Morgan County republican. (Versailles, Mo.) 1906-1914, 1911-04-13
FOR PUBLIC CONTROL
VAIL FOR REGULATION As WELL
As PUBLICITY.
BOTH HERE TO STAY
Frank Recognition Of Public Rights
by tho President Of Western
Union and Telephone
Companies.

Public regulation OF public service
corporations has come to stay. II
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
Western 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 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 a surprise, not only be-
cause of its novelty and squareness,
but also on account Of the unqualified
acqulescence Of a board OF directors
comprising such eminent and conserv.
alive %financiers as Robert Winson OF
kidder, Peabody & Co., and Henry L..
H%igginson 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
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 ONE to stay. Control. or
regulation, to be effective means pub.
licity; 1t 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; 1t means
contention; It oftentimes means talk
ing advantage Of or resorting to any
means that the Conscience of the On.
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 1t
e 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 1t
results. all costs Of aggressive. un.
controlled competition are eventually
borne, directly or indirectly, by the
public. Competition which is not az.
gressive. presupposes cooperative &C.
ton. understandings, agreements,
which result In general uniformity or
harmony OF action. which. in fact, ID
not competition but is combination,
unstable. but for the time effective
When thoroughly understood 1t 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
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 a.
the advantages without any of the
disadvantages Of state ownership
are secured. state ownership IL
doomed"
III Mr.. Vail 10 right" says Harper,
Weekly. in = concise summing-up
then 1t seems pretty plain that We
are entered upon a new era in bot.
economics and politics. And It is high
time we did II evolution is to sup
plant revolution as an efficient forc<