The Coalville times. [volume] (Coalville, Utah) 1894-1923, 1910-12-09

cd Western Unions surplus si3,
OOO.COO.-"publllity" Restored Con.
fdsree and its Stock Went Up.
Are the great nnanoIrrs of the
country beginning tD 500 r. ncw lirht2
Time was. until recently Boz fact. when
tho mon 40 thD head uf tho biz cor
poutuus Kept their business 10
thDmsoIyo9.' us 'nr uH tho law would
allow Capable men AZ tho head OF the
biz concerns. long realized the weak
ness uf their position. but what was
needed obviously as In all great g..
forms. was Bu uumlsinknhlo occasion
and u courageous man The occasion
arose DO the purchase NJ the Western
Union Telegraph company by the
American Telephone mud 70. -an. b
company. and tho man nrpllud 10
Theodore s. VAN. President of the
purchasing CORPORATION
u was last December whom lbIc
announcement was mod, that 400,
Gould holdings ~ Western Union lad
been taken over by the Telephone
company
on account of tho high cftcom In
which the management NJ the tolo.
phone company H. 10 generally held.
great things we're predicted az 10.
suit of the absorption of Western
Union iiy tho press NJ the country
the dear was most fnvofnbly com.
mentcd ON. Il being widely pointed
out that under the direction Of such
men as Theodore N Vail and hla na.
toclnics. the telegraph company WIS
bound soon TO work Itself into y pa
sitlon where II could offer the public
far more efficient service than II had
ever before been able IN uTor
hut n very few months had elapsed
when II became apparent To the now
management that modern and up.
todnte appraisal NJ the company'a
assets would mako possible FAR
greater degree Of efficiency Of opcr.
alton Here" they said 10 them.
selves, we've bought control Of this
property and va know Us lmmcnaoly
valuable, but We don't know Just
how valuable These appraiaaIa OF
roJ estate and securities owned were
made a long time ago n we have
a complete inventory made NJ oycry
thing we've got VIZ can announce tho
facts "a the public. start now set NJ
books. and begin our responsibility
20 stockholders right there"
How Inventory Was Taken.
The most expert accountants and
appraisers TO be had were put ut the
task. Their labors lasted over eight
months. Their report and It's publ
cation by tho company marks an op
och In finance.
II began by recommending an nd.
iustment ~ the difference between
the appraised and book values by a
charge Of S5.595.Oss against aur.
plus. BOOK values Of securities held
we're reduced 10 market values. bnd
and doubtful accounts were "chnrg
cd on" an allowance Of $4,000
was made for depreciation. another
Of 100000 for "rcs"ryc." and 40 on.
until the old surplus NJ tiS.sG7, 900
came down 10 t5.i1GOOO
II required courage. tho publication
OF this statement To stockholders. say
Ing In Crcct. The property NJ
your company has been rcynl
ued: the surplus isn't nineteen min.
ions, aa you have beon led To be-.
lleyc. but i've millions" but II was
the truth, ana President Vail did not
hlneh Accuracy ana publicity" he
declared. WAS essential The stock
holder has u right TO know. The
shares Of this company are scatter
cd from ono end NJ the Union TO the
other This Is more than private
corporation. II Is great national
enterprise The public IL entitled TO
the facts"
The report was ordered published
forthwith Financlcra ~ the old
school and srocuators generally were
nghast What would happcns Would
the bottom drop out " Wcatrrn
Union when the shareholders rpnlii
ed that their property was worth
$4,000 600 less than they had sup
posod' hut the amazing thiup
happened Tho stock went up ana
stayed up The public had respond
ed to this remarkable display of
iranhucss nul confidence. In the new
motto Accuracy and Publicity"
The full significance N the action
Of the now board Ia stated coucisoly
by ilarpor's Weekly In these words:
ls this rolicy N publicity and of
open handed dealing with sharcholl
ers aud public ,hc fororunngr uf
similar movement ON the part Of 9th
or biz cUrpurauons9 Certainly Il o.
10 Dee hoped that IL IL. IN the cas-,
OF these big companies. dcpondru
upon public patronage and doing bust
ness under public franchise. can
there ho any question NJ the right OF
the people 20 know
"Thut right ~ being recognized
II rs recognized nov In this opochal
act uu the part of the telephone and
telegraph Interests II Is tho dawn
Of new era ln corporation finance