Ceredo advance. [volume] (Ceredo, W. Va.) 1885-1939, 1911-05-03
FOR PUBLIC CONTROL
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 como to stay. II
ought to have come and It ought to
stay. That IL the nat and unequivocal
assertion Of Theodore N Vail. presi-
dent OF both tho American Telephone
and Telegraph company and the
Western Union Telegraph company.
1t came in tho 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 OF
their genera. conduct. 1t came conse-
quently as q surprise. not only be-
cause or It's novelty and squareness.
out also on account OF the unqualified
acquiescence OF board OF directors
comprising such eminent and conserv-
ative financiers as Robert Winson OF
k1dder, Peabody & Co., and Henry l..
Higginson of Boston. Henry P. Davi-
son OF ]. p. Morgan Co.; Senator
w. Murray Crane. George r. Baer, T.
JEFFERSON Coolidge Jr.. Norman w.
Harris. John I. Waterbury and others.
President Wallis declaration is her.
aided as the first recognition by those
In high corporate authority of the Jus
uce 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 como to stay Control. or
regulation. to be effective means pub.
Iicity; 1t means semi-publ!c discus.
stoa and consideration before action:
II means everything which is the Cd.
posite or and inconsistent with effec-
i've competition. Competition-ag.
gressive, effective competition-means
strife, industrial warfare; It means
contention; 1t 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 competi.
ton Is the possession of the field
wholly or partially; therefore II
means either ultimate com bination on
such basis and with such prices as
Will cover past losses, or II means
loss OF return on investment. and
eventual loss Of capital However II
n1f1
controlled competition are eventually
borne. directly or indirectly. by the
public. Competition which is not az.
gressive. 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 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
VIII obtain them without the public
burden OF either the public office.
holder or public debt or operatinp
deficit
When through a wise and tudi.
cfous state control and regulation nil
the advantages without any Of the
disadvantages of state ownership
are secured. state ownership IN
doomed"
III Mr.. Vail is right" says Harper's
weekly. In a concise summing-up.
then 1t seems pretty plain that we
are entered upon new era in both
economics and politics. And II is high
time we did II evolution is to sup
plant revolution as an efficient force
In the development OF civilization"