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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Sept. 15, 1912)
THE SUNDAT OREGOXIAX. . PORTLAND. SEPTE3IBER 15. 1912. 13 LIGHT HEN COURT PUBLIC CONTROL Officials of Utility Corporations Discuss Relations With People. REGULATION IS FAVORED YV.. IV. Cotton, W. J. Hagenab, B. S. Josselyn and Others Tell of Meth ods Companies Should Vse in Light Business. That the future of the public utility, and particularly the electric lighting industry, rests primarily in conceding the right of the public to control and regulate them through a constituted official body of the state government. was the prevailing thought expressed by the speakers at the banquet given to the delegates of the Northwestern Pacific Electric Light and Power AssO' elation in the Multnomah Hotel on Friday ninnt. Plates were laid for 150, and the evening's, discussion was upon the burning question of the hour with all public utility operators that ot tne relation which should exist between the cornoratlon and the public B. a Josselyn. president of the Port land Railway. Light & power company, acted as toastmaster. The first speaker was C C Chapman, secretary of the executive committee of the rortlana Commercial Club. After paying a tribute to the wonderful development of the electrical industry in the Pa cific Northwest and its aid to the nat ural development of the farming re sources, he expressed the opinion that the public too frequently does not give the pioneers and the investors 01 eiec- trical Industry the credit that Is their due. Cottosi Relates History. In tracing the development of the railway building of the country, W. W. Cotton, general counsel for the O.-W. R. St N. Co. lines, called attention .to the fact that in the earlier stages of the constructive period, railways were built by the aid of local capital. This, the speaker said, was particularly true of the Pacific Coast. He cited that the Southern and Central Pacific railways were built by Huntington, Crocker, Mackay, Stanford and Mills. It was their money which started the enterprise. In the O.-W. R. & N. Co. it was Ladd, Corbett and other Portland men who gave the enterprise its first impetus. They were willing, the speaker said, to sacrifice their time and money in the interest of the community and the hope of ultimate reward. As time de veloped the ownership of these roads passed from their hands to that of men and women scattered all over the country, and the world, for that mat ter. An examination of the stock holders' list of the various companies in the country would disclose that the ownership does not rest in any single individual or group of Individ uals, but with men of small means, widows, small estates and savings. James J. Hill, he declared, is the only man remaining today of that early group of railway constructors whose personality is marked in the owner, ship of the railway property. The thought to be gained from all this. Mr. Cotton said, is that the railways have passed from the control of the original owners to that of the general public That owing to the diversified owner ship railways are now thoroughly pub lic property, and quite properly should be controlled and regulated by the pub lic He contended that it is the natural outcome of a great enterprise, invented and created by man, for a distinct gen eral public purpose. There is no ground, he said, for the man who op poses public control and regulation, to stand upon in these days. All that is desired is a reasonable return for the money invested. ' Electric Industry Similar. The same thing, he continued, can be said of the electric industry and the establishment of electric light plants. The first years of their ex istence requires pioneering by men who are patriotic enough to see in their development a great benefit to society. As the industry grew the pioneer Investor disappeared from the stock holders' list, and now the plants are owned by stockholders scattered throughout the breadth and width of the land. New relations have been thus created, and today the stockholder concedes the right of the public to regulate and control. All that any corporation seeks today, ha declared, is fair and honest treatment in all its affairs. It "has no desire to keep its affairs secreted from the public It welcomes investigation and honest con sideration. Therefore, public utility commissions, based upon sound and business doctrines, are heartily wel comed. Outlining the development of the public utility commission idea as it ex ists In the United States today, was the trend of the speech delivered by W. J. Hagenah. for years chief statis tician of the Wisconsin Public Utility Commission. He dwelt with particular emphasis upon the need of such a com mission, and declared that it had come to stay and become the strongest fac tor in creating a stability to the pri vately owned public utility that will In the end correct many existing evils. He believes that there are two essen tial things in the formation of a public utility act. Peculation la Dlacnsacd. They have the right to regulate the issuance of bonds and the right to fix a just and equitable rate for the prod uct of the institution. He has no faith In a local public utility commission and asserted that a state commission is the only success ful method by which the problems con fronting the public can be properly handled. He was glad to see that Ore gon is soon to have a state commission and he expressed the belief that once in operation the citizens of the state will recognize its value. "There can be but one method which will work to the advantage of all and that Is an open minded attitude on the part of the pub lic and the corporation." he said. "There must be a desire on the part of the cor poration to give the commission access to all of its data, its books and its ac counts. A knowledge of all of the facts is the only possible way for a commis sion to give a Just decision. It is the duty of a commission to deal fairly with the matter in hand so far as the public and corporation are concerned. The more publicity a corporation gives to its accounting system, and all Its acts, the more the public will be taken Into confidence, and, so far as I have been able to observe, the public in the main is reasonable in all of Its dealings if it knows the facts. I am surprised at the growth of the Pacific Northwest. In the East, where business is on older and more established lines the rate on interest allowed on public utility In vestments is small and the returns more certain. On the Pacific Coast a great deal of development is yet to be made and for that reason I believe that the rate of Interest for the returns from Investments in electric light plants should be higher. "In .Wisconsin the rate of interest allowed Is 7 to 8 per cent. On the coast here the rate should be higher, due to the speculative feature of the invest ment and the great demand for; the use of funds. W. O. Johnson, of Portland, at one time a master mechanic on the Panama Canal, gave a brief description of the work on the Isthmus and the rapid way in which it is being completed. B. S. Josselyn concluded the even ing's talks with declaring that it often Is the lot of a corporation to be looked upon with suspicion if it declares its belief in any measure pending before the people for their consideration. For that reason he did not desire io give an opinion upon measures before the people of Oregon, but as a public util ity operator he desired to say that the company he represents welcomes public control through a commission. He be lieved that the public had the right to control and that the twentieth century problems are only to be solved by ac cepting and recognizing the rights of the public in the regulation of public utilities. "Should it be the fate of Oregon, said Mr. Josselyn. "to have a public utilltv commission, so far as the com pany I represent is concerned, it will afford every facility within its powers to srlve It the information it desires. Our books are open for inspection, our company is in their hands for such reasonable regulation as they may wish to put into effect. All we ask is an hon est, square, business-like treatment which will assure us of a reasonable return for the money which we have Invested in giving the public good serv ice. Delearatea Go oa Picnic. The visiting delegates yesterday were- the guests of the Portland Rail way, Light and Power Company and were taken by a special train to Esta cada, where they were escorted through the big power plant at River Mill, con structed a year ago. Here the Clack amas River has been dammed by huge concrete structure of the Ambur sen type. The engineers of the party were delighted with the opportunity to view this new form of hydraulic con struction. The dam is hollow and has something like 62 rooms in Its 432 feet from shore to shore. Alter visiting tne power-house, which is located in the dam and under the water, the entire party was taken to the Estacada Hotel, where they were given a dinner,, pro duced from the surrounding country, such as mountain trout, spring chicken and salads made of fruits from the gar dens of Estacada. After dinner the party wended Its way to Cazadero, where another hydro-electric develop ment was viewed. The younger mem bers of the association indulged In a game of baseball in Estacada Park, there being a six-Inning contest be tween the line and transformer employes. RAYMOND IS ENTERTAINED Calvin Heilig Gives Luncheon for Magician Appearing This Week. Calvin Heilig. president of the Heilig Theater, gave an informal luncheon yesterday noon in the Meier & Frank restaurant in honor of George Ray mond, known as "the great Raymond," the magician and illusionist, who will open an engagement at the Heilig Theater tonight. Those who attended were George I Baker, Samuel Hill. Major Henry L. Bowlby, George W. Joseph. John F. Car roll. Julius L. Meier. George Raymond, Arthur L. Fish and A. De Lange. Between courses the famous ma gician entertained his friends with sev eral card tricks and told of his travels in the Orient and other foreign parts and of his interesting experiences with the nobility in those countries. GLELAND RELIEVED IN WAKEFIELD SUIT Court to Recall Referee and Plaintiffs Now Ask for Change of Venue. A few of the wonderful new Talking Machines, the master achievements of Edison, and the Victrola and Graf onola makers, to be shown at Eilers tomorrow. Only place where all makes are to be shown side by side. CITY'S ACTION QUESTIONED Edison's new $150 mission design. Attorney Mannlx Says Effort to Have Record Show Opposition to Appointment Is for Po ' lltical Purposes. After Attorney Coovert, for the plain tiffs, had stated, that his withdrawal of opposition nad been absolute and not contingent upon the city paying the ex penses Incurred by his clients. Circuit Judge Kavanaugh yesterday stated that be will make an order recalling from Referee Cleland the suit of Wakefield & Co. against the city. The judge said, however, that he will base the recall not on the motion as presented but draw up an order of his own. The question of costs will be argued as a separate motion In a few days. Judge Kavanaugh promised that the order will be filed Monday and the -same day the Wakefield attorneys will file a motion for a change of venue, basing it upon the alleged opposition to their interests which has been engendered in Multnomah County by the bitter at tacks of an afternoon newspaper and the action of the City Council in de manding a jury trial of the case after all the plaintiffs' testimony nad been presented before Referee Cleland. Judge Kavanaugh has stated that he will re ouest the Circuit Judges to hear the argument on this motion en banc if Presiding Judge Morrow refers it to him (Judge Kavanaugh). Many think that Judge Morrow may do this on the ground that Judge Kavanaugh has han dled the case to date and is therefore In a better position to deal intelligently with the motion. City's Position Explained. Deputy City Attorney Tomlinson based his motion tor a recall of the case from the referee on the fact that the order of reference signed by Judge Kavanaugh showed opposition on the part of the city. Judge Kavanaugh contends, however, that no such oppo sition was expressed by Mr. Tomlinson when the attorneys met in his cham bers and verbally agreed to the refer ence and selected Judge Cleland as referee. In this stand he has the sup port of Attorneys Coovert and Mannix and ex-Deputy City Attorney Benbow, who also was present, in the press oi business the Judge signed the order subsequently drawn without reading It. He intimated yesterday that the "de ception alleged to have thus been perpe trated on the court will be mentioned in the order which he will draw recall ing the case from the referee. Attorney Mannlx, who arew tne order, declares that Mr. Tomlinson asked to have it appear for political purposes that the city opposed, but Tomlinson says that Mannix offered the suggestion and that he did nothing more than concur. Mr. Tomlinson still ffe.f Tf f ' " t .';Sk1, The superb Victro- Edison's "5 I Si"-1 S -j ArH la XVI model, ?200 C . ' J, U WfclL, isilfe' yj ... Model. kr4!--i 'WW A. new Victrola, tff 1 X ,fi lT , '.-!! characteristic de- II I I P i- Srfrjri' sign, $100. An elegant newlf - f 11" JfEErSf' ffo M Victrola. $150. f rRntfnKi5 , 'Ht.- WBm$m yf 111'! ' V?21! Hm New Mission "' . J i . Grafonola, $200. A new Victrola in dainty table form, $75. Always in the lead Eilers service means satis faction. No transaction is right that does not mean satis faction to the buyer. All the Makes and All the Records All the Time At Talking Machine Headquarters HOME OF THE CHICK ER1N6 PIANO SEVENTH AND ALDER. insists also that he voiced the city's opposition at the conference between the attorneys and Judge Kavanaugh. Wakefield Files Statement. Wakefield & Co. have filed a state ment showing that it cost them, ex clusive of attorney fees, $4409.75 ' to present their evidence before Judge Cleland. Judge Kavanaugh ordered yesterday that the bill be itemized in detail in order that he might differ entiate between Ienittmate court costs and other expense which the plaintiffs incurred in preparing their case ana TWENTIETH CENTURY PRESENTS NEW PROBLEMS FOR CITIZENS TO SOLVE Franklin T. Griffiths, in Paper Bead Before Electric Light Men in Portland, Declares Great Monopolies Have Come to Stay, Subject to Fair Restrictions by Public Utility Commissions. THAT the twentieth century was presenting new and intricate prob lems for the citizens to solve, which only experience can point the way, was the central thought in a pa per read by Franklin T. Griffith, of this city, before the Northwest Electric Light & Power Association, which was in session in Portland four days ot last week Mr. Griffith traced In the growth of the cities of America a change in the economic doctrine in the handling of public utility corporations. It is his contention that the exploitation of vir gin fields presented a doctrine 50 years ago which the world followed, but with the sudden growth of the municipality from a struggling village to the mam moth cities of the day, the treatment of conditions for public welfare and public good must be based upon an entirely different doctrine of economy. The free and untrammeled license of individuals, he said, must give way to public control and regulation. His pa per in part is as ionows: "Within the memory of some of the men present, the first modern public waterworks system, tne nrst electric llnrht system, the first gas plant, tne first commercial electric railway, and the first telephone plant was established in the United States. America waned until 1842 before creating a modern water system of any size. Candles gave way to gas lighting in 1840, and elec tric lighting had Its start in 1882, while the telephone sent its first commercial message in 1876. Thus we find, that while we have existed as a Nation 136 years, only 36 of these cover the period oi public utility corporations. ' Hence, for a century, this modern institution, as a corporate part of our existence. was unkonwn. Thirty years ago no citizen would have attempted to fore cast the future of this wonderful ad junct to our present day life. Not knowinir. how should he understand the fundamentals involved in the new rela tion created between himself and the privately-owned public utility? Corporation! Present Problems. 'The only natural' outcome was the establishment of whatever laws time and experience would produce. In oth er words, we. as Individuals, entered into a new realm and a new world when we created the modernized utility for general public use. The economic doc trines necessary lor tne control ot tnis new condition had to go through the test and fire of human experience. There were theories galore when the corpo ration was born, and it was as much an untried thing as the later developed public utility. Municipalities, In those days, in the treatment of the newly- created public utilities, were traveling In unbeaten paths and out of the ex perience gained by plodding through this wilderness, a numoer oi weu founded principles have been estab lished, not the least of which is the elimination of unrestrained competi tion in public utilities. "During the closing years of the Eighteenth Century man asked and de manded unlimited industrial oppor tunities. " This fouml expression In rs which recognised Individualism and competition. The corporation was treated as an inoivrauai. t ne raaicais of the dav sought Industrial freedom by demanding that the Government keep hands otr ami leave eacn indi vidual free through competition to work out his own industrial status and salvation. Such political theories were Darameunt in 1776. and found complete and ready acceptance in this country when the Enttlish yoke was tnrown on and we assumed the position of an Independent Nation. Our industrial history, therefore, begins with the gen eral acceptance of the principles of in dividualism and unrestrained competi tion. These policies were well-fitted to the conquest of the forest and the prairie. They were not policies, how ever, that were adapted to thickly populated cities. Society Accepts New Conditions. "Men may well be given a free hand in exploiting the material world, but exploitation of the social world is an other story. Hence the demand of the Twentieth" Century is the substitution of Governmental regulation of public utilities as against unrestrained com petition. Society is gradually accept ing the principle of collectivism. It is substituting group economy for in dividual economy. Industrial success in the 19th Century lay in developing waste and unused areas; industrial success in the 20th Century lies in im proving the status of communities and in capitalizing future social needs. "This brings us to the subject in which we are all directly Interested that of the proper laws for the control of public utilities. Through the ex perience of the past as man devel oped from the individualistic theory to that of the communistic or collec tive, he has learned this truism, that unrestrained competition and individ ualism in public utilities is an eco nomic danger' and a fundamental mpon which he must base the law of control. One of the steps in this direction has been the organization throughout the country of state commissions, whose of the company. As a result of the agitation of the past 10 years, brought about by. the muckraker, and encour aged by the inconsiderate action upon the part of the management of some of the properties, there has developed among the investors in privately-owned public utility plants, a desire to take the public into their confidence. Th,e up-to-date public utility concern seeks public control upon a business basis. It seeks avoidance of political entangle ments. It desires that its business be an open book. It considers its busi ness a public one and recognizes the rights of the public in all of its opera tions. Security for investment, and an earning power of only a reasonable character, is all that is desired. It is upon this broad and comprehensive basis that the stockholder Is willing to admit of complete control by a com mission composed of business men. "A recent statement, made in a finan cial paper, was to the effect that $25, 000,000.000 is invested In the electrical industry. That represents an interest charge of more than Jl, 000,000.000 year ty. It can be truthfully said that there has been created by the use of electric ity within SO years an Investment which takes rank among the very first of the country. Its future from the stand point of development la exceedingly propitious, which might not be said of the returns unless we secure a more stable condition for operation than ex ists in many states at the present mo ment. No industry can withstand the blight of political jugglery, nor can it stand constant violation of an economic duty it is to regulate: f to -afu.rd2 ubuJt the interests of communities; to comperr- i Jf ,,,,ih i,o int as 1 1 V , in ........ rf stable In character as a bond issued by a municipality. Both are based upon efficient service at reasonable rates; to enforce honest relations between the public and the public utility, and to encourage the development of public utilities by assuring investors therein of fair treatment and security by com pliance with laws based upon the the ory that so long as the public utility shall oonestly discharge Its obliga tions it shall be entitled to protection in its field and a reasonable return upon the value ofvthe property it de votes to public use. The creation of public utility commissions is a recog nition of the communistic rights rather than the individualistic States have placed within the control of these com missions practically all matters per taining to public utilities. "It seems to be quite evident from the citations presented, that public utility commissioners are a unit in opinion upon the competitive phase of the industrj-. I have been unable to find a decision to the contrary by any public utility commission, and it is un likely that there will be any in the future. It is. therefore, reasonable to assume that the doctrine of unnecessary dupllcation is a generally accepted one and will prevail. It is a fact that the general public, as a rule, has not been educated up to the full meaning of the doctrine, and as a consequence we find in communities where state commis sions have not been established, politi cians still engaged in fighting corpora, tions with competition by advocating the granting of additional franchises to new concerns. Usually this is based upon the desire to get even and is never presented upon an argumentative basis. New Theory Gaining Ground. "The theory that a public utility shouldJ6 a monopoly under public con trol Is gaining advocates daily as the question is more thoroughly analyzed. Operators engaged in public utility work have come to the conclusion that a safe investment is more to be desired than a free hand to conduct the affaiss public necessity, and the prosperity of the community, determines the market value of each. Corporations Willing to Obey Law. "I think we have all reached the point where we are willing to concede that the state has the power to regulate ami control our operations. It Is simply a question of an honest purpose on our part to do our full duty to the public we serve, and of the state to select capable and conscientious Commission ers vested with power not only to chas tise but also, to protect. We are Just as willing to obey the law as are men engaged in any other occupation: we are willing to go farther in aiding its administration than men engaged in other lines of business in that we are prepared to tell - the public anything and everything it wants to know about our corporate affairs. Business secrets no longer exist in the relation a public utility bears to the public it serves. "The primary powers Qf a public service commission should be: "First To determine the value of the property devoted to public service and to allow the earning of a reasonable return thereon. "Second To fix reasonable rates for the service of the utility. "Third To determine the character of and compel efficient service. "Fourtli To prevent duplication of investment with the consequent loss to the community served and to protect the investments in utilities so long as the obligations Imposed by law upon the public utilities are faithfully per formed. "All other provsions of acts creating such commissions are minor details. "Let us accept the new order of things cheerfully, and being sure of our own desire to do right, I think we may confidently trust to the state and our own several communities to give us a square deal." presenting it in court. The treat pro portion of the Wakefield expense was for expert testimony. Courts do not allow such items to be taxed as costs beyond ordinary witness fees. Just what was meant by a resolu tion offered by Councilman Daly and passed by the City Council is also a mystery. This resolution authorized the city to pay half the expense before the referee. This was read to Judge Kavanaugh yesterday, but Mr. Tom linson said that no one had been able to determine whether this meant half the Wakefield bill or half such Items as the referee's salary and stenogra pher's bill. When the case was re ferred the parties stipulated to divide the cost of the referee and reporter equally between them. CARGO OF RYE IS COSTLY "Sandwich Man" "With Too Jluch Sail Set Is Held for Salvage. High winds, an unwieldy banner and an overdose of rye whisky combined to place George Angus, a "sandwich man," behind the bars at the City Jail yesterday. The arrest was made by Patrolman Hennessy, after a hilarious half hour, hugely enjoyed by hundreds of spectators. Angus earns a precarious living by carrying through the streets a sign heralding the merits of some dealer's shoes. Yesterday he went to the Bache lor saloon, on Third street, where he deposited his banner, and imbibed numerous drinks. Sallying forth, with a list to starboard, he encountered head winds and had to make short tacks to get across the bar. Then a strong gust came and he was taken aback and al most stripped of his canvas. Other craft obligingly gave him all the sea-' room he needed and cheered him on his devious way until the policeman ap peared in the offing and boarded the unmanageable craft and made It a prize The top-hamper, which had been damaged by the winds, was cleared away and the disabled hulk was towed to a snug harbor. Salvage claims will be adjudged in Judge Tazwell's ad miralty court Monday. Your Child's Health Your First Thought If you have children, naturally your first thoughts are for their health. You certainly want them to develop strong, healthy constitutions. The most care ful attention must be given when chil dren show the first symptoms of the many common ailments. Perhaps they aie weakly and thin, or grow too fast, thus sacrificing strength. These and other apparently minor ailments may be the forerunner to a weak constitution toT lite- T . . Such children need Jayne's Tonic Vermifuge, which is essentially a chil dren's tonic. First of all, it will proper ly care for the child's stomach. It will also improve the appetite, and will add strength to the other organs of the body. In cases of thin or impure blood, it increases the number of red cor puscles enabling the enriched blood to keep the body healthy and strong. Among the most common ailments that children develop is that of a dis ordered1 stomach, leading to an im paired digestion. In many cases this trouble is due to parasites in the in testinal tract. To correct such trouble, Jayne's Tonic Vermifuge is unsurpassed. For more than eighty years millions of - children have been restored to health through the use of ..this tonic. Insist upon Jayne's; accept no other. Sold by druggists everywhere. Dr. D. Jayne A Son, Philadelphia. Pa. COOS BAY LINE BTEAMEK BBKAEWATKB Sails from Alnswortk Dock. Portland, at A. 1C September 2, I, 12, 11. 22, 47; October 2, 0, 16. 23. HO. Freight received at Ainewortn Dock dally up tp 6 P. M. Paeeenrer tare Flret-cleea, $10; 1 clase. 7. including berth and meals. Ticket office at Ainewortn Dock. Telephones Main 3600. A 2332. Portland Cooe Bay S3. Une. H. J- aionz. YOUR GROCER (USEj)IT AT HOME ALT J MEAD Lots in ALTAMEAD offer the greatest induce ments in the city as an investment or a home site. 'They are well located, convenient to school and only three blocks to streetcar. All improve ments are being put in,' modern homes are going up, and plans are being drawn for four more, ranging from $1250 to $2000. Go out today and look it over. You will find salesmen on the ground or phone the office for auto engagement. Full size lots $10.00 per month. Western Ore gon Trust Co., 272 Stark Street. Phone, Main 937, A 2693. BREAD healthful franz wholesome Blltter-Nllt nutritious sanitary Buy it today Made Clean Sold Clean Delivered Clean Phones E. 6044, B 2428 More and Better Bread from every sack or (feTjf your money refunded w E guarantee your baking firrmrUT -A whenvouuseOCCI- 'Je"yffl--'". DENT Flour. You are bound to get more nutritious, more strengthening bread from OCCIDENT because it i made exclusively from First Choice of the prize bread-making wheat of America the hard, glutinous Spring Wheat of North Dakota. DIRECTIONS Work doneh soft as possible; nee one-fifth to onehird less flonr and more liquid and let raise longer than with other flour. Russell-Miller Milling Co, 474 Glisan Street, Portland OCCIDENT Bread stays moist and sweet longer it is whiter, lighter, tastier than any other bread. OCCIDENT Flour never varies in quality and it bakes more bread than any other flour. Ask your grocer for a trial sack. If it fails to suit yo for all baking, your money will be refunded without argument.