2.54 Same; Utilities Owned or Operated by Municipalities.

Of the statutes that include local public utilities within the jurisdiction of the commission, the laws of the following states expressly include those publicly owned or operated or those so owned or operated by municipalities or their agencies:

The following enactments, on the other hand, expressly except such utilities from the regulation of the commission:

In Arkansas and Michigan, however, the commission is vested. with an advisory jurisdiction, so to speak, over such utilities, and charged with the duty of advising them in their operation and management. In Michigan, however, the commission acquires jurisdiction upon submission to its jurisdiction by the municipal utility by filing a petition for the exercise of the same. In Maryland, the commission may, upon application of a county or municipality, fix, alter, or establish the rates charged for water by another municipality without its boundaries and within those of the applicant; but in such cases the commission has no jurisdiction to order extensions of service. By particularly requiring municipalities to keep accounts and submit statements to the commission as required, the law of New Jersey seems to exclude such utilities from the other provisions of the law.

*Gas and electric companies. +Telegraph companies.

By the inclusion only of municipal gas and electric utilities, the law necessarily excludes municipal water utilities. So held judicially. §As to rates, service, facilities, etc, but commission may order physical connection between, and joint use of facilities of, publicly owned or operated telegraph and telephone lines.

Except as to reports and accounts.

¶Water utilities.

**As to rates, service, facilities, etc.

3. QUALIFICATIONS OF COMMISSIONERS

2.55 Disqualification for Pecuniary Interest.

It is commonly provided that the commissioners shall have no pecuniary interest in any public utility subject to the jurisdiction of the commission. The following provision of the California law is fairly typical of most of these provisions:

No person in the employ of or holding any official relation to any corporation or person, which said corporation or person is subject in whole or in part to regulation by the commission, and no person owning stocks or bonds of any such corporation or who is in any manner pecuniarily interested therein shall be appointed to or hold the office of commissioner or be appointed or employed by the commission; provided, that if any such person shall become the owner of such stocks or bonds or become pecuniarily interested in such corporation otherwise than voluntarily, he shall within a reasonable time divest himself of such ownership or interest; failing to do so, his office or employment shall become vacant.-Calif. Gen. Laws, 1920, Act 3775, Sec. 7.

This is, in substance, the provision of all the laws, except in the states of:

In the following states this disqualification is extended by providing that the commissioner shall not have any such interest in any public utility of the same kind as is regulated by the commission, wherever situated or whether subject to the jurisdiction of the commission or not:

The states of Montana, New Hampshire, Tennessee, Texas, and Wisconsin forbid any such pecuniary interest in railroads,

wherever situated, and the state of South Dakota forbids the holding of any stocks or bonds in any company subject to the jurisdiction of the commission. The law of Georgia disqualifies a commissioner for interest in any mercantile business or any corporation that is controlled by, or participates in, the benefit of any arrangement tending to increase the cost to the public of any commodity or merchandise sold to the public. The law of Montana further prohibits a commissioner from participating in any hearing in which he has a pecuniary interest.

In the following states the laws provide that each commissioner must be a resident and elector of the state:

In addition, the states of Arkansas and Missouri provide that only those who have been resident for at least five years preceding appointment are eligible; South Dakota, two years; and Pennsylvania, one year.

2.57 Other Geographical Requirements.

As to those states where the commissioners are elected or chosen from districts, the implication would seem reasonable that the commissioners must be residents of the section which they represent. The general election laws of those states have not been examined in order to determine that question, but the commission laws of Arkansas, Oregon, and South Dakota expressly provide such a qualification. In New York the commissioners must be residents of the district over which their commission has jurisdiction. In Colorado no two commissioners may be chosen from the same judicial district; in Alabama no two from the same congressional district.

2.58 Age Requirements.

Commissioners must be at least thirty years of age in Arkansas, Georgia, Nebraska, Pennsylvania, and Utah; and at least twenty

five years of age in Maryland, Missouri, North Dakota, South Dakota, Tennessee, and Texas.

2.59 Other Qualifications.

(1) Wisconsin, Michigan, and Ohio: One must have general knowledge of railroad law, and the others a general understanding of railroad transportation;

(2) Georgia: One must be experienced in law and one in the railroad business;

(3) Nevada: One must be familiar with the operation of railroads; and one must have knowledge of the charges collected by public utilities;

(4) Kansas: One must be a practical, experienced business man, and one experienced in management or operation of a railroad or other public utility.

(5) West Virginia: One must be a lawyer of at least ten years' experience;

(6) Virginia: One must possess same qualifications as are required for judges of supreme court of appeals.

2.60 Political Qualifications.

The laws of Indiana and Massachusetts provide that not more than three commissioners shall be selected from the same political party, and the laws of Kansas, Michigan, Nevada, Ohio, and Utah, not more than two from the same political party, in each case there being allowed from the same political party only a bare majority of the commission. The statutes of Maine, Nevada, Oregon, West Virginia, and Wisconsin provide that the commissioners shall not serve on or under any committee of any political party, and the law of Idaho provides that a commissioner shall not engage in political activity or seek another political office until after two years from his detachment from the commission.

2.61 Prohibited Occupations.

The states of Nebraska, New Hampshire, New Jersey, Ohio, Pennsylvania, Tennessee, Texas, Utah, and West Virginia have provisions prohibiting a commissioner, during the term of his office, from holding any other office under the government of the United States or of the state, or of any political subdivision thereof, either of trust or profit, with the exception in some in

stances of the offices of justice of the peace and notary public. In the states of Pennsylvania and West Virginia no commissioner may be a candidate for any such office. The laws of Oregon and Wisconsin provide that a commissioner shall not hold any other office or position of profit or pursue any other business or vocation but shall devote his entire time to the duties of his office. The laws of Ohio, Pennsylvania, Tennessee, Texas, and Utah have a similar provision but limit the provision to pursuits or occupations inconsistent with their official duties as commissioners. The law of Virginia prohibits a commissioner from practicing law.

4. FINANCING REGULATION

2.62 Supervision Fees.

Several of the states put the cost of regulation and supervision directly upon public utilities regulated and, of course, thereby indirectly upon the public and consumers for whose benefit such public utilities are regulated. This cost is assessed by means of supervision and regulation fees, and is the method used in Alabama, Arkansas, Louisiana, Massachusetts, Ohio, South Carolina, Washington, and West Virginia. In Alabama, Louisiana, Massachusetts, Ohio, and Washington, such fees are based upon gross receipts, while in Arkansas and West Virginia they are based upon valuation of property. In South Carolina they are based upon gross income which is computed in the case of interstate corporations in proportion to the wire or track mileage. These supervision fees are supplemented by fees for copies, certifications, etc., and such fees are provided for payment into the state treasury in the following states:

2.63 Fees for Authority to Issue Securities.

For issuing certificates of authority to issue securities, the commission is usually given authority to collect fees which, in