THE WISCONSIN PUBLIC UTILITIES ACT made against it, and it is the expectation that in the course of time a valuation on a uniform basis will be made of all public utilities in the* State. In this feature the Wisconsin law differs from the New York Public Service Commissions Act. Under the New York law no general valuation is required, and presumably none will be made, except in the course of a hearing on a complaint against a particular utility. The expression "actually used and useful for the public convenience" was selected after much consideration. While intending to leave with the Commission a wide dis cretion as to the elements which should be taken into consideration in reaching a valuation, the purpose of the clause is to require the Commission to ascertain the existing valuation of all property actually used for the public, and the requirement of "useful" for the convenience of the public was designed to eliminate from the valuation losses due to economic inefficiency, extrava gant or bad management, improvident construction or excessive original cost, superceded or antiquated equipment. The provision of the Act relating to franchises would exclude from this valuation, cer tainly as to all future public utilities, and apparently as to all existing utilities, any consideration of them. CAPITALIZATION. In view of the wide power given in the matter of valuation, it was not deemed necessary to include in this Act any control over the issuing and transfer of stocks, bonds, and other evidences of indebted ness; thus differing materially from the New York Act which gives its commis sions ample power over such matters. It was thought that the Commission could disregard in its valuations issues of stocks and bonds which represented water rather than actual valuations. But even so, this leaves unprotected the investor in such securities. So far as the fixing of rates
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and the control of public service companies is concerned, the Act is doubtless sufficient, but the desire to control capitalization in the future, and to protect investors, led to the enactment on the last days of the session of a separate bill to prevent stock watering and issuing of fictitious securities. The law provides that no public service corporation, and this includes not only public utility companies as defined in the Public Utilities Act (excepting again tele phone companies) but also railroad, street railway, telegraph, express, sleeping car, and freight line corporations, shall issue any stock, except in consideration of money or of labor or property, estimated at its true money value, actually received by it, equal to the par value thereof, and shall issue no bonds or other evidence of indebtedness, except for money or for labor or property, estimated at its true money value, actually received by it, equal to 75 % of the value thereof. Before any issue of stocks or bonds is made, the corporation is required to file with the railroad commission a statement setting forth the amount and character of the issue, its purpose, a description and estimate of the value of the property or the services for which it is issued, the terms on which the issue is made, and the amount of money, if any, to be received in addition to the property or services. The commis sion is required to value the property or services for which the stock or bonds are to be issued, and shall make a certificate setting forth fully all the facts concerning the issue, and the value of the services or property, and no issue of stock or bonds without such certificate or in violation of its terms, shall be valid. Provision is made for a court review of the valuation fixed by the Commission. In determining the value of the property of the public service cor poration or of any person furnishing service to the public, no franchise or privilege granted to such corporation or person shall be appraised at any greater sum than was
