The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1912-03-15

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H. A. PATTERSON. .-:
your present president has had the
honor to preside at these annual
gatherings for which he is grateful
to the several boards of directors
who elected him and the other or
fees have been filled by Mic Peter
son, vice president, and w. D. Will
lard, secretary and treasurer.
Fright here want to say that |
think this company has been par
ticularly fortunate in the selection
of it's managers, TO whom the sue
cess of the enterprise is largely
due. Under their wise and saga
cious management, with the advice
and counsel of your boards of al.
rectors, your plant has grown from
value of $4,000 in 1898 to $780,
10O.O7 as represented on the books
January l, 1912. The number of
subscribers has increased from 273
in 1899 to 1850 the first of this
year. During this period rates on
business phones have been raised
from 81 to So and on residence
phones from $1.25 to $1.75 single
line. These increases in rates were
absolutely imperative-for the tele-
phone business is unlike that of
most other lines. The old well es-
tablished principle the greater the
volume, the greater the profit does
not apply to the telephone business.
To illustrate this-without taking
your time to detail the reasons, !
have figured how much less would
have been our revenue last year If
the old rates were still in effect. At
first no party lines were installed
| i. e., lines, connected two, or four
subscribers which are furnished at
reduced rates and of which there
are in use in the city S14. Based on
our old rates of 50 and SIPS, with
corresponding reduction for these
party line phones our net income
last year would have been reduced
$14,63876, which with usual depreci'
alton and maintenance charges would
have left an actual loss of from
81 900 to $4,000. Thus will be seen
the unavoidable necessity for this
! action.
Regarding the Twin City Company.
at was also during this period
that a number of the larger stock
holders joined the Twin City. Tele-
phone company, in the organization
of the Minnesota Valley Telephone
company for the purpose of secur-
ing long distance communication
! with outside points--thus. materially
strengthening this company, and de-
stroying some of the advantages
held by it's competitor. The local
men who went into this enterprise
did so for the general good OF the
Citizens company, not knowing
whether they would ever realize on
their investment or not. A line was
| constructed from the twin cities TO
! Sioux Falls, giving us connection
with these and all intermediate
points. Through reduced tolls this
| has resulted in the saving OF thou
| sands of dollars to the people OF
this community.
; 81 hope every stakeholder present
will reminder these facts so as to
explain the reason to any subscriber
who may still feel that the COM
pany's action in raising its rates
was unwarranted.
Last year the company reduced
its floating Indebtedness $3.50, be-
sides paying the regular seven per
cent dividend on its outstanding
capital stock. It's present debt TOT
money borrowed is $4,000 and your
directors hope to see this materially
reduced during the current year.
This liability as compared with the
large assets of the company is re-
markedly small, but it is hoped that
in a few years it will be wiped out
altogether.
Praise for Managers.
"In closing l want to congratulate
| YOU on the character OF your board
of directors, composed of busy men,
ever ready to drop their private
business and respond to call for. as.
sistance or advice from the officers
and manager when this company's
welfare is at stake. They are regu'
lar in attendance at the monthly
meetings, attentive to their respec'
tive duties, and each seems prompt
ed by desire apart from the small
personal gain, to make the success
of this company a notable excep-
| ton to the many robustness organi-
cations that have been formed In
this community and failed. Your
largest stockholders stand together
as a unit against any action which
might tend to depreciate in value
the interests of the minority.
"Too much credit cannot be given