The California Railroad Commission and the Water Works Man

Abstract

The relation of the Railroad Commission to the water works man, if he is operating a public utility, is like the poor, it is apparentlybobbing up at every turn. The Commission authorizes the beginning of the utility, prescribes its system of accounting, fixes the rates it may charge, supervises its financial operations, such as stock and bond issues, and may fix the value of the properties for condemnation purposes, upon request. In addition, no sale of a public utility can be legally made without authority of the Commission. In fact, one cannot even discontinue or abandon plant and service without the sanction of the Commission. In spite of this almost complete authority of the Commission its powers are not in any way abused. Too much regulation may be a detriment. If any one thing may be sought out as primarily responsible for the uniform success of public utility regulation by the California Railroad Commission, I believe it is because of the strict adherence to the policy of placing full responsibility upon the utilities and giving them all free rein in individual initiative, operation and management, interfering only when conditions so demand. I do not mean to convey the impression that any responsibility is to be shirked by the Commission through this policy, for such is not the fact. The Railroad Commission has in at least one instance gone to the extent of directing the managing head of one of the largest utilities in the state to leave his San Francisco office and take up his residence in another city until such time as the service conditions then existing in that city were raised to a reasonable standard. The regulation of water utilities is but one of the many duties placed upon the shoulders of the Railroad Commission. This Commission now has jurisdiction over the rates, rules and regulations of steam and electric railroads, street railways, grade crossings, accidents involving common carriers, safety regulations, wharves and