Evening journal., 1911-03-28
CONTROL OF
OUR UTILITIES
Public Service Commissions
as Viewed by Directors
Of Telephone Co.
SHOULD PROTECT INVESTOR
AS WELL AS TEE PUBLIC


Of the American Telephone and Tele-
graph Company contains the follow
ing about the regulation of public
utilities:
Governmental control of public
utilities should protect the investor as
we'll as the public. It should ensure
to the public good service and fair
rates. 1t should also ensure fair re-
turns to the investor.
A public utility giving good service
at fair rates should not be subject to
competition at unfair rates.
Il Is not that all competition should
be suppressed. but that all competi-
ton should be regulated and con-
trolled. That competition should be
suppressed. which arises out of the
promotion of unnecessary duplication,
which gives no additional facilities OF
service, which is in no sense either
extension or improvement, which
without initiative and enter
prise tries to take advantage
of the Initiative and enterprise Of
others by sharing the profitable with
out assuming any Of the burden u
the Improbable parts or which has
only the selfishly speculative object Of
forcing a consolidation OF purchase.
State control and regulation, 20 be
effective at all, should be of such
character, that the results from the
operation OF any one enterprise would
not warrant the expenditure or invest
ment necessary for mere duplication
and straight competition. In other
words, the profits should not be SO
l.. 80. Il ff4ut NJ
capitalization I'm the competition for
the same business.
When thoroughly understood It will
be found that control" will give moro
of the benefits and public advantages,
which are expected to be obtained by
State ownership. than could be OBJ
tanned through such ownership, and
will obtain them without the public
burden Of either the public Office
holder or public debt or operating
deficit. II is conceded that as a rule
private management is better. more
economical and more efficient than
public management, and much more
advanced and enterprising. The
economical margin between public and
private management has been shown
by experience to be more than suffi-
Client to secure the best private adj
ministration.
When through a wise and judicious
State control and regulation all the
advantages without any Of the disad-
vantages of State ownership are Sc
cured. State ownership is doomed.
Should Not Prevent Progress.
State control of public utilities
should not prevent progress. should be
sufficiently unrestricting to encourag'
the introduction and demonstration O
the value of any new or novel enter
prise, and should allow sufficient re
ward for the initiative. enterprise
risk and Imagination of the adven
turers behind such enterprises. I
should discriminate between the use
full adventurers or promoters. pio
neers In fact, and those pirates ol
sharks who, on the strength of Other
successes. extravagantly capitaliz,
undeveloped ideas, and exchange III,
worthless securities for the saving:
of deluded and credulous investors
Corporate control and restriction
should always exist TO a sufficient de-
gree to prevent such speculative pro.
noting. and such stock-iobbinl
schemes
The regulation or control of an,
new or novel thing which is a mere
convenience and not a necessity car
be left largely to the laws of trade
such a thing. II offered. must be of
fered at a price acceptable to the pub
lie. who arc the custmers, at a pric'
which, i'm the opinion of the pur.
chaser leaves him a margin Of prof
either in convenience or enjoyment
Under such control private initiative
can be depended upon for the intro
duction of everything believed to hav
possibilities.
State control or regulation, TO b.
effective, should. when exercised, b
accepted and acquiesced I'm by tn
public. If all the decisions not il
exact accord with the desire or con
tention of the public are condemned
II It is expected and required that al
decisions be against the utilities con
trolled. If decisions go for nOthin
with. and are not respected by tn
public, failure and disappointment ar
bound TO follow, self-respecting me
will refuse 10 act, the standard of az
pointments will fall and State contrc
anu I6EuidllNn VII bttonht hiF
grace, and the evils which it was in
tended to correct will multiply.
n any company gives good servic'
meets all the reasonable demands &
the public, does not earn more tina
sufficient to provide for the mainter
ance Of it's plant up TO the lates
standard and for reconstruction {
plant when worn out or obsolete, pay
only fair dividends TO it's sharehoid
ers-if a company is only doing thi
its rates and charges to tho publ
cannot be unreasonable.
Competition vs.. Control.
Effective, aggressive competition
and regulation and control are incor
sistent with each other, and cannC
be had at the same time.
Control or regulation, to be effe'
tive, means publicity; it means sem
public discussion and consideratio
before action; It means deliberatiol
on-discrimination: IL means ever,
thing which is the opposite of and il
consistent with effective competition
OBSERVATION-DISCLOSURES, effectiS
competition-means strife, industri'
warfare; II means contention: It o
tentimes means taking advantage (
or resorting to any means that II
conscience of the contestants or n
degree Of the enforcement OF the Law
will permit. To make competition g
fective, great and uncontrolled lat
tvda ~ action fa naraaaarvs acfir