New-York tribune., 1919-03-11
Y all Urges
Merging 9 of
Phone Lines
Wants Analeamniion Of All
United Siuics Companies
Under Central Control
The 1913 Profits Larger
L Earnings Equivalent to
S9.93 on Each Share of
Stock Are porte d

Amalgamation Of all the telephone
companies in the United States under
one central controlling body is urged
by Theodore n. Vail, president of the
American Telephone and Telegraph
Company, in the annual report Of the
company for the year ended Deem
Der 81, 1918. He declares that it would
be unfortunate, with public sentiment
in favor of it, if "a wire system with
nationwide, universal, comprehensive
service and complete utilization of all
the facilities cannot be evolved from
the existing conditions"
at seems paradoXical that the inter
probation and application of existing
laws against restraint Of trade should
be an obstacle in the way Of such tre-
mcndous expansion and Improvement
Of the utilities Of service and necessity
which create trade, and upon which all
economic activity and all trade and
commerce are depcndent,' Mr. Vail
continues.
There is no reason, providing we
have rational control and regulation or
governmental supervision, to fear gov
ernmcnt ownership, but without a ra-
tlonal, effective control which viii reg
ulate but not restrict, control but not
destroy, utilities Of necessity, govern
mcnt ownership is inevitable'
Legislation Needed First
Before changes could be brought
about, Mr.. Vail declares that changes
IN the existing laws are necessary.
Alterations should be made which
would permit combinations when ap-
proved by authorities which have iuris-
diction. This should occur particularly
where they arc necessary 'to properly
adjust inequalities which viii cause
economic and industrial disturbance so
long as they remain.' lie asserts that
ii there is to be effective control and
regulation there should be no objection
to combination.
"All systems OF similar utilities
operating in more or less the same or
contiguous tcrritory,' he adds, "should
be combined into one or more we'll
balanced systems the extent Of which
should be determined by the nature Of
the service, by the extent Of the SER
vice rendered, and by commercial,
geographic and economic reasons.
"Thc operating organization should
be adapted to the requirements of the
service and established on the lines
which experience, enterprise and opcr-
aNon IN the lndstrial world have shown |
to br effective, efficient and economical.
wv ith the administration of such
systems should be combined in some
and as far as possible di- !
Vorced from political, partisan, or class
influence, and subject to reasonable
review, the requisite power and author /
ny under legislative mandate to equil-
bfate capital charges, operating costs
and revenue.
Uncontrolled control and regulation
and uneQuai competition have greater
power for evil than exists if the sys
TENS We're left to their unrestricted
course
New Era Here
I'm speaking of the developmont
which has taken place in utilities in the
'ountry. Mr.. Vail says that much. if moi
all, Of it was done under unrestricted.
lnrestralned operation and promotion.
1t could not have been done other
Use, Tor without the incentive of ad-
venture, without speculative canital
unrcstrained possibjlitiosp 'tI,, tbe
,lsks mover would have been taken.
ms is no longer essential; utilities of
lecesslty have become established. The
ara OF small capital and large oxnocta-
IONS IN utilities of necessity is passed |
he era Of large possibilities and large
hVesl lmcnts of capital is here.
..,. Ihe only incentive to capital in
aige amounts IS certainty and secur-
ty, and certainty and security can
'nly come through responsible control
INC regulation recognizing economic
rules or laws deduccd from experience.
Iudiclal IN ITS conclusions, equitable in
Us llndlngs, prompt in its action. and
move an, the controlling aud repulot-
ng bodies to be of such standing and
'och authority, either moral. lepal or
'ris9nal' as viii give effect TO or com !
n"uu 'rt RESPECT FOR thcir DECISIONS"
lie report elbows thni Tho conn1,.4.
military telephone systom In F,nnre
Nas =. constructed by the comranv's en-
'lno'rs in large part The trchnicalv
'Xpofieneod men FOR the installation Of
~, ,',,, nS.lpm rnne from the Roll aya
pnl 10 very great oStcnt. lhnnrera
y fl'lH were especially TRIMMED hv
le Vp'io'r eompnnioR TO opernio inns
yN'cin WiiolcHe telephone aots far