The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1913-08-21

applications for the issuing OF stocks
! and bonds. Such provision is not only
beneficial to the taxpayer and con-
sumner but to the purchaser of securi-
ties as well as the utility corporation
itself.
2. Unnecessary DupIication.-An-
other important economic result OF
state regulation is the elimination of
waste by preventing the unnecessary
duplication of utility plants and equip
| ment. l am a firm believer in ccnpe-
| tition, but when such competition re-
! suits in the construction Of Ii: hty
| plants and equipment far boy the
| possible needs of the COM. :rity
served, such competition ccIlI@'s he
| public to support institutiCns "a are
not necessary. An unwa, ranted tax IS
imposed upon the public ct large and
the enterprise usually brings fnan-
cial ruin to the investors. The com.
mission should have authority upon
investigation to order increased facli-
ties and equipment, whenever neces
sary, and to authorize other utility
| corporations to enter the field in order
that the people may have adequate
service without paying excessive
rates, but where the community can
not support another plant, the CON-
mission must have authority to refuse
it's installation. If in the interest of
economy and good service, it should
be of advantage to the municipality
to own and operate any particular
utility, such municipality should have
the right to acquire the same, paying
therefor it's actual value and no more.
3. Municipal Regulation Too Ex-
pensive. regulation of pub
lie utilities requires very high order
of engineering, accounting and sta
tistical skill Every one engaged in
expert service must have scientific
knowledge of utility organization,
management and operation in all it's
departments. The commission must
have line of trusty and capable ex-
perts to whom the most technical
and scientific problems can be re-
ferred for investigation and report.
Such experts must have wide range
of experience, be familiar with utili-
ties problems in every section of the
state, and have a thorough under
standing of industrial and commercial
conditions generally. In addition
thereto, they must be of unquestioned
integrity, free from local influence or
prejudice ad actuated only by the
highest sense of justice and equity.
The cost of such experts and the
necessary mechanical equipment is
prohibitive to all municipalities in
this state with the exception only of
Minneapolis, St. Paul and Duluth. /
will gladly concede that these large
cities can afford this great expense,
but granting that, why should the
taxpayers of those cities pay for
three sets of experts and equipment
when one set is not only stuff
but can serve all the cities better!
The question is unanswerable. Tn
very object of regulation is to secure
the best possible service at the low
est cost to the consumer, and the un-
necessary duplication of regulating
authorities is not only great eco.
Homic waste but also needless d.
vision of responsibility which neces-
sarily must result in proportionate
inefficient service.
a. Using Equipment in commen.-
Finally, there is much equipment that
can be used by several utilities in
common. In the construction of I'M
derground conduits and mains through
the streets as many public utilities as
| by the nature of the service can op-
crate together should cooperate in
the cost of construction and the use
of common equipment. There is no
valid reason why three or four diff
ferent sets of telephone or telegraph
POLES should disfgure and obstruct
our public highways and the COM
munity at large be made to pay for
such unnecessary duplication of
equipment Since nearly all of the
public utilities are inter-municipal, it
follows that there must be a state
commission vested with full authority
to order such common use of equip
ment at, due investigation and to
apportion the pro rata cost thereof
among those benefited.
Ill. UNIFORMITY.
1. Accountine.-In order to secure
the highest standard of efficiency and
economy, it is absolutely essential to
have comparative statistics showing
the operation and experience of the
various utility plants throughout the
state as we'll as other states. There
must, therefore, be established a uni
form system of accounting. Such &C
counting should show in detail the
financial and operating experience of
every plant Under the present sys-
tenn it is impossible for one plant to
benefit by the experience of the other,
because there is no uniform system OF
computing the cost of operation so as
to determine net results. Wherever a
uniform system of accounting has
been established and reliable sta
tistical information furnished to the
various plants of the state, there has
always resulted a general improve
ment from the standpoint of efficiency
and economy. Today surprisingly few
plants know the exact cost of their
own operation, much less that of any
| other plant, and the state can render