582 



SCIENCE 



[N. S. Vol. XXXVII. No. 955 



term of years, the city perhaps to have the 

 right of purchasing the plant at the end of 

 the franchise period. The quality of gas 

 and the character of the service furnished, 

 and the prices charged, are to be fixed by 

 the public-service commission. 



The commission must see that the com- 

 pany runs its mains into all the streets of 

 the city, so as to give service to all; that 

 uniform rates are charged and no rebates 

 are allowed to favored customers; that 

 service charges, if made, are reasonable; 

 that the gas is of good quality, and as free 

 from impurities as possible; that its heat- 

 ing value and candlepower are kept up to 

 the standard specified ; that the methods of 

 testing and the instruments employed are 

 up to date and satisfactory, and the per- 

 sons doing the testing are competent; that 

 the pressure of the gas is sufficient and not 

 too great and does not vary enough to be 

 dangerous; that gas appliances used are as 

 safe as can be obtained, and connected in 

 an approved manner; that the mains are 

 properly located and properly protected 

 from extremes of heat and cold; that the 

 meters are kept in good order and tested 

 from time to time as to their accuracy; 

 that the prices charged are as low as pos- 

 sible, consistent with a reasonable dividend 

 to the stockholders ; that the books are kept 

 in an approved form, so that the state of 

 the business can readily be determined by 

 the commission; that proper allowances 

 are made for plant depreciation, or proper 

 sums expended for upkeep; that no new 

 stock is sold without approval by the com- 

 mission, and that all dividends shall be 

 from actual earnings, but that if actual net 

 earnings are more than necessary to pay a 

 reasonable dividend, the price of gas shall 

 be reduced. This usually involves an ap- 

 praisal of the company's property to de- 

 termine whether the capitalization is fair. 

 From time to time the specifications for 



the quality of the gas and the methods of 

 testing must be revised; the question may 

 arise as to what candlepower or heating 

 value will give the best service under pre- 

 vailing conditions; new methods of manu- 

 facture, new appliances and new uses for 

 the gas will all bring up new questions; 

 and the commission must be prepared to 

 consider and decide upon all kinds of sci- 

 entific, engineering and commercial prob- 

 lems as they arise in connection with the 

 regulation of gas companies. 



These duties are so many and so varied 

 that one might suppose that it would be 

 impossible for a commission to accomplish 

 them all even for a single company, much 

 less for all the gas companies in a state. 

 If it had never been done, it would indeed 

 appear doubtful. But these functions are 

 being performed (at least in large part) so 

 successfully in a few states that many of 

 the other states are looking forward to 

 doing it as soon as their commissions are 

 prepared for the work. The gain from 

 such regulation is not alone to the public, 

 which pays for and uses the gas. The 

 company is saved from unfair and hostile 

 local legislation, which often forces re- 

 sort to the courts, always an expensive 

 and often unsatisfactory experience. The 

 business is more stable, customers are bet- 

 ter served and better satisfied, the credit 

 of the company is often improved, new 

 stock sells more readily and at higher 

 prices, as the public knows the condition 

 of the business and there is less risk to the 

 investor. Stock manipulation is prevented, 

 and those who profit by that process are 

 the only ones to suffer. 



REGULATION OP AN ELECTRIC LIGHT 

 COMPANY 



Similar duties devolve upon a public- 

 service commission with regard to other 

 utilities. Electric-light companies are 



