Bemidji Daily Pioneer Newspaper, August 18, 1913, Page 1

e v SLoame e e - 1igtorial goclety R TH -\ "BEMIDJI ILY PION MINNESOTA HISTORICA VOLUME 11. NUMBER 97. GOV.EBERHART URGES PUBLICUTILITY LAW Advocates Policy of State Control--Says Plan Which Is Now in Operation i n Several States Has Proven Successful PSEDICTS BEST RESULTS---P RE NT SYSTEM OBSOLETE Sia'e Executive in Speech Saturday Night Covers Subject Thoroughly and Gives Nu mercus Reasons Showing Great Benefit to State St. Paul—(Special.)—Governor Eb-| erhart opened his campaign for state-| wide control of public utilities in a; speech before a crowded meeting ot/ the St. Paul Office Men's association| at the St. Paul hotel. The governor said, in part: Never before in the history of our nation have greater problems confront. ed us for solution. Enormous agricul- tural and mineral resources and un- surpassed facllities for transportation, coupled with a most wonderful genius for invention, organization, and de- velopment, have enabled the Ameri- can people to produce untold millions of wealth and to form the most gigan- tic commercial and industrial organ- ization ever known to the civilized world. The effective control of these busi- ness organizations by nation, state, and municipality has long been the object of legislative and executive authority, but not until the last two decades has such control become gen- erally effective. This applies special- ly to public utilitles organizations. Prior to the last two decades the con- trol of public utilities was attempted only by the various municipalities. That such regulation, with very few exceptions, has been a failure is now quite generally conceded. It has been found utterly impossible to keep the public utilities out of polifics and the constantly changing municipal authori- ties, dominated largely by ward poli- ticians, have made their campaigns on some Issues involving such public util- ities organizations with the result generally that the public utilities have either dominated the administration or have been made a political football for the benetit of unscrupulous politi- cians. Only the favored few have benefited by such administration and the vast majority of consumers have been compelled to pay high and dis- criminatory rates for inadequate and interior service, Perhaps the strongest evidence of unsuccessful municipal regulation of public utilities is the rapid growth of municipal ownership. That municipal ownership of public utilities as com- pared with municipal regulation has been generally successful*will not be| questioned. Municipal ownership of public utilities when properly direct- ed, has been a blessing to many mu- nicipalities of this state, and in most| Instances has proven itself infinitely superior to the former local regula- tion. i As a general rule it can be safely stated that the state or the municipal- ity should not engage in any business enterprise which can be conducted as efficiently and economically for the benefit of all concerned by the pri- vate Individual or association. But human nature is always more or less selfish, and in the case of public utili- ties, which by their very nature often constitute monopolies of public neces- sities, these must not under any cir- cumstances be left a prey to selfish and unscrupulous private enterprise. 1t is therefore essential in order to properly protect the interests of the public that these utilities should be either operated or regulated by pub- lic authority. ‘Within the state the regulating au- thority must be exercised by the state or mupnicipality or both. During re- cent years the tendency has been to- ward state regulation and there is scarcely a state in the nation which has not either adopted state regula- tion in some form or made prepara- tions therefor. While the superiority of state regulation is quite generally conceded, there are still many who do not understand its principles, and I shall briefly discuss the question of state control from the standpoints of: 1. EFFICIENCY, 1. ECONOMY, and , NI UNIFORMITY. I. EFFICIENCY. 1. Jurisdiction.—In order that the regulation of a public utility shall be effective, it is absolutely essential that such utility in all its 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 a fair and reasonable rate. In the determination thereof, the regulating authority must be able | to make a full and complete physical ' valuation of all properties belonging to such utility and prevent the issuing of ‘Wwatered stocks and bonds on which to 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 il la order to determine the s of a stock or bond issue and properly regulate it, the regulating auth must have full and complete jurisdiction of all | property involved for the purpose of valuation and be able to enforce its decrces. 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. Ilectric light and power concerns transnit the currents from power plants located at sowe waterfall many miles away. Telephones, telegraphs, electric and steam railroads are all inter-municipal and cannot possibly, for lack of juris diction, be regulated by the municipali- 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 vil- lage dependent for light and power upon this utility corporation deter- mine the fairness of a rate by making a physical valuation of properties-and enforcing rules and regulations out- side the limits of its jurisdiction? Granting, however, for the sake of argument, that this were possible, how can such city or village determine the fairness of a 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 Minne- sota, to which currents for light and power are transmitted from power plants located outside of their jurls- diction. In the enforcement of every local regulation the municipal officers cannot proceed beyond their jurisdic- tion 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 a 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- cates of more efficient government started a movement for a 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- ernment and the remaining cities will unquestionably 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 gach 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 a public necessity and often a monopoly, it is, therefore, of still greater importance that such regulation should be fixed in the hands of a few commissioners, so that every department of such regula- tion may have one commissioner at 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 for proper cause shown, but upon public hearing so as to prevent the exercise of undue infilence or dictation by executive authority. 3. Segregation From Political In- fluence.—It is recognized as a primary principle in the seitlement of every controversy, that' the acting judges should be free from bias and prejudice and personally disinterested in the results. Let up apply this to the con- troversy between the public utility | corporation and the municipal official. | In most cases he has been elected up- on an issue involving the public util- ity in question. He has often made ! his campaign either for or against certain coutentions of the utility cor-| poration, is dependent for his renomi- | nation and re-election upon the set- tlement of a controversy in a certain way, and is, therefore, personally in- terested in the controversy. Should he be permitted to sit as judge in a contest involving his own personal! and political interests? Every sense of fairness and justice will rebel| against such a conclusion. The ad-| Judication should be made after thor- ough investigation anmd report of ex-| perts by a competent commission | which has no personal interest in the controversy and is wholly independent of local conditions, politically or other- wise. 4. Expert Service and Equipment. —REffective regulation involves also the best possible expert service and equipment. In testing the quality as well as quantity of ‘light, heat, power, water, telephone, telegraph, and trans- portation service, in making physical valuations of such properties, in checking, examining, and auditing books, accounts and securities, and in collating, classifying.and analyzing all facts in connection therewith, the em-| ployment of skilled experts and valu- able equipment is absolutely essential, and the average municipality cannot afford the expense connected there- with. With such expert service and equipment, as well as the necessary authority vested in the state, all mu- nicipalities - and rural communities would have at their disposal the means of solving on a just basis any problem connected with their public utilities, no matter how intricate and difficult. 5. Public Health—Public health affords another important phase in the consideration of efficiency. The test- ing of water in the interest of public health is in the first instance a muni- cipal problem, but where disputes arise or where the municipalities re- fuse to act, the state must step in and enforce the observance of sanitary laws and regulations. This is a func- tion 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- ment. 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 its borders, because the breeding of disease in one city af- fects every other community by inter- commuynication. # 6. Continuity of Service and Clvil Service Promotions.—Lastly, eficiency is dependent largely upon continuity of service and promotions under the merit system. The public service jtary. It shall be the duty of the Sec- |ment subject to the approval of the MANY ARE JOINING CLUB s, it % . Bemidji Athlefiw‘,“ ming Under Supervision 0f Athletio Organization NEARLY 160 MEMSERS T0-DATE < According to Cn:l?\:lahnaon. Secre- tary of the Bemidjf Athletic. Club there are now ne 160 members and applicants of tu§ club with many more expressing thelr intentions of sending in their a??bucauung. No canvassing has been\done for mem- bers and those now howing interest have done g0 voludfarily, The ma- jority of the memhers are business men who are backitg every ' move made by the organftation. For the benefit offthe members and | applicants who W‘i’ not 'presenti when the constitution was read many | have requested that{it be published. The following is an'&xact copy of the present constitution: \ CONSTITUYION. Bemidji Athletic Ohib. (Organized August 7, 1913) 4 Article \I. Section 1. Name. ?‘ge name of this organization shall b the “Bemidji| Athletic Club.” 5/} i Section 2. Purpfl'{q‘ of this club shall be to encouragy, promote and regulate athletic si:?r,ts in the City of Bemidji. Section 1. citizens of the City'of Bemidji may | become an active member of this club | upon paying his membership fee and signing this constitition, after re-] ceiving a three-fourth’s vote of the members present at any regular or special meeting. All those signing| this constitution of the day of or-| ganization shall be considered char-; ter members of the club. Article III Section 1. Officers of this club| shall be a President, Vice President, Secretary and Treasurer. Also a Board | of Control consisting of five mem- bers, three of whom shall be business men of the said city of Bemidji, and Buch-managers-as Wiibe necessary for the different departments. Section 2. Duties of the Presi- dent. It shall be the duty of the Pres- ident to preside at all meetings of the Club, appoint committees and to perform such other duties as usually devolve upon a presiding officer, or as the Club may direct. Section 3. Duties of the Vice President. It shall be the duty of the Vice President to perform the duties | of the President in the absence of | that officer. | Section 4. Duties of the Secre- retary to keep a record of the trans- actions of the meetings of the Club, to keep a list of the membership, to, attend to the official correspondence of the Club and to perform such other duties as the Club may from tlme to time diret. Sectlon 5. Duties of the Treasur- er, It shall be the duty of the Trea- surer to have charge of ‘the funds of the Club and to pay them out only upon the order of three fifths of the Board of Control. He shall also keep a full and aecurate account of receipts and expenditures during his term of office, with vouchers for all money paid out. At the close of his term he shall make a report of the conditions of the treasury to the Club. He may appoint subjects to the approval of the Board of Control one or more assistants who shall be responsible to him for all funds which they may handle. Section 6. Duties of Department Managers. It shall the duty of the Department managers to promote and have general charge of the athle- tic work of their respective depart- Board of Control. Section 7. Duties of the Board of Control. It shall be the duty of the Board of control to regulate the ex- penditure of the funds of the Club, to issue orders upon the treasurer | for the payment of bills, audit the treasurer’s account at least once a year and report the condition of .18 now around 75 cents. JAMES A. PATTEN LONG ON CORN Shrewd Broker Stands To Clean Up Big Sum By Buying At A Low Price WAS -FORMER WHEAT KING Commodity Now Sells For 75 Cents A Bushel With Visible Supply Bought Up Chicago, Aug. 18.—James A- Patten, Chicago’s multimillionaire grain bro ker, smiled broadly when the statistic- al. bureau of agriculture at Washing: ton made its corn report. It is a gloomy report, . indicating that _there will be not more than 50 per cent of a full crop. Patten is long. “Oh, not so very long,” he said at his Bvanston home. “All I'vé got is & million bushels or so—about 1,100, Quietly, systematically, i confidential agents, Patten has been| buying corn as fast as it could be bought. The market is tense with excitement, because it is generally believed that Patten has bought for future delivery about all the corn that can be delivered. The only evidence as to the amount ‘he really has bought is his statement —*"only a million or so.” But reports, were widely circulated in La Salle; street that the future. delivery con-| tracts owned or controlled by Patten. would reach the figure of at least 5,/ 000,000 bushels. He bought, it is said, at bottom prices; at least he did the bulk of hig buying at the bottom. Lately, how-| ever, as more and more persons have learned of the discouraging proppect| of a crop, the price has advanced. It} Patten 'is said to have bought as low as 43 cents. His “paper -profits,” which | would be profits in pocket if he sold his holdings at the present market; price, are estimated at from $250,000 to $500,000. NYMORE HAS BRUSH FIRE Local bepn}tment Called Out fiy An Alarm From Children. Yesterday after noon the Bemidji Fire department responded to an alarm sent in from Nymore. Automo- biles were brought into use and as; there are no hydrants in the village| the bucket and fire extinguishers were taken along. The fire proved to be a small blaze which was spread- ing through the brush and the chil- dren in charge had lost control. Quick work was made extinguish- ing the blaze with out letting it do any further damage than frightening the children, BOYS DAMAGE CEMETERY Lads With Sling Shots Break Vases And Other Decorations Complaiuts have been made by the sexton of Greenwood cemetery of boys breaking vases and doing other damage about the grounds. The police have been notified and efforts will be made to chase down the guilty lads. If any of the guilty boys are caught the police will undoubtedly render some punishment which will put an immediate stop to any furth- er trouble. A boy with a sling shot on the cemetery grounds or in that vicinity is now in danger of being arrested. DANCE FRIDAY NIGHT Young Men Of City To Give “Hop” In City .Hall Next Friday evening several Bem- idji young men will give a dance in the City hall. The expenses of the dance will be divided among those present. Refreshments will be served and music furnished by the "~ [Continued from frst page). THE CUB REPORTER SCOOP EVSA( & MOONTAN LION HAS BEEN SNOOPING- AROUND HESE §coop Is Not As Nervous As He Is Finicky £ Sal T & MoUNTAY L\OM 0R BEER. NEVER ATTACKS A HUMAN WNLE: AT BO-50 \& ONE Dip COSE ALONG, D Coory ¢Cantinued on 1ast vage). HARRY THAW ESCAPES ! Gains Liberty In High Powered Auto With Aid Of Confederates Matteawan, N. Y. Aug., 18,—Harry K. Thaw, slayer of Stanford White, escaped from the hospital for the criminal insane here at 7:45 o’clock Sunday morning. He darted for liber- ty through an open gate, dashed into |the open door of a powerful automo- | bile that stood on the curbing outside and flew like a rocket for the Con- i necticut state line, 30 miles away, ac- complishing his escape. Tonight he was still at large and hospital authorities felt certain he |was outside the state. Once beyond |its boundaries Thaw is free. Only perhaps years of litigation can bring him back and then only in the.one 000 bishels. £0.b6 socurate™ jevent that he will be judged insane through in the state to which he fled. Authorities hold to the theory that Thaw made for some point on Long Island sound and boarded ocean going Yacht that either would take him to another port or transfer him to an- other liner. STORM DAMAGES MILLS Baudette And Spooner Visited By Hurricane—No Lives Reported Lost ESCAPES CREW ACCIDENT According to reports which have reached Bemidji, Baudette and Spoon- er was visited by one of the worst stroms last Friday they-have had for years. A large smoke stack on the International Lumber Company’s mill weighing 50 tons blew down and crashed throughthe roof of the build- ing which hag rendered the mill use- losa” for' the" time . being Theaccident, occurred shortly after closing time which proved, fortunate as the mill was not in operation and the em- ployes had left the building. The huge timbers supporting the roof were smashed into small pieces and would have undoubtedly killed a great many of the employes had it fallen a short time previous. Other damage which has been re- ported is as follows: The roofing of the Rex hotel was blown loose and will have to be relaid Windows were blown in at the Northern News building; the Inter- national Lbr. Co’s. office building; the Auditorum and the Phoenix Hall buildings in Spooner and the Stuart building at Baudette. - The wind drove the rain through the broken windows in the Phoenix block and ruined a large stock of can- dies belonging to Milt Robertson. The roofing of the Auditorium was torn loose and this will have to be replaced. Billy Coutt’s gasoline tank took a jump off the dock and made a trip across the bay and is now high and dry on the Spooner side. One small dwelling house in 0ld Baudette turned turtle. Out houses and fences went hither and thither and standing trees just took a tum- ble. Several parties were at the lake and considerable anxiety was felt as to their safety, but, as far as can be learned, they are all safe. At the E. A. Engler Lumber Co’s mill both stacks were blown over, one an eight foot stack, which fell across the machine shops and crush- ed these buildings to the ground. Both mills have wired for experts from the cities and it is expected to have them there in the morning and work will be resumed in the early part of the week, Chester Otto underwent an opert- tion on his hand Saturday when the middle finger on his left hand was amputated. Otto was hurt last spring in the Bemidji Box Factory and as “Rag Time Kids.” a result one finger remained dead. By "HOP” ey TEN CENTS PER WEEK WANTED--HUNDRED MEN AT KELLIHER Local Mills And Factories Can Also Use More Hands If Men Were Available —— SHORTAGE CREATES ADVERTISI Farmers Who Go To Harvest Fields Make More By Staying-At Home What's the use of. going to the western harvest fields when you can get a good job in the lumber camps for the year around at good wages, good beds and the best kinds ' of “Hats.” Then too the work is ot so hard and your sure of a job when yo apply A It is reported that many tnrm;rs or homesteaders leave for the -harvest tields at this season of the year and under present conditions they are in doubt as to wheather a job is wait- ing for them. when they arrive. At the present time the Crookston Lumber is looking for men as well as are the Bemidji Lumber company and the Bemidji Box factory. In the camps at Kelliher the Crookston company can use at least 100 men at once. They offer good wages. Thirty tive dollars and board for common la- bor and $40 and up for sawyers. In addition to these wages you get first class board, this company employing the best cooks in the country. The cots all have fine springs and mat- tresses and general conditions are clean and comfortable. 4 NORA BOYLOST IN SWANP Feeble Minded Son Of John 0. John- son Wanders Away From Home Saturday Afternoon. FOUND SUNDAY AFTERNOON Bagley Minn., Aug. 18,—Saturday afternoon Herman Johnson, aged eleven, son of John O. Johnson of the Town of Nora wandered away from home and could not be found for many hours, Herman is a“ feeble minded. lad and left home between three and five o’clock Saturday af- ternoon. All efforts to locate him were fruitless Saturday and an ap- peal was sent to authorities at Bag- ley. Bight Automoblies loaded with men and dogs were rushed to the Johnson home and many more later in the forenoon were mustered, when the fire bell sounded and a posse formed. Parents of the lad expressed a fear that he had wandered into Mosquito Swamp which is located about one mile from the Johnson house. In this swamp there are many big holes where pools of stagnant water are hidden by tall grass. About 2: p. m. Sunday afternoon the boy was found in a semiconsious condition about a half mile in the thick timber. The boy was badly bitten by the mosquitos but will pro- bably recover. RACES PROVE EXCITING Fast Nags Put Through Speedy Races Saturday and Sunday afternoon a variety of horse races were booked for Bemidji and local enthusiasts swarmed to the track where the races were held. The event proved to be the best scheduled for Bem- 1dji. The out come of yesterday’s races wasg as follows: Class 1 Free for all, trot or pace, for a purse of $250. Padyreska, Smiith, 1st 2.y4 1-4; Ashland Lockheart, Mathews, 2nd; Dannie Bright, Sullivan, 4th; Nellie M., Bradford, 3d. Class 2—2:20 trot or pace for a purse of $200. Grace Red, B. Smith, 1st Time 2:21 1-4; Amy G., Mathews, 4th; Zip Bang, Bill Smith, 2nd; Bemidji Mec., Fullerton, 3d. Class 3, 3:00 trot or pace for a purse of $200. Gordon W., Scott, 1st; Green Ben- isha, Mossefin, 2nd; Fleet Foot, Pouge, 3d; Sadie Halmore, -Johnson, 4th; Salvator, Bradford, dropped out. ‘An extra race was booked between Fleet foot and Bemidji Me. with the "result that Fleetfoot won, time 2:25- 1-2. Only one heat was raced but it “proved close and was one of the fea- 5“ of the day. SOOIETY, _ .