The development of modern public relations is traced in this paper. The opposition of James Madison and his colleagues to involving the federal government in projects of "public interest" because they had seen the system abused by British authorities is explained, and the efforts of nineteenth century leaders within the railroad industry to obtain grants for their projects and the philosophies of those men are explored. Twentieth century executives such as Theodore Vail and Samuel Insull, leaders in the telephone and electric utility industries, are discussed. Three generalizations about the developments in public relations in the past several decades are made. Finally, the paper compares two large United States companies and their public relations policies. The conclusion asserts that it is time to address the basic issues of public relations, and of much of economics also: What is public? What is private? (DF)