The Comrade. (Winnfield, La.) 1890-1914, 1910-12-23

President Vail-"Accuracy" Reduc i
ed Western Unions Surplus $13,. l. Il
O0OO.-"PubIicity Restored Con.
fidence and Its Stock Went Up.
Are the great flnanciers of the H.,
country beginning to see new light?
Time was, until recently in fact, when
the men 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 unmstakable 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 IN
Theodore N Vail, President Of the
purchasing corporation.
It 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 so generally held,
great things were predicted as a re-
suit of the absorption of Western
Union. By the press of the country
the IDEAL" was most favorably 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 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
Y management that a modern and up
= to-date appraisal of the company's
assets would make possible far
greater degree of efficiency Of oper-
: alton. Here" they said to them
v selves, we've bought control Of this
property and we know it's immensely
valuable, but we don't know just
Il how valuable. These appraisals OF
real estate and securities owned were
made long time ago. If we have
~ complete inventory made of every
thing we've got we can announce the
to %ho or
books, and begin our responsibility
e. to stockholders right there"
=, How inventory Was Taken.
The most expert accountants anc
re appraisers to be had we're put at thu
nv task. Their labors lasted over efgh
months. Their report and it's publ
cation by the company marks an ep
Ill och in finance.
10 It began by recommending an ad
= justment of the difference between
ca the appraised and book values by
charge of $5,595,0S9 against SUI
no plus. Book values of securities hel
= we're reduced to market values, ba
ay and doubtful accounts were "char@
all ed off," an allowance Of 100000
If was made for depreciation" anothe
of 100000 for reserve" and so o.
w. until the old surplus Of $1S,S67,0(
came down to $5,136,000.
for It required courage, the publicatlc
Of this statement to stockholders, sa
ing in effect: "The property
nal your company has been rev<
ued: the surplus isn't nineteen mi
ions, as you have been led to b
mas lieve, but five Millions" but it W
the the truth, and President Vail did n
finch Accuracy ana publicity"
declared, was essential. "The stoe
holder has a right to know. T
shares of this company are scatt'
'AAN ed from one end of the Union to t
rug other. This is more than privs
vav corporation. It is a great natio1
enterprise. The public is entitled
90 the facts"
The report was ordered publish
Iva forthwith. Financiers Of the
school and spectators generally W.
one aghast. What would happen? Wo
nds. the bottom drop out Of West'
" Il Union when the shareholders rea
ed that their property was Wo
$13, 100000 less than they had
1t posed? But the amazing tn
,nrc happened. The stock went up
stayed up. The public had. respc
ed to this remarkable display
eral. frankness and confidence; to the
loon motto, Accuracy and Publicity"
p' The full significance of the ac'
pa of the new board is stated conci:
n or by Harper's Weekly in these wol
us this policy of publicity an6
open-handed dealing with shareh
ers and public the forerunner
rpen- similar movement on the part OF
err big corporations? Certainly
to be hoped that it Is. In the I
Sc. of these big companies, depen
upon public patronage and doing
ness under public franchise,
real there be any question Of the RICH
es on the people to know?
+bov THAT right is being recogn
: It is recognized now in this epc
)ntaCl OCT m tho mart of the telephone