The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1913-08-19
EBERHART URGES
PUBLIC UTILITY Law
l. EFFICIENCY.

regulation Of q public utility shall be
effective, It Is absolutely essential
that such utility in all It's constituent
elements shall be located within and
under the Jurisdiction OF the regulat-
ing power. The question in nearly
every case Is what shall constitute
good service at fair and reasonable
rate In the determination thereof
the regulating authority must be able
to make full and complete physical
valuation of all properties belonging to
such utility and prevent the issuing OF
watered stocks and bonds on which tc
base fictitious returns and dividends.
The municipality cannot control the
issue Of stocks and bonds. This is a
right granted by the state and must
be regulated by it But in order to
determine the merits of a stock or
bond issue and properly regulate 1t,
the regulating authority must have
full and complete jurisdiction of all
property involved for the purpose Of
valuation and be able TO enforce its
DEGREES. Very few. If any, of the utili-
ties are entirely within and subject to
the Jurisdiction OF any one municipal
ity. They are either inter-municipal
or have their sources OF supply and
power outside the limits of the mu-
nicipality. Gas companies are extend
ing their mains far beyond the city
limits Street cars are reaching out
into the adjoining country. Electric
light and power concerns transmit the
currents from power plants located at
some waterfall many miles away.
Telephones, telegraphs, electric and
steam railroa0s are all inter-municipal
and cannot possibly. for lack of juris-
diction, be regulated by the municipal.
ties. !
The Consumers Power company Of
St Paul furnishes light and power to
dozens Of Southern Minnesota cities
and villages. In this case its most
important and valuable property are
the water power plants at Cannon
Falls and Rapidan How in the name
Of common sense can any city or vii
lage dependent for light and power
upon this utility corporation deter
mine the fairness OF q rate by making
q physical valuation of properties and
enforcing rules and regulations out
side thes limits OF It's Jurisdiction?
Granting, however, for the sake OF
argument, that this were possible,
howScan such city or village determine
the fairness Of rate dependent upon
the rates and service In every other
city or village served by the same
corporation! The same is true as to
Minneapolis, St Paul, Duluth, and
many other cities In Northern Mime
sofa, to which currents for light and
power are transmitted from power
plants located outside OF their juris-
dtction. In the enforcement of every
local regulation the municipal officers
cannot proceed beyond their jurisdic-
ton and the suburban and country
residents have absolutely no means OF
securing adequate service or reason
able rates If the utilities corporation
Is not willing to grant the same. These
are facts OF common knowledge which
should convince anyone that the regu-
lation of these public utilities is not a
municipal problem but state prob
lem.
2 Definite Fixing of Responsibility.
The efficient regulation of public
utilities require the definite fixing of
responsibility in the hands of as few
persons as possible. Under the old
system of ward government it has
been found almost impossible to fix
the responsibility for mismanagement
of city affairs. Whenever the advo-
Gates of more efficient government
started movement for change from
the ward system to the city wide com
mission form, the ward politicians,
certain special interests and favored
consumers joining with them, would
Immediately, under the guise Of home
rule" proceed to defeat the movement
In spite of such efforts, however, quite
a number of Minnesota cities have
adopted the commission form Of gov.
eminent and the remaining cities will
unquestiona bly, do so in the near fu-
ture. The all important advantage OF
the commission form Of government
is its definite fixing of responsibility
for the operation OF each city depart
ment in one person elected at large
and held responsible to the people
through the initiative, referendum and
recall. In the regulation OF a state
wide utility. which is always public
necessity and often a monopoly, it is
therefore, of still greater Importance
that such regulation should be fixed in
the hands of few commissioners, Sc
that every department of such regula
ton may have one commissioner al
its head, who should be held respon
sible to the governor and he to the
people of the state directly through
the initiative, referendum and recall
The governor should have authority
to remove such commissioners f01
proper cause shown, but upon public
hearing so as to prevent the exercise
of undue influence or dictation by
lpxoclrfive authority