The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1919-12-26
EXPENSE TO BE REDUCED
On2 lnssFuir en- Only VIII
B2 U.eu Eorsaitcr
WILL GUT DOWN The 81 [
Interesting History of Company
That Will Now Serve the
Public

company and the MankatO Citizens
Telephone company, were brought to
a head last Saturday afternoon, when
the Citizens company bought the en-
tire propc of the Tri-Statc Tele-
phone company here.
lis business TRANSACTION - one CT
the NEST important elected IL Man
liato durino the year. 1t gives the
city al the benefits of a combined
service, and as the consolidation of
the lines has long bedn urged, it is
expected TO meet with general APP
prevail Of the pusi:c.
Under the terms Of the purchase
the Citizens Telephone company
takes over all the property, toll lines,
cables, wires and conduits >of the
Fri State, better known to Mankato
people as the Northwestern Tele-
phone company. The only property
Of the Northwestern company not
scllcn over is the office and Office
equipment, which will be continued
for long distance traffic.
Citizens Company Success.
Purchase Of the Northwestern
company by the Citizens Telephone
the deal ii. A. Patterson, president
Of the Citizens company. commenting
on The transaction this morning, re-
marked that it was interesting to
note that the Citizens Telephone
company, started by a group OF citi-
zens of Mankato, inexperienced in
such business, had proven success
9nd had given service and satisfac-
tion to the pdblic ~
Completion of the purchase OF the
Northwestern properties here is SUBJ
jcct to the approval CT the state rail-
way and warehouse commission. In
view Of the fact that there has long
been a desire in Mankato for a conf
bining of the two lines, it is expected
that permission for the completion
of the deal will be granted at the
public hearing, which is to be held in
ten days.
Connection of Two Lines.
Connection a the two lines is ex<
pected t. be completed by January 1.
President Patterson stated this
morning. Manager P. NJ. Ferguson
Of the citizens Telenhcne company
viii continue as manager of the
company, with the con lied service
Of the two 1ines.
Combination of the to lines is the
result of competition which started
in 1898, when the Ma1Slto Citizens
Telephone company was started by .
number of spirited citizens, in an eff
Tort TO secure relief from hieh rates
and poor service. At that time BUSH
and residence phones So a month.
The number of telephones in Man
kato then was about two hundred.
Growth of the Business.
Rates for the Citizens Telephone
company, at the beginning were 50 a
month for business phones and SIPS
for residences. Owing to the in
creased cost of service the rates have
since been increased to SO a month
for business phones and S1.75 for
residence lines. These rates are as
low or lower than in any other city
the size OF Mankato in the country.
Where in 1898 there were but 300
phones in the city, the Citizens COM
nany before the consolidation had A.
500 phones and under the arrange
ment( will have over 5000. This rec
ord Of growth and service indicates
that the formation of the Citizens
Telephone company effected large
saving for the public.
At the time the company was
formed it was capitalized at $4,000
Capitalization, since the consolida-
ton was effected will be over $780,
900. The company is owned by be-
tween 400 and 500 stockE olders. most
OF whom are Blue Earth and Nicollet
county residents with none owning
any large amount Of stock
Regarding the Rates.
When asked what effect if any, the
consolidation of telephone properties
Patterson made the following state
ment:
ut is impossible at this time to
determine whether or not the uni
fication of the Mankato Citizens
Telephone company and the old
Northwestern property, recently &C.
auired by the Tri-State Telephone
company, will retard or hasten a
slight advance in rates. The Citizens
company is one of the telephone
companies which has operated at
pre-war rates without disseminating
dividends to it's stockholders, and /
believe it would have continued to do
so indefinitely. even on the, low basis
of rates in effect here, except for the
increased operating cost caused by
the minimum wage law which went
into Effect last September.
This showing, which / consider
remarkable, is due to the careful at
tention given the business by the
board of fifteen directors, whe, serve
without pay, thus reducing the over
head. to other economies practiced
and to the efficiency of its manage
ment.
Salaries Are Increased. 3,
1.-THE minimum wage law increased
salaries of operators and other en-
ployes about ten thousand dollars per
year or nearly as much as the
amount paid out, to stockholders in
dividends. However, have always
felt that telephone operators were
underpaid and while glad to see their
increased in keeping
with the advanced cost of living, it is
obvious that someone must stand
this expense How much of it the
Company can absorb and how much
our subscribers must contribute is
matter of accounting but no advance