Arizona republican., 1913-04-10
Public Utilities and the Public

Every patron of d public utilities corporation should read article in the March Atlantic Monthly by Theodore x. Vail, president of the American Telegraph and Telephone Company. would establish a better understanding. It should also be by every public utilities official for his own profit and understanding. It a recog- hilton of the order which is better the public utilities companies well for the public. No public utility company longer levy upon the public all the traffic will bear Neither can successfully pretend to the public by stock juggling.
 must al securing 1 reasonable revenue. It give the best service possible at the low and nearly uniform rates By the cellence its it business and not merely hold itself in readiness to take care of business when it accidentally The public utility company satisfy patrons. The service which formerly regarded d lux ury has become a necessity
 The public is better served, says Mr. Vail. by combination covering large and diversified terri tory. Competition beneficial the public. Duplicated plants must be maintained and a double expense be incurred. The public must of course, pay for all this The public often magines that ii is receiving benefit competitive wars, but in the things these expensive wars last long One party is either driven the field peace is arranged. The war debts O both combatants be paid and the dennitX is levied, against either them, against the public, which, the writer is thereby affected unfavorably, not only toward the companies engaged the late competition all industrial utility enterprises.
 The indemnity paid by the public is always noticeable When the competition has ceased, the rates may always be raised beyond point where they when begun extensions and Improvements have been interfered with and delay lowering and improving the service has been occasioned
 Mir Vail believes in regulation and control He says is essential for the being of the munity that such regulation and control should be equitable, effective, acceptable to the public and final. There be also confidence on the part of the public in its constituted commissions and the utilities confidence their and integrity. They withstand popular clamor on one side and corporation pressure the other.
 Though the article public utilities gen eraly in their relation the public, special refer is made by MT. Vail to the development of the telephone service within the last forty years and the mistakes of the Bell company f4m which most of the independent companies have failed to profit
 The situation which lately existed n Phoenix probably similar that which many places. An independent company brought into being here before the reform of the methods of Bell company throughout the country by the in- adequacy of the local service which be so bad as to be unbearable For describing the earlier methods of the Bell company MT. Vail said What wonder, if in localities the Bell serv- ice and the Bell companies became d by-word and an offense" The Phoenix company made the mis- take which the Bell company learning make It based it's rates upon the actual running expenses, seeming to that plant of it. self would last forever Those rates, though low unscientifcally negotiable
 Originally no account taken of depreciation by the Bell company and provision made for it. Naturally the service deteriorated Later this defect remedied and also that the service in isolated towns not complete There must be inter-c communication and then followed ex- tensions by which cities all the country were brought together. Large this country is there is not room for two such services, therefore the telephone service has come to be regarded by public a natural monopoly" which is not to be feared under the now prevailing regulation control.