The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1910-12-09
Prompt Response to Bold Move OF
President Vaii.-"Accuracy' Reduc'
ed Western Unions Surplus $751;
O0o,oo0-"Publicity" Restored Con-
fidence and Its Stock Went Up.

needed obviously, as IN all great re- 70
forms. was an unmistakable occasion q
and a courageous man. The occasion
arose in the purchase Of the Western =,
Union Telegraph company by the r
American Telephone and Telegraph T
company, and the man appeared IN I
Theodore n Vail, President OF the 3
purchasing corporation. Q
1t was last December when public 9
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 re-
suit of the absorption of Western
| Union. BY the press Of the country
the deal" 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 1t had
ever before been able to offer.
But a very few months had elapsed
when it became apparent to the ne"
MANAGEMENT that a modern and up
to-date appraisal of the companys
assets would make possible a lar
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 we're
made a long time ago. If we nave
complete inventory made OF every
thing we've got we can announce tn'
} facts to the public, start new set o
books, and begin our responsibility
/ to stockholders right there
How Inventory Was Taken.
The most expert accountants an
G appraisers to be had were put at tn
task Their labors lasted over eigf
months. Their report and its publ
cation by the company marks an e.
och in finance.
It began by recommending an a
. iustment of the difference betWee
the appraised and book values by
an charge of $5,595,OSs against 81
the nlus Book values of securities ne
rect were reduced to market values, o
fter and doubtful accounts were char
sing ed off," an allowance of s2'ooo'O
the was made for depreciation, amour
Of $500 900 for reserve" and SO
liant until the old surplus OF $lS'S6"'
ears came down to $5,136,0Oo.
ask It required courage, the pubi'cat
hear NJ this statement to stockholders s
bass ing in effects "The property
vonr company has been re-
,v'" ned: the surplus isn't nineteen Il
ions, as you have been led 10
lieve but five millions" but 1t
the truth, and President Vail did
Whom finch Accuracy and publicity
root declared, was essential. The 81
other holder mas d 'ien. auo coo,
otbar shares of this company are sea
ottic I'd from one end of the Union to
a;vo other This Is more than prl
"a "a cornoration. 1t is a great natl
a,ves enterprise. The public is enu''e
| she the facts" ,,;
h S25 The report was ~ tho
Tbre school and spectators generally
1900 osbast What would happen? "
the bottom drop out OF we
: Union when the shareholders 7
ed that their property was
- that s1s 900 900 less than they hao
W way posed? bu. ,,L went I'm
r happened The stock wen. up
A. osont staved up. The public had res
ao ~ a. IN this remarkable dlspia
u frankness and confidence; to tn'
1865 motto, Accuracy and publicity
- The full significance Of the
~ the new board is stated COZ
Nv Harper's Weekly in these
"Is this policy of publicity
onen.handed dealing with snal
ers and public the forerunnef
similar movement on the part
or big corporations? Certain M
to be hoped that 1t Is. III VI
M NJ these big companies, aep
~ upon public patronage anu auan
ness under public frahchlse
there be any question OF the
the people to know rooo
THAT right is being reco
II is recognized now IN TINS
act on the part of the teiepne
telegraph interests. 1t is TN y
of a new era in corporation Il
.a TimeIlness.