whenever, upon an investigation made under the provisions
of this act. the commission shall find any existing rates, tolls, charges,
schedules or joint rate or rates to be unjust, unreasonable, insufficient
or unjustly discriminatory or to be preferential or otherwise in violation
of any of the provisions of this act, the commission shall determine and
by order fix reasonable rates, tolls, charges, schedules or joint rates to
be imposed, observed and followed in the future in lieu of those found
lO be unjust, unreasonable, insufficient or unjustly discriminatory or
preferential or otherwise in violation of any of the provisions of this
act.
"2. Whenever, upon an investigation made under the provisions
of this act, the commission shall find any regulations, measurements, prac-
tices, acts or service to be unjust, unreasonable, insufficient, preferential.
\C} I.KC.rSLATIVK KKKKKKNi i: ,Di:i'ARrMi;N'l (lUlO STATK MltKAKV.
uiiju>tly (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<le(|uate or
otherwise in violation of this act. as the case may be. and shall make
such other order respecting such measurement, regulation, act. ])ractice
or service as shall be just and reasonable.
■■3. Whenever, upon an investigation made under the provisions of
this act. the commission shall find that any rale. toll, charge, schedule
or joint rate or rates is imjust. unreascmable. insutificient. or unjustly
discriminatory or ])referential or otherwise in violation of any of the
])ro\isions of this act. or that an}- measurement, regulation, practice, act
or service complained of is unjust, mu'easonable. insufficient. ])referenlial
or otherwise in violation of any of the provisions of this act, or it shall
lind that any service is inadequate or that any service which can rea-
sonably be demanded cannot be obtained, the commission shall ascertain
and declare and by orrler fix the expenses incurred by the commission
upon such investigation and shall b\' such (jrder direct such pul)lic utility
to pay to the state treasurer within twenty days thereafter such ex-
l^enses so ir^gurred.
"4. The commission shall cause a certified copy of all such orders
to be delivered to an officer or agent of the public utility afifected thereb.y.
and all such orders shall of their own force take etYect and become
operative twenty days after service thereof, unless a difTerent time be
provided by said order."
FKAXcii ISI-: i'Ki\ii.i:(;i-:.s.
'flic .VrTi' ]'('rlc hill in section 5_^ ])ro\i(le^ that. "Xo railroatl cor-
jjoration. street railroad corporation or common carrier shall begin the
cfinstruction of a railroad, or any extension thereof, nor shall it exercise
anv franchise or right imder any ])rovision of the railroad law, or of
an\- other law, not heretofore law full\- exercised, without lirst having
obtained the ])ermission and a])proval of the ])roper commission. The
commission within whose district such construction is to be made
or within whose district suili tranchise or rij^ht is to be exer-
cised, shall have power to graiu the permission and approval herein
specified whejiever it shall, after <hie hearing, determine that such con-
struction or such exercise of the francluNe or privilege is necessary
or convenient for the public service. And if such construction is to be
made, or such franchise to be exercised in both districts, the approv.al
of both commissions shall be secured."
REGULATION OF PUHLIC UTILITIES. 17
Section 54 provides that. "Xo franchise nor any right to or nnder
any franchise, to own or operate a raih'oad or street railroad shall be
assigned, transferred or leased, nor shall any contract, or agreement
with reference to or afifecting any such franchise or right be valid or
of any force or etTect whatsoever, unless the assignment, transfer, lease,
contract or agreement shall have been approved by the proper com-
mission."
Section 68 provides that, "No gas or electrical corporation shall be-
gin construction or exercise any right or privilege under any franchise
hereafter granted, or under any franchise heretofore granted but not
heretofore actually exercised without first having obtained the permission
and approval of the proper commission."
Section 70 provides that, "No gas or electric corporation shall
transfer or lease its franchise, works or system or any part of such
franchise, or works or system to any other person or corporation, or
contract for the operation of its works and system, without the written
consent of the proper commission."
The Wisconsin hill provides in section 74:
"i. No license, permit or franchise shall be granted to any person,
co-partnership or corporation to own, operate, manage or control any
plant or equipment for the production, transmission, delivery or furnish-
ing of heat, light, water or power in any municipality where there
is in operation under an indeterminate permit as provided in this act,
a public utility engaged in similar service, without first securing from
the commission a declaration, after a public hearing of all parties inter-
ested, that there is reasonable necessity therefor.
"2. Any existing permit, license or franchise which shall contain
any term whatsoever interfering with the existence of such second public
utility is hereby amended in such a manner as to permit such munici-
pality to grant an indeterminate permit for the operation of such
second public utility pursuant to the provisions of this act.
"3. No municipality shall hereafter construct any such plant or
equipment where there is in operation under an indeterminate permit as
provided in this act. in such municipality a public utility engaged in
similar service, without first securing from the commission a declaration,
after a public hearing of all parties interested, that there is reasonable
necessity therefor. But nothing in this section shall be construed as
preventing a municipality acquiring any existing plant by purchase or
by condemnation as hereinafter provided.
"4. Nothing in this section shall be construed so as to prevent
the granting of an indeterminate permit or the construction of a
mimicipal plant where the existing public utility is operating without an
indeterminate permit as provided in this act."
2 p. r.
18 LEGISLATIVF. REFERENCE DEPARTMENT. OHIO STATE LIRRARV.
Section 75 jjiovides that, "Xo license, permit or franchise to own.
operate, manage, or control any plant or equipment for the production,
transmissi(jn, delivery or furnishing of heat, light, water or power
shall be hereafter granted or transferred, except to a corporation dulv
organized under the laws of the state of Wisconsin."
Section 76 provides that. "Every license, permit or franchise here-
after granted to any public utility shall have the effect of an indeterminate
permit subject to the provisions of this act, and subject to the provision
that the municipality in which the major part of its property is situate
may purchase the property of such public utility 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
commission and according to the terms and conditions fixed by said
commission. Any such municipality is authorized to purchase such prop-
erty and every such public utility is required to sell such property at
the value and according to the terms and conditions determined by
the commission as herein provided."
Section yj provides that, "Any public utility operating under an ex-
isting license, permit or franchise shall, upon filing at any time prior to
the expiration of such license, permit or franchise and ])rior to January
I, 1908. with the clerk of the municipality which granted such franchise
and with the commission, a written declaration legally executed, that it
surrenders such license, ])crmit or franchise, receive \^\ oi)eration of law
in lieu thereof, an indeterminate jicrmit as provided in this act ; and such
])ul)lic utility shall hold sucli jjcrmit under all the terms, conditions and
limitritions of this act. The filing of such declaration sh:dl be deemed a
waiver by such public utility of the right to insist upon the fulfillment of
any contract theretofore entcre<l into relating to anv rate, ch.iroe or ser-
vice regulated by this act.
PRACTICE nKFORl-: COMMISSION'S: IMMTXriN' o|.- wnM-ssi-^.
The N CIV York bill provides :
Section 17. Certified copies of papers filed to be evidence.
Section 18. Fees to be charged and collected by the commission.
Section 19. Attendance of witnesses and their fees.
Section 20. Prescribes methods of practice before the commission
and of granting immunity to witnesses, and that tlu' coinmissioii shall not
be bound by the technical rules of evidence.
Section 22. Re-hearing before the commission.
Section 45. I'owcr to administer oaths in all parts of the slate to
witnesses smnmoned to testify in anv in(|uirv ; conduct hearings and take
testimony.
Section ^S. (lives each commission power, of its own motion, to
in\-estig:ilc or make in(|uiry, in a maiuu-r to be determined bv it. as to
REGULATION OF PUBLIC UTILITIES. 19
any act or thing done or omitted to be done by any common carrier, rail-
road or street railroad corporation, and the commission must make such
inquiry of any act or thing done or omitted to be done in violation of any
provision of law or in violation of any order of the commission.
Section 66 — lo. Power to subpoena witnesses, take testimony and
administer oaths.
The Wisconsin hill provides in section 6, that before final determina-
tion of the value of a utility, the commission shall, after notice to the
public utility, hold a public hearing as to such valuation in the manner
prescribed.
The commission shall have power :
Section 36. To adopt rules as to practice and procedure.
Section 37. To inquire into the management of the business of all
public utiHties.
Section 38. To inspect books, etc., of the utility.
Section 39. To compel utility to produce books and records from
without the state.
Section 41. The commission shall have power to appoint, by an
order in waiting, an agent for the purpose of making any investigation
with regard to any public utility, whose duties shall be prescribed in said
order. Such agent shall have every inquisitorial pow€r granted to the
railroad commission or granted by law to a court commission. Any num-
ber of investigations may be conducted contemporaneously through dif-
ferent agents. The decisions of the commission shall be based upon its
examination of all testimony and records. The commission may take
further testimony, order further investigation and hear further argument.
Section 43. Any one of certain public and quasi public organiza-
tions or any twenty-five persons may complain as to rates, etc.
Section 49. Commission may upon its own motion initiate an in-
vestigation.
Section 51 provides for notice of hearing to all parties in interest
and the conducting of hearings.
Section 53 provides that the commissioners shall have power to ad-
minister oaths, certify to official acts, issue subpoenas, compel attendance
of witnesses, the production of books, accounts, papers, records, docu-
ments, and take testimony, and that it shall be the duty of the circuit court
of any county or the judge thereof, on application by the commission
to compel obedience to its orders.
Section 54 provides for witness fees and when to be paid.
Section 55 provides for the taking of depositions of witnesses.
Section 56. "A full and complete record shall be kept of all pro-
ceedings had before the commission or its agent on any formal investiga-
tion had and all testimony shall be taken down by the stenographer ap-
pointed by the commission."
20 LEGISLATIVE REFERENCE DEPARTMENT. OHIO STATE LIBRARY.
Section 58 provides that a certified transcribed copy of evidence shall
have same effect as original evidence.
Section 59 provides for furnishing free of cost to all parties to an
investigation of a copy of evidence.
Section 71. "In all actions and proceedings in court, arising under
this act all processes shall be served and the practice and rules of evi-
dence shall be the same as in civil actions, except as otherwise herein
provided. Every sheriff or other officer empowered to execute civil pro-
cesses shall execute any process issued under the provisions of this act
and shall receive such compensation therefor as may be prescribed by
law for similar services."
Section 72. "No person shall be excused from testifying or from
producing books, accounts, and papers in any proceeding based upon or
growing out of any violation of the provision of this act on the ground
or for the reason that the testimony or evidence, documentary or other-
wise, required of him may tend to incriminate him or subject him to
penalty or forfeiture ; but no person having so testified shall be prose-
cuted or subjected to any penalty or forfeiture for or on account of any
transaction, matter or thing concerning which he may have testified or
produced any documentary evidence ; provided, that no person so testify-
ing shall be exempted from prosecution or punishment for perjury in so
testifying."
Section 73. "Upon application of any person the commission shall
furnish certified copies under the seal of the commission, of any order
made by it, which shall be prima facie evidence of the facts stated therein."
Section 86 provides for a re-hearing for the determination of value.
Section 102. "i. The commission shall inquire into any neglect or
violation of the laws of this state by any public utility doing business
therein, or by the oflficers. agents or employes thereof or by anv person
operating the plant of any public utility, and shall have the power and it
shall be its duty to enforce the provisions of this act as well as all other
laws relating to pubic utilities, and to report all violations thereof to the
attorney general.
"2. Upon the request of the commission it ^hall be the duty of the
attorney general or the district attorney of the i)ropcr county to aid in
any investigation, hearing or trial had luider the provisions of this act,
and to institute and prosecute all necessary actions or proceedings for
the enforcement of this act and of all other laws of this state relating
to public utilities and for the punishment of all violations thereof.
"4. The commission shall have authority to employ counsel in any
proceeding, investigation, hearing or trial."
Section 104. "This act shall not have the effect to release or waive
any right of action by the state or by any person for any right, penalty
or forfeiture which may have arisen or which may hereafter arise, under
anv law of this state; etc."
REGULATION OF PUBLIC UTILITILS. 21
FiNr,s. F()Rri:iTUKi':s and I'1-;\.\li"ii".s.
The New York bill:
Section 56. i. Every common carrier, railroad corporation and
street railroad corporation and all (jfficers and agents of any common
carrier, railroad corporation or street railroad corporation shall obey,
observe and com])ly with every order made by the commission, under
authority of this act, so long" as the same shall be and remain in force.
Any common carrier, railroad corporation or street railroad corporation
which shall violate any provision of this act, ov which fails, omits or
neglects to obey, observe or comply with any order or any direction or
requirement of the commission, shall forfeit to the ])eople of the state
of New ^^ork not to exceed the sum of five thousand dijllars for each
and every offense ; every violation of any such order or direction or re-
quirement, or of this act, shall be a separate and distinct offense, and.
in case of a continuing violation, every day's continuance thereof shall
be and be deemed to be a separate and distinct offense.
2. Every officer and agent of any such common carrier or cor-
poration who shall violate, or who procures, aid or abets any violation
by any such common carrier or corporation of any provision of this
act, or who shall fail to obey, observe and comply with any order of
the commission or any provision of an order of the commission, or who
procures, aids or abets any such common carrier or corporation in its
failure to obey, observe and comply with any such order or provision,
shall be guilty of a misdemeanor.
Section 58. i. Any cor])oration, other than a common carrier,
raih-oad corporation or street railroad corporation, which shall violate
any provision of this act, or shall fail to obey, observe and comply with
every order made by the commission under authority of this act, so
long as the same shall be and remain in force, shall forfeit to the people
of the state of New York a sum not exceeding one thousand dollars
for each and every oft'ense ; every such violation shall be a separate and
distinct oft'ense, and the ])enalty or forfeiture thereof shall be recovered
in an action as provided in section 59 of this act.
2. Everv person who. either individually or acting as an officer
or agent of a corporation other than a C(~»mmon carrier, railroad corpora-
tion or street railroad corporation, shall violate any provision of this act
or fail to obey, observe or compl\- with any order ma<le by the commis-
sion under this act. so long as the same shall be or remain in force, or
who shall procure, aid or abet any such corporation in its violation of
this act or in its failure to obey, observe or comply with any such order,
shall be guilty of a misdemeanor.
3. In construing and enforcing the i)rovisi(jns of this act relating
to forfeitures and penalties the act of any director, officer or other
22 LI-J.I.SLAI 1\ K Kl'.l-i;i<l-..\CE DI-:P.\U1M1-..N I . iMIlU S I A 1 1-. I.IHKAKV.
person acting for or employed by any common carrier, railroad corpora-
lion, street railroad corporation or corporation, acting within the scope
of his official duties or employment, shall be in every case and be deemed
to be the act of such common carrier, railroad corporation, street rail-
road corporation or corporation.
Section 59. An action to recover for a penalty or a forfeiture
under this act may be brought in any court of competent jurisdiction
in this state in the name of the people of the state of New York, and
shall be commenced and prosecuted to final judgment by counsel to the
commission. In any such action all penalties and forfeitures incurred
up to the time of commencing tlie same may be sued for and recovered
therein, and the commencement of an action to recover a penalty or
forfeiture shall not be. or be held to be. a waiver of the right to recover
any other penalty or forfeiture; if the defendant in such action shall
prove that during any portion of the time for which it is sought to re-
cover penalties or forfeitures for a violation of an order of the commis-
sion the defendant was actually anfl in good faith prosecuting a suit, ac-
tion proceeding in the courts to set aside such order, the court shall re-
mit the penalties or forfeitures incurred during the pendency of such
suit, action or proceeding. All moneys recovered in ainy such action,
together with the costs thereof, shall b.e paid into the state treasury to
the credit of the general fund.
Section 73. Same as 58, applies to gas and electric corporations.
Section 75. If it be alleged and established in an action brought in
any court for the collection of any charge for gas or electricity, that a
price has been demanded in excess of that fixed by the commission or by
statute in the municipality wherein the action arose, no recovery shall
be had therein, but the fact that such excessive charges have been (nade
shall be a complete defense to such action.
The Wisconsin bill:
Section 93. If any public utility shall do or cause to be done or
permit to be done any matter, act or thing in this act prohibited or
declared to be imlawful, or shall omi^ to do any act, matter or thing
required to be done by it, such public utility shall be liable to the person,
firm or corporation injured thereby in treble the amount of damages sus-
tained in consequence of such violation ; provided that any recovery as
in this section ])rovi(lcd. shall in no manner affect a recovery by
the state of the penalty prescribed for such violation.
Sectioh 94 provides fines for any utility officer, agent or employe
who fails to obey the orders of the commission.
Section 95 provides fines for any utility violating the provisions of
this act or refusal to obey the orders of the commission.
Section (/> 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 c<M-poration ; if
the same on being so tested >liall 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 modific<l or other form as the court may
determine will afiford appropriate relief.
Section 74. Applies section 57 to gas and electric corporations.
The Wisconsin bill depends upon actions for the recovery of pen-
alties and forfeitures to secure obedience to the orders of the commission
and it makes it the duty of the attorney general or the district attorney
of the proper county to aid the comnu'ssion.
Section T02. 2. Upon the request of the commission it shall be
the duty of the attorney general or the district attorney of the proper
28 I.K(.I>I. \ 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