Full text: Valuation, depreciation and the rate base

148 VALUATION, DEPRECIATION AND THE RATE-BASE 
duties and powers of a public service commission. Georgia, Ore- 
gon, Nebraska, Oklahoma, Maryland, Colorado, Florida, Illinois, 
Indiana, Iowa, Maine, Missouri, Pennsylvania, Rhode Island, 
South Carolina, Vermont and other states started off with a 
railroad commission. Arizona, Kansas, Nevada, New Jersey, 
New Hampshire and Oklahoma have their public service com- 
missions more or less liberally endowed with powers of regula- 
tion and control. 
Supreme Court of Wisconsin on the Powers of the Railroad 
Commission. — All the powers which a public service commis- 
sion has are conferred upon it directly by the people or by 
legislative enactment. Its function is to make administrative 
regulations. Its powers are not legislative. On this point the 
Supreme Court of Wisconsin says (Minn. St. Paul and Sault 
Ste Marie Ry. Co. vs. Railroad Com. of Wis., 136 Wis. 146): 
“ The division of the governmental powers into executive, 
legislative and judicial, while of great importance in the creation 
or organization of a State, and form the viewpoint of institu- 
tional law and otherwise, is not an exact classification. No such 
exact delimitation of governmental powers is possible. In the 
process of enacting a law there is frequently necessary the pre- 
liminary determination of a fact or a group of facts by the 
Legislature, and it is well settled that the Legislature may de- 
clare the general rule of law to be in force and take effect upon 
the subsequent establishment of the facts necessary to make it 
operative or to call for its application. . . . The Legislature 
may delegate any power, not legislative, which it may itself 
rightfully exercise. This power to ascertain facts is such a 
power as may be delegated. . . . This law established, and 
thenceforth assumes the existence of rates, charges, classifica- 
tions and services, discoverable by investigation but undisclosed, 
which are exactly reasonable and just. It commits to the Rail- 
road Commission the duty to ascertain and disclose that par- 
ticular rate, charge, classification or service. The law intends 
that there is only one rate charge or service that is reasonable 
and just. When the order of the Commission is set aside by the 
Court, it is because this reasonable and just rate, charge, classifi- 
cation or service has not yet been correctly ascertained. When 
the order of the Commission has been rescinded or changed by
	        
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