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

wide accounting and statistical de-
partment.
8. Municipal Plants - Municipal
plants are not operated for private
gain. and their regulation as far as
the state is concerned is therefore
largely q 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
domination, very readily adopt the
improved methods of other utilities
and profit by their experience. The
uniform system of accounting enables
them at all times to know the exact
cost OF operation which is essential in
the interest of economy. This is &C.
casioned sometimes by lack of ex-
pert advice and sometimes by political
interference. Oftentimes municipal
plants do not provide sufficient funds
for depreciation, and the complete re-
construction OF plant has to be met
by excessive taxes instead of grad
ual charge against the consumers
Errors of this kind are always
checked by the state commission and
corrected. While there has been a
disposition on the part of some mu.
inequalities owning public utilities to
oppose complete state regulation.
there has been very little objection
raised to the control of such, utilities
to the extent of enforcing proper uni
form accounting and the furnishing of
reports.
4. Service, Rates and Returns.-
The uniformity in service, rates and
returns of similar public utilities
through the state, as far as the local
differences in the cost of operation
Will permit, is desirable, no one will
question, and it is difficult to see how
any one can consistently advocate
any other method of securing such
uniformity than by state regulation.
RELATION between STATE REG
ULATIoN AND HOME RULE. ~
While the home rule" argument
has often been used to defeat state
regulation, there is no valid reason
why the true home rule principle
should not be made effective in con-
nection with state regulation. If any
municipality should desire special or
additional service and is willing to
pay for it, such service should be
granted. In the location of car barns,
power houses and other similar build
1ngs, If the municipality has reserved
certain sections for such purposes, it
should have right to enforce such
regulations in all cases. Oftentimes
in the granting of franchises and cost
ly extensions OF service through
sparsely settled territory, it is desir-
able to secure an expression OF the
local sentiment in regard thereto, and
no state commission will disregard
such sentiment but rather seek its
guidance. Where new important i'm
provements are under consideration
for adoption, an expression of the SEN
timent in the community affected
thereby is not only desirable but often
necessary. Wherever the home rule
principle can be applied for the pur-
pose of securing service more suit
able to the need Of the community in
question, it cannot in any way con-
tiict with proper state regulation, but
will on the other hand be q valuable
aid.
AS to the maintenance of separate
expert service and equipment for the
purpose of testing products, determin-
ing reasonableness of rates and max
ing valuations by the municipality, it
is largely question of economy. If
the local taxpayers are willing to i'm
pose this unnecessary burden upon
themselves, the taxpayers not affect
ed thereby should not complain.
Whenever disputes arise under the
application of the home rule principle
between the municipality and the pub
lie utilities corporations, the state
commission must be the arbitrator
subject, as in all cases, to an appeal
to the courts. 1t has been found by
experience, however, that the deci-
siOns Of state commissions have been
so uniformly thorough and fair that
few appeals to the courts have been
taken.
FORM AND SCOPE OF THE PUBLIC
r. UTILITIES LAW. ,4
This is matter for the legislature
to solve. In my discussion I have
pointed out the essential elements Of
the law, the details are not so i'm
portant. After having made a care
full study OF the laws of other states,
I do not hesitate to state that the
Wisconsin law, with some moditica-
tons, that apply specially to our state,
is the best. Under it Wisconsin has
! successfully regulated it's utilities,
and while instances of inequalities, in
ferior service and high rates can still;
be found there, it's commission has
performed inestimable service for the
people of that state in improving serv-
ice, lowering rates, and establishing
uniformity in accounting and opera
ton.
Practically every state which in re-
cent years has established a public
! utilities commission has followed the
Wisconsin plan and provided for an
appointive commission. Minnesota
formerly had an appointive railroad
and warehouse commission. When
Governor Lind was elected, the Repub-
lican legislature did not want him to
/! appoint the members of this com
J II.