The Nonpartisan Leader Newspaper, May 18, 1916, Page 7

o regulation. - from cities and towns of North the power to regulate ms for water, gas and electric light power. It placed the regulation of these rates in the hands of the state railroad commission. In doing so it made it more difficult for patrons of these public utilities in North Dakota Yo obtain redress when rates are Bxcessive, : Some students of government be- leve that the state and not cities should regulate rates. Some believe the cities should have the power. But public utility corporations are univer- sally in favor of state rather than city regulation, if any regulation at all is THE last legislature took away : forced upon them. But when the state is given power to regulate rates the law generally gives the people, the actual consum- ers, a chance to make complaints and cause hearings. That is, progressive states which have adopted state as opposed to city regulation of rates, have not made state regulation merely an additional barrier to fair rates. But that is exactly what the 1915 leg- islature did.* The new regulation law gives three hearings to a public service corpora- tion before a new rate is ultimately fixed. The old law gave only two hearings. The new law provides that before*a rate can be exafnined into the city council must adopt a resolu-. tion making a complaint that rates are high and unjust. - Then the rail- road commission - examines into the matter and fixes a rate: Then the ‘public service corporation, but not the city, can appeal to the courts. NEW LAW MAKES RELIEF MORE DIFFICULT The' old. law provided - simply that city. councils were to fix the rates and then either side, consumers or the public service commission; could have the court review the matter. In other words the new law merely - makes it more difficult to get rates rvegulated. It lengthens out the pro- ure. Other states that have pas- sed state rate regulation laws -have permitted a certain number or per cent of the people or consumers of cities or towns to initiate' an action before the state commission for lower . rates. Such: a provision is' entirely absent from the new North Dakota law. Ouly city councils can initiate a pro- ceeding ore: the state commission. Other states that have adopted rate regulation laws not: dictated by public service corporations give: the_state - commission the right to initiate an action for lower rates in any city or town, without any complaint “what- ever. Such a provision is not contain- ed: in ‘North Dakota’s new. law. An additional weakness of the North: Dakota law from the le’s ‘standpoint; is its absolnte: failure to provide for the regulation of the kind of service the people get from: the corporations. This is a fatal defect brands the law without doubt as -3 cor?oration megsure. and not a people’s measure. ~ The quality of gas furnished by a public utility corporation, for in- “stance, may be poor, low in heat value per cubic foot. tion: of rates will not reach that abuse unless' there §s regulation of service also. The price of th:tfias may_be low but it may not be worth the price on account of poor_quality. The North Dakota law E -silent on _service reg\xz:geon, al- ough practically every s which has adopted state regulation of pub- lic . utilitiés ' “has ‘ included ' service :“Who, then, were responsible for %ill and the men who had to do with it “FRIENDS OF FARMER” GOT THIS BILL THROUGH Frank E. Ployher of Valley City, member of the 1915 house of repre-» " pentatives and chairman of the com- mittee on state affairs, owns the Val- - ley City Gas company ‘at Valley City. . He is building a gas plant. at Bis- marck and is said to plan others. H. : Heis a’ . er and “farmers’ friend” and s now in_a viciou. attack on the wher is:a candidate for - " the ‘Les, in the - .- ~"the e ) ] 8 ' ‘which Mr. Ployher was chairman.: - " mew regulation_law, this pretense at: ~Asink is bi ..xeal regulation? ‘Who'put it over for . ‘the corporations? The history of the - . .public service regulation laws a- Pro-. ‘vision and offséts the effect of cor- . the gang Harty’s Joke on the People His Rate Regulation Bill an Insurance of High Profits for Public Utilities The last legislature, in the guise of “regulating” public - utilities, such as electric light, water and gas plants, passed a, - bill which was supposed to furnish protection for the people - against extortionate charges. The whole law is a fraud. Its real effect is to prevent any proper regulation of such public utilities. It was introduced by Harty of Omemee, the banker and “friend of the farmer” who is now engaged in fighting the League, and was supported by him and by men connected with public service corporations. Read all about this good joke on the people of North Dakota in this article. : EEP UP YOUL COURAGE., state regulation of publie utility rates. Being in the gas business himself, it is natural to suppose, he wanted to see that the bill passed was the “right” kind. It is said that he persuaded Mr. Harty to introduce House Bill 356, which provided for placing such Fates under the jurisdiction of the ‘state railroad ‘commission, taking the mat- ter out of the hands .of city councils, . At any.rate Mr. Harty introducéd: House Bill 3856 and it was referred to ommittee on. state affairs, of for the fixing of rates. -Other states almost universally permit the state commission to look into the matter without any complaint whatever. Furthermore the bill provided that when rates were once fined they could not be changed again for five years, a provision .that public service com- missions would want. Other. states make the term one or two years. AN IMPORTANT “JOKER;” A ONE-SIDED APPEAL In addition to these weaknesses the bill contained a very important little “joker.” It ghve public utility cor- porations or persons in the public utility business a resort to the courts if not satisfied with the rates fixed ‘by the state commission, but it gave no such right of appeal to the city which made the con:ziplaint about: the rates and prosecuted the case for a ;reguaction. In other: wgrdil) the rai# of the city or town:governing body. Yoad commission was to be a cou tates that have ed real : for the fixing of rates, but one party Dlates & Dessed = efiecfi!:;?tafithe case before the court was to a certain per cént ‘of the people or : have an appeal and the other party actual consumers' to initiate such pro- - Was ziot, ceedings. This is a democratic: this bill provided that when' any, governing bog of any city, town ‘or village thought fit it’could - ass.a resolution, which: would cause e state railroad commission to in- mfifif.be rates charged for water, gas, light, heat or power and lower the rates’if they were found' excessive; The bill as introduced and passed had no provision to enable the eonsumers or people of a community to -initiate, an action to reduce rates, independent corg;:ations and-g%ainst the; interests eity or town of= of the towns and the consumers. ; e e thi £ In brief, the bill wa lessth’\ ; t;meoj - .t 11 was even les an a ‘Half-way ‘measure.and besides com- e i ‘such 'a measure -as; sion, - framed: by public utility. corpor: | , THE PRIMARY .FIGHT ' bl 'was'a.very important- provision favoring the public service:: ~.une,- Sirs: * Nonpartisan -League prompts me to S ... “tained a “joker” for the 3o iont thab: | not’ frieastre -as; would. be 'sage by the committee on state ate fairs, of which Mr. Ployher, publie’ utility corporation man, was chair- man. It was passed without much opposition by the house, both Mr. Ployher and Mr. Harty, the man who introduced it, voting in its favor. The senate passed it also, but amend- ed it-first. The senate added the pro« ' vision that in the case of a munici- pally owned public utility a 20 per cent petition ‘of the people of the munici« pality could initiate a case for the fixing of rates by the state. But this did not include the right of the peo- ple to initiate a case if the plant were privately owned, ° S ¢ The house later concurred in the senate amendment and the bill is now on the statute books as Chapter 208 of the laws of 19156. The little “jok« ' The “Big Five” seems to worry Big Biz and the Politicians. ' 2% er” that means so much to public utility corporations is the last section of the bill and reads as follows: “The purpose and intent of this law is to place the regulation of the rate to be charged by persons, firms or corporations operating within 'the state of North Dakota and furnighing water, gas and electricity for light, heat or power to any municipality or the resi trol of the board of railroad commis- -sioners subject only to the right of ‘Such person, firm or corporation: to have the action of such board review- ed in the usual manner in’'an equit~: able proceedin%in the cotirts of the state of North Dakota.” This is rather involved language, but:it means that companies have: an appeal from the fixing of rates by the state commission, but the people do a0t ' A LETTER TO A PAPER Staigle Pays His Respects to the Bis- - marck Farmer’s Foe . Editor Nonpartisan Leader: Fol« lowing is a letter I wrote to the Bis- marck Tribune: The Bismarek Trib< Your antagonism to' the ‘refuse ‘to. read your paper any more, of the interests claimy it may lesson: - he LR nts thereof under the con- If, the outcome would be as’the g:es% AR “you would welcome the- 4 ague, ag it would be the best and <