The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-08-18

THE BEM1Dn DAILY pIONEEn
dition Of every public utility and sug-
gest to the various officials in charge
| such improvements in management
and operation as will be found neces-
sary. In making physical valuation
1t is also important that a uniform
method of determining and expressing
values should be adopted. This can
be accomplished only through state
wide accounting and statistical de-
partment.
8. Municipal Plants Municipal
plants are not operated for private
! gain, and their regulation as far as
! the state is concerned is therefore
largely a matter of accounting and
! reports. They are therefore inter-
ested principally in the accounting
and statistical departments of the
state commission These plants, when
properly segregated from political
domination, very readily adopt the
improved methods Of other utilities
and profit by their experience. The
| uniform system of accounting enables
them at all times to know the exact
cost of operation which is essential in
the interest of economy. This 10 oc-
casioned sometimes by lack of ex-
pert advice and sometimes by political
interference. Oftentimes municipal
plants do not provide sufficient funds
for depreciation, and the complete re-.
construction Of plant has to be met
| by excessive taxes instead of a grad
\ ual charge against the consumers.
Errors of this kind are always
checked by the state commission and
corrected. While there has been a
disposition on the part of some mu.
inequalities owning public utilities to
oppose complete state regulation.
there has been very little objection
raised to the control of such utilities
to the extent of enforcing proper uni
form accounting and the furnishing of
reports. ..
| 4. Service, Rates and Returns
The uniformity in service, rates and
returns of similar public utilities
through the state, as far as the local
differences in the cost of operation
will permit, is desirable, no one will
question, and it is difficult to see how
any one can consistently advocate
any other method of securing such
uniformity than by state regulation.
RELATION BETWEEN STATE REG.
ULATION AND HOME RULE.
While the home rule argument
has often been used to defeat state
regulation, there is no valid reason
why the true home rule principle
should not be made effective in con.
nection with state regulation. If any
municipality should desire special or
additional service and is willing to
pay for it, such service should be
| granted. In the location of car barns,
power houses and other similar build
ings, IT the municipality has reserved
certain sections for such purposes, it
should have right to enforce such
regulations in all cases. Oftentimes
in the granting of franchises and cost
ly extensions of service through
sparsely settled territory, it is desir.
able to secure an expression of the
local sentiment in regard thereto, and
no state commission will disregard
such sentiment but rather seek it's
guidance. Where new important i'm
provements are under consideration
for adoption, an expression Of the SEN
timent in the community affected
thereby is; not only desirable but often
necessary. Wherever the home rule
principle can be applied for the pur-
pose of securing service more suit
| able to the need of the community in
| question, it cannot in any way con-
hict with proper state regulation, but
will on the other hand be valuable
| aid. go
expert service and equipment for the
purpose of testing products, determin.
ing reasonableness of rates and max
ing valuations by the municipality, it
is largely a question of economy. If
the local taxpayers are willing to i'm.
pose this unnecessary burden upon
themselves, the taxpayers not affect
ed thereby should not complain.
| Whenever disputes arise under the
application of the home rule principle
between the municipality and the pub
lie utilities corporations, the state
commission must be the arbitrator
subject, as in all cases, to an appeal
to the courts. 1t has been found by
experience, however, that the deci-
sions of state commissions have been
so uniformly thorough and fair that
| few appeals to the courts have been
taken. ~-. / ...
FORM AND SCOPE OF THE PUBLIC
UTILITIES LAW. g
This is matter for the legislature
to solve. In my discussion I have
pointed out the essential elements Of
the law, the details are not so i'm
portant After having made care
full study of the laws of other states,
do not hesitate to state that the
Wisconsin law, with some moditica-
tions, that apply specially to our state,
is the best. Under it Wisconsin has
successfully regulated it's utilities,
and while instances of Inequalities, in
ferior service and high rates can still
be found there, it's commission has
| norfOrmoN in.acfino h1o corvioo for thu