The Ordway new era., 1911-04-14
.FORPUBL|C CONTROL
VAIL FOR REGULATION AS WELL
AS PUBLICITY.
SAYS BOTH HERE TO STAY
Frank Recognition Of Public Rights
by the President Of Western
Union and Telephone
Companies.

Public regulation OF public service
corporations has come to stay. u
! ought to have come and II ought to
stay. That is the fiat and unequivocal
| assertion OF Theodore n. Vail. presi.
dent Of both the American Telephone
and Telegraph company and the
Western Union Telegraph company.
It came in the 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 we'll under
stood. nobody In financial circles had
anticipated so frank an ayownl Of
full public rights In the shaping Of
their general conduct. 1t came consc-
Quently as surprise. not only be-
cause OF its novelty and squareness.
but also on account OF the unqualified
acquiescence Of a board OF directors
comprising such eminent and conserv-
ative fnanciers 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 I. Waterbury and others.
President Wallis declaration Is her.
aided as the first recognition by those
in high corporate authority OF the Jus
tice OF the demand that tho public
be regarded as virtual partners in all
matters that certain 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 come 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 on.
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
ment OF the laws will permit.
aggressive competition means
duplication OF plant and investment.
The ultimate object OF such competi-
tion is the possession OF the field
wholly or partially: therefore 1t
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 1t
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
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-
vantages. which are expected to be
obtained through such ownership. and
will obtain them without the public
burden Of either the public Office
holder or public debt or operating
deficit
when through wise and judi
cious state control and regulation al
the advantages without any of tie
disadvantages Of state ownership
are secured. state ownership is
doomed"
IF Mr.. Vail Is right" says Harpers
Weekly. in a 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"