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THE WISCONSIN PUBLIC UTILITIES ACT
THE
WISCONSIN
PUBLIC
UTILITIES
ACT
By Eugene A. Gilmore BY the legislation of 1905 and amend ments thereto, and by the enactment of the " Public Utilities Bill" at the recent session of the legislature, all forms of public business in Wisconsin are subject to the control and supervision of a commission of three men known as the "Railroad Commission," appointed by the governor for six years, and confirmed by the Senate. The governor may at any time remove any commissioner for cause. By the "Rail road Act" of 1905 this commission was first created, and all common carriers, including steam railroads, interurban electric railroads, bridge and terminal companies, express companies, car companies, sleeping car companies and freight and freight line companies were placed under its control. The recent legislation places under this same commission telegraph companies, urban street railway companies, and all public utility companies. "Public Utility," as used in the Act, embraces every corpora tion, company, individual, or association of individuals, their lessees, trustees, or receivers; every town, village, or city that now or hereafter may own, operate, manage or control, in whole or in part, any plant or equipment for the conveyance of tele phone messages, or for the production, transmission, delivery or furnishing of heat, light, water or power, directly or indirectly, to or for the public. The supervision and control extends to the investigation and fixing of rates, tolls, and charges; the securing of adequate and equal service; prescribing regulations as to the conditions, adequacy, and standards of service; the prevention of unreasonable preferences and discriminations; providing for a uniform system of books and accounting; and pre scribing conditions for the ownership and development of public utilities.
The Public Utilities Act is the consum mation of the movement towards a more effective control of public service companies, which began two years ago with the adoption of the Railroad Rate Law, and the success of this recent measure is due in large part to the confidence in commission control, which has been inspired by the efficient administration of the present railroad com mission. Only seven votes in both houses were cast against the bill. The opposition was democratic, and was based upon the objection that the proposed law violated the principle of local self government, took from the municipalities the control of matters which every community was best able to regulate, and centralized too much power in the hands of a small board far removed from the community con cerned. While the public service com panies affected, opposed many features of the bill as inexpedient and impracticable, they favored rather than opposed the principle of centralized commission control. Recognizing the failure of competition to secure efficient service at reasonable rates, the present law is constructed on the principle of monopoly, whether in public or private hands, adequately con trolled by a strong central commission. While municipal ownership and operation are contemplated and provided for, the tendency of the Act will be strongly towards private rather than towards municipal operation of public utilities. Municipal ownership and operation is, in the main, a potentiality, and is so conditioned as to provide a constant incentive to adequate service by private operation. The object of the law is to secure adequate service from all public utilities under conditions which are fair and reasonable, not only to the public, but also to the corporations
