Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1911-04-14
IS HERE TO STAY
Control and Publicity for Public
Service Corporations.
VERDICT OF PROMINENT MAN
Theodore N. Vail, President Of w.,.
ern Union and Telephone Gonna.
nles, Recognizes Rights of the
American Public.

Public regulation of public service
corporations has come to STAY -
ought to have come and it ongbt -
stay. That is the fat and uneouivocsI
assertion of Theodore N. Vail nrss;
dent of both the American Telenhoro
and Telegraph company and the West.
ern Union Telegraph company. II
came In the form of his annual "a.
port to the seventy thousand stock.
holders of the two great corporations
Although Mr.. Wallis advocacy of fuu
publicity in connection with the affairs
OF such concerns was we'll understood
nobody in financial circles had antici.
pated so frank an avowal of full pub
lie rights in the shaping of their gen.
eral conduct. 1t came consequently 40
surprise. not only because of its
novelty and squareness, but also on
account of the unqualified acuuies.
cence of board of directors compris.
ing such eminent and conservative
financiers as Robert Winson, of Kid.
der, Peabody & Co., and Henry L.
Higginson of Boston, Henry P Davi.
son of ]. 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
in 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 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,
to be effective, means publicity;
it means semi-public discussion and
consideration before action; it means
everything which is the oppo-
site of and inconsistent with effective
competition. Competition-aggre
effective competition-means strife,
industrial warfare; it means conten.
ton; 1t oftentimes means taking ad.
vantage of or resorting to any means
or the degree of the enforcement Of
the laws win permit
Aggressive competition means du.
plication of plant and investment. The
ultimate object of such competition
is the possession of the field wholly
or partially; therefore it 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 it results,
all costs of aggressive, uncontrolled
competition are eventually borne,
directly or indirectly, by the public.
Competition which is not aggressive,
presupposes cooperative action, under
standings, agreements, which result
in general uniformity or harmony of
action. which, in fact, Is not competi-
ton but is combination, unstable. but
for the time effective. When thor.
oughly understood it will be found
that control will give more of the
benefits and public advantages, which
are expected to be obtained through
sum OWuCl sup, anu Will OUtdlH
them without the public burden Of
either the public ofice-hold or pub
lie debt or operating deficit
When through a wise and judicious
state control and regulation all the
advantages without any of the disad-
Vantages of state ownership are Sc
cured, state ownership is doomed
IF Mr.. Vail is right" says
Harper's Weekly, in concise sum
ming-up, then it seems pretty plain
that we are entered upon a new era in
both economics and politics. And it is
high time we did If evolution Is 10
supplant revolution as an efficient
force in the development of ciyillzS
t:os."