IEEE Power & Energy Magazine - March/April 2018 - 90

interested," including companies that
"depend upon the public for their right to
be and to do" because they require state
and city charters or licenses. hughes,
wrote wesser, insisted that "the republican Party must adjust to changing times.
the moral precepts of american civilization, now clearly audible in the voice of
protest, must be reinstated as the sole impulse to political action, thus terminating
the evil politico-business alliance especially evident on the state and local levels." as for the republicans' free-market
complaint that government was becoming "too paternal," hughes replied, "Let
not those who enjoy the benefits of paternalism in the creation of corporations
object to paternalism in their just regulation in the public interest."
hughes was elected N.Y. governor in
November 1906 "by an eruption of respectability, with the negative aid of the
most arrogant exponent of the corruption
he denounced," according to scholar f.e.
kilroe. the same day, roosevelt wrote to

him that they both "approach our work
in the same spirit" of clear-eyed political
independence. hughes' inaugural speech
was described as "an open challenge to
the bosses of his own party," striking directly at corruption and delivered "in the
interest of the people by a man who seems
to be their, not the politicians', servant."
two months later, hughes presented
his plan for New York's first Public
service Law to regulate electricity, gas,
railroads, and insurance. It called for
two five-member Public Utility commissions to determine the maximum
cost per kilowatthour that customers
are charged, one for New York city and
another supervising the rest of the state,
where different issues and values prevailed. both commissions would have
the power "to examine properties, books
and accounts; to require detailed reports
in prescribed form; to prescribe reasonable rates; to require adequate and impartial service; to provide for the safety
of employees and for the protection of

the public ... and generally to direct
whatever may be necessary and proper
... to secure the fulfillment of the public obligation of the corporations under
its supervision." the suggestion of any
"public obligation of the corporations"
was so foreign to Morgan et al. that they
were offended by this "usurpation of
power," "confiscation," and "ruination
of our prosperity."
each commission would have "power to act upon its own initiative as well as
upon complaint; to pass upon the issue
of stocks and bonds; to examine properties, books and accounts; to require
detailed reports in prescribed form; to
prescribe reasonable rates; to require
adequate and impartial service." In fact,
the law hughes proposed-the first regulatory commission for private power
companies-has served as a blueprint
for the even-handed regulation of utilities ever since.
hughes put public pressure on albany to pass the bill by going "over the

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Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - March/April 2018
