The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1913-08-19

PRESENT SYSTEM OBSOLETE
state Executive IN Speech at ST. Paul
Covers Subject Thoroughly and Gives
Numerous Reasons for His Belief
That Such Legislation Would BE Of
Great Benefit to Mlnnesotans.
st. PAUL. Specially -Governof Ed
erhart opened his campaign for state
wide control OF public utilities In a
speech before q crowded meeting OF
the st. Paul ONCE Mems association
at the St Paul hotel. The governor
said. in part:
Never before IN the history Of our
nation have greater problems confront
ed us for solution. Enormous agricul.
turai and mineral resources and un.
surpassed facilities for transportation,
coupled with q most wonderful genius
for invention. organization, and de-
velopment have enabled the Amer:-
can people to produce untold millions
of wealth and TO form the most gigan-
Ito commercial and industrial organ
ization ever known to the civilized
world.
The effective control Of these btsi-
ness organizations by nation, state,
and municipality has long been the
object Of Legislative and executive
authority, but not until the last two
decades has such control become gen
orally effective. This applies special
" to public utilities organisations.
Prior to the last two decades the con
troll OF public utilities was attempted
only by the various municipalities.
That such regulation, with very few
exceptions, has been failure is now
quite generally conceded II has been
found utterly impossible to keep the
public utilities out OF politics and the
constantly changing municipal authori-
ties, dominated largely by ward poll
ticians, have made their campaigns on
some issues involving such public util-
tiles organizations with the result
generally that the public utilities have
either dominated the administration
or have been made political football
for the benefit Of INSCRIPTIONS politi-
clans. Only the favored few have
benefited by such administration and
the vast majority of consumers have
been compelled to pay high and dis
criminatory rates for inadequate and
inferior service.
Perhaps the strongest evidence of
unsuccessful municipal regulation of
public utilities is the rapid growth OF
municipal ownership. That municipal
ownership of public utilities as COM
pared with municipal regulation has
been generally successful will not be
questioned. Municipal ownership OF
public utilities when properly direct.
ed, has been a blessing to many mu.
inequalities Of this state, and in most
Instances has proven itself infinitely
superior to the former local regula-
ton.
As q general rule Il can be safely
stated that the state or the municipal.
ity should not engage In any business
enterprise which can be conducted as
efficiently and economically for the
benefit OF all concerned BY the pri-
vate individual or association. But
human nature is always more or less
selfish. and In the case Of public utili.
ties. which by their very nature often
constitute monopolies Of public neces.
stiles. these must not under any cir.
cumstances be left prey to selfish
and unscrupulous private enterprise
II Is therefore essential in order to
properly protect the interests OF the
public that these utilities should be
either operated or regulated by pub
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 il
scarcely q state in the nation which
has not either adopted state regula
tion In some form or made prepare
lions therefor. While the superiority
Of state regulation is quite generally
conceded. there are still many who d.
NOT understand Its principles, and j
shall briefly discuss the question 81
state control from the standpoints Of:
I EFFICIENCY.
II. ECONOMY. and
III. UNIFORMITY.