River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1911-04-13
FORPUBL|CC
VAIL FOR REGULATION AS WELL
AS PUBLICITY.
SAYS BOTH HERE TO STAY
Frank Recognition Of 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
stay That is the fiat and unequ1vocal
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 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 avowal OF
full public rights in the shaping or
their general conduct. 1t came conse-
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-
alive financiers as Robert Winson OF
Kidder, 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 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
hot fntT n hn
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
licity; it means semi-public discus
sion and consideration before action;
1t 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 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 ceE1peti-
ton 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, I'M
controlled competition are eventually
borne, directly or indirectly, by the
public. Competition which is not ag-
gressive, presupposes cooperative ac-
ton, 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 adj
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 judi
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 a concise summing-up,
then it seems pretty plain that we
are entered upon a new era in both
economics and politics. And it is high
time we did il evolution is to sup
plant revolution as an efficient force
In the development of civilization"