The Penn's Grove record., 1911-04-14
IS HERE TO STAY
Control and Publicity for Public
Service Corporations.
VERDICT OF PROMINENT MAN
Theodore NJ. Vail, President of West.
ern Union and Telephone Compa-
niles, Recognizes Rights of the
American Public.

Public regulation of public service
corporations has come to stay. 1t
ought to have come and 1t ought to
stay. That is the fiat 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 to the seventy thousand stock
holders 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 as
a surprise, not only because of its
novelty and s~quareness, but also on
account of the unqualified acquies-
cence of a board of directors compris-
ing such eminent and conservative
1nanciers as Robert Winson. of Kid
der. Peabody & Co., and Henry L.
Higginson of Boston, Henry P. Davi-
son of J.. 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 COM
mon welfare. He goes directly to the
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;
1t means semi-public discussion and
consideration before action; 1t means
everything which Is the oppo-
site Of and inconsistent with effective
competition. Competition-aggressive,
effective competition-means strife,
Industrial warfare; it mean conten-
ton; it oftentimes means taking ad-
vantage of or resortfng 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
or partially; therefore 1t means eth
-IIf.-k.@ continuation an cIInh
basis and with such prices as will
cover past losses, or 1t means loss OF
return on Investment, and eventual
loss Of capital. However 1t 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 it will be found
that control will give more of the
benefits and public advantages, which
are expected to be obtained through
such ownership, and will obtain
them without the public burden Of
either the public of%ice-holder or pub
lie debt or operating deficit
when through a wise and judieious
state control and regulation all the
advantages without any of the disad
vantages of state ownership are Sc
cured, state ownership is doomed"
IF Mr.. Vail is right" says
Harper's Weekly, in a concise sum
ming-up, then it seems pretty plair
that we are entered upon a new era II
both economics and politics. And it il
high time we did If evolution is t.
%supplant revolution as ar ehcien
force in the development Of civiliza
tioR."