Manchester Democrat., 1911-04-19
'FORPUBL|CCONTROL
VAIL FOR REGULATION AS WELL
AZ PUBLICITY.
SAYS BOTH HERE 10 STAY
Frank Recognition Of Public Rights
by the President of Western
Union and Telephone
Companies.

A9 z uuAC Ec6uldllOu OI PUBIC B6TVlC0
corporations has come to stay. 1t
ought to have come and 1t ought to
stay. That Is the nat 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 ths 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 general conduct. It came conse-
quently as surprise. not only be-
cause Of It's novelty and squareness.
but also on account of the unqualified
acqulescence OF board OF directors
comprising such eminent and conserv.i
alive financiers as Robert Winson Of
Kidder. Peabody & Co., and Henry l..
Higginson 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
m 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 como 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: 1t oftentimes means tax
ing advantage Of or resorting to any
means that the Conscience of the con-
testants or the degree of the enforce.
mont of the laws will permit.
Aggressive competition means
duplication OF plant and investment.
The ultimate object Of such competi-
tfon is the possession of the field
wholly or partially; therefore It
means either 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 It
results. all costs OF aggressive, un.
controlled competition are eventually
borne, directly or indirectly, by the
public. Competition which Is not ag-
gressive. presupposes cooperative &C.
ton, understandings, agreements,
which result in general uniformity or
harmony Of action. which, In fact, IL
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-
yantages. which are expected to be
obtained through such ownership, and
will obtain them without the public
burden OF either the public ONCE
holder or public debt or operating
deficit.
When through wise and Judi
cious state control and regulation all
the advantages without any of the
disadvantages of state ownership
are secured, state ownership 10
doomed"
| III Mr.. Vail is right" says Harper's
Weekly. In = concise summing-up,
then it seems pretty plain that we
are entered upon new era in both
economics and politics. And 1t is high
time we did II evolution is to sup
plant revolution as an efficient force
In the development of civilization"