The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-01-16
BROAD PUBLICITY
SYSTEM FAVORED
For Interstate Corporations,
in Herbert Knox Smiths
Annual Report.
MANY REFORMS SHOWN
MANY REFORMS SHOWN
Through Present System of
Publicity in Vogue for
Past Seven Years.
tAmerIcan News Service)

Washington Jan. 16.-A broader
federal system OF publicity for all in
terstate corporations is urged in the
annual report of Herbert Knox Smith
commissioner of corporations, to the
secretary Of commerce and labor
which was made public today.
The report rec'tes the good work
that has been accomplished during
the past seven years through the pres
ent system of publicity, referring es-
pecially to the cancellation by the rail
roads of the discriminatory rates en-
joyed by the Standard Oil company:
the improvement in the methods of
abandonment by the American Tobac-
CO Company of certain questionable
methods of doing business and many
other reforms.
Practical Results.
Such" says the report, "have been
the practical results of efficient pub
licity even within the narrow range
which the bureau has been able to
portant corporate business"
But although this system is effective
as far as II goes, 1t is as yet incom
plete as to scope, according to the re
port, and the one step that remains t6
be taken Is to create by statute sys
TEN which shall apply these effective
methods to all important corporate
business. and give a recognized and
permanent standing to proven prin
ciples.
The report says in this connection
I'm outline this system should be
one where % all important inter
state industrial corporations shall reg
ularly make reports to federal Off
Ger: (2) where that Office shall have
the further right to verify such re
ports and get additional facts; g.
where business transactions of public
interest shall be made public, safe
guarding at the same time as the blu
reau always has, all properly private
business secrets: a. where there
shall be a permanent opportunity fol
cooperation and adjustment between
the government and business inter
| ests; and 90 whereby those corpora
tons that deal fairly and openly shall
receive positive recognition of tina
fact and correspondingly acquire pub
| lie confidence. The system must b,
q national one. Our great businesse
have become national in scope; the.
have no relation whatsoever to stat,
lines.
This system will greatly extend tn,
same kind Of corporate reform whicl
has already resulted from the work o
the bureau; the same kind of publ
enlightenment; it will tend toward tn
removal OF unfounded prejudice. to
ward uniformity in corporate account
ing and the establishment of indus
trial securities on basis of open ad
| ministration; it will give a centra
agency of financial and economic in
formation, and practical meeting
place for business interests with tn
government.
1T will do this without any drasti
change in business conditions. or di.
closure OF purely private affairs: wit
comparatively small cost: with an e
fectiveness of business reform that n
penal legislation can approach.
will put a premium on business eff
cheney. business honesty. and CONNER
cial service to the public. to the benz
ut of that increasing class OF moder
business men who are endeavoring I
deal openly and fairly, and who r,
gard their commercial power as a
least in part a public trust"