Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1913-08-21


app licati orsf for I he Issuing 81 stocks
end n bonds IL Such provision is not only
beneficial to the tax pay III, and con
sumner lllll Ter but to the purchaser Of securi-
ties. Htie' as we'll as the utility corporation
itself 8 81 5 L, 81 5sb# II III 3lS q
Unnecessary Duplication. - An
other important economic result OF
state regulation is the elimination Of.
waste BY preventing the unne cesary
duplication Of utility plants and equip.
# men ~ am firm believer In compe-
tltlon, but when such competition re-
suits suits IN the construction $,of utility
plants and equipment far beyond the
possible needs of the community
served, such competition compels the
pubic to support institutions that are
not necessary. An unwarranted tax is
imposed upon the public at large and
the enterprise usually brings finan-
clal ruin to the investors. The COM
mission should have authority upon
investigation to order Increased facili-
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 IL acquire the same, paying
therefor it's actual value and no more.
8. Municipal Regulation Too Ex-
Observation-Disclosures 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 it's
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 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. I
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 Geo.
nomic waste but also a needless d.
vision of responsibility which neces-
sarily must result in a proportionate
inefficient service. @.
4. Using Equipment in Common
Finally, there is much equipment that
can be used by. several 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 op-
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
follows that there must be a state
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.
Ill. UNIFORMITY.
I. Accounting order to secure
the highest standard Of efficiency and
economy, it 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 uni
form system Of accounting. Such &C
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 q
uniform system of accounting has
been established and reliable sta