Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1912-12-06
MINN. CENTRAL SOLD.
Simply Absorbed by a Larger
Bell Company.

The final step in the absorption Of
the Minnesota Central Telephone Co.
by the Bell interests was enacted at
Willmar week before last. Its lines
were built with the money furnished
by the people of this section, and to
recount all the story to it's end with
the stockholders left ''hOlding the
Bag would make an interesting
chapter, but long one.
In brief, it is simply the old game
of promoters organizing company.
retaining control while the public
furnished the money. and then selling
out to larger company which fore
closes its interest and leaves the min
oritv stockholders with nothing. The
scheme depends for its sussess on the
amount of wind which the original
promoters put into it.
In describing the last sad rites, the
Willmar Tribune says =:
The Minnesota Central Telephone
Company, once the pride of Western
Minnesota, is no more. at least it
has not the least bit of tangible pro-
perty to it's name. The last sad rites
occurred at the Kandiyohi county
courthouse last Friday morning. when
all the property was sold to satisfy
a trust deed held by the Minnesota
Loan & Trust Company of Mime
apolis, for about $172, 900. The
property was bid in by the North
western Telephone Exchange Com
pany for the sum of 5000, 600, the
difference being paid bv securities
held against the Minnesota Central
by that company.
! The act involving more than a hall
million dollars was over in a minute.
Those present directly interested be.
sides the sheriff were Atty. J. M
Martin, representing the Trust com
pany, Mr. E. A. Prendergast, repre-
senting the Northwestern Telephone
Exchange Company; General Manage
Baker and Secretary Williams of tn
Minnesota Central.
Sheriff BoRde started to read tn
notice of sale, which was asked to b
dispensed with by unanimous consent
! Mr.. Martin bid the amount of th
: mortgage on behalf of the Trust com
j pany: M. Prendergast bid $500! Oo
on behalf of the Northwestern Te1e
phone Exchange Co. The sheriff
j asked if there were any other bids
) Mr.. Prendergast with a smile locke
, into the outside room, remarking
) "Where are the other fellows?" Tn
, hammer fell and the telephone system
{ reaching twenty three counties O
t Minnesota was sold. Mr.. Prendergas
handed to the sheriff over $4OO, OO
: in notes given by the Minnesota Cen
t / tral to the Northwestern as paymen
D. for the difference between the amour
? called for by the mortgage and th
: amount of his bid. On one of thes
alone mora than So, 1000 in interes
4 was due
Willmar was the headqu1 rters fo
. the Minnesota Central in the earl
days of building and promotion. Al
b ter the Northwestern Secured contrc
of its stock, the general Office wa
+, moved to Minneapolis in conjunctio
Y with the Northwestern offices. Fo
a term of years past the managemer
. of this system has been under tn
direction of the Northwestern Re
company. 1t has been extending th
lines and improving the property a
the large construction account shows
These facts were brought out in
suit brought by the minority stock
holders to protect their interests, br
which evidently did not materializ
for their benefit. Last year the Mir
nesota Central did not pay the intere.
on the trust deed mortgage or bonds
the default of which led to the pre-
ceedings of last Friday.