The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-10
TN. Vail FOR PUBLIC CONTROL
VOlLD PIT All UTILITIES
UNDER COMMISSION.
FavOrs a BOdy, judicial In Character. TO
Pass lpOn All Questions Of Equity
That May Arise Between Public
service l'OrpOratiOns ami the pcOple.

BosroN. July g.-Theodore v. Vail,
president Of the American Telephone an /
Telegraph Company. is heartily in favor
Of the control Of the big utilities, such az
telephone. telegraph gas and electric
companies and railroads. by the people.
He would advocate a board of com
missioners elected by the people them
selves. a body not unlike the Supreme
Court, which should decide upon all
judicial questions pertaining to these
! corporations
Il am not afraid that the public will GO
far in an attempt to wrest from the corpor-
ations their rights" SAYS President Vail.
Il am not afraid il a body represent
ing the people and elected 10y them or
else appointed by the President or by
Congress. as the case ght be, should take
up the judicial problems which must be
met by all great utilities. that they would
suffer in consequence.
what | am afraid of are the dema-
gogues aud unprincipled politicians who
would have the people believe they are
continually being cheated by the rail
roads and the gas companies and the tele-
phone companies.
| 1T il from men of this class that |
should like TO see all power taken away
II the people themselves should obtain
the right of control ther. would be no
further cause for feur
| Whether il would be possible under
the present conditions and with the pres
ent state OF interstate commerce laws To
| inaugurate a national utilities commission
| am not prepared to say but ! believe
this will be the ultimate solution of the
problem, Perhaps in tha beginning a
State board would do this work much a.
the railroad commission does its work
Public control or regulation of public
service corporations by permanent com
missions has come to stay, Control or
regulation exercised through such "A
body has many advantages over that
exercised through legislative bodies or
committees
| The permanent commission will ha
a quasi judicial body II should he made
up Of members whose duty it will be and
who will have the desire. the time and
the opportunity to familiari2e themselves
with the questions coming before them.
1T should act only after thorough in
vestigation and be governed by the euui-
ties OF each case II would in time - =
tablish course of practice and precedent
for the guidance Of all concerned
| Experience also has demonst raj ed
that this supervision should stop at con-
troll and regulation and not Manage.
Operate nor dictate what the mana ge-
ment or operation should be. beyond
the requirements of the greatest efficiency
and economy
| Mana cement or operation requires
intimate KIN ow ledge and OK xperience which
can only be gained by continuous active
and practical participation in actual
working. while control or regulation can
be! intelligently exercised after judicial
hearing by those " ho have not the know l.
edge or experience 10 operate.
In other W Words. the commission W ould
be able to pass its Judgment upon mat
ters of justice and fairness rather than
upon matters Of technical detail. Jus,
as a Judge altogether unacQuainted with
mechanics may hear a patent case and
render a fair decision upon il.
state control or reg ulatlon should be
OF such a character as to encourage the
highest possible standard in plant. the
ut most extension of facilities the highes,
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 administ stration and such Ger
tainty OF return on investment as will
induce investors not only TO retain their
securities but to supply az all times all
he capital needed to meet the demands
of the public.
Such control and regulation can and
} should stop all abuses of capitalization
of pxtortion or of overcharges and Of lIn-
reasonable division Of profits.
1T is largely the abuse by professional
speculative promoters and swlndling So
curity vendors. mostly on compare
lively small scale, not in any way as
sociated or connected with the genera
business organizations or systems. that
has been the cause Of most of the popular
odium surrounding the necessary ma
Chnerv OF business.
1T il conceded that a. a rule privat,
management is better. more economical
and more efficient than public manage
: ment and much more advanced and enter
( prisng The economical margin between
public and private management has beer
shown by experience To be more thar
sufficient TO secure the hest private ad
mInatration.
when through wise and Judiciou
!. State control and regulation all tn,
= advantages without any of the disa1van
r tages Of State ownership are secured
State ownership is doomed.
state control of public utilities shoult
not prevent progress. should be suffi
:. ciently unrestricting to encourage TIT
introduction and demonst ration Of tn,
n value of any new or novel enterprise an'
should allow sufficient reward for tn
initiative. enterprise. risk and imagina
tion OF the adventures behind sucl
Y enterprises
s 1T should discriminate between IN,
v useful Adventures or promoters. pio
neers in fact. and those pirates or shark
,, who on strength OF other successe
I! extravagantly capitalize undevelope,
d ideas and exchange the worthless secu
rites for the sa vim "a Of deluded and credil
. lous investors Corporate control an,
r restriction should always exist to a suffi
a cient degree to prevent such specuativ
;: promoting and such stock jobbinl
h schemes