St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1911-10-18

subjects.
Mr.. Vail lis a monopolist pure
and undyed," says one editor, and
he would oppose him as mono
polist, "a. system which is
coming too much into vogue
for the benefit of mankind.
He speaks an opposition that natur-
ally arises in the minds of many to
Mr.. Vail because it is known that he
is at the head of one of the greatest
combinations of capital in America,
the American Telephone and Tele-
graph Company. Mr.. Vail has ex-
pressed his ideas regarding mono
ply and the public control of corpor-
ations in his annual report to the
stock holders of the telephone com
pany and we take the following ex-
cerpts from it.
Combination only can cope with
! that industrial development of the
present time which is far beyond
the scope of individual effort or cap
ital. In those good old times, one
man, with his own capital, could
carry on even the largest operations.
The margin of profits due to low
wages and large selling prices en-
abled the owners of such individual
establishments to live and enjoy the
best to be had in those times, and
amass fortunes-fortunes relatively
as large as any of the present-from
an amount of gross business, the
profits from which today would
L. - - 4 -
shop superintendent.
The development of the arts, the
necessity of extensive laboratories
and experimental departments, with
technical stats competent to keep
abreast of modern progress and find
out how to utilize all of everything,
the large gross production at small
margin of profit, the large capital
requirements necessary to conduct
business on these lines; all these
place modern industrial enterprises
either beyond the financial ability of
any one individual, or far beyond
the amount that any one individual
wishes to have in any one venture.
The proper use of corporate or
ganization or combination under
proper regulation or control cannot
be objected to.
What is and should be condemn
ed, prevented and punished, is the
abuse made of corporate machinery
to the detriment of public welfare
and such abuse as has been and is
being practised so extensively for
purely speculative and oftentimes
swindling enterprises.
always be the laudable desire of the
great public to be served rightly,
and as cheaply as possible, which
sometimes selishly degenerates into
lack of consideration for the rights
of those who are serving.
On the other hand there has al
ways been the laudable desire of
the server or the producer, to
get a profit for his service or pro-
duction, which sometimes degener-
ates into a selfish disregard or lack
of consideration for those who are
served
This conflict, which originated
with the first commercial transac-
ton or exchange, has continued ever
since and will continue to the end of
time.
Public control or regulation of
Public Service Corporations by per-
manent commissions, has come and
come to stay. Control or regulation
exercised through such a body has
many advantages over that exercised
! through regular legislative bodies
or committees. The permanent COM
mission will be a quasi-judiciaI body.
1t should be made up of members
whose duty it will be, and who will
have the desire, the time and the
opportunity, to familiarize them
selves with the questions coming
before them. 1t should act only
after thorough investigation and be
governed by the equities of each
case. It would in time establish a
course of practice and precedent for
the guidance of all concerned.
Experience also has demonstrated
that this supervision" should stop
at control and regulation" and
not manage . operate" nor dictate
what the management or operation
should be beyond the requirements
of the greatest efficiency and econo-
my.
Management or operation requi@-
es intimate knowledge and expert
ence which can only be gained by
continuous, active and practical par
ticipation in actual working, while
control or regulation can be intelli-
gently exercised, after judicial hear
ing, by those who have not the
knowledge or experience to operate
State control or regulation should
be of such character as to encourage
the highest possible standard il
plant, the utmost extension of facili.
ties, the highest efficiency in service
rigid economy in operation, and tC
that end should allow rates that viii
warrant the highest wages for the
best service, some reward for high
efficiency in administration, anC
; such certainty of return on invest
ment as will induce investors MOI
only to retain their securities, but tc
S1nn1Y q all firnnc oil. tho onrniIn