Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1911-05-05
IS HERE TO STAY
Control and Publicity for Public
Service. Corporations
VERDICT OF PROMINENT MAN
Theodore N. Vail, President Of West
ern Union and Telephone compa-
nles, Recognizes Rights Of the
American Public.

PHblic regulation Of public service
corporations has come to stay. II
ought to have come and it 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 West
ern Union Telegraph company. It
came In the form of his annual re-
port 10 tia seventy thousand stock
holdets Of the two great corporations
Although Mr.. Wallis advocacy Of full
publicity IN connection with the affairs
Of such concerns was well understood.
nobody in financial circles had antici-
pated so frank an avowal Of full pub
lie rights In the shaping Of their gen
eral conduct 1t came consequently ~
q surprise. not only because Of its
novelty and sQuareness, but also on
account of the unqualified acquies-
cence Of board of directors compris-
ing such eminent and conservative
nnanciers as Robert Winson, of KID
der. Peabody q Co.. and Henry L.
Higginson Of Boston. Henry p. Davi-
son OF ]. p. Morgan 4 Co.; Senator
w. Murray Crane. George +. Baer,
T. Jefferson Coolidge, Jr., Norman w.
Harris, John /. Waterbury and others
President Wallis declaration Is her
aided as the first recognition by those
In high corporate authority of the JUS
dee of the demand that the public
be regarded as virtual partners
In all matters that pertain to the COM
mon welfare. He goes directly to ths
point.
Public control or regulation Of pub
lie service corporations by permanent
commissions" he says, has come and
come to stay. Control or regulation,
to be effective, means publicity;
It means semi-public discussion and
consideration before action; II means
everything which Is the oppo-
site of and inconsistent with effective
competition. Competition-aggressive.
effective competition-means strife.
industrial warfare; It means conten-
ton; It oftentimes means taking adj
vantage Of or resorting to any means
that the conscience Of the contestants
or the degree Of the enforcement Of
the laws will permit
Aggressive competition means du-
plication Of plant and investment. The
ultimate object of such competition
Is the possession Of the field wholly
OF partially; therefore It means eth
er ultimate combination on such
basis and with such prices as viii,
cover past losses. or 1t means loss Of
return on investment, and eventual
loss of capital. However It results.
all costs OF aggressive. uncontrolled
competition are eventually borne.
directly or Indirectly, by the public.
Competition which Is not aggressive,
presupposes cooperative action, under
standings, agreements, which result
in general uniformity or harmony Of
action, which, in fact, is not competi-
ton but Is combination, unstable, but
for the time effective. When thor
oughly understood 1t viii be found
that control viii give more of the
bCnCAAlo 0uU RuoAiS 14N al saSCcs NuAtA
are expected to be obtained through
such ownership. and win obtain
them without the public burden of
either the public ofice-holder or pub
lie debt or operating deficit
when through q wise and judicious
state control and regulation all the
advantages without any of the disad-
vantases of state ownership are Sc
cured, state ownership Is doomed"
"If Mr.. Vail is right" says
Harper's Weekly, in 6 concise sum-
ming-up. then It seems pretty plain
that we are entered upon new era In
both economics and politics. And It Is
high time we did If evolution is to
supplant revolution as an efficient
force in the development of civiliza-
ton"