Show VERNOR JOHNSON AYS UTILITIES ACT AVES CALIFORNIA A YEAR u Utilities Used to Regulate State Now State Regulates the Utilities That tile the public utilities law V of California California Cal Cal- ha has saved sa the people of that stalo tatO an a re of of per ler hear scar cal is 15 the tho or or of Go Coy Gov Hiram w. w V. V Johnson In lii his biennial message to tu the he Jt legislature The governor so is an enthusiastic advocate of this law Jaw and tates unreservedly that it has not only Seen ten of extraordinary service tl to the eople c of oC California but that the of i its administrative ody have bave been heen little short ort of marvelous hese statements contained arc contained in the correspondence received re recently re- re from tram Governor Johnson himself tate State of oC California ornia Executive Office I February 5 1917 Mr Ir F F. FA A A. Sweet Standard Coal ConI Com Com- l 11 jj pan Building Salt aIt Lake LakeR I R r l 11 O. O i My I i D Dear I Sir I have just received Jour our note of oC February 2 asking whether er r or not in m my opinion the public utilities s bill hill of or this state has worked to o the advantage e o of the public generall generally gener gener- ally all II and in re response pon c I have to Ia ha say unreservedly un UI- un- un reservedly that our public utility billas bill billas has as not been of or extraordinary er to our people but the achievements achieve achieve- cuts ments of or our railroad commission ad- ad n- n this law Jaw have been little short hart of marvelous lot Of course there were originally any nany difficulties to surmount The sual timidity of business made man many ery eo good people fear a drastic resu- resu I lion tion o of our public utilities by the tate But six years ear of regulation luring aring which our people have havo been rl ived I literally I b by actual computation bore ore arc than eight millions of or dollars injury to a single legitimate ot nt ha have 0 finally crystallized the of our state into one of genral Gen gen- ral approval not nol alone of ot our public act ct but of its Us administration hat our people leOPIe enthusiastically In- In ono the tho act will be he obvious ob to you ou in ine he e ever oyer recurring and increasing ma- ma s of or those who have made this ct CL an Is issue ue but hul I am not nol wide wale of oC the I iii arl k ien I Isa sa say tb tO you ou our people ha have approved and the sound wun I End nd solvent public utilities legitimately I their l business s also now fust 1st as warmly I indorse th the In law w. w I send you with tills this letter Jetter a copy if l to my biennial messa message l' l in Iii which you ou ill 1 find a vcr very brief resume of oC the work worl If r f our railroad commission slon I have learned recently that you ou arc mo ht now having the time f tine same no c contest nl st convulsed us in 1910 and 1911 HIll ou ou will have ha to continue continuo with this just as we did until finally he 10 e state Is triumphant After all aU the tho thing that our public lUblIC utility bill billas as las as lone done is to make ever every interest great within the state Ize lize and bow to the tho power roWer of oC the state Formerly our OUI public utilities us We e now regulate our utilities Sincerely Signed HIRAM IURA W. W JOHNSON EXTRACT FROM GOVERNORS GOVERNOR'S MESSAGE Following Is an m extract from th the message message of or Go Coy Gov Hiram W. W p. to the l J turo of or the state f r California on the regulation of oC pubic pub pub- I I ic utilities nn nail and the railroad commis- commis ion The stor story of ot time tho railroad commission 11 n striking and n fashion illus illus- rates tas the tho ro oJ revolution in California's Prior to 1879 the system which finally ma macUr mady of ot our government go L pitiless l' l had been developed In that eal a new constitution constitution constitution was submitted to the time people providing ro for fOl a a. 1 commission fth Hh regulatory powers Under the which h l gradually de developed du- du deI I eloped however l the tho politics of ot the tho lutc were controlled by one ono great creat I transportation u co company and by the tho I Simple expedient of l f selecting the tho railroad tail rail I road commissioners and the tho making I commission a Part of ot its commercial I system the d company compan rendered nugatory the tho c constitutional provision pro from which the thc people ople had hoped MO so touch much Political organization was wat perfected perfected per per- 1 by tho the railroad company in every ery part parl of oC the state and under the tho theold old eld convention system this organization lion tion was as invincible The government Go Was as seized and despotically adminis The political power gave financial finan finan- cial dominance and the power was used for commercial pillage TIle The rebate rebato was wao dual instrument of oC commerce an and Politics The Tho pass IJas was a n. petty bribe to the convention delegate 1 Upon the CIa Industries of oC the tho sUite stale upon Ullon the pro pru- duce uce of the farmer and upon the Shill Shill- to nta of ot the tile ern a average o merchant there thereas as levied asle an extortionate toJ toll toli The commission was but a m mock mock- try ry of ot the llop hopes and aspirations of a I Ineat treat neat people During one year cr of or Its Ita thirty years ars of ot existence pryor to 1910 the ue e receipt of oC a 0 single letter constituted 1 iL III sole eole business The Time first gleam of came to our people with the tho thoI direct I rt t primary in 1910 With the op op- op to choose for themselves a direct primary the tho people rose rOiO n 0 rebellion changed their public of- of dais and looked forward to tho lion Jn wn of tho the promise promise- of the successful candidates to tC eliminate tho tile corrupt from rom ao nt t. t t o. o And then commenced the period of ot re re- re construction TRANSFORMATION WROUGHT Tho The railroad commission under the leadership of oC tho the late John M. M Eshleman Eshleman man with Ith his colleagues ues ue's Alexander Gordon and II H D D. Loveland backed b by byall byall all aU the power of ot the state administration tion lion wron wrought ht an almost unbelievable transformation Appropriate legislation legisla tion lion was pa passed in 1911 Hin and constitutional amendments submitted to the people at a It special election called In October 1911 at which those amendments amendments amend amend- ments meats were adopted A special session of or tho the legislature was called that year ear and at that session a 0 new public utilities utilities utilities ties act was passed and the railroad commission made appointive and en enlarged enlarged en- en enI I to five lve The additional members members mem mem- bers appointed were Max Thelen and Edwin O. O Ed Edgerton Mr Eshleman served until January 1916 1915 with a distinction distinction distinction dis dis- that has hag won him the tho un unbounded tin un- bounded hounded love of oC a grateful people and has lias given unto him a n. lasting fame In his stead Frank R. R Devlin wa was ap appointed ap- ap pointed The Tho change chango o in 10 1911 with a 0 rejuvenated rejuvenated railroad commission lon was startling startling startling start start- ling ling- and dramatic C Cynical opposition was met b by full determination thirty years ears of oC political dominance b by a re regenerated re- re generated public service E the power of ot special privilege with the tho power of a n. freed people and tho the result was Yas not J long n in doubt The entire public pub lie lic utility rate schedule of the time state PUh 1 of California was reconstructed discrimination discrimination discrimination nation and extortion were eliminated from cnn the tho business life lIfo of oC the nit The work began with the railroad railroad rail rall- road rond rates rute in the San vallo valley and anil was completed there with a il total reduction of a year rhen Then rapidly followed in every section of or the tho state the reduction o of excessive sl o rates Reductions were ma made e only after careful care cal ful tul Investigations and anti painstaking hearings 9 and the tho justice of ot the reductions t s was Ad demonstrated te l by y th the Ca fact J I I mat none 01 ot thO carriers nem In the courts It would be impossible within the time limits of or this messa message e to de detail detail de- de tail tall the work that th has been done b by the railroad commission in tho the Investigation tion and reduction of ot freight rel ht rates In Inthis Inthis Inthis this state and I must content myself with saying u that every section of oC California Call Cali all all- I fornia the fornia-the the Imperial valley the Owens River HI valley San Pedro and Los Jos Angeles An- An j I. I geles eles valleys valleys indeed s 's Indeed every elj i 1 I nit and every part of oC the state felt lt its i beneficent results result Not only did the commission Justly reduce the railroad I I transportation rates but after two years of the most scientific in I I lion tion reduced Fargo Wells l arso and company's company's com coin pany's express rates a n year and nothing better illustrates the need and the time Justice of ot the work that the railroad railroad rail rall- road Toad commission Is doing than the tho facts found in the time Wells Fargo Fargo ells go case Hero I it Il appeared that this corporation corporation corporation corpora corpora- tion beginning heg with a few lew thou thousand nd dollars from the profits it had hind been able to take from the he people and In Investments investments In- In I vestments had declared In one year ear a dividend of oC OPPOSITION N WAS BITTER Of Ot course couise the opposition to the work of oC the commission was vociferous and bitter but hut It was tho the opposition of ot what wha t had been heen a sovereign corporation to tl what was wa now a sovereign people and and while that ta opposition ever er e will I continue and ana through h It Its journalistic advocates will wm ever bo be Just as vociferous ocler I ous and bit bitter SI so long as a sovereign people rule and public servants Mr have no imo allegiance except to the state there I will bo be the same triumphant re result I Time The commission nl undertook a as well a I revision of lon long distance telephone charges s and and- though thc tho e charges b by a year ear the time decision was vas accepted without contest In like fashion the tho l' l rate schedules s of oC the electric electric elec elec- and gas companies have been regulated regulated regu regu- and h. h by l' the tile reductions made nearl nearly families have been af affected affected nf- nf and the annual saving saving- will ex exceed exceed ex- ex deed Not only have the rates i-ates been lowered but time the character of the service cr has been heen improved through uSh field and laboratory The utilities had promulgated and anti enforced for tor a quarter of oC a century cen cen- tury a peculiar doctrine that their patrons should furnish facilities to the time corporations s and then pay PY a return to I j Ithe Ithe I the corporation upon the property which the they had hud thus given I en and anti so 30 long had this process been successfully pursued pursued pursued pur pur- sued that the corporations had come to regard regald it as a matter of legal right It was found for Instance that 11 as prepayment pre- pre i I payment for services patrons of Call- Call j t fornia utilities utilities gas gas electric and nd telephone tele tele- I phone phone had had been obliged to deposit the the enormous sum sum lum of All this tillS ha has now been changed I The procedure ure of ot the commission Is free tree from the usual r restrictions that thal j govern other otiler judicial tribunals Its object oh- oh is to obtain the facts and then lien I reach a determination Technicalities are arc unknown in its Ih process It tries I from three to four tour formal formal cases caseM daily dally I I It Conducts its work with a dispatch i which contrasts strikingly ly with lne or ordinary or- or methods of or courts It Jl keeps keeps' apace of its work and Its decisions arc are speedily rendered and so accurately I appal that not a CL single lc rate revl- revl i slon ilon has been disturbed h by the courts SAVING OF EIGHT MILLIONS I In its Ita Informal or correspondence I department the tile commission adjusts an aim i average of ten issues dally daily During the thc last Jast five lve years ars it has rendered 1000 decisions pa parsed t ld upon distinct and I formal matters which required requited the takIng tak- tak I I Int Ing of testimony before determination Its informal adjudications are many I thousands tho A c 2 cent 2 stamp a mere mere post postcard carll ma may invoke ole the aid of the tho I whole force of it its nr organization mimi and complaints thus thins informally presented have ha led Jed d to some ome o of th the mo niost t Important I investigations and decisions The Thu general gen I eral cral reduction of public utility charges in iii tho tIme state I of California reaches an nG aggregate rebate of pe per Jel year ear j The cost of ot lifo's sarlos noces-sarlos In jn tho tIle United States State rising ever evem- hl higher her has haM I imposed upon el c every Y home an all additional burden but in California wo wr may take I I Ia a a. reasonable pride linde in iii the protection at- at forded Corded against as rising costs COils In lit public public I utility service While costs In iii other I fields s have mounted higher and und hl higher her Ithe i j ithe the gas GK and electric and telephone charges cs hers herg ha have Ilave fallen anti and andall all lI of or this has haN been not i ionly only without Injury to public utility corporations but actually to their advantage ad ad- I vantage Legitimate and solvent public utilities now seek what at first they resented the approval of or tho time commission commis slon sion of or bond issues Issue financial reorganIzation reorganization reorganization find and tho ho like Their securities I have hive an nn added value alue when passed upon favorably by the commission Business Business Busi BUSI- ness s Je legitimately conducted has hns been materially aided and the lie statistics show V the great increase In investment of or outside capital Tho The Justice of oC the J decisions of the railroad commission the beneficial results of ot their supervision super super- sion and control of public utilities are attested b by the vel very vez representatives of or orthe the these iO corporations Of Ot course as In the activities of oC every human n agency enc decisions doubtless doubtless doubt doubt- less Jess have been rendered b by the railroad commission which have not ot met with universal approbation but hut in the multi multi- I of oC its ita wor work the rarity of oC such Ruch i Instances Is remarkable The Time commisSiOn commission commis commis- sion slon in its has not alone alono come como comeIn comein in contact with tho the most powerful in influences influences In- In In tho the state but hut WJ the most humble an as well No complaint has been too small no complainant too humble to have Its full rull attention No I power has hai been too great to be attacked at- at atI at I i tacked and 1 regulated when attempting I Injustice or wrong It has hns finally dem- dem that the people of the sta state to toor of or California represented b by their dul duly elected eleck d officers are arc greater and stronger tron r than an any a agency within the tho state and that t all l alike must yield to time the common good I |