I
OREGON CITY COURIER FRIDAY, AUGST 7, 1908
: V
JUST REGULATION
The Public and the Investor Both
. Have Rights.
Jhe Problem of State Legislatures.
What Is a Reasonable Return Upon
Capital Invested? Experimental In
dustries Should Offer Unusual Prof
Its to the Enterprising Investor.
By EVERETT W. BURDETT.
The subject of public control of pri
vate Investments In quasi public enter
prises has bad a somewhat natural
and logical development In this coun
try. Beginning at practically the zero
point, It progressed slowly at first, but
Is now moving forward with giant
strides. At the time of their Inception
these new enterprises were so welcome
to the public that It did not seek to
throw about them any obstructive or
harassing conditions. Bather, It wel
comed them with open arms and was
only anxious for their establishment
and development.
This Is strikingly shown by the pro
visions of the charters granted by the
state of Massachusetts to three of the
first railroads in this country, organ
ized respectively in 1820 and 1830
that the rates of fare and freight, the
construction of the roads, the form of
cars "and all other matters and things
In relation to the use" of the rouds
Bhould be wholly within the discretion
of the directors. At the close of 1830
the total railroad mileage of the
United States was only twenty-three,
and the public was and for many
years continued to be Interested in the
establishment and development and
not in the regulation and control of
railroads.
And so it was with reference to the
electric telegraph. The first lino was
built between Baltimore and Washing
ton in 1844, and, if my memory la not
at fault, congress voted the inventor a
large sum in recognition of his con
tribution to the public welfare.
So also when the street railway was In
troduced in 1852 and its successor, the
electric railway, about 1880, and when
the telephone and electric light both
made their first appearance lu com
mercial use in 1870 the communities
which they were established to serve
were clamorous for their Introduction
and were not much If at all concerned
about their regulation.
But in all these cases what was at
first a wouder or a novelty soon be
came a commonplace adjunct to dally
life. The public awakened to the fact
that these utilities had not been estab
lished for purely eleemosynary pur
posesthat, in the expressive lunguugo
of the day, their owners were "not in
business for their health." The more
modern doctrine, promulgated, I be
lieve, from New York city, of "the pub
lic be damned" wus a more or less
natural outcome of later conditions.
The result was that In each case and In
a somewhat natural order the public
took a hand In whut turned out to be
the dangerous game of public regula
tion and control.
At first these efforts took theToriu ot
rate regulation In the case of railroads.
These were frequently the product of
resentment and prejudice and except
for the Intervention of the federal ju
diciary would have been disastrous. By
throwing over transportation companies
the protection of the constitution, guar
anteeing all our citizens, including cor
porations, against spoliation under tho
forms of luw, ruinous consequences of
111 advised legislation have frequently
been avoided.
The supreme court, while affirming
the right and exclusive authority of
state legislatures to regulate rates and
fix maximum charges, hus also subjected
the reasonableness ot legislative action
lu this respect to the test of Judicial in
quiry. It has insisted upon rates which
are sufficiently alike to give a reason
able return upon a reasonable invest
ment and at the same time be Inher
ently fair and reasouublo to the public.
While Insisting thut ordinarily a cor
poration is entitled to some prollt upon
lis enterprise, tho court has not as yet
niidorinUeu to say what thut profit
shall bo, except in ouo cuso (102 U. S.
SiOl, 1003), thut tho rules of a water
company may bo lawfully reduced by
legislative uctiou to u polut where tho
business will yield only 0 per cent upou
the fair vuluo of tho Investment.
It seems natural and appropriate to
suggest ut this point that ouo of tho
most important functions of the uewly
created public service commissions of
tho stato of New York may bo to
determine, in the first Instance, what
u reasonable return Is upon capital
Invested in the public service corpora
tions which are umler their super
vision aud control, and it is at least
reasonable to indulge tho hope that
they will not undertake to limit that
return within the narrow margin
which has been accepted by tho court,
us sutllcient In tho case of such a com
paratively simple and well established
enterprise as that of tho supply of
water. There is but little unalogy be
tween the cases. If the return on cnpl
tul Invested In what can be properly
described as essentially experimental
Industries, such us street railway nud
llectrlc enterprises, Is to lie confined
to any such figure ns 0 per cent It will,
In my judgment, be a sorry day, not
only for those who have their money
at hazard In those enterprises, but for
the public at large whoso interest lies
lu their proper development and ex
tension. As conservative u man as President
Eliot of Harvard university has re
cently said:
"lu such enterprises there are often
heavy risks. Hence men will
not undertake them for the ordinary
return on sufe Investments. They
must be Induced to veulure their on pi-
Real Estate Transfers
Harney Oronln to Tlios. O. Higgs
a part of Sec 14, T3S. RIW; 1C0.
J. W. Watts to M. I. Sliortlldge
Ix)t 6 of block "H" of Clackamas
Heights; $t.
Oregon Swedish Colonisation Co. to
Krlk .Tsnsnn NW 1-4 of NE 1-4 of
Sec. 8, T5, SIC; $4o0.t
- Jane W. Edwards to J. It. Edward.-- -XI
acres In Sec. 17, T4S, R2E; J I.
S. P. Ward to Ida M. Davidson 17
acres in Clackamas Riverside; $1.
M. J. Jones to I. M. Davidson 17
tnl and their capacity by a prospect Df
unusual returns."
So far as I know public service cor
porations other than steam railroads
have in but rare instances been made
the subject of state regulation or con
trol by special tribunals created for
the purpose. They have ordinarily
been left at the mercy of state legis
latures or, worse yet, of the various
municipal authorities where they oper
ate. They have thus been forced more
or less Into state aud local politics, a
course Justified, If at all, by the dic
tates of "the first law of nature"
that of self defense. Rut In 1804 the
state of Massachusetts entered upon a
more enlightened experiment In public
regulation and control of quasi public
enterprises, and sinr-e that time the
capitalization, debt, rates, service and
general conduct of the public service
corporations of Massachusetts have
been within the control anil regulation
f public bodies created for the pur
pose. The one primal defect In the laws of
Massachusetts regulating and limiting
the stock and bond Issues of Its pub
lic service corporations, an error which
ought to be avoided In the administra
tion of the law in New York, lies in
the failure to discriminate between
new enterprises or hazardous exten
sions of old enterprises on tho one
hand and well established Industries
on the other. Admitting that the se
curities of the latter can properly be
limited to amounts sufficient only to
cover the reasonable expense of ordi
nary additions to plant aud the returns
jpon them to the going rates of Inter
est or profit legitimate In established
businesses of like character, the rea
sonableness of the rule' disappears
when applied to extensions of uhusual
character or Into fields of doubtful
profit, and particularly to cases of In
cursions by new enterprises Into hith
erto unexplolted fields.
The pioneer who first dures to ex
plore hitherto unexplolted territory or
the investor who is willing to Increase
the usefulness of his enterprise by
extending it into channels of doubtful
profit should not be treated In the mat
tcr of initial securities or the returns
upon them with the same strictness
as the conservative investor in an es
tablished business. To quote Presi
dent Eliot again:
"There Is much to be said on behalf
of the proposition that there shall be
no water in the stock of public service
corporations, yet if this principle had
been applied to all street railway and
lighting companies during the past
thirty-five years the public would have
waited long for facilities which they
have greatly enjoyed and profited by."
Tho great authority of the supreme
court of the United States, as express
ed in the case of Handley versus Stutz,
189 TJ. S., 417, stands for substantially
the same proposition.
THE FEAR OF POLITICS.
Why High Grade Employees Prefer
Private Positions.
One of the first results of the Beuif
munlclpal ownership of trolleys In
Cleveland Is the feeling of high grade
employees that they had better look
for positions which are not hampered
and endangered by political Interfer
ence. Of the resignation of the en
gineer of maintenance of way the
Cleveland News says:
"Engineer Tilton of the former trac
tion regime resigned his place Tuesday
because his profession had nothing lu
common with politics. He feared that
politics might come to be n factor In
tho affairs of tie holding company. lie
had hud that fear ever since the public
was told that the board of directors
could not meet to discuss a grave labor
dllllculty because inost of the members
had gono to Columbus to attend a po
litical convention."
The same paper quotes Mr. Tilton as
saying:
"I desire to say that I hold Mr. du
Tout In the highest esteem. Moreover,
I like .Mayor Johnson. I don't waut to
criticise tho mayor aud his associates
for being politicians either. They have
a perfect ami absolute right to be poli
ticians. It Is tho fact I am looklug at.
Hero Is a management which Includes
Mayor Johnson, City Solicitor Raker,
Senator Howe, County Solicitor Stage
and Senator Thomas V. Schmidt. All
of them are politicians. It Is the po
litical influence I fear for the future.
Those men cannot keep politics out
could not If they tried. I don't doubt
they mean well by me. It Is the In
evitable situation that makes It seem
to me well to make a change."
Postal Tyranny.
As showing how far advanced this
couutry Is lu bureaucratic Interference
with personal liberty the article on
"Russianizing the American Post
Dfllccs" lu a recent issue of the rub
lie will bo a revelation to most Amer
icans. Tho writer shows how men
have been driven out of business by
"fraud orders" Issued by the postolllce
department when the courts have held
their business to be uutalnted by.
fraud. Moreover, these orders, which
prevent a man from receiving any
mall, nro kept In force after the courts
have pronounced the busluess legiti
mate. Truly we are passing from a
republic Into a bureaucracy.
They.
IV hy don't they keep tho streets a llttl
cleaner?
You ask, with Oeep annoyunca not un
due. Why don't they keep the parks a little
Ki'eener?
(DU1 you ever slop to think that they
means you?)
How UuiR will they permit this graft and
stealing? N
Why don't they eeo the courts are clean
and true?
Why will they wink at crooked public
dealing?
(Did you ever slop to thli ti that they
means you?)
-Life.
acres In Clackamas Riverside: $'..
1). 1a Cngan et al to I. M. Davli'.s.m
17 acres In Clackamus Riverside; $1.
it. 11. DcHliazed to I. M. HaviiUoi-
17 acres In Clackamas Riverside;
J. O. DeShazor to I. M. Davidson
17 acres in Clackamas Riverside; $1.
A. C. Hodgkln to E. A. Hoys Lots
1S. 19, 25 ami-20,' Jennings Lodge;
$10(10.
Edwin Hedges et nl to R. V. Mitch-ell-lts
15 and It'., Hloek 30, in Iliad
stone; $200.
W. A. Proctor to (list & Palmqiiist
8.0S acres In See. 2C, TI, 4E; $1000.
J. It. Edwards to V. Roiularmel 41
acres in See. ITS. T4, TE; $1230.
3o People Read Advertisements s
W
H
w
Why Sure! You Are Reading This Ad
Arc you not? If you read this ad others will read- yours if you will place it where it will be seen. If you
place your advertisement iu some paper that people do not care to read of course you cannot expect results
from your efforts. But if you goto a paper that is aggressive and alive and is brim full of news you are sure
of reaping results from the money you spend. And again you cannot expect to place an ad in any paper and
expect people to come and buy you out the next day. You must give them a dose one week and then double
the dose the next time; give them both doses the next week. If this does not fix them repeat what you have
given before but add a greater amount of vim. When you have done all this get in and ADVERTISE
(J Did you ever stop and consider why the Courier leads in advertising? It is easy to see why if you
will stop and consider how much larger a circulation the Courier has than'other Clackamas County papers.
And why this larger circulation? Because the management of the Courier is ever on the lookout for new
ideas to give their readers; new features to add that will give a greater variety that will please everybody.
To give the readers of the Courier the news in an unbiased form. These and many more are the reasons why
the Courier has a larger circulation than other Clackamas County newspapers,' and the reason why the
Courier has a great deal more advertising matter than other Clackamas County papers.
(J The Courier's job plant is excelled only by the larger platjts of Portland, and is prepared to print any
thing from the finest society stationery to the big wholesaler's catalogue.
IF YOU WANT GOOD PRINTING
d
H
w
CALL ON
THE OREGON CITY COURIER
s
THE HOME OF GOOD PRINTING
FLIES AND SHEEP.
'tint Tr and Dipping to Protect
Health of the Flock.
Fly time Is on, and sheep, espe
cially rams, should be watched closely
for maggots. All rams should have
liberal quantities ot pine tar around
the horns, which will prevent the fly
from depositing her eggs. When pres
ent turpentine or dip will dislodge
them and pine tar will keep them
away, writes an Ohio breeder lu the
National Stockman and Farmer. The
long and middle wool sheep are more
annoyed by the common house fly than
the Merinos and should have a dark
woods or an underground cellar or
cave In which to spend the day. A
single fly will prevent one of these
sheep from thriving a whole day.
The owner of a grade flock of Shrop
shires once took the writer to the
mouth of a cave In 'which his sheep
spent the daylight of summer, secure
from flies and In a climate very nearly
like tho native ' conditions of the
Shropshlres of England, lie lamented
the loss of the manure, but the loss
was inoro than made up lu the condi
tion of the sheep.
Look out for the gadfly. Her eggs
are deposited lu the nostrils of tho
sheep and almost as soon as deposited
move up into the sinuses of the head,
and the sheep has grub In the head.
Tar on the nose or even dust will warn
the mother fly that such a place Is not
a promising home for her future family.
In the absence of bare ground a fur
row plowed In the pasture will supply
the dust. Sheep salted lu a V shaped
trough with tar on sides of trough Is
practiced as a preventive by some
flockmasters. Sometimes I think that
between gadflies, stomach worms, lung
worms Indicated by the sheep stand
ing with their heads close together,
with their noses on the ground and by
running ticks foot rot, blizzards and
tariff tinkers we have a strenuous
time.
Holds the Cow's Tail,
A new and Improved contrivance for
holding tho switch of a cow when tho
cow Is being milked has been designed
by a Massachusetts man. The holder
I'HOTKCTION FOB THE MILKER,
Is constructed from a lint circular strip
of spring metal, which Is clamped
around the leg of the attendant. To
prevent It moving u number of projec
tions are placed on the inner face,
which engage the trousers of the
wearer.
on the outer face of the strip Is a
spring chimp, one end of which is rivet
ed to the strip, while tho opposite end
Is free and curved slightly outward, so
that the switch of the animal can be
readily entered between the strip and
the clamp. The animal is thus uuable
to swish her tall In the milker's face,
protecting the latter from Injury In this
way.
THE HORSEMAN.
Brood mares should lc fed liberally,
but not to excess. They should hive
the best quality of well cured hay, oats
and bran. Moldy hay that has lieeu
heated lu the mow or bale, musty oats
and broil that has soured iil not sup
iilv the'lironer iiutrluieut for producing
stake wuu.v
The Courier Is the paper that gives
you the market report.
How's This?
We offer one hundred dollars reward
for any case of catarrh that cannot be
cored by Hall's Catarrh Uare. F. J.
CHENKY & CO., Toledo, Ohio.
We, the undersigned, have known
V. J. Cheney for the last 15 years,
snd believe him perfectly honorable in
all business transactions and tinan
Tially able to carryout any obliga
tions made by his firm. Walding,
Kinnan & Marvin, Wholesale drug
gist", Toledo, O.
' Hall's Catarrh Cure is taken infer
nally, acting direotly upon the blood
and mucous surfaces of the system.
Testimonials sent free. Price 75o per
bottle. Sold by all druggists.
Take Hall's Family Pills for constipation.
Summons.
In the Circuit Court of the State of
Oregon, for Clackamas County.
Ida M. Martin, Plaintiff, 1
vs.
John Martin, Defendant. .
To John Martin, the above named
defendant :
Iu the name of the State of Oregon
The Bigger the Basket
of groceries we send you the
greater your satisfaction, the
larger number of articles you
order the greater will be your
appreciation of the all-round
Excellence of our Groceries
We do not make a specialty
of one good article, trusting
its good quality will make up
for deficiencies in other lines
Every thing we sell is the best
we can get.
SPECIAL-this week only: a
5c2 box of toilet soap free
with each pound of tea or
coffee.
SEELEY'S
The Peoples' Store
Main Street OREGON CITY
you are hereby required to appear and
answer the complaint filed against
you in the above entitled suit on or
before Sept. 21, l'J08, said date being
after the expiration of six weeks from
the first publication of this tnmmouB,
aud if you fail to appear and answer
said -complaint, for want thereof the
plaintiff will apply to the Court for
the relief demanded in the complaint,
to-wit: For a decree dissolving the
bonds of matrimony now existing be
tween plaintiff and defendant, ,
This summons is published by order
ot Hon. Grant B. Dimick, Judge of
the County Court for Clackamas
County, Oregon, which order was
made and entered on the 6th day of
August, 1908,aud the time prescribed
for publication thereof is six weeks,
beginning Friday, Aug. Itli, 1908,
aud continuing eacli week thereafter,
to and includiug Friday, Sept. 18th,
1908.
First publication of this summons
August 7th. 1908. Date of last publi
nanon Sept. 18, 1908
M. MOREHEAD,
Attorney for Plaintiff.
Thos. Fox to B. LaFojest certain
Lots in 1st addition to Oswego; $1.
Reta Pierce to F. M. Amen 2S-100
acres in Sec. 5 T3S, R2E; $500.
D. M. Stephenson to J. L. Paul
15.01 acres In Presley Welch D. L. C;
$5200.
C. S. Bard to Robert Hileman 20
acres in John Stephenson D. L. C,
T3S, R4E; $000.
Mary E. Barlow et ux to F. S. Hart
1G0 acres in Sec. 10, T5S, R1E; $2000.
The John "Barrett Co. to John Bar
rettundivided half of lot 7 Sec 1G T.
3S, R3E; $1.
James V. Partlow to Andrew Blom
44 acres in S. S. White D.-L. C. No.
41, T3-2E; $3800.
G. PolitowskI to Herman Krause
24 acres in Sec. 3, T4-4E; $4000.
N. R. Lang et al to Willamette Tulp ..
& Paper Co 7.92 acres near Oregon
City. '
Alfred Hinman to H. A. Hosteller . 1
87.88 acres in Sees. 16 and 17, T3S,
R4E; $5400.
H. A. Hostetler to Axel Vesler
47.88 acres in Wm. Wade D. L. C;
$2500.
Lyman B. Andrews to Axel Vestor
10 acres in Stephen Walker D. L. C
T2-1E; $1.
FOR SAL
ElodBni
IN PORTLAND -
Bungalow
- . - ' 1 'iw
V
Just Completed All modern improvements 7 Rooms, Hot and Cold
Water, Electric Lights and Bath. On one or two Lots.
ROSE CITY PARK
Portland's Fast Growing Addition. On the Main Street to New Driving
Park. Terms. -
EASTHAM, SMITH & CO.
OREGON CITY, - ... - - OREGON
The discriminating farmer keeps a supply of
SLOAN'S LINIMENT
For spavin, curb, splint sweeny, capped hock, founder, strained
tendons, wind puffs and all lameness in horses -For
thrush, foot rot and garget on cattle and sheep -For
hog distemper, hog cholera, thumps and scours in hogs
For diarrhoea, canker and roup in poultry -
AT ALL DEALERS - . - PRICE 25. 50 I $ 1.00
Send for free book on Horaes. Cottle, Hogs ond Poultry -"-Address Dr. Eorl S.Sloan, Boston. Mass
S