The Southern herald., 1911-05-05
FORPUBLIGCONTR0L
VAIL FoR REGULATION AS WELL
As PUBLICITY
SAYS BOTH HERE TO STAY
Frank Recognition sS Public Rights
By the President Of Western
Union and Telephone
COMPANIES.

Public regulation Of public service
corporations has come to stay. Il
ought TO have come and it ought to
Etay That is the fat and unequiyocal
assertion OF Theodore n. Vail, presi-
dent Of both the American Telephone
and Telegraph company and the
Western Union Telegraph company,
II came in the form Of his annual To-
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 under
stood, nobody in financial circles had
anticipated so frank an ayowal Of
tull public rights in the shaping OF
their genera. conduct. Il came eonss
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.
attve tinaneiers as Robert Winson Of
kidder, Peabody & Co, and Henry L.
Higginson 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 l. 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
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; 1t means semi-public discus.
sion and consideration before action;
It means everything which is the op-
posite OF and inconsistent with effec-
tive competition. Competition-ag
gressive, effective competition-means
strife, industrial warfare; It means
contention; It oftentimes means TAX.
Ing advantage Of or resortlng 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.
tion is the possession OF the field
wholly or partially; therefore It
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 It
results, all costs Of aggressive, un-
controlled competition are eventually
borne, directly or indirectly, by the
public. Competition which is not ag-
gressive, presupposes cooperative ac-
tion, understandings, agreements,
which result in general uniformity or
harmony OF action, which, in fact. is
not competition but is combination.
unstable, but for the time effective.
When thoroughly understood It 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 a wise and iudi.
cious state control and regulation all
the advantages without any of the
disadvantages Of state ownership
are secured state ownership is
doomed"
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
economics and politics And It is high
time we did II evolution is to SUD-
plant revolution as an efficient force
In the development of civilization"