The Ely miner., 1913-08-22

fuse to act, the state must step in
and enforce the observance of sanitary
laws and regulations. This is a func-
tion 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 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-
tions within it's borders, because the
fects every other community by inter
communication.
6. Continuity of Service and Civil
Service romotions.-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 a 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 a 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-
tion, the regulating authority is not
sufficiently permanent and the ap-
pointm ents 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-
tion.
II. ECONOMY.
1. Control of Securities-One Of
the most important features of state
rnUn1ofinn ic tho nlotn e
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-
IuTuS anu ulNlueHuS W WHICH IU6y
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. 1t 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-
sumner but to the purchaser of securi-
ties as well as the utility corporation
itself
2. Unnecessary DupIieation.-An-
other important economic result of
state regulation is the elimination Of
waste by preventing the unnecessary
duplication of. utility plants and equip.
ment. | am a firm believer In compe-
tition, but when such competition re-
suits in the construction of utility
plants and equipment Tar beyond the
possible needs of the community
servsd, such competition conpels the
public te support institutions that are
not NECESSARY. An unwarranted tax is
imposed upon the public at large and