The Forrest City times., 1911-04-14
IS HERE ID STAY
Control and Publicity for Public
 Service Corporations.
VERDICT OF PROMINENT MAN
Theodore N. Wall, President of West ern Union and Telephone Compa- nies, Recognizes Rights of the
 American Public.

Public regulation of public service corporations has come to stay It ought to have come and 1t 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 West ern 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 MT Vail's 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 avewal of full pub lic rights in the shaping of their gen eral conduct It came consequently as a surprise, not only because of its novelty and sauareness, but also on account of the unqualified acquies- 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 J. P. Morgan < Co; Senator w. Murray Crane, George F. Baer, T. Jefferson Coolidge, Jr., Norman W. Harris. John | Waterbury and others.
 President Vail's 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 He service corporations by permanent commissions" he says, "has come and come to stay Control or regulation, to be effective, means publicity; 1t means semi-public discussion and consideration before action; 1t means everything which Is the oppo- site of and inconsistent with effective competition. Competition-aggr ggressive, effective eompetition-means strife, industrial warfare; 1t means conten- uon; 1t oftentimes means taking ad- vantage of or resorting to any means that the conscience of the contestants 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 1t means eith- CT 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 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- tion but is combination. unstable but for the time effective. When thor oughly understood 1t will be found that control will give more of the benefits and public advan ages. which are expected to be obtained through such ownership. and will obtain them without the public burden of either the public office holder or pub He debt or operating deficit
 When through wise and judicious state control and regulation all the advantages without any of the disad- vantages of state ownership are se- cured. state ownership Is doomed"
 If MT. Vail Is right" says Hsrper's Weekly. in concise sum- ming-up. then 1t seems pretty plain that we are entered upon a new era in both economies and politics. And 1t is high time we did if evolution is to supplant revolution as an efficient force In the development of ciyiliza- tion"