American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1911-04-15
PUBL|CC CONTROL
VAIL ron REGULATION 40 WELL
~ puBLIcITv.
SAYS BOTH HERE TO STAY
Frank Recognition Of Public Hlshts
BY the President Of Western
Union and Telephone
Companies.

Public regulation Of public service
corporations has como to stay. II
ought to have come and It ought to
stay. That IL the dat 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 tho 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 20 frank an avowal Of
full public rights in the shaping Of
their general conduct. II came conse
Quently as . surprise. not only be-
cause Of Its novelty and sq~uareness.
but also on account OF the unqualified
acQuiescence Of a board of directors
comprising such eminent and conserv-
ative ananciers a. Robert Winson Of
Kidder. Peabody 4 Co.. and Henry l..
Higginson OF Boston. Henry p. Davi-
son OF j. p. Morgan & Co.: Senator
w. Murray Crane. George +. Baer. T.
Jefferson Coolidge Jr.. Norman w.
Harris, John I. Waterbury and others.
President Wallis declaration Ia her
aided ~ the FIRST recognition by those
In high corporate authority Of the Jus
tice Of tho demand that tho 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
como and como to stay. Control. or
regulation. to be effective means pub
licity: It semi-public discus
sion and consideration before action;
It means everything which is tho op-
posite Of and inconsistent with effec-
tive competition. Competition-ag-
gressive. effective competition-means
strife. Industrial warfare: Il means
contention; It 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
OF plant and investment.
The ultimate object Of such competi-
ton Ii the possession Of the field
wholly or partially: therefore II
means either ultimate combination on
basis and with such prices as
will cover past losses, or 1t means
loss OF return on investment, and
eventual loss Of capital. However II
results. all costs of aggressive. un-
controlled competition are eventually
borne, directly or indirectly, by the
public. Competition which IL not ag-
gressive. presupposes cooperative ac-
ton. understandings. agreements,
which result In general uniformity or
harmony OF action. which, In fact, is
not competition but Is combination,
unstable. but for tho time effective.
When thoroughly understood It will
be found that control" will give
moro OF the benefits and public ad-
v%antages. which are expected to be
through such ownership, and
will obtain them without the public
burden OF either the public Office
holder or public debt or operating
when through a wise and Judi
state control and regulation all
advantages without any OF the
disadvantages OF state ownership
are secured, state ownership is
doomed"
IF Mr.. Vail Is right" say Harper's
Weekly. In a concise summing-up,
then 1t seems pretty plain that we
are entered upon a new era in both
economics and politics. And It is high
time we did II evolution Is to sup