The Washington times., 1911-05-15
TELEPHONE MEN
APPROVE PUBLIC
UTILITIES BOARD
D. S. Porter Speaks With
Authority of Giant CON-
pany Behind Him.
CONTINUED from First Page.)

augment his statement with an extract
from the last annual ~eport of the
American Telephone and Telegraph
Company, issued March %, 1911. This.
also, was announced by Mr.. Porter as
a statement from the company applica-
BILE to local conditions 1t follows:
Public control or regulation of public
service corporations by permanent COM
missions has 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
commission will be a quasi-judicial
body. 1t should be made up Of members
whose duty ii will be, and who will
have the desire, the time, and the Op-
portunity, to familiarize themselves
with the questions coming before them.
1t should act only after thorough in
vestigation and be governed by the
equities of each case 1t would in time
establish course of practice and prec-
edent for the guidance of all con-
cerned.
Experience also has demonstrated
that this supervision should stop at
control and regulation and not man
age, operate nor dictate what the
management or operation should be be-
yond the requirements of the greatest
efficiency aud economy.
Management Requires Experience.
management or operation requires
which can only be gained by continuous,
active, and practical participation in
actual working, while control or regu-
lation can be inteIIIgently exercised,
after judicial hearing. by those who
have not the knowledge or experience
TO operate.
Such control and regulation can
and should stop all abuses of CapitaliZa-
ton, of eXtortion or of overcharges, of
nf
IF there is to be State control and
regulation, there should also he State
neutrality-suspicious. to a corporation
striving to serve the whole community
(some part of whose service must neCeS-
sarily be unprOfitable), from aggressive
competition which covers only that part
which is profitable.
governmental control should protect
the investor as well as the public 1t
should insure to the public good service
and fair rates. It should also insure
fair returns to the investor.
"A public utility giving good service
at fair rates should not be subject to
competition at unfair rates.
Through a wise and judicious control
and regulation all the advantages with
out any of the disadvantages of State
ownership can be secured, and State
ownership doomed.
Public Should Approve.
"State control or regulation. to be
effective, should, when exercised. be ac-
cepted and aCquiesced in by the public.
If all the decisions not in exact accord
with the desire or contention of the
public are condemned. if 1t is expected
and required that all decisions be
against the utilities controlled, If poll
tics and political effect are to govern
decisions if decisions go for nothing
with, and are not respected by, the pub
lie, failure and disappointment are
bound TO follow, self-respecting men
will refuse to act. the standard of ap-
pointments will fall. and State control
and regulation will become a disgrace,
and the evils which il was intended to
correct will multiply.
'If any company gives good service
meets all the reasonable demands of the
public, does not earn more than
sufficient to provide for the mainten-
ance of its plant up to the latest stand
ard and for reconstruction Of plant
when worn out or obsolete, pays only
fair dividends to its sharehOlders-if a
company is only doing this its rates and
charges TO the public cannot be Un-
reasonable" ."