The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1928-01-04

VI NllIUIlELU LAlvE
SELLS TO TRISTATE
SPRINGFIELD TELEPHONE COM
PANY ORGANIZED IN 1904. OR
IGINAL INVESTMENT S17,500
BRINGS OVER $1,000 AT SALE
At specially called meeting OF
stockholders of the Farmers & Cit.
liens Mutual Telephone Company
held at the State Bank building or
Tuesday afternoon, December 9th al
two o'clock, the stockholders present
and by proxy voted unanimously to
accept an offer of $4,000 for the To-
cal telephone plant, lines and equip
ment, made by the Tri-State Tele-
phone and Telegraph company. The
offer of $4,000 had been previously
made to the company and at a meet
ing of the directors on December 4
the offer was accepted, contingent on
the approval of the stockholders. A
down payment of $3,25O was then
made to bind the bargain on the part
of the Tri-State concern.
The attendance at the meeting on
Tuesday was large, 101 stockholders
out of 112 being present in person or
by proxy. Out of $500 shares of
stock, 1916 shares were represented
at the meeting. No objection to the
sale was voiced. The offer was con-
sidered a good one from the stand
point of the local stockholders. I'm
der the sale agreement, the balance
of the purchase price is to be paid on
the first day of the month following
the confirmation of the sale by the
Railroad G. Warehouse commission to
which body application is being made
for permission to consumate the
transfer. A public hearing will be
ordered, to be held some time in
January, and it is thought that the
deal will be closed on February l.
The sale does not include the ac-
counts receivable, money invested,
cash on hand or real estate. These
assets are valued at about $11,500
and when the company is liquidated
there will be an additional dividend
from the sale of these assets and
collection of accounts and certificates
of deposit, making a total of over
$4,000 for the stockholders.
The Farmers & Citizens Mutual
Telephone Company was organized
in Springfield in 1904 by about hun
dred or more business men and far
mers, who were dissatisfied with the
service of the Minnesota Central
company which maintained an ex-
change there. The old company
would not build rural lines and the
business men felt that such lines were
necessary if the city was to hold the
trade of the farmers in the territory.
DR.. j. S. Shrader was president Of
the company and E. j. Fernholz sec
rotary, the latter being subsequently
succeeded by John Schmelz. At the
time the company was organized in
1904 bitter fight ensued between it
and the old company. Springfield had
two local exchanges but the home
people stood by the newly formed
company and eventually forced the
Minnesota Central to abandon its ex-
change.
The old company, in it's fight to
retain a part of it's business, opened
up grocery store in the city which
was conducted for several months with
poor success in spite of the price
cutting INDUCED in. The local mer-
chants could not be intimidated and
the old company finally gave up the
battle, which extended over a per-
iod of about year.
When the local company was or
ganized, the capital stock was fixed
at $25, 900, of which $17,50O was paid
in. This is all the stock that was
sold and the entire assets of the COM
pany now valued at $76,500, repre-
sent the original investment of ST.
500. In 1920 a stock dividend of 100
per cent was declared, making the
paid up capital $4,000 and the ar
ticles of Incorporation were then
amended to permit capitalization of
$4,000.
The success of the company has
been due to its economical manage
ment and the small overhead expense.
Officers salaries have been a small
item of expense.
w. G. Frank, treasurer of the COM
pany, was one of the strongest cham
pions of the local organization and
has been active in determining the
policies of the company. To him and