The silver messenger. (Challis, Idaho) 1890-1912, 1911-01-31
NEW ERA IN FINANCE
ACCURACY AND PU 6liClT
PROVES TO BE A POPULAR
MOTTO.

Prompt Response to Bold Move Of
President vaiI-"Aceuracy" Reduc
ed Western Unions Surplus $13r
ooo, 0OO@"Publicity" Restored Con-
f,dence and lts Stock Went Up.
Are the great hnanciers OF the
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 az 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 in the purchase OF the Western
Union Telegraph company by the
American Telephone and Telegraph
company. and the man appeared m
Theodore N. Vail, President OF the
purchasing corporation.
1t 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 30 generally held,
Il 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
I men as Theodore NJ Vail and his as
y sociates, the telegraph company was
e bound soon to work Itself into , po-
}. sition where it could offer the public
n far more efncient service than 1t had
J. ever before been able to offer.
,e But a very few months had elapsed
10 when it became apparent to the new
K management that a modern and up
st to-date appraisal OF the companya
D. assets would make possible a fal
greater degree Of efnciency Of oper
re- alton. Here" they said to them
n selves, we've bought control Of thii
Ri property and we know It's immensel,
m valuable, but We don't know jus
IN how valuable. These appraisals o
re real estate and securities owned wer'
re made a long time ago. II We hav
re- complete inventory made Of ever
ri. thing we've got we can announce tn
to facts to the public. start new set c
books, and begin our responsible
cat to stockholders right there"
II How Inventory Was Taken.
"a The most expert accountants an
the appraisers to be had were put at tn
al task Their labors lasted over eigl
raa months. Their report and its publ
apt cauon oy the company nai As ="
;ts och In finance.
,ial 1t began by recommending an a
me justment of the difference betwet
the appraised and book values by
y charge of $5,595.0S9 against 81
plus. Book values OF securities he
a, we're reduced to market values, b;
and doubtful accounts were char
ed or" an allowance OF 100000
was made for depreciation" anoth
Of 100000 for reserve" and so c
until the old surplus Of $1S,S67,0
came down to $5.136.000.
So 1t required courage. the publicati
ing in effect: THE property
loa your company has been rev
7AS ued: the surplus isn't nineteen m
~, 10 ions. as you have been led to
lieve, but five Millions" but 1t "
eaeo the truth, and President Vail did I
ne finch. Accuracy and publicity"
'eai declared, was essential. The sto
soo holder has a right to know. ]
way shares of this company are scatt
oS ed from one end of the Union to
other This is more than a priv
~ corporation. 1t is a great natio
'pii enterprise. The public is entitled
lould Tho ronor, vos ordered nuhl,s,
en"' forthwith F1nanciers of the
school and spectators generally "
Peers n... 49,, o,,, ~ uost
e'nou Union when the shareholders ret
your "a .ho. ,ha,r n-on.+rv vaa wr
they ga ooo ooo loco than thew had
pa. posed, But the amazing II
Inc happened The stock went up
Ut Oh stayed up. The public had resp
IVY ed to this remarkable display
VI frankness and confidence; to the
lcans' motto, Accuracy and Publicity
os'or The full significance of the &C
recos' of the new board is stated conci
by Harper's Weekly in these wo
rs this policy OF publicity AM
open-hande dealing with shared
"a lof ers and public the forerunner {
chill similar movement on the part OF
ter OF er big corporations! Certainly
ntry' to be hoped that it is. In the
is OF of these big companies. Deepen
during upon public patronage and doing
must ness under public franchise,
es, the there be any question of the rigf
le last the neonle 10 know?
med That right is being recogn
a well It is recognized now in this ept
t the act on the part of the telephone
teeth telegraph interests. 1t is the {
er care of a new era in corporation fina
Ion by
health