The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-04-10
PUBLIC CONTROL
IS HERE To STAY
President Vail Is Willing That Wire
Corporation Be Supervised by
States.

NEW YORK, April 10.-Presldent
Theodore N. Vail, Of the American
Telephone 4 Telegraph Co., Is willing
that his company shall be placed un-
der public supervision, and he is sup
ported in his position by the directors.
The corporation, which controls the
Western Union Telegraph Co.. and the
Bell telephone system. which includes
the Michigan Telephone Co., has
property valued at $696,700,000 and
10000 stockholders.
President Vail, in his report, dis
cusses government control as follows:
THAT there has been In large
measure reason or cause for the exist
ing unfavorable public opinion as to
corporations, trusts and combinations,
Is beyond question, but 1t does not
follow that there Is reason or cause
for the Wholesale denunciation and
condemnation OF all corporations,
trusts and combinations.
Public utility corporations and
other combinations have too frequent
ly assumed that new laws and regu-
lations were disastrous and ruinous
without first giving them a fair trial.
and legislators often have displayed
an ignorance or disregard of existing
laws, spreading the idea that new
legislation was a cure-all for any un.
desirable condition, while II was Of
ten only a political play, and the en-
forcement of the existing laws was ut
terly neglected.
Public control or regulation or
public service corporations by per-
manent commissions, has come and
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 commits
sion will be a quasisjudicial body. II
should be made up OF members whose
duty Is will be, and who will have
the desire, the time and the oppor-
tunity, to familiarize themselves with
the questions coming before them. II
should act only after thorough invest!-
CATION and be governed by the equities
Of each case.
Experience also has demonstrated
that this supervision should stop at
control and regulation and not
manage operate nor dictate what
the management or operation should
be beyond the requirements OF the
greatest efficiency and economy.
Management or operation requires
intimate knowledge and experience
which can only be gained by continu-
Gus, active and practical participation
In actual working, while control or
regulation can be intelligently exer-
cised, after judicial hearing, by those
who have not the knowledge or ex-
perience 20 operate.
State control or regulation should
be of such character as to encourage
the highest possible standard In plant,
the utmost extension Of facilities, the
highest efficiency In service, rigid
economy in operation, and to that end
should allow rates that will warrant
the highest wages for the best service,
some reward for high efficiency in ad-
ministration, and such certainty of re-
turn on investment as will induce in
vestors not only to retain their secur-
tiles, but to supply at all times all the
capital needed to meet the demands
of the public.
Such control and regulation can
and should stop all abuses Of capital.
ization. OF extortion or OF overcharges,
of unreasonable division of profits.