The Birmingham age-herald., 1916-08-01
Could Probably Sell Out for Much More Than Visible Assets Show
PUBLICITY FEATURE
 OF GREAT SUCCESS
Differs From Standard Oil in Making Practically All Its Transactions Open to the Public and
 Stockholders
By HOLLAND

By HOLLAND
 New York, July 31.-(Special.)- One of the comments occasioned by the re- port of the United States Steel corpor- ation for the second quarter of the present year was based upon the ex- traordinary figures which represented the writing off for depreciation It was said by a high authority that were the Steel corporation to go into liqui- dation it would be possible to sell it's properties for much more than the fig ures represented through the writing off of this kind.
 This is also said to be an evidence
 of new methods adopted by the great industrial corporations and is one Of the best proofs that they are all pre- pairing for whatever conditions may arise after the close of the European war.
 The Steel corporation, it is said, either knowingly or unconsciously, followed an example set by the Stand ard Oil company. The policy or the oil company has always been to write off as much as possible on account Of depreciation. Sometimes this has been carried it is thought, to excess. One of those who are heavily interested in Standard Oil properties, although not of management, said this morning that recently in the case of one of the sub sidiaries it was at first planned to write off so large an amount on ac- count of depreciation that after giving thought to this proposition it was be- lieved to be unwise and might create false impression.
 To give an example, he said, in the case of horses and carts, nc more than $1O was allowed for actual value, al though these may have cost in excess of s2O0 and have been in good condi- . tion. If therefore, the company found 1t advisable to liquidate 1t could prob ably sell its visible property for a great deal more than depreciation al- lowance.
 In the old days it was the other way Not much was allowed for depreciation and sometimes worthless assets were carried on the books as good resources.
 While the Standard Oil company may not have been the first to adopt the policy of making heavy allowance for the depreciation of it's property, nev- ertheless it was probably the f1rst or the great corporations to do this The Steel corporation has from the begin ming of its organization adopted like policy. Therefore, it is presumed that a fair inventory of the properties Of the Steel corporation would be found to be much in excess of the deprecia- : ton allowance. So it is said. this adds greatly to the strength of the corpora ton.
 WITH RESPECT TO PUBLICITY
 In one respect the steel company and the Standard Oil company differ great ly That is in the feature of publicity. There is practically little or no pub
 licity characteristic of Standard Oil management while, on the other hand, the steel company taught new lesson when at the beginning of its exist ence it established policy of full pub Iicity. Nevertheless. that policy was not adopted until after prolonged and, at one time, heated discussion. It was earnestly advocated by George W. Per- kins who argued that as corporation like the United States Steel company is a semi public institution and as 1t numbers many thousand stockholders among it's owners it would be not only fair to the public, but also fair to the stockholders If they were in possession of accurate information respecting the condition of the company.
 Ine late deHTy O I1AVtHCySI, PIcS- ident of the American Suear company, expressed astonishment and some irri- tation when he learned that the United States Steel corporation was to make full and detailed reports not only to the government but also to the stock holders and to the public. Mr., Have meyer was believer in absolute tac- iturnity respecting corporation man. cement and was also believer in the old doctrine that if stockholders did not like the man" cement of a com pany they were at liberty to sell their stock and invest elsewhere.
 THE OTHER WAY
 One of the ablest of American bank ers-now great world banker-con- fessed when the Steel corporation adopted the policy of publicity that it went against the grain with him, for he had been trained in the old school of corporation management. But he added that he was persuaded that this
 is the day of publicity and for that reason it was wise for the managers of such a corporation as the United States Steel company to be absolutely frank
 with the public and with the stock holders.
 One of those who are of great influ- ence in the Standard Oil company, or at least possesses large blocks of stock, said this morning that he had some- times been amazei at the ability of the real inside managers of the Standard
 Oil company to maintain absolute taciturnitv. They had completely mas-
 tered their tongues and even the ex- pression of their countenances. He
 himself. largely interested as he was in these properties. obtained informa- : tion of the purposes of the manage ment only day hefore the managers acted or carried ovt the purpose. He furthermore stated that if the public and stockholders knew what the
 wealth is which is contained in some of the properties there would be amazement
 The Standard Oil managers believe that taciturnity is essential. partly on account of th 70 jntanse doyraStic cor,,,