The Charles Mix new era. (Wagner, Charles Mix County, S.D.) 1???-1911, 1910-12-09
NEW ERA IN FINANCE
ACCURACY AND PUBLICITY
PROVES TO BE A POPULAR
MOTTO.
Prompt Response to Bold Move OF
President vail.-"Accuracy" Reduc
ed Western Unions Surplus $13,.
Cco.cCQ-"Publicity" Restored Con-
fidence and Its Stock Went Up.

Are the great ~financiers of the
Time was, until recently in fact, when
the lei at the head of the big cor
porations kept their business to
themselves" as far as the law would
allow. Capable men at the head of the
big concerns, long realized the weak
ness of their position, but what was
needed obviously, as in all great re-
forms, was an unmistakable occasion
and a courageous The occasion
arose in the purchase of the Western
Union Telegraph company by the
American Telephone and Telegraph
company, and the man appeared IN
Theodore N. Vail, President Of the
purchasing corporation.
1t was last December when public
announcement was made that the
Gould holdings of Western Union had
been taken over by the Telephone
company.
On account Of the high esteem In
which the management of the tele-
phone company is sc generally held,
great things were predicted as a re-
suit of the absorption Of Western
Union. BY the press of the country
the deal" was most f%avorably COM
mented on, it being widely pointed
out that under the direction of such
men as Theodore N. Vail and his as
sociates, the telegraph company was
bound soon to work Itself into d po-
sition where it could offer the public
far more efficient service than it had
ever before been able to offer.
But a very few months had elapsed
when it became apparent to the new
management that a modern and up
to-date appraisal of the company's
assets would make possible a far
greater degree of efficiency Of oper-
alton. 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
how valuable. These appraisals of
real estate and securities owned were
made a long time ago. II we have
a complete inventory made Of every
thing we've got we can announce the
Lows W IAC puUlASp bIoIS q AC~ SCl vi
books, and begin our responsibility
to stockholders right there"
How Inventory Was Taken.
The most expert accountants and
appraisers to be had were put at the
task. Their labors lasted over eight
months. Their report and it's publ
cation by the company marks an ep
och in finance.
1t began by recommending an ad
> justment of the difference between
the appraised and book values by
charge of $685., 0S9 against SUI
|. plus. Book values of securities hell
: were reduced to market values, ba,
, and doubtful accounts were "charg
: ed off," an allowance of $4,000, 90
: was made for depreciation" anothe
. of $500, 900 for reserve" and SO or
until the old surplus of 1885,, 90
came down to $5,136, 900.
. 1t required courage, the publicatio
Of this statement to stockholders, ga!
!. ing in effect: The property {
your company has been reva
= ued: the surplus isn't nineteen mil
Aoho, 90 you nave 0Sh leu W "
lieve, but five Millions" but it wa
. the truth. and President Vail did nj
finch. Accuracy and publicity" h
o. declared, was essential. The stoc,
g holder has a right to know. TIL
shares of this company are seattle
Is ed from one end Of the Union to tt
- other. This is more than a priva'
nnrpNrofiCr II fc a urnot nathan
enterprise. The public is entitled
y. the facts"
Nv The report was ordered publish'
9 forthwith. Financiers of the o
w school and spectators generally we
aghast. What would happen? Wou
" the bottom drop out of Weste
Union when the shareholders real
ed that their property a wor
-. $13, 000, 900 less than they had 81
>. posed? But the amazing thil
he happened. The stock went up a,
be stayed up. The public had respor
n ed to this remarkable display
frankness and confidence; to the M
motto, Accuracy and Publicity"
The full significance of the acti
Of the new board is stated concise
by Harper's Weekly in these WORD
~ "Is this policy Of publicity and
IN. open-handed dealing with shareho
-, srs and public the forerunner Of
similar movement on the part Of o
err big corporations! Certainly it
to be hoped that 1t II. In the C;
OF these big companies, depend
"a upon public patronage and doing b,
"a ness under public franchise.
there be any question OF the right
10. the people to know?
That right Is being recogniz
tv It is recognized now in this epoc
act on the part OF the telephone
telegraph interests. 1t is the da
Of . Q era in corporation inans
TtmeIIness.