Evening star., 1926-09-07

Prof. William Y. Ripley has made
the financial world turn its attention
to the subject Of publicity for corpo-
ration accounts. His recent magazine
article in which remedies are suggest.
ed for lack of adequate information
for investors receives much favorable
comment. Adverse criticism centers
chiefly in the contention that Gov
ernment supervision of accounts
would increase the power Of bureau
cracy.
There may be differences of opin-
ion relative to the method Of reform" i"
in the opinion Of the Hartford Times.
but there must be unanimity with
by his earlier work. has fixed early
doom for the late scandalously COM
mon corporate policy of extravagant
issue Of non-voting stocks. Now he
lays the ak at the roots Of a worse
evil" The Utica Observer-D Dispatch
also believes that as Prof. Ripley
says that the Federal Trade Com
mission has the power to require re-
ports of corporations engaged in In
terstate commerce." that body "ought
to exercise the power. The people Of
the country" scontinued the Utica
paper. are rapidly becoming inves-
tors in n widespread way, and ths
practice should be encouraged for
the large corporations would assist
the Intelligent development Of the
movement"
Granted the authority. what could
the trade commission do?" wonders
the New York World. "TO compile
data from the great multitude Of trad
ing and industrial concerns would
quickly swamp it. But the commission
might use discretion. and classify
corporations in such a. way that those
offering securities in largo volume to
the general public would be required
to present uniform. accurate and un-
derstandable balance sheets, which
would give stockholders the informa-
ton that they are entitled to receive:
1t might even require the appraisal
to be checked from time to time by
some independent authority"
49, X
On the other hand, 1.-The encroach.
ment Of Government upon private
conduct" according to the Chicago
Tribune, 'is almost always on plsusi-
ble grounds, but already It has pro-
ceeded far. and the scrutiny by Gov
eTuIuSHC AS0ulS OL tuo Hn d1IS VI
private business activities, with en-
forcsd publicity. would constitute a.
considerable further advance. Moving
ever forward on that path, we should
presently have the Government in
complete control Of private enterprise.
We do not say Prof. Ripley's plan is
not the best. There 10 need for the in.
formation he proposes to make avail
able. There Is sound policy In pro-
tecting the investor. especially the
small investor But We ought first to
try If some private agency such as
the stock exchange cannot provide
this service. Furthermore, financial
and business associations may do
much to effect a change in the ethics
Of corporate publicity"
ley's plan, the Philadelphia Public
Ledger believes ut is doubtful
whether or not this newest Ripley
proposal would help the mass of in
vastors. Money invested by the
average man" the Public Ledger con-
tinues, goes into q corporation be-
cause 1t IL making money or because
the investor has faith in the heads Of
the business. Balance sheets. COM
prehensive reports and complete
statements have less to do with it
than personalities and sale pressure.
The ugliest feature of Riplsyism's .
newest phase Is its further centrali.
xation Of power in Washington and
its exaltatioh of the bureaucrat."
Recognising that the professor VIII
probably be censured for advocating
further Capitalization in regulating
corporations, not banks or common
carriers" the Springfield Republican n
contends that the Federal Trade
Commission ie under conservative
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