The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1910-12-09

Are the great financiers OF the
country beginning To see a new light?
Time was. until recently In fact. when
the men at the head Of the big cor
noratlons 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 man. The occasion
arose 10 the purchase OF the Western
Union Telegraph company by the
American Telephone and Telegraph
company. and the man appeared m
Theodore ~ Vail. President OF the
purchasing corporation.
Il vas 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 n. Vail and his as
sociates the telegraph company was
bound soon 10 work Itself into DO
siton where II could offer the public
far more efficient service than II had
ever before been able TO offer.
But a very few months had elapsed
when a became apparent to the new
management that a modern and up
todate 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 lust
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 70 the public. start a new set OF
books. and begin our responsibility
TO stockholders right there"
10" Inventory Was Taken.
Inc most expert accountants and \
appraisers 10 be had were put az the
task Their labors lasted over eight
months Their report and its nubll.
cation by the company marks an ep-
och in finance.
began by recommending an ad-
ustmeni o. the difference between
he appraised and book values by a
charge Of $685. 0Se against sur.
Plus Book values OF securities held
we're reduced TO market values. bad
ana doubtful accounts were "charg-
81 on an allowance OF $4,000. 600
vas made for depreciation. another
q s'looO0 for reserve" and SO on
unul The old surplus OF slS.s67. 600
cane down 10 s5.l36.OOO.
II required courage. the publication
y mis- statement to stockholders. saw.
Ns 10 enect: The property OF
'O.' company has been revsl-
wv me surplus isn't nineteen min.
,ous' as you have been led TO be-
ne'e' but FIVE millions" bur /, was
~ .u'h and President Vail did not
S A.u,n Accuracy ana publicity he
,,aieo' vas essential The stock
-. -s-4ei mas right TO know. The
ssa,es OF this company are scatter.
:. ron one end OF the Union 10 the
60. ais Is more than a private
ss.pO'aton. II is great national
a. Use The public is entitled to
So 'eport was ordered published
.o,'HNlth Fnanciers OF the ola
800 and Spectators generally were G
~ what would happen? Would
r., potion drop out OF Western
- - "hen the shareholders really
h, oo1 ,heir property was worth n
$500. s,oVVO less than they had sun .
but the amazing thing =
..peued The stock went mn and !.
\ y ~ The public had respond r
!" 'his remarkable display OF "
po,,o y. ana confidence: 10 the new o.
~ accuracy and Publicity" :,
, ~ luii Significance OF the action =
v new new board is stated concisely =
90. "a per. pers Weekly in these words: :,
ner WIS policy of publicity and OF =
:. nsnded dealing with sharebold. s.
Imn. pubic the forerunner OF a - =.
, ~ No'ement on the part OF 9th. .'
, corporations' Certainly II Is "a
hoped uoped that It is. In the case ca
Don 80 Dig companies. dependent
.ss puphc patronage and doing bust ca
ere - public franchise. can ~
) ~. y any question of the Fight OF
~, peopie 70 know, In
f right is being recognized te'
j, =. 'oognized now in this epocbal Fc
les-.. ne part Of the telephone and an
,opn interests. It is the dawn al
A'N era in corporation finance