The Glenwood post., 1911-04-15
F0RPUBL|C CONTROL
VAIL FOR REGULATION As WELL
AS PUBLICITY.
SAYS BOTH HERE TO STAY
Frank Recognition Of Public Rights
by the President Of Western
Union and Telephone
Companies.

Public regulation of public service
corporations has come to stay. II
ought to have come and 1t ought to
stay. That is the fat and unequivocal
assertion OF Theodore N. Vail presi-
dent OF both the American Telephone
and Telegraph company and the
Western Union Telegraph company.
1t came in the form of his annual re-
port to the seventy thousand stock
holders Of the two great corporations.
Although Mr.. Walls advocacy of full
publicity in connection with the affairs
of such concerns was well under
stood, nobody in financial circles had
anticipated 30 frank an avowal of
full public rights in the shaping OF
their general conduct. 1t came conse-
Quently as a surprise, not only be-
cause OF Its novelty and squareness,
but also on account of the unqualified
acquiescence of a board of directors
comprising such eminent and conserv
alive fnanciers as Robert Winson of
Kidder. body & Co. and Henry l..
Hisginson of Boston. Henry P Davi-
son Of ]. P. Morgan & Co: Senator
w. Murray Crane. George F. Baer, T.
Jefferson Coolidge Jr.. Norman W.
Harris, John I. Waterbury and others
President Wallis declaration Is her
aided as the first recognition by those
in high corporate authority of the Jus
tice Of the demand that the public
be regarded as virtual partners in all
matters that pertain to the common
al
point
Public control or regulation of
public service corporations by perma-
nent commissions" he says. has
come and come to stay. Control, or
regulation, to be effective means pub.
licity; 1t means semi-public discus
sion and consideration before action;
It means everything which is the op-
posite Of and inconsistent with et1ec-
tive competition. Competition-as-
gressive, effective competition-means
strife. industrial warfare; 1t means
contention; 1t oftentimes means TAX
ing advantage Of or resorting to any
means that the conscience of the con
testants or the degree of tho enforce
ment of the laws will permit.
Aggressive competition means
duplication of plant and investment.
The ultimate object of such competi-
ton is tho possession of the Geld
wholly or partially; therefore 1t
means either ultimate combination on
such basis and with such prices As
will cover past losses, or it means
loss Of return on Investment, and
eventual loss Of capital. However 1t
results. all costs of aggressive, un-
controlled competition are eventually
borne, directly or indirectly. by tho
public. Competition which is not az
gressive. presupposes cooperative ac-
ton. understandings, agreements.
which result in general uniformity or
harmony Of action, which, in fact. 10
not competition but is combination.
unstable, but for the time effective.
When thoroughly understood 1t will
be found that control" will give
more Of the benefits and public ad-
vantages. which are expected to be
obtained through such ownership, and
will obtain them without the public
burden of either the public office
holder or public debt or operating
deficit
When through wise and Judi
cious state control and regulation all
the advantages without any OF the
disadvantages of state ownership
are secured, state i. ownership is
doomed"
III Mr. Vail Is right" says Harper's
Weekly, In a concise summing up
then 1t seems pretty plain that We
are entered upon a new era in both
economics and politics. And 1t is high
time we did If evolution is to sup
plant revolution as an efficient force
In the development OF civilization"