The Ely miner., 1913-08-22

ties and equipment, whenever neceS'
sary, and to authorize other utility
corporations to enter the field in order
that the people may have adequate
service without paying excessive
rates, but where the community can
not support another plant, the COM
mission must have authority to refuse
it's installation If in the interest OF
economy and good service, it should
be of advantage to the municipality
to own and operate any particular
utility, such municipality should have
the right to acquire the same, paying
therefor its actual value and no more.
8. Municipal Regulation Too Ex-
penslve.-Intelligen regulation of pub
lie utilities requires very high order
of engineering, accounting and sta
tistical skill. Every one engaged in
expert service must have scientific
knowledge of utility organization.
management and operation in all its
departments. The commission must
have line of trusty and capable ex-
perts to whom the most technical
and scientific problems can be re-
ferred for investigation and report.
Such experts must have wide range
of experience, be familiar with utili-
ties problems in every section of the
state, and have a thorough under
standing of industrial and commercial
conditions generally. In addition
thereto, they must be of unquestioned
integrity, free from local influence or
prejudice ad actuated only by the
highest sense of justice and equity.
The cost of such experts and the
necessary mechanical equipment is
prohibitive to all municipalities in
this state with the exception only Of
Minneapolis, st. Paul and Duluth. L
will gladly concede that these large
cities can afford this great expense,
but granting that, why should the
taxpayers of those cities pay for
three sets of experts and equipment
when one set is not only sufficient
but can serve all the cities better?
The question is unanswerable. The
very object of regulation is to secure
the best possible service at the low
est cost to the consumer, and the un-
necessary duplication of regulating
authorities is not only a great eco
nomic waste but also a needless di-
vision of responsibility which neces-
sarily must result in a proportionate
inefficient service.
q. Using Equipment in Common
Finally, there is much equipment that
hU Snupra1 utilities in
common. In the construction of un-
derground conduits and mains through
the streets as many public utilities as
by the nature of the service can OPP
crate together should cooperate in
the cost of construction and the use
of common equipment. There is no
valid reason why three or four diff
ferent sets of telephone or telegraph
poles should disfigure and obstruct
our public highways and the COM
munity at large be made to pay for
such unnecessary duplication OF
equipment. Since nearly all of the
public utilities are inter-municipal, it
commission vested with full authority
to order such common use Of equip
ment after due investigation and to
apportion the pro rata cost thereof
among those benefited.
III. UNIFORMITY.
1. Accounting.-In order to secure
the highest standard of efficiency and
economy, 1t is absolutely essential to
have comparative statistics showing
the operation and experience of the
various utility plants throughout the
state as we'll as other states. There
must, therefore, be established a uni
form system of accounting. Such ac-
counting should show in detail the
financial and operating experience OF
every plant. Under the present sys-
TEN it is impossible for one plant to
benefit by the experience of the other,
because there is no uniform system of
computing the cost of operation so as
to determine net results. Wherever a
uniform system of accounting has
been established and reliable sta
| tistical information furnished to the
various plants of the state, there has
always resulted a general improve
ment from the standpoint of efficiency
and economy. Today surprisingly few
plants know the exact cost of their
own operation, much less that of any
other plant, and the state can render
no greater service to the public at
large, as well as to the utilities them
| selves, than to establish a uniform
system of accounting and a bureau
for general statistical information.
2. Inspection and Examination
Without q uniform system of account
| ing, there can be no reliable inspec-
ton or examination. Under state su-
pervision the state through its experts
will be able to examine and properly
report the financial and operating con-
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 a physical valuation
1t is also important that a uniform
method of determining and expressing
values should be adopted. This can
be accomplished only through a state
wide accounting and statistical de-
partment.
5. Municipal Plants - Municipal
plants are not operated for private
gain. and their regulation as far as
the state is concerned is therefore
largely 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