Anadarko daily democrat. [volume] (Anadarko, Oklahoma) 1908-191?, 1910-12-21

OCO,COO-"Publlcity" Restored Con
fidenoe and lts Stock Went Up.
Are the great financiers OF tho
country beginning to see new light1
Time was. until recently in fact, when
the men az 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
biz concerns, long raallzcd the weak
ness OF their position. but what was
needed obviously, as In all great re.
forms, wac al Nnmistakahie occasion
and courageous man. The occasion
arose in the purchase OF the Western
Union Telegraph company by tho
American Telephone and Telegraph
company, and the man appeared m
Theodore y. Vail, President Of the
purchasing corporation.
II 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 deal was most favorably com
mented on, II being widely pointed
out that under the direction OF such
men as Theodore ~ Vail and his as
sociates. the telegraph company was
bound soon to work itself into po-
sidon where II could offer the public
far more efficient service than II had
ever before been able t1 oTlr.
But very few months had elapsed
when II 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 long time ago II we have
complete inventory made OF every
thing we've got we can announce the
facts to the public. start new set Of
books, and begin our responsibility
to stockholders right there"
How Inventory Was Taken.
The most expert accountants and
appraisers to be had we're put al the
task. Their labors lasted over eight
months. Their report and its publ
cation by tho company marks an ep-
och in finance.
IL began by recommending an ad.
justment Of the difference between
the appraised and book values by a
charge OF $5.595.0S9 against sur,
plus. Book values OF securities held
were reduced 10 market values, bad
and doubtful accounts we're "charg.
ed of" an allowance OF t2.000,0 900
was made for depreciation" another
OF 100000 for reserve" and so on,
until the old surplus OF s18. 1867, 900
came down to $5.136.000.
II required courage. the publication
OF this statement to stockholders, say.
ing in effect: Tho property OF
/ your company has been reval.
/ ued: the surplus isn't nineteen mill.
ions, as you have been led to be
lieve, but FIVE millions" but II was
the truth. and President Vail did not
finch. Accuracy ana publicity" he
declared. was essential. "The stock
holder has right to know. The
shares OF this company are scatter,
ed from one end OF the Union to the
other. This is more than a private
corporation. II is great national
enterprise. The public is entitled to
the facts"
The report was ordered published
forthwith. Financiers OF the old
school and spectators generally were
aghast. What would happen? Would
the bottom drop out OF Western
Union when the shareholders reallz
ed that their property was worth
Sl3,000000 less than they had sup
posed? But the amazing thinl
happened. The stock went up anC
stayed up, The public had respond
ed to this remarkable display o
frandness and confidence; TO the new
motto, Accuracy and Publicity"
The full significance OF the actor
OF the new board is stated concisell
by Harper's Weekly in these words
"Is this policy OF publicity and o
open handed dealing with sharehold
ers and public the forerunner Of
similar movement on the part OF 9th
er big corporatlons7 Certainly II 4
10 be hoped that II is. In the cas-
OF these big companies, dependen
upon public patronage and doing bus
ness under public franchise. cal
there be any question OF the right o
the people to know7
THAT right is being recognized
II is recognized now in this epocha
act on the part OF the telephone an
telegraph interests II is the dawi
OF new era in corporation finance.