The Raymer enterprise., 1911-04-13
IS HERE TO STAY
Control and Publicity for Public
Service Corporations.
VERDICT OF PROMINENT MAN
Theodore N. Vail, President Of West.
srn 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 It ought to
stay. That Is the nat and unequivocal
assertion Of Theodore N. Vail, presi.
dent Of both the American Telephone
and Telegraph company and the West.
ern Union Telegraph company. 1t
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 we'll understood,
nobody In financial circles had anticl.
pated so frank an avowal OF full pub.
lie rights In the shaping Of their gen
eral conduct II came consequently as
a surprise. not only because Of It's
novelty and squareness. but also on
account Of the unqualified acquies-
cence Of board Of directors compris.
Ing such eminent and conservative
financiers as Robert Wlnson, of Kid
der, Peabody & Co., and Henry L.
Higglnson 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 |. 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 competltion-means strife,
industrial warfare: It means conten.
tion; 1t oftentimes means taking ad.
vantage of or resortlng 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
10 the possession OF the field wholly
or partially; therefore 1t means eth
er ultimate combination on such
basis and with such prices as will
cover past losses, or 1t means loss OF
return on investment, and eventual
loss Of capital. However It 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 competl.
tion but is combination. unstable, but
for the time effective. When thor.
oughly understood 1t will be found
that control will give more of the
benefits and public advan ages. which
are expected to be obtained through
such ownership. and will obtain
them without the public burden Of
either the public offlce-holder or pub.
lie debt or operating deficit
When through a wise and judicious
state control and regulation all the
advantages without any OF the dIsad.
vantages OF state ownership are Sc.
cured, state ownership Is doomed"
III Mr.. Vail Is right" says
Harper's Weekly, In q concise sum.
ming.up, then It seems pretty plain
that we are entered upon new era In
both economics and politics. And 1t Is
high time we did II evolution is to
supplant revolution as an efficient
force In the development Of civiliza-
tion."