Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1913-08-22

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 to
prevent the duplication of state equip
meat. 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
breeding of disease in one city af-
Mcts every other community by inter.
communication.
s. Continuity Of Service and Civil
Service Promotions.-Lastly,e 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 iade.
pendent of political changes in the
state administration. Ali employees
should be under strict civil service
and promoted for merit only. :u1der
a constantly changing city admi1Btra-
ton, the regulating authority is not
sufficiently permanent and the ap.
pointmen are too apt to be bar
gained away undsr the spoils system.
That this is not tie case under state
control is demonstrated by the @xpe'
rience of public utilities commissions
in other states, as well as by the rec
ord of our tax commission, beard of
control of state institutions, ad&cther
similar state commissions. "A study
of state control, as tested in actual
operation, should soonvince the nmost
skeptical that when the state <sexviee
is made more permanent, renewed
from politics and the appointing <nief
executive held subject to the will of
the people under the initiative, refer
endum and recall, the commission vzeill
not develop into a political organ1za-
:tion.
II. EcoNEehY.
I. Control Of 6ecus'ities.-Oue 81
the most important features of state
SPECULATION is the complete control at
foFded over the issuing of certificates.
This is necessarily a state function,
because these securities are issued I'M
der state authority and the .municipali-
ties have absolutely NO power to con-
troll them. The old theory that cor.
poratinns should be permitted to
float as many stock and bond issues
as the traffic would bear" ir1espec-
tive of actual investment has long
since been exploded. Returns and
dividends cannot be based on capital.
ization, but on the actual value af
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 10
great economic waste. Excessive
rates are charged on the basis Of such
Watered capitalization, aud the con-
sunaers pay the bills. It ID important
that the commission. after thorough
investigation. should have the. right 10
szant, refuse Or modify Any Ard u