Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1912-03-27
RECEIVER FOR THE
MINNESOTA CENTRAL
Stakeholder Tells Result 10 This
Handsome Property Of the
Control Of Northwestern.

On the 9th inst, attended the fu-
neral services held over the remains
of the Minnesota Central Telephone
Company at their Office in Minneap-
oils, MINI. There were more mourn
ers at that meeting than there were
at any of the annual meetings of the
company for many years.
1t is somewhat singular that fu-
neral should bring a larger crowd
than the regular service, but it holds
good in the telephone affairs as it
does in church matters.
Many Of your readers will be in
terested in the Minnesota Central
Telephone Company proposition. The
writer has given it a good deal Of
attention during the last 6 or z years
and has attended nearly all of the
annual meetings.
One month only since the Bell peo-
pie took charge of the Minnesota
Central proposition has it showed a
profit, and that a nominal one Of from
$1,000 to $500. This is a remark
able condition when we realize that
the company has a million dollar
plant and all the facilities of the Bell
interests to cut the corners on expen-
ses and save on material expense
and the much advertised zone and
Only" universal system.
In their eight years of manage
ment, they have lost, according to to
their own figures, $145, 456.33.
There is no claim on their part that
they have taken any proper account
of depreciation, or provided any
funds. on account for the replacing
Of such items in their bookkeeping
worthy of mention.
Not with view of being personally
critical, but for the purpose of a
broader and fuller knowledge of the
telephone conditions of this state, 1
have made, and give below, a con-
densed statement taken from what
the company has put in their yearly
balance sheets.
Jan. l, 1904, Amount in con-
struction account was 5000, 1924
Jan. l, 1908. Amount in con-
struction account was 89O,910.l2
Jan. l, 1912. Amount in con-
struction account was 998,688.46
During time above covered the toll
line from Willmar to Minneapolis,
and the exchange at Willmar, the on
ly portion Of the system now suppos-
ed to be profitable, was sold to the
Northwestern Telephone Co.
With so important a part Of ter
ritory sold, the large increase in am
cunt of construction is remarkable,
the more so when we carefully con-
slider the brilliancy of the manage
ment Of company steadily losing
about $4,000 every year on a mil
lion dollar plant, borrowing nearly
half a million to make good their
losses and adding to construction.
All you Independent Telephone
company managers who would like
to learn how to do it, hold up your
hands! As the company is now go
ing into the hands Of a receiver, the
officers may (?) want positions.
During the past eight years there
has been paid out for maintenance
repairs $248, 304.16, which with the
Replacement Reserves" account of
$15, 421.39 represents, as I take it
the entire efforts of the company to
take care of the important question
Of depreciation-an average yearly
effort of $32,965.69. The average
construction account has been year.
ly $40,308.21.
The officers were careful to explain
that the maintenance was not paid
out on depreciation account, and if
taken literally $l5,421.39 is the to-
tai depreciation account for the
whole period on the average Of $685.
1882 construction or OLA per cent
divided into eight periods would be
.OO217 per cent per annum.
AS some of us get maintenance
and depreciation badly mixed up,
suppose, for the sake of giving them
every show, We add entire amount
of maintenance to depreciation re-
serve, and boost the per cent above
given to .0312 per cent per annum,
how much have they fallen from
their much-contended 10 per cent for
depreciation7
Let's see-6R per cent for 8
years-52 per cent for the period, or
$459, 231.00. Really what pigmies
the rest of us are! How utterly blind
and foolish we are, and how little we
know about conducting a telephone
company anyway! But have you
heard how we'll satisfied the minor
ity stakeholder of the Minnesota
Central Telephone Co. isl
Excuse me, but I almost forgot to
note that eight years ago there was
book showing Of reserve account
$6,053.O0, and a surplus of $31, $780,
II, which has gone, as the tail goes
with tho hide 81 +horo &c O. uoreo