The herald-advance. (Milbank, S.D.) 1890-1922, 1911-04-14
IS HERE TO STAY
Control and Publicity for Pubic
Service Corporations.
VERDICT OF PROMINENT NAN
Theodore N. Vail, President Of West
ern Union and Telephone Comp&
nies, Recognizes Rights Of the
American Public.

PUBIC regulation OF public service
corporations has come to stay. It
ought to have come and 1t ought to
stay. That is the fiat 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 well understood.
nobody In financial circles had antici.
pated so frank an avowal OF full pub
lie rights in the shaping OF their gen.
eral conduct. 1t came consequently as
a surprise, not only because of its
novelty and sq%uareness, but also on
account OF the unqualified acquies.
n of a board Of directors compris.
ing such eminent and conservative
financiers as Robert Winson, Of Kid
der, Peabody & Co., and Henry l..
Higginson of Boston, Henry P. Davi.
son Of ]. 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 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:
It mean semi-public discussion and
consideration before action; it means
everything which is the oppo-
site Of and inconsistent with effective
competition. OBSERVATION-DISCLOSURES,
effective competition-means strife,
Industrial warfare; it means conten-
ton; 1t oftentimes means taking ad.
vantage of or resorting 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
Is the possession Of the field wholly
or partially; therefore 1t neal eth
err 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 1t results,
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 competi.
ton but Is combination, unstable, but
oughly understood 1t will be found
that control will give more OF the
benefits and public advantages. which
are expected to be obtained through
such ownership. and will obtain
them without the public burden Of
either the public oflce-holder or pub.
lie debt or operating deficit
when through a wise and 1udicious
state control and regulation all the
advantages without any OF the disad.
vantages OF state ownership are SO.
cured, state ownership Is doomed"
III Mr.. Vail Is right" says
Harper's Weekly, in q concise sum.
ming-up, then 1t seems pretty plain
that we are entered upon a new era In
both economics and politics. And it IL
high time we did II evolution Is to
force In the development of civiliza,
tioa."