company must file with the commission a complete statement of its freight and passenger rates, and all other charges of every character; and must keep a copy of such statement available for public inspection at every station or office where passengers or property are received for transportation. The commission, on its own motion or on complaint of interested persons, may investigate any single rate or class of rates and may alter such as are found to be unjust or unreasonable, determining in each case what they shall be.

2. To prescribe, establish, and modify, from time to time, the rules that shall govern railroad and other transportation companies in receiving, storing, carrying, switching, handling, and delivering freight, and in transporting passengers. Such rules must prescribe the conditions under which railroad companies shall furnish cars to shippers, and the penalties they must pay when delays occur; also the penalties that shippers must pay for delays in loading and unloading cars.

3. To establish through routes over connecting lines of any company, or of different companies, and to determine how such routes shall be operated. Also to require any company to receive cars from any other company and forward them over its lines, and to regulate the charges for such service.

4. To enforce numerous other provisions of the law relative to railroads and other common carriers, such as those forbidding discrimination, regulating the granting of passes, forbidding a road to charge more for a short haul than for a long haul, imposing conditions relative to railroad crossings, and many others.

5. To supervise and regulate all public utilities, other

than common carriers, in the state, outside of incorporated cities,1 including gas, electric, telephone, telegraph, and water companies, as well as pipe lines, wharves, and warehouses operated in connection with the transportation of freight. The authority exercised over these public utilities may be indicated in part as follows:

a. To establish their rates and charges. Every such company must file with the commission a complete statement of its rates and charges, and the commission has power to alter any and every item.

b. To establish rules for the government of public utilities in their dealings with the people, and to enforce such rules.

c. To ascertain the value of the property of any public utility in the state. If any city or other public corporation wishes to acquire any privately owned public utility, which it is authorized to acquire, it may petition the commission to fix the price that it must pay; and the price thus fixed shall be final unless set aside by order of the state supreme court.

6. To exercise additional authority over all public utilities, including common carriers,2 as follows:

a. By supervising and controlling them in the important matter of issuing stock and borrowing money. No such corporation may exercise either of these privileges without first obtaining the consent of the commission.

1 The commission has no power to fix rates for, or to control the operation of, public utilities in any incorporated city; but any city may, by a vote of its people, confer this power on the commission.

A number of cities have taken this action; see the first footnote on page 157. Any city, after surrendering this power, may reclaim it by a vote of its people. See section 23, article XII, of the state constitution.

2 Street car lines are classed as common carriers.

It is believed that this will prevent many abuses that have occurred in the past. In order that the commission may exercise this power wisely, it is given the authority to ascertain the value of all property belonging to, and the amount of all debts incurred by, every public utility in the

state.

b. By requiring them to keep their accounts as directed by the commission.

c. By requiring them so to conduct their business as to safeguard the health and safety of their employees and other persons with whom they deal. It is the duty of the commission to investigate the cause of all accidents resulting in the loss of life, or in injury to persons or property, for which public utilities are responsible.

d. In general, the commission must enforce all constitutional provisions and laws for the regulation of public utilities. It is given power to sue or be sued in the courts. It must hear complaints from public utilities, as well as from persons with whom they deal, and adjust differences when possible; but its main duty, as an arm of the executive branch of the state government, is to enforce those parts of the constitution and the law that are committed to its

care.

7. The commission must present to the governor, on or before the first of December each year, a report containing a statement of all its transactions during the year, and such "recommendations as it may deem of value to the people of the state."

1

141. The Superintendent of Banks. Three kinds of banks are recognized by the state law: savings banks, com

1 Statutes of 1909, page 109 seq.; Statutes of 1911, pages 7, and 1003 seq.

mercial banks, and trust companies. The principal difference between a savings bank and a commercial bank is that the former receives deposits for stated times upon which it pays interest, while the latter receives deposits with the understanding that they may be withdrawn without interest at any time. Checks may be drawn against deposits in commercial banks, but not against those in savings banks. A trust company is a corporation which acts as an executor of wills, administrator or guardian of estates, or as assignee, receiver, or trustee of money or other property. When authorized by its articles of incorporation any bank may combine the business of a savings bank, a commercial bank, and a trust company by maintaining a separate department for each line of business..

The most important part of the business of a bank is to receive money on deposit and place it out at interest. Only a small percentage of the money handled belongs to the bank. For this reason the public is vitally interested in the manner in which every bank is conducted, and the law imposes many conditions which all banks must observe. Some of these conditions are as follows: that every bank, other than a savings bank, must always have on hand money equal to at least fifteen per cent of its deposits; that no money may be loaned except on security sanctioned by law; that no officer or employee of a bank may borrow money from the institution; and that every bank must, on the request of any stockholder, creditor, or depositor, furnish a list of all its stockholders, showing the amount of stock owned by each, and other details concerning them.

The law provides for a special officer, - the superintendent of banks, — to supervise all of our state banks.1 He

1 National banks are under the jurisdiction of an officer belonging to the treasury department of the national government, known as the controller of the currency. A national bank receives its charter from and is subject to the supervision and control of the national government. All other banks within a state are state banks and are chartered and controlled by the state government. The chief difference

is appointed by the governor to serve during the governor's pleasure. His salary is $10,000 a year. He must employ a chief deputy, an attorney, and such assistants and examiners as may be necessary. He determines the compensation of these employees, but the total expense of his department must not exceed $75,000 a year. This money is not drawn from the ordinary revenues of the state, but is collected by the superintendent from the banks under his supervision, each bank paying in proportion to its deposits. His most important duties are as follows:

1. He must enforce all the laws of the state relative to the banking business. No bank, other than a national bank, may engage in business in the state until the superintendent has issued to it a certificate authorizing it to do so.

2. He, his chief deputy, or an examiner appointed by him must visit and examine every savings bank at least once a year, and every other bank under his jurisdiction at least twice a year. Such examination must show in detail the condition of the bank and the manner in which its affairs are conducted.

3. He must take possession of the property and business of every bank which he believes to be in an unsound condition, and no such bank may resume business without his consent. If the bank is found to be in such a condition that a resumption of business is impossible, he must settle its affairs according to law, in such a manner as to safeguard the interests of depositors.

4. Three times each year he must call for reports from all banks under his jurisdiction. Such reports must show

between the two kinds is that the national banks issue a kind of paper money known as bank notes, a privilege which state banks do not enjoy. These notes are covered by securities held by the national government.