The new era., 1911-04-20
.FORPUB[|CCONTR0
VAIL FOR REGULATION As WELL
A. PUBLICITY.
SAYS BOTH HERE TO STAY
Frank Recognition Of Public Rights
BY the PrssIdent Of Western
Union and Telephone
Companies.

Public regulation of public service
ought to have come and 1t ought to
stay. That IL the nat and unequivocal
assertion Of Theodore N. Vail. presi-
dent Of both the American Telephone
and Telegraph company and the
Western Union Telegraph company.
It came in the form Of his annual re-
port to the seventy thousand stock
holders of tho two great corporations.
Although Mr.. Wallis advocacy Of full
publicity in connection with the Affairs
OF such concerns was well under
stood. nobody in financial circles had
anticipated 20 frank an avowal Of
full public rights in the shaping of
their general conduct. 1t came conse-
Quently AZ . surprise. not only be-
cause of its novelty and squareness.
but also on account Of the unqualified
acquiescence of board Of directors
comprising such eminent and conserv-
alive nnanciers as Robert Winson of
Kidder Peabody & Co.. and Henry L.
Higginson of Boston. Henry P. Davi-
son of J. P. Morgan 4 Co.: Senator
w. Murray Crane. George F. Baer. T.
Jefferson Coolidge Jr.. Norman w.
Harris. John l. Waterbury and others
President Wallis declaration is her
aided a. tho frst recognition by those
In high corporate authority Of the Jus
tice OF the demand that tho public
be regarded AZ virtual partners in all
matters that pertain to the common
welfare. He goes directly to the
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
hcity; It means semi-pubhc discus
sion and consideration before action;
1t means everything which is tho op-
posite Of and inconsistent with e6ec-
tive competition. Competition-ag-
gressive. effective competition-means
strife. industrial warfare; it means
'contention; 1t oftenumes means TAX
ing advantage Of or resorting to any
means that the conscience Of the con-
testants or the degree of the enforce
ment Of the laws will permit.
aggressive competition means
duplication of plant and Investment.
The ultimate object Of such competi-
ton IL tho possession Of the neld
wholly or partially; therefore It
means either ultimate combination on
such basis and with such prices A.
will cover past losses. or 1t means
loss OF return on investment. and
eventual loss of capital. However It
results. all costs of aggressive. un-
controlled competition are eventually
borne. directly or indirectly. by the
public. Competition which is not az.
grsssive. presupposes cooperative ac-
ton. understandings, agreements,
which result In general uniformity or
harmony Of action. which, in fact, IL
not competition but is combination.
unstable. but for the time effective
When thoroughly understood 1t will
be found that control" Will give
moro 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 ownership is
doomed" i. rst.'
"If Mr.. Vail is right" says Harper's
Weekly. in concise summing-up.
then 1t seems pretty plain that we
are entered upon a new era in both
economies and politics. And 1t is high
time we did II evolution is to sup
plant revolution as an efficient force
In fha daxolonrnanf of cixilira kiax