Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1913-08-20

valuations Of such prope rties, Ia
.checktn g. examining and # auditing
books. accounts and ssecurit and In
scollating, classifying and alyzing all
facts in.connectio Herewith. the en-.
.ployment OF skilled experts and valu.
able equipment Is absolutely essential,
and the average municipality cannot
AFFORD the expense connected there.
with. With such expert service and
equipment. as we'll as the necessary
authority vested in the state, all mu.
inequalities and rural communities
would have at their disposal the
means of solving on just basis any.
problem connected with their public
utilities, no matter how Intricate and
difficult. .s,..s...E. .5
5. Public Health Public health
affords another important phase in the
consideration Of efficiency. The test:
ing of water in the interest OF public
health is in the first instance mum.
cipal problem, but where disputes
arise or where the municipalities re.
fuse to act, the state must step In
and enforce the observance of sanitary
laws and regulations. This is func.
ton for the state board of health, but
In making its tests and Investigations
the experts of the public service com.
mission should be employed so as co
prevent the duplication of state equip.
ment. Our supreme court has held
that municipalities are responsible for
damages to persons and property
caused by neglect to properly guard
public health, and no city should be
permitted to allow unsanitary condi-
tons within its borders, because the
breeding Of disease in one city at.
fects every other community by inte~-
communication. IT,
s. Continuity OF Service and Civil
Service Promotions efficiency
Is dependent largely upon continuity
of service and promotions under the
merit system. The public servi
commissioners should be appointt
without regard to political affiliations
and for a sufficient number of years,
so that the term of only one commits.
sioner may expire every, or preferably
every othe4, year. Through this meth
I'd majority of the commissioners
will Away be experienced in service
and as far as possible made indie,
pendent of political changes in tn
state administration. All employees
should be under strict civil service
and promoted for merit only. Under
a constantly changing city administ,
ton, the regulating authority is n.
sufficiently permanent and the ap-
pointments are too apt to be bar.
gained away under the spoils system.
That this is not the case under state
control is demonstrated by the expe.
rience of public utilities commissions
in other states, as well as by the rec.
ord of our tax commission, board OF
control of state institutions, and other
similar state commissions. A study
of state control, as tested in actual
operation, should convince. the most
skeptical that when the state service
is made more permanent, removed
from politics and the appointing chief
executive held subject to the will of
the people under the initiative, refer.
endum and recall, the commission will
not develop into a political organiza.
ton.
II. ECONOMY.
I. Control Of Securities.-One Of
the most important features of state
regulation is the complete control at:
forded over the issuing of certificates
This is necessarily a state function
because these securities are issued un
der state authority and the municipali
ties have absolutely no power to con
troll them. The old theory that cor
porations should be permitted tt
float as many stock and bond issues
as the traffic would bear" irrespec
tive of actual investment has Ion
since been exploded. Returns
dividends cannot be based on capital
ization, but on the actual value Of
the utility properties. Whenev,
stocks and bonds are issued and solo
without corresponding value, sucl
watered securities are sharing in re
turns and dividends to which the,
are not entitled and the result is {
great economic waste. Excessive
rates are charged on the basis of sucl
| watered capitalization, and the con
sumers pay the bills. It is importan
that the commission, after thorough
investigation, should have the right t.
grant, refuse or modify any and al
applications for the issuing of stock
end bonds. Such provision is not onl,
beneficial to the taxpayer and con
sumer but to the purchaser of securi
ties as well as the utility corporation
itself. % 49,
2. Unnecessary DupIication.-A1
other important economic result Q
state regulation is the elimination o
waste by preventing the unnecesar
duplication of utility plants and equiv
ment. am firm believer in compe
tition, but when such competition re
suits in the construction of utilit
plants and equipment far beyond tn
possible needs of the communit
served, such competition compels til
public to support institutions that ar
not necessary. An unwarranted tax i
imposed upon the public at large an
the enterprise usually brings finar
c1al ruin to the investors. : The com
mission should have authority upol
Investigation to order increased facil
ties and equipment, whenever neces
sary, and to authorize other utilit,
corporations to enter the field in orde