Oxford eagle., 1911-04-13
IS HERE TO STAY
Control and Publicity for Public
Service Corporations.
VERDICT or PROMINENT MAN
Theodore N. Vail. President % west
srr Union ard Telephone cempa-
niss, Recognizes Rights st the
American publie

Public regulation Of public scrvic,
corporations has come 20 stay II
ought to have come and II ousht 20
stay Tha, Is the fat and unequivocal
assertion OF Theodore y Vail. presl-
dent Of both the American Telephone
and Telegraph company and the West
ern Union Telegraph company. II
came IN the form Of his annual re-
port 10 the seventy thousand stock
holders OF the two great corporations.
Although Mr.. Walls advocacy u full
publicity IN connection with the Affairs
of such concerns NBs well understood.
nobody In financial circles had antici-
pated 80 frank an avowal of fulI pub
lic rights IN the shaping nf their gen
erai conduct II came consequently az
a surprise. not only because ot its
novelty and squareness. but also On
account Of the unqualified acquies-
cence of board ~ directors compris-
ing such eminent and conservatives
financiers A. Robert Winson. of Kid
der Peabody a Co. and Henry l..
iiigEinson Of Boston. Henry r Davi-
son Of J = Morgan 4 Co Senator
" Murray Crane. George = Baer.
T. Jefferson Coolidge Ir. Norman W.
Harris. John I Waterbury and others.
President Walls declaration Is her
aided as the first rec, gnitlon by those
In high corporate authority OF the Jus.
tice OF the demand that the public
he regarded "a virtual partners
IN all matters that pertain to the com.
mon welfare lie goes directly 20 tho
point
Public control or regulation OF pub
lie service corporations by permanent
commissions he says. has come and
come 10 stay Control or regulation.
70 he effective. means publicity:
II means semi public discussion and
consideration before action: Il means
everything which Is tho oppo-
site ~ and inconsistent with e1ectivs
competition Competition aggressive.
effective competition means strife.
industrial warfare: il means conten-
ton. n oftentimes means taking ud-
vantage ~ or resorting 10 any means
that the conscience ~ tho 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 deld wholly
or partially. therefore IL means eith-
er ultimate combination on saeh
basis and with such prices as will
cover past losses. or n means loss Of
return on Investment. and eventual
loss of capital However II results
all costs Of aggressive uncontrolled
competition are eventually borne
iirectly or Indirectly. by the public.
Competition which + not aggressive.
presupposes cooperative action under
standings agreements which result
IN general uniformity or harmony ~
action. which. tn fact is not competi-
tiou but Is combination. unstable. but
for the time effective When thor
oughly understood n will be found
that control will give more % tho
benefits and public advantages. which
are expected 10 he obtained through
them without the public burden ~
either the public Once. holder or pub
lie debt or operating deficit
When through d y ise aud ildieious
state control and regulation an tho
advantages without any Of the disad-
vantsEes % state ownership are So
cured. state ownership Is doomed "
II Mr. Vail Is right says
Harper's Weekly. In a concise sum
ming up. then II seems pretty plain
that We are entered upon a new era ia
both economics and politics And It IS
high time We did II evolution Is to
suppiant revolution rs m efieien,
force In the development Of civillxa.
tios.