Bemidji Daily Pioneer Newspaper, August 18, 1913, Page 4

MANY ARE JOINING CLUB (Continued from first page). same to the Club, to, in a general way direct the work of the different de- partments and approve or reject plans of the various department managers, have charge and be re- sponsible for the property of the Club and to perform such other duties as the Club may from time to time direct. Section 8. Election of Officers. The President, Vice President, Sec- retary, Treasurer and Board of Con- trol of this Club shall be elected at the regular annual meeting to be held on the second Thursday of May in each year; provided however that the first election of officers shall oc- cur as soon as practicable after the adoption of this constitution and the officers electedshall hold office until the following annual meeting. Managers for the various athletic departments shall be elected at spec- ial meetings held at the beginning of the respective seasons. All elec- tions shall be by ballot. Article IV, Section 1. Meetings. The annual meeting of this club shall be held on the second Thursday of May in each year, but sjecial meetings shall be held at the beginning of the different athletic seasons and at such other times as ordered by the Board of Control after giving threc days notice in the local press. Article V. Section 1. Ammendments. This constitution may be amended by a three fourths vote of all members in good standing, presentat any regular or special meeting of the Club, pro- vided that due notice has been given for the mceting. Finis, Dress making Parlors Mrs. 1. D, Ward and Miss Katherine Klire, at the Berman Emporium annex.—Adv. GOV. EBERHART URGES PUBLIC UTILITY LAW - (Continued on last page). commissioners should “be appointed without regard to political affiliations and for a sufficient number of years, 80 that the term of only one commis- sioner may expire every, or preferably every other, year. Through this meth- od a majority of the commissioners will always be experienced in service and as far as possible made inde- pendent of political changes in the state administration. All employes should be under strict civil service and promoted for merit only. Under a constantly changing city administra- tion, the regulating authority is not sufficiently permanent and the ap- pointments are too apt to be bar- gained away under the spoils system. That this is not the case under state control is demonstrated by the expe- rience of public utilities commissions in other states, as well as by the rec- ord of our tax commission, board of control of state institutions, and other slmilar state commissions. A study $4.00 A YEAR % Wedding Invitations Announcements Packet Heads Catalogues Descriptive Booklets Sale Bills of Btate control, as tested in actual operation, should convince the most skeptical that when the state service is made more permanent, removed from politics and the appointing chief executive held subject to the will of the people under the initiative, refer- endum and recall, the commission will not develop into a political organiza- tion. 1. ECONOMY. 1. Control of Securities.—One of the most important features of state regulation is the complete control af- forded over the issuing of certificates. This is necessarily a state function, because these securities are issued un- der state authority and the municipali- ties have absolutely no power to con- trol them. The old theory that cor- porations should be permitted to float as many stock and bond issues as the “traffic would bear” irrespec- tive of actual investment has long since been exploded. Returns and dividends cannot be based on capital- ization, but on the actual value of the utility properties. Whenever stocks and bonds are issued and sold without corrésponding value, such watered securities are sharing in re- turns and dividends to which they are not entitled and the result is a great economic waste. Excessive rates are charged on the basis of such ‘watered capitalization, and the con- sumers pay the bills. It is important that the commission, after thorough investigation, should have the right to grant, refuse or modify any and all applications for the issuing of stocks and bonds. Such provision is not only beneficial to the taxpayer and con- sumer but to the purchaser of securi- ties as well as the utility corporation itself. 2. Unnecessary Duplication.—An- other important economic result of state regulation is the elimination of waste by preventing the unnecesary duplication of utility plants and equip- ment. Iam a firm believer in compe- tition, but when such competition re- sults in the consiruciion of utility plants and equipment far beyond the possible needs of the community served, such competition compels the public to support institutions that are not necessary. An unwarranted tax is imposed upon the public at large and the enterprise ally brings finan- cial ruin to the investcrs. The com- thority upon reased facili- whenever neces rizo other utility eld in order A eqaipmacat sary, and to at corporaticie to erte: that the pecpla inay have adequate service withont paying excessive rates, but where the community can- not support zncther plant, the com- mission must have authority to refuse its installaticn. 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 to acquire the same, paying therefor its actual value and no more. 3. Municipal Regulation Too Ex- pensive.—Intellizgent regulation of pub- lic utilities renuires a 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 its departments. The commission must have a 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 a wide range of experience, be familiar with utili- The BEMIDJI PIONEER Daily and Weekly Book, Job, Commercial and Society Printing Our Specialties B S R OFFICE SUPPLIES : ties problems in every section of the state, and have a 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 necessdry 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 eco- nomic waste but also a needless dl- 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 erate together should co-operate in the cost of construction and the use of common equipment. There 1s no valid reason why three or four dif- 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 commen use of equip- ment after due investigation and to apportion the, pro rata cost thereot among those benefited. 11l. UNIFORMITY. 1. Accounting.—In 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 well as other states. There must, therefore, be.established a uni- form system of accounting. Such ac- counting should show in detai] the financial and operating experience of every plant. Under the present sys- tem it is impossible for one plant to benefit by the experience of the other, because there is no uniform system ot computing the cost of operation so as to determine net results. Wherever a tniform system of accounting has been established and reliable sta- tistical information furnished to the various plants of the state, there has always resulted a general improve- ment from the standpoint of efficiency and economy. Today surprisingly few plants know the exact cost of their own operation, much less that of any other plant, and the state can render no greater service to the public at large, as well as to the util:ties them- selves, than to establish a uniform system of accounting and a bureau for general statistical information. 2. Inspection and Examination.— ‘Without a uniform system of account- ing, there can be no reliable inspec- tion or examination. Under state su- pervision the state through its experts will be able to examine and properly report the financial and operating con- WEEKLY $1.50 A Year Security Bank Building Window Cards Calling Cards Shipping Tags Statemen.s Note Heads Bill Heads Envelopes Dodgers dltfon of every public utility and sug- |the expense and troubles of political gest to the various officials in charge jcampaigns and indpendent of execu- such improvements in management |tive dictation. and operation as will be found neces- | Minnesota should profit by the ex- sary. In making a physical valuation | perience of nearly all the other states it is also important that a uniform |and make its railroad and warehouse method of determining and expressing | commission appointfve. Two - more values should be adopted. This can |commissioners should be added, mak- be accomplished only through a state- |ing five in all, its name changed'to wide accounting and statistical de-|the “State Public Service Commis- partment. sion” and then be given the regula- 8. Municipal Plants — Municipal [tion of all state public utilities. This plants are not operated for private gain, and their regulation as far as the state is concerned is therefore largely a matter of accounting and reports. They are therefore inter- arrangement would remove the ob- Jections raised against two public utilities commissions and would al- ways. secure to the state an expe- rienced working majority of commis- sioners. They should be appointed ested principally in the accounting and statistical departments of the|at a higher salary for a longer term, state commission. These plants, when [and their employes should be placed properly segregated from political [ under strict civil service. domination, very readily adopt the| I am well aware that some of my improved methods of other utilities|enemies will not let me make these and profit by their experience. The |appointments if they can help it. It uniform system of accounting enables |Must not be forgotten, however, that them at all times to know the exact | their objections are not made in good cost of operation which is essential in | faith. The character of my past ap- the interest of economy. This s oc-Pointments furnish the only standard casioned sometimes by lack of ex-|by which I should be judged, and I pert advice and sometimes by political [ 8m perfecetly willing to submit this |. interference. Oftentimes municipal | Question to the people upon that rec- plants do not provide sufficient funds [rd. Should I go far forget myself for depreciation, and the complete re.|[2nd my duty to the state as to ap- construction of a plant has to be met |Point on such an important commis-~ by excessive taxes instead of a grad- |8ion men of inferior qualities or men ual charge against the consumers, under the control of any interest in Errors of this kind are always|this state or make such appointments checked by the state commission and |88 & reward for political services, I corrected. While there has been a disposition on the part of some mu- nicipalities 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- ings, if the municipality has reserved certain sections for such purposes, it should have a 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 im- 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- tlict with proper state regulation, but will on the other hand be a valuable aid. * As to the maintenance of separato expert service and equipment for the purpose of testing products, determin- ing reasonableness of rates and mak- ing valuations by the municipality, it is largely a question of economy. If the local taxpayers are willing to im- 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- earnestly hope, and now request, that I may be made the first example of the recall now before the people for adoption at the next election. Let us be frank about this matter. My po- litical enemies are not at all afraid that I shall end my political career by making bad appointments on the public service commission.. They would not shed many bitter tears if I did. But they are afraid that I shall succeed in securing for Minnesota the enactment of the most important and truly progressive measure ever adopt- ed by this or any other state, and that I shall get some little share of the credit for its adoption. EXPERIENCE OF OTHER STATES. ‘While a large majority of the states now have one or more important pub- lic utilities under state control, the following states have all their utili- ties, or nearly so, regulated by a state commission: Wisconsin, Massa- chusetts, New York, New Jersey, Ne- vada, New Hampshire, Rhode Island, Vermont, Washington, California and Kansas. During the last six months the following states have been added to the list: Maine, Missouri, Ohio, Indiana, Pennsylvania and Illinois. Many of theie states have followed the Wisconsin law, adapting it to local conditions. The experience of Wis- consin can, therefore, be used as an example. In addition to saving large surns of money in the operation of the various public - utilities by uniform accounting and statistical information, the direct reduction of rates by the ‘Wisconsin commission amounts to about $2,500,000 per year. It is esti- mated that in reduced rates and economy of service the Wisconsin commission has since its organization made a net saving of about $12,000,000 to the people of that state. This is surely a most excellent record. Objections have been made to state regulation, because certain public utilities are in favor thereof. These objections are made only for the pur- pose of creating prejudice. It is not a question as to who are for or against, it is a question of right, justice and equity. Many public utilities in this state are favorable to state regula- tion. They know that it must come sooner or later, and also that in other states, while it has proven a great benefit to the people, it has not in- jured legitimate business enterprise, but rather helped it by establishing more efficlent and economic manage- ‘ment, by furnishing expert service and equipment to every municipality in the state at a minimum expense, by providing uniform systems of valua- tion and accounting, by eliminating useless duplication of service as well lic utilities corporations, the state|@8 equipment, and by attracting to commission must be the arbitrator |this service a higher grade of experts subject, as in all cases, to an appeal [and employes through its merit sys- to the courts. ‘It has been found by |tem. The most powerful public utili- experience, however, that the deci-[ties corporation in the state, however, sions of state commissions have been |has been the leader in opposing state so uniformly thorough and fair that|Tesulation of all public utflities, and few appeals to the courts have been | through its influence largely the op- taken. % position to this measure lln the last e was made successful. FORM AND SCOPE OF THE PUBLIC | "1, "Nocdloss to state that n this, UTILIFIES AW, as in other matters, there are many This is a matter for the legislature |honest men who sincerely oppose to solve. In my discussion I have |state regulation. The strong opposi- pointed out the essential elements of [tion, however, comes mainly from the law, the details are not so im-|three sources, namely: the large con- portant. After having made a care- sumers who receive special rates, the ful study of the laws of other states, | ward politicians, and the Socialists. I do not hesitate to state that the As to the first class the opposition ‘Wisconsin law, with some modifica- |is well founded. Under state regula- tions, that apply specially to our state, [tion all special rates and privileges is the best. Under it Wisconsin has [ would be abolished. The ward poli- successfully regulated its utilities, | ticlans do not wish to let go of the and while instances of inequalities, in- | public utilities. This is perfectly ferior service and high rates can still |natural. Under the guise of fighting be found there, its commission has |for “home rule,” they have opposed performedl inestimable service for the | every advanced movement to strength- people of that state in improving serv- |en and purify the administration of ice,” lowering rates, and establishing | our cities. They always wanted to do uniformity in accounting and opera- |it themselves. When the fight for a tion. commission form of government was Practically every state which in re- |taken up, they cried aloud that the cent years has established a public |Wards should be allowed to manage utilities commission has followed the |their own home affairs and for many Wisconsin plan and provided for an |Years succeeded in delaying the adop- appointive commission. Minnesota |tion of a strong centralized city gov- formerly had an appointive railroad |¢rnment. The same opposition is and warehouse commission. When |F8ised now by the same powers and Governor Lind was elected, the Repub- [for the same purpose. Soclalists be- tican legislature did not want him to |!1eve in public ownership. appoint the members of this com- mission, and for that reason made the commission elective. The Repub- lican leaders in the legislature, who succeeded in securing the passage of | Showers Fail to Break Hot Wave in this law, acted not in the'interest of the Southwest. better service, but purely for politi- | Kansas City, Aug. 18.—Heavy show- cal expediency, in the hope that the | erg relieved conditions in parts of the commission would _select employes of | heat and drouth stricken regions of the Republican faith only and thus | Missouri, Kansas and Oklahoma, but RAINFALL IS INADEQUATE strengthen the forces of the Repub- lican organization. True, Minnesota has been fortunate in the election of good men on the railroad and ware- house commission, but that fact does not: right the wrong nor Jjustify its continuance. Under the appointive system, where the commissioners are eppointed for a long period, the gov- ernor cannot change the entire board except for proper cause shown upon public hearing.:'This method insures ility and better service, be- commission can_devote all AR ‘wnuou. -Boston Transcript. the rains were far from general and in most instances inadequate. In one section it is said only a twen- ty-four -hour “soaking” rain can al- leviate. suffering entirelyl. = Where wells and streams are dry a heavy precipitation is regarded necessary to replace the exhausted water supply. Wise Girl. He—What would you say if T were to kiss you? She—I don’t know.. That sort of speech should always be extem- Free rest rooms and writing rooms. Free checking rooms where your parcels and personal baggage may be left safely. . DRESS GOODS SILKS C UNDERWEAR cA e DRAPERIES Come to tfie Stzate Fair And Visit the Where your dollar doea ds du: HNNP@EHS DRYGOODSCO. This Big, Progressive Store on Nicollet Avenue At Fifth Street Cordially Invites You to Use Its Post office on main floor. Be sure to visit the cool," pure food restaurant that " serves 1800 to 3000 people * aday. Six floors of merchandise. :‘ Free Souvenirs to AllWho Come To every adult who visits this store the first week in September, ¢ we will give FREE, a uscful, serviceable souvenir worth coming for. ASK FOR THEM : 43 Departments of General Merchandise, Including OATS SUITS _ MILLINERY =0 RPETS FURNITURE i SHOES ! One price to all and money refunded cheerfully Makes this a safe store to trade with. completed until the customer is absolutely satisfied MONDAY, AUGUST 18, 1913 No_purchase is considered Find a buyer for the Second-Hand this no longer need—Through « “For S s which ; ale” Ad. Regular charge rate one cent taken for less than 15 cents. using a number, Lox or initial for tie advertisar is. We cannot tell the address printed in th.: ad. HELF WANTED. WANTED—Good girl for general housework, 311 Bemidji avenue. WANTED—Two dishwashers at Markham Hotel. Apply at once. land, clay soil, hardwood timber, Birch, Oak and Maple, 10 acres under cultivation, a fine spring of good pure water on the land, % miles from railroad station. This land 1s worth $20 per acre; will gell for $13. Half cash, balance three years at 6 per cent interest. Address Bemidjl Pioneer, Bemidji, Minn. FOR SALE—Typewriter ribbons for every make of typewriter on the market at 50 cents and 75 cents each. Every ribbon sold for 76 cents guaranteed. Phone orders promptly filled. Mail orders giver the same careful attention as when you appear in person. Phone 3%. The Bemidji Pioneer Office Supply Store. FOR SALE—20 acre farm. All into crop and garden. House and barn and other improvements. Four miles West of Bemidji on the Mis- sissippi river. Will sell cheap Phone or write W. A. Casler, City. FOR SALE OR RENT—One 5 room new house on America avenue. Thoroughly finished. Electric lights. Lot 50 x 140. House 16 x 24; 18 foot post. Inquire of Mal- zahn and Hannah. FOR SALE—Residence Lot 10 block 3 second addition to Bemidji Price $1700. aEsy terms. For further in- “rmation write Bagley Bldg & Loan Assn. Bagley, Minn. FOR SALE—Small fonts of type, sev- eral different points and in first class condition. Call or write thir office for proofs. Address Bemidji | Ploneer, Bemidji, Minn. FOR SALE—Six room house 306 America avenue, south, has water | and is in good condition, Will sell { on good terms. Inquire 203 Sec- ond street. g FOR SALE—Rubber stamps. To¢ Pioneer win procure any kind of rubber stamp for you on short v tiaa, FOR SALE—Young cow ° giving milk. Phone 807. or see I. G. Hay- craft, 903 11 street Bemidji. RASH WiITH aory & oent per word WANTED—Good seamstresses call at the Berman Emporium, | FOR GALE FOR SALE—160 acres good farm fisswer by Corvespendence Al §§ Do not as! © ddress. fyeu Don't FOR SALE r Is5e of who 3 e, but wiite to - < ¢ } McClure, Grant Valley farm. One Cary safe, in first | class condition. 30 x 36 measurement. H. J. Loud. outside ca Ave. |FOR SALE—A cottage on a fifty foot corner lot. Address 901 Ameri- the largest advertising. MISCELLANEOUS LTISERS—-The great sta.ée of Lrakota offers unli portunities for business to classi- tied advertisers. advertising medium in the Fargo Daily and Sunday Courier-News, the ouly seven-day paper in the state and the paper which carries amount of elassifiec The 's North Dakota like a blank- reaching all parts of the state the day of publication; it is the paper to use in order to get re- sults; rates cne cent per word first insertion, one-half ceni per word succeeding Insertions; fifty cents per line pér month, Courler-News, Fargo, N, D. ed op- The recognized Courier-News Address the WANTED TO RENT—Four to five room house. centrally located. Mo- dern or part modern. Address “Z’ ’ in care of Pioneer. ’ furniture. BOUGL'T AND SOLD—Second hanc C2d Teilow's building, 3 neross from postcfice, phone 129 & 515.—Adv. neer. The city bus will call for you and your baggage day or night.Phone WANTED-—At once clean cotton s rags at once 5 cents epr pound Pio-~ Try a Want Ad 12 {ept a Werd- Cash FOR. SALE—Thrifty pigs. Single or _in pairs, Call 61 or see Dr. J. A.[i Telephone 537 The MODEL Bry Cleaning House HOGANSON BROS., Prips. Bry Cleaning of Ladies’ and Gants’ Glothing, Ysuse- {hold Goods, ete 106 Second St.