The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1913-08-30

ST. PAUL AND MINNIE.
ough investigation and report OF e1:
perts by competent commission
which has no personal interest in the
controversy and Is wholly independent
of local conditions, politically or other
wise.
4. Expert Service and Equipment.
Effective regulation involves also the
best possible expert service and
equipment. In testing the quality as
we'll as quantity Of light, heat, power,
water, telephone, telegraph, and trans
portation service, in making physical
valuations of such properties, in
checking, examining, and auditing
books, accounts and securities, and in
collating, classifying and analyzing all
facts in connection 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 @-.. -.
5. Public HeaIth.-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 NUM-
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 a func-
ton for the state board of health, but
in making it's tests and Investigations
the experts of the public service COM
mission should be employed so as to
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 it's borders, because the
breeding of disease in one city af-
fects every other community by inter-
communication.
6. Continuity of Service and Civil
Service Promotions-Lastly, efficiency
is dependent largely upon continuity
Of service and promotions under the
merit system. The public service
commissioners should be appointed
without regard to- political affiliations
and for sufficient number of years,
so that the term of only one commits
sioner may expire every, or preferably
every other, year. Through this meth
cd majority of the commissioners
will always be experienced in service
and as far as possible made indie
pendent of political changes in the
state administration. All employees
should be under strict civil service
and promoted for merit only. Under
a constantly changing city administra-
ton, the regulating authority is not
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 we'll 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 political organiza-
ton. -... ill.,
II. ECONOMY. "a
1. Control Of Securities.-One of
the most important features of state
regulation is the complete control af-
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 to
float as many stock and bond issues
as the traffic would BEAR irrespec-
tive of actual investment has long
since been exploded. Returns and
dividends cannot be based on capital
ization, but on the actual value of
the utility properties. Whenever
stocks and bonds are issued and sold
without corresponding value, such
watered securities are sharing in re-
turns and dividends to which they
are not entitled and the result is a
great economic waste. Excessive
rates are charged on the basis of such
watered capitalization, and the con-
sumers pay the bills. It is important
that the commission, after thorough
Investigation, should have the right to
grant, refuse or modify any and all
applications for the issuing of stocks
and bonds. Such provision is not only
beneficial to the taxpayer and con-
sumer but to the purchaser of securi-