Lower coast gazette., 1910-12-10

s'OIhpl cspOIf 10 DOIN mVNS w
President VaiI.-"AcCuracy' Reduc-
&c Western Unions Surplus SIS
oCo'ooo.-'PubIicity" Restored Con
fidenCe and Its Stock Went Up.
-
Are the great huancjors Of the
country beginning to eec a new light?
lImo was, until recently in fact, when
the men at the head Of the big cor
NoratIous kept their business to
themselves" as far as the law would
allow. Capable men at the head OF tho
big concerns, long realized the weak
ness Of their position, but what was
needed obviously, as in all great re-
forms, was IN unmistakaNIc occasion
and a courageous man. The occasion
arose in the purchase Of the Western
Union Telegraph company by the
American Telephone and TELEGRAPH
company, and the man appeared m
IAeoGOrn y. Vail, President Of the
purchasing corporation.
It was last December when public
announcement was made that rhe
Gould holdings Of Western Union had
7 been taken over by the Telaphone
company.
On account of the high esteem in
which the management of the tele-
phone company Is so generally held,
great things we're predicted as a re-
suit Of the absorption Of Western
Union. BY the press Of the country
the deal" was most fay0rably com
mented on, it being widely pointed
out that under the direction Of such
men as Theodore \. Vail and his as
soc!ates, the telegraph company was
bound soon TO work Itself into a po-
sluon where It could offer the public
tar more efficient service than it had
ever before been able to offer.
But a very few months had elapsed
"lcA 1t became apparent to the new
management that a modern and up
'o,dale appraisal Of the company's
assets would make possible a far
greater degree OF efficiency of Oper-
atlOn. Here they said to them
selves, we've bought control of this
property and we know It's immensely
valuable, but we don't know just
now valuable, These appraisals Of
real estate and securities owned were
made a long time ago. If we have
a complete inventory made Of every
,h'ns we've got we a the
,"cts 10 me pubic start a new set OF
pooks' ana begin our responsibility
" 'IochioldeFs rlght there.
no" inventory Was Taken.
me nloSt expert accountants and
appraisers 10 be mad were put at the
TASK. lhelr labors lasted oyer eight
"""'''hs. lhelr report and its publ
ca'lon by the company marks an ep-
ocn III ilhahce.
1t began by recommending an ad'
JuS'iiien' OF the difference between
'nV appraiser ana DOCK values by a
'n''Se Vi s''''''oos against sur
p'us. BOOK values OF securities held
were reuuced to market values. bad
anu uouD'lul accounts were "charg-
Gu ol' oil allowance or S2,o0O,OOV
was MADE TOR depreciation" another
u soVu''oo lor reserve" and so on.
uN''l 'he olo surplus or slS,sb7,0Oo
''.ne oo"h u So'l'o'oVV.
IL required courage, the publication
VI 'nls statement TO stockholders, say
Ing III erect: inc property OF
our company mas beer reyal-
ueu: the surplus isn't nineteen mill
ions, rs you have been led to be.
lieVe, but five Millions" but it was
'he TRUTH and President Vail did not
hlhch. Accuracy ana publicity" he
declared. was essential. The stock
noide mas a right to know. The
shares or THIS company are scatter
ed from one end OF the Union to the
o'her. IS more than a private
corporation. 1t is a great national
enterprise. The public is entitled to
the facts"
The report Was ordered published
forthwith. Fnanciers of the old
school and spectators generally were
aghast. What would happen? Would
the bottom drop out Of Western
Union when the shareholders realiz-
ed that their property was worth
GOO less than they had sup
But the amazing thing