The application was granted by the Commission and the completion of this plant may have a material effect on the rates charged in the territory served by this utility.

Application No. 79-Truckee River General Electric Company. Application of the Truckee River General Electric Company for permission to continue deviation from filed rates. Although applicant has only one customer in the State of California, it filed with the Commission on May 2, 1912, a schedule setting forth rates to be charged in case a general business was transacted in this State. The application asks for permission to continue a contract rate charged to the Floriston Pulp and Paper Company. The application was granted.

Application No. 96-Santa Maria Gas and Power Company. Application of the Santa Maria Gas and Power Company for permission to charge less than rates specified in the schedule on file. Petitioner desired to continue reduced rates to customers adjacent to the town of Santa Maria, within the incorporated limits of which the rate has been established by the municipality at $1.00 per thousand. The matter was investigated by this department and the application granted.

Application No. 104 (combined with Application 81 and Case 286). Application of the Tulare County Power Company for a certificate of public convenience and necessity. The petitioner had heretofore entered into a contract with the San Joaquin Light and Power Corporation for the purchase of 1,000 horse power, to be taken continuously throughout the year, and proposes and desires to construct and operate transmission distribution lines in the county of Tulare and the cities of Lindsay, Exeter and Tulare. The application was granted after hearing and investigation.

WATER RATES.

By the provisions of the Public Utilities Act, water corporations, including every corporation or person, their lessees, trustees, receivers or trustees appointed by any court whatsoever, owning, controlling, operating or managing any water system for compensation within this State, were placed under the jurisdiction of this Commission, except in cases where such jurisdiction was vested in any city and county or incorporated city or town, and in pursuance of the provisions of section 14b. of the Public Utilities Act, such water corporations were by General Order 15, issued March 7, 1912, called upon to file schedules showing all rates, rentals and charges collected or in force, together with all rules, regulations, privileges and facilities which affected or related to rates, tolls, rentals or service, and which were not to exceed the rates, tolls or rentals in effect and operation as of October 10, 1911.

The original list of water corporations obtained by the Commission contained the names of 984 such corporations and of these about one half, or approximately 450, made a report of some kind to the Commis

sion within thirty days from the date the original order was sent out. The number not reporting was reduced to about 120 companies by June 1, 1912.

The inquiry to determine the status of each company developed that many of these so-called corporations were mutual companies furnishing water to stockholders only at the actual cost of operating; that a few were plants owned and operated by various municipalities for the purpose of furnishing water to parties within the municipality; that others were dormant and in the process of dissolution as public utilities: that others were public utilities in name only, exercising no function, and had, because of transfer of the property, become, to all practical purposes, defunct; that some were holding companies not actively engaged in the business of furnishing water, merely holding the stock of other active companies; also that many companies were but in the process of construction and development.

Of the 984 water companies investigated, it developed that but 307 companies were active public utilities; that 485 were mutual organizations and that 148 were organized as public utilities, but inactive as to service for various reasons, and as to the remaining 44 companies, sufficient facts are not yet in the possession of the Commission to permit of classification.

Of the 485 companies operating as mutual organizations, either by reason of such limitations being embodied in the by-laws or by common consent, some 50 or 60 appeared by their articles of incorporation to have been organized along lines which would enable them to engage in the general sale and distribution of water to the public for compensation. These companies and particularly that portion thereof which insisted upon being classified with regard to the Railroad Commission's jurisdiction as pertaining to them, were advised that if they desired to operate as mutual organizations and be relieved from the responsibility of reporting to this Commission and filing schedules of rates therewith, it would be necessary to amend the articles of incorporation in such manner as would confine the service to stockholders alone. Acting upon this advice, several of these companies proceeded to amend their articles of incorporation as suggested. Others are now doing so and a few will remain as originally organized and in compliance with the Public Utilities Act, as interpreted by the Commission, make reports and file schedules showing rates.

In the absence of rules or regulations prescribing the form, schedules showing rates were accepted in whatever form submitted. In many cases contracts covering a term of years were filed by some of the irrigation companies in lieu of rate schedules. A large percentage of the schedules filed consisted of copies of ordinances fixed by the various

municipalities within which such public utilities are operating, service extending in some cases to consumers outside the corporate limits.

Rules and regulations designed to govern the form and manner of filing rate schedules are now in course of preparation, and when issued should make towards uniformity and simplicity in the publication of

water rates.

WAREHOUSE AND WHARF RATES.

By the provisions of the Public Utilities Act, "Warehousemen and Wharfingers," as defined in the act, were placed under the jurisdiction of the Commission, except in cases where such powers of control as were given to the Commission were already vested in any city and county, or incorporated city or town, and in pursuance of the provisions of section 146 of the Public Utilities Act, such warehousemen and wharfingers were, by General Order No. 15, issued March 7, 1912, called upon to file schedules showing all rates, rentals and charges collected or in force. together with all rules, regulations, privileges, and facilities which affected or related to rates, tolls, rentals or service, and which were not to exceed the rates, tolls or rentals in effect and operation as of October 10, 1911.

The original list of warehousemen and wharfingers obtained by the Commission contained the names of 872 concerns, and of these about 205 reported as engaged in a public utility business and as operating 423 warehouses. These companies regularly filed schedules showing the rates of charges for storage, together with all rules and regulations affecting same. About 20 dock and wharf companies also filed schedules in compliance with the Commission's order. Approximately 275 private warehouses, or warehouses which had discontinued operating as public utilities, so reported to the Commission. This accounted for 718 of the 872 concerns originally listed. It has been determined that many of the balance have long since become defunct and were erroneously listed as public utilities. There remain about 70 concerns listed originally as warehousemen or wharfingers about which there is some doubt as to the nature of their business.

Because of the many and various ramifications of the warehouse busi ness, it was early necessary for the Commission to indicate conclusively just what classes of warehouses would be considered as operating a public utility business. The Commission therefore indicated its interpretation of the term "warehouseman," as defined in section 2aa of the Public Utilities Act, to mean-every corporation or person, their lessees, trustees, receivers or trustees appointed by any court whatsoever. owning, controlling, operating or managing any building or structure in which property engaged or intended to be thereafter engaged in commercial intercourse is regularly stored for compensation within this State, in connection with or to facilitate the transportation of such

property by a common carrier or vessel, or the loading or unloading of the same, other than a dock, wharf or structure, owned, operated, controlled or managed by a wharfinger.

The Commission held that the words "in connection with or to facilitate the transportation by a common carrier or vessel, or the loading or unloading of the same" do not limit the applicability of section 2aa to warehouses owned or operated by common carriers, but apply to all warehouses in which property engaged or intended to be thereafter engaged in commercial intercourse is stored after having been transported or before being transported by a common carrier or vessel, and that the fact that a warehouse used to store property for compensation is located on a spur track or other railway track or navigable water is almost conclusive evidence that its owner or proprietor is a "warehouseman" under the Public Utilities Act, for the reason that such warehouses are almost always used in connection with the transportation by a common carrier or vessel of property engaged or intended to be engaged in commercial intercourse, but that warehouses not so located may nevertheless also come within the provision of the act if they are used for the purpose hereinbefore specified.

In the absence of rules and regulations prescribing the form, schedules showing rates, rules and regulations of the warehouses and wharves, were accepted in whatever form submitted. In many cases the rates for storage were stated in a communication to the Commission, and in other cases warehouse receipts, on which were indicated the rates for storage were filed in lieu of schedules.

The Commission has now in the course of preparation, regulations prescribing the form and governing the filing of rate schedules by warehousemen and wharfingers, and it also has under consideration uniform rules and regulations to govern the receiving, storing and delivering of property by warehousemen.

A large amount of correspondence and investigation was necessary to develop the status of the various warehouses and wharves doing business within the State, and in some cases it was necessary to make personal investigation.

STATISTICS AND ACCOUNTS.

The department of statistics and accounts is under the charge of an auditor and a staff consisting of an assistant auditor and two clerks. One of the first duties undertaken by this division was the preparation of uniform systems of accounting for the several public utilities, as provided in section 48 of the Public Utilities Act as follows:

"The Commission shall have power to establish a system of accounts to be kept by the public utilities subject to its jurisdiction, or to classify said public utilities and to establish a system of accounts for each class, and to prescribe the manner in which such accounts shall be kept. It may also in its discretion prescribe the forms of accounts, records and memoranda to be kept by such public utilities, including the accounts, records and memoranda of the movement of traffic as well as the receipts and expenditures of moneys, and any other forms, records and memoranda which in the judgment of the commission may be necessary to carry out any of the provisions of this act. The system of accounts established by the commission and the forms of accounts, records and memoranda prescribed by it shall not be inconsistent, in the case of corporations subject to the provisions of the act of congress entitled 'An act to regulate commerce,' approved February fourth, eighteen hundred and eighty-seven, and the acts amendatory thereof and supplementary thereto, with the systems and forms from time to time established for such corporations by the interstate commerce commission, but nothing herein contained shall affect the power of the commission to prescribe forms of accounts, records and memoranda covering information in addition to that required by the interstate commerce commission. The commission may, after hearing had upon its own motion or upon complaint, prescribe by order the accounts in which particular outlays and receipts shall be entered, charged or credited. Where the commission has prescribed the forms of accounts, records or memoranda to be kept by any public utility for any of its business, it shall thereafter be unlawful for such public utility to keep any accounts, records or memoranda for such business other than those so prescribed, or those prescribed by or under the authority of any other state or of the United States, excepting such accounts, records or memoranda as shall be explanatory of and supplemental to the accounts, records or memoranda prescribed by the commission."

The accounting systems prescribed by other Commissions and by associations of the utilities have been examined. Systems have been prepared for water, electric and gas utilities and presented to the utilities for their examination.

Several problems peculiar to California have presented themselves on account of the very large territory served by many of the utilities,