The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-12-12
The CONTROL OF
CORPORATIONS
One Of the important Questions which
viii Come up at the Next Meet
ing Of the State
Legislature.
or PUBLIC UTILITIES
Telling the Truth About the Affairs
of Company Does Not Destroy
the Market for it's
Bonds.
Especial to The Gate City.l

Especial to The Gate City.l
DES MONIES, Dec. 12.--When the
Iowa legislature convenes next month
one of the most important questions
to come up for consideration will be
the control of the corporations of
quasi-public nature. A bill will un-
doubtedly be introduced to require
all corporations operating in the state
under public franchise to file with the
secretary Of state an annual accurate
report as to the companys receipts.
expenditures, assets, salaries and in
vestments; it being the purpose to
give absolute publicity to the opera
tion of these companies. Repeated
dlfiiculties throughout the state in
trying TO establish fair rates Of re-
muneratfon for service has aroused
public sentiment to the point that
there is demand to know what COM
panles operating under the good
graces of the people are doing. There
is no sentiment to deprive corpora
tions of a fair return on the invest
ment. The people are willing the
money invested make good profit
for thousands expect to invest in
these companies securities. What
they do object to is operation on wat
cred stock and paying abnormal div
! idends and exorbitant salaries.
4 Several prominent members of the
legislature who, have yisited ibc cap
ital city have expressed the belief
that had corporations dealing in pub
! lie utilities IN Iowa cities been
open and accurate in their dealings
with the public there would not be the
present anti-corporation feeling and
the consequent difficulty in the matter
of renewing franchises and settling on
rates. They believe it has too long
been the practice of corporations to
withhold the facts from the public
who really gives them the right to
operate. That telling the truth about
/ the affairs of company, no matter
how disagreeable, does not destroy the
market for bonds or depreciate stocks
was but recently demonstrated when
the Western Union Telegraph COM
pany was sold to the American Tele-
phone and Telegraph company Of
which Theodore N Vail is president
A new appraisement was made of the
Western Union holdings and 1t was
discovered that instead of a $1S,S6T,-
600 as stockholders insthe Western
Union had supposed, the surplus
dropped to s5,1S6.0O0. The company
was operating under public franchise
all over the country and the stocks
and bonds were sold in every state.
Theodore N. Vail maintained these
stockholders and the public had a
right to know the truth and it was
told. Financiers of the old school
held ND their hands and said the bot
tom would drop out of the Western
Union, but it didn't. The stock went
up and staid up. This was because
the people had faith in a corporation
willing to tell the truth.
Enforced truth on the part of cor
porations, it is believed by legislators
will give a stability to the value or
Iowa public utility corporation stocks
anu Iudhc SdiS oii nv SSSiiiSht -
line of securities that has not been
considered the best because of num-
erous failures or at least failure to
paw dividends. ENCOURAGEMENT to
Iowa people to invest money in Iowa
corporation stocks, they believe, will
build up the utility industries in the
state and work out much for the
welfare of the common wealth.