The Beaver herald. [volume] (Beaver, O.T. [Okla.]) 1895-1923, 1911-05-18
IS HERE TO STAY
Control and Publicity for Public
Service Corporations.
IERDlCT OF PROMINENT MAN
Theodore N. Vail President Of West.
srn Union and Telephone comps-
nies, Recognizes Rights Of the
American Public.

Public regulation Of public service
corporations has come 20 stay II
ought 10 have come and Il ought to
stay That Is the fat and unequiyocsl
assertion OF Theodore y. Vail. presi.
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 MI 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
lic rights in the shaping OF their gen
eral conduct II came consequently as
a surprise, not only because Of its
novelty and squsreness. but also on
account Of the unqualified acquies-
cence OF a board Of directors compris-
ing such eminent and conservative
fnanciers as Robert Winson, OF Kid
der, Peabody & Co, and henry l..
HigginEon Of Boston, Henry p Davi'
son OF J =. Morgan & Co; Senator
". Murray Crane. George +. Baer,
T. Jefferson Coolidge. Jr.. Norman w.
Harris. John Waterbury and others.
President Wallis declaration is her
aided as the first recognition by those
In high corporate authority OF the jus.
uce 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.
10 be effective, means publicity;
II means semi.public discussion and
consideration before action: It means
everything which is the oppo-
site OF and inconsistent with effective
competition. Competition-aggr
effective competition-means strife.
industrial warfare; It means conten.
tion: II oftentlmes means taking hd,
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
I Is the possession OF the field wholly
/ or partially; therefore II means eth.
er 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 II results
| all costs OF aggressive. uncontrolled
{ competition are eventually borne
/ directly or indirectly. by the public
I Competition which is not aggressive
/ presupposes cooperative action. under
standings, agreements, which result
in general uniformity or harmony oi
action, which In fact, is not competi
tlon but is combination, unstable but
for the time effective. When thor
oughly understood # will he found
that control will give more OF tn,
benefits and public adyan ages, which
are expected to be obtained through
such ownership, and will obtair
them without the public burden o
either the public ofilce-holder or pub
lie debt or operating deficit
when through a wise and judicioui
state control and regulation all tn,
advantages without any OF the disad
yantages' o; state ownership are Sc
cured. state ownership Is doomed"
IF Mr. NpN is right" saw
Harper's Weekly. in concise sum
ming.up, then II seems pretty plail
that we are entered upon new era II
both economies and politics. And Il Il
high time we did II evolution is I,
supplant revolution rs an efhclen
force in the development OF civili1a
ton"