522

THE GREEN BAG ACCOUNTING AND PUBLICITY.

An intelligible and uniform system of accounting is a prerequisite to any efficient supervision and control over public service corporations. The preparation and publi cation of comparative statistics showing in detail the various items of cost of operation is the surest way to detect extravagance and inefficiency. As a basis for such sta tistics, each public utility should be re quired to keep its accounts according to some uniform system and with the proper degree of detail. The Wisconsin law re quires the Commission to prescribe the form of all books, accounts, papers, and records, which must be used by the public service corporations in showing the business transacted by them, and no public service company is permitted to keep any books, accounts, papers, or records except those provided and approved by the Commission. The New York law leaves the prescribing of a uniform system of accounts and records optional with the Commission. The Wis consin Commission is required to provide for the examination and audit of all accounts, and all items must be allocated to the accounts in the manner prescribed by the Commission. In case any public utility is engaged in any other business than that of producing or supplying heat, light, water or power, or the transmission of telephone messages, it shall keep and render separately to the Commission full accounts of such other business. Annual reports are required to be fur nished to the Commission by all public utilities. These must show in itemized detail all facts relating to the cost of service and operation. All the information derived from reports from public utilities and from its own investigations, the Commission is required to publish annually. DEPRECIATION. In order to keep the equipment of every public utility in efficient condition, to pre

vent its exploitation in anticipation of municipal acquisition, and to provide for replacement by improved equipment, each public utility must carry an adequate depreciation account, whenever the Com mission, after investigation, determines that such an account can be reasonably required. The Commission is to ascertain proper and adequate rates of depreciation for the sev eral classes of property of each utility. All monies thus derived are to be set aside ont of the earnings and carried the deprecia tion fund. The monies in this fund may be expended in new constructions, extensions, or additions to the property and, if invested, the proceeds of the investment shall also be carried in the depreciation fund. CONTROL OF RATES AND SERVICE. The present Act follows closely the Wis consin Railroad Law of 1905, and applies to telephone, light, heat, water, and power companies the same general regulations. Every public utility is required to furnish reasonably adequate service and facilities at just and reasonable rates. Inequality of charges for like service and the giving of undue or unreasonable preferences or advantages are forbidden. The granting by any public utility, or soliciting or accept ing by any person or corporation, of rebates is forbidden. Reduced rates in considera tion of the furnishing by the customer of any part of the facilities are unlawful, but a public utility is permitted to rent any facilities incident to its business for a reasonable compensation. Free service in any form to any politic committee, or any candidate for office, or to any state or municipal officer is forbidden. Every public utility is required to file with the Commission schedules showing all rates, tolls, and charges for any service, and also all rules and regulations which in any manner affect the charge for service. A copy of so much of these schedules and regulations as the Commission deems neces