The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1913-08-21
PUBLIC UTILITY
CAMPAIGN OPENS
Continued from First Page


lie authority.
Within the state the regulating au-
thority must be exercised by the state
or municipality or both. During re-
cent years the tendency has been to-
ward state regulation and there is
scarcely a state in the nation which
has not either adopted state regula-
ton in some form or made prepare
lions therefor. While the superiority
of state regulation is quite generally
conceded, there are still many who do
not understand it's principles, and
shall briefly discuss the question Of
state control from the standpoints Of:
l. EFFICIENCY,
II. ECONOMY, and
III. UNIFORMITY.
I. EFFICIENCY.
/. Jurisdiction.-In order that the
regulation of a public utility shall be
effective, it is absolutely essential
that such utility in all it's constituent
elements shall be located within and
under the Jurisdiction of the regulat-
ing power. The question in nearly
every case is what shall constitute
good service at fair and reasonable
rate. In the determination thereof,
the regulating authority must be able
to make full and complete physical
valuation of all properties belonging to
such utility and prevent the issuing OF
vatered stocks and bonds on which to
base fictitious returns and dividends.
The municipality cannot control the
issue of stocks and bonds. This is a
right granted by the state and must
be regulated by it. But in order to
determine the merits of a stock or
bond issue and properly regulate it,
the regulating authority must have
full and complete jurisdiction of all
property involved for the purpose OF
valuation and be able to enforce its
DEGREES. Very few, if any, of the utili-
ties are entirely within and subject to
the jurisdiction of any one municipal
ity. They are either inter-municipal
or have their sources of supply and
power outside the limits of the mu.
nicipality. Gas companies are extend.
ing their mains far beyond the city
limits. Street cars are reaching out
into the adjoining country. Electric
light and rover concerns transmit the
currents from power plants located at
some waterfall many miles away.
Telephones, telegraphs, electric and
steam railroads are all inter-municipal
and cannot possibly, for lack of juris-
tot ha LOTT hv hn njoin II.
ties.
The Consumers Power company OF
st. Paul furnishes light and power to
dozens of Southern Minnesota cities
and villages. In this case its most
important and valuable property are
the water power plants at Cannon
Falls and Rapidan. How in the name
of common sense can any city or vii
lage dependent for light and power
upon this utility corporation deter
mine the fairness of rate by making
physical valuation of properties and
enforcing rules and regulations out.
side the limits of it's Jurisdiction?
Granting, however, for the sake OF
argument, that this were possible,
how can such city or village determine
the fairness of rate dependent upon
the rates and service in every other
city or village served by the same
corporation? The same is true as TO
Minneapolis, st. Paul, Duluth, and
many other cities in Northern Mime
sofa, to which currents for light and
power are transmitted from power
plants located outside of their juris
diction. In the enforcement of every
local regulation the municipal officers
cannot proceed beyond their jurisdic-
ton and the suburban and country
residents have absolutely no means of
securing adequate service or reason
able rates if the utilities corporation
is not willing to grant the same. These
are facts of common knowledge which
should convince anyone that the regI-
lation of these public utilities is not a
municipal problem but state prob
lem.
2. Definite Fixing of Responsibility.
The efficient regulation of public
utilities require the definite fixing of
responsibility in the hands of as few
persons. as possible. Under the old
system of ward government it has
been found almost impossible to fix
the responsibility for mismanagement
of city affairs. Whenever the advo.
Gates of more efficient government
started a movement for a change from
the ward system to the city wide com.
mission form, the ward politicians,
certain special interests and favored
consumers joining with them, would
Immediately, under the guise of home
rule" proceed to defeat the movement
In spite of such efforts, however, quite
number of Minnesota cities have
adopted the commission form of gov.
eminent and the remaining cities will
unquestionably do so in the near flu
ture. The all important advantage OF
the commission form of government
is it's definite fixing of responsibility
for the operation of each city depart
ment in one person elected at large
and held responsible to the people
through the initiative, referendum and
recall. In the regulation of state
wide utility, which is always a public
necessity and often monopoly, it is
therefore, of still greater importance