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Investor groups are in it for the money


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To the editor,

It seems every one is optimistic about the sale of Boise Cascade LLC from one investor group (Madison Dearborn) to another (Aldabra). However, before you get carried away with excitement, I suggest you go on the Internet and Google "NCC Simplicity", or get a copy of" America What Went Wrong?" There you will find a story about corporate raiders that may just dampen your optimism about the purchase of Boise by Aldabra.

The story of Simplicity Pattern Co is too long and complicated to tell it all in a letter to the editor, but briefly, a half dozen money men using holding companies or acquisition companies descended on the Simplicity Pattern Co. By the time they were finished 10 years later, a company that once had $100 million in the bank was more than $100 million in the hole.

They:

• Bought and sold the company four times and made tens of millions of dollars running up the price of the stock in threatened and actual takeovers.

• Drained $100 million that Simplicity had in its bank account and investment portfolio. One of these investor groups actually used the money in the Simplicity's investment portfolio to pay for the purchase of Simplicity.

• Raided the company's pension funds on two occasions, taking out $10.7 million.

• Issued bonds and borrowed from banks, sending the company’s debt soaring from near nothing to $100 million.

• Sold off properties to raise badly needed cash after they had depleted the company's $100 million cushion. Does that sound familiar. i.e. Boise LLC selling the Woodlands.

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• Created so much debt that Simplicity could no longer generate enough cash to make the interest payments.

• Defaulted on the interest payments on bonds and bank loans.

• Threatened to move the company to another state to get concessions from the unions that cut the payroll by 10 percent.

When they had finished working their magic on Simplicity they turned to the McCall pattern Company, a Simplicity rival and Singer Sewing machine company and repeated the process with these two companies.

I do not know the people at Aldabra and they may have the best of intentions for International Falls, but when I see a company being sold and resold. I get suspicious. Keep in mind that these investor groups exist for one purpose: To make money, not to provide jobs and a strong economy for a community. I would keep a sharp eye on them.

David McCourt

Roseau, MN




No, Journel Staff, every one...

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No, Journel Staff, every one is not optimistic, about the last invester group nor are they optimistic about the current investor group. From unofficial polls, I would say about a third of the mill workers are not at all optimistic, a good number of the remaining are afraid to voice their oipinions on the matter and that leaves a minority of mill workers that will come out strongly in favor of the current plan for their future. Some of them, no doubt, would not vocally approve if they had a crystal ball they could read the future with. In addition to the mill workers, the other 20,000 residents in the area are well aware of the past benifits and the harm the mill has done to the community in every respect. The majority of residents in this community are well aware of the danger of not only further involvment of the mill in this community and the even greater danger of the further loss of jobs if any further part of the mill would shut down without the city and county doing more to lessen the blow of this happening. Do not be so flipant with your unfounded idea that the loss of the "will sheeter" was a loss. The stronger the mill is the stronger the mill is-- and thats not necessarily a good thing. After all, its the entire community, all 20,000 to 30,000 of them, that are affected by this mill not just the 850 workers in the plant. Even the little guy, while maybe not understanding all the details, certainly understands, as you do, investment groups do not run companys for any thing other then to sell or put the quickest buck in their pocket they can. They could care less about the union workers, the community, or anything but the quickest sure bet buck they can put in their pocket and will feed you all the doggie bones they can to get you to sell your soul to the devil, for sure. Thats why they call them "Investment Groups". Your darn lucky you have a union here to protect what they have or you would really see what would happen without them. the local union, I think, is the only thing that is keeping this county and city afloat. You can agree or disagree, like or don't like unions, and I agree that somtimes they make mistakes just like every one else, but you have nothing and I mean nothing at all if they were not trying to keep the most they can for whats left of Mando. And-- in the end they will probably loose the battle to China.


Submitted by Anton1965 on October 9, 2007 - 3:59pm.

Bulletin!! VNP Headquarters...

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Bulletin!! VNP Headquarters Site. As an after thought to the above response, if you want to put your eggs in a second basket called the VNP, then I can think of no better place to build the new VNP headquarters and a nice city park, then to build it on the 10-15 acres now occupied by the paper mill.


Submitted by Anton1965 on October 9, 2007 - 12:44pm.

Sorry the area where the...

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Sorry the area where the mill is bigger than that, but the plan is still to invest and put the federal civic complex on the river, sorry.


Submitted by Doorsman 54 on October 9, 2007 - 2:36pm.

Its just a plan.....I have...

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Its just a plan.....I have another plan.....and my plan only takes 10-15 acres. Sorry!! Also, I have more votes then you, you just don't know it yet. If the VNP can occupy one new building on HWY 53 for some period of time and then leave because we build the federal government another building, then the VNP can move out of another building they occupy on HWY 11 east for some period of time and move to the next new building just west of the bridge where the paper mill now is located. Also, I have another plan to cobblestone 3rd street from the train station all the way to smoky bear park and make 3rd street a walking mall with trees and water features and I have votes on that too.


Submitted by Anton1965 on October 9, 2007 - 4:09pm.

Everything is a guessing...

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Everything is a guessing game. The good news is that for a short time we will have some construction workers in town. This will give the motels, restaurants, gas stations etc some much needed business. Every little thing will help until something bigger comes along(if ever).


Submitted by kay on October 9, 2007 - 4:06pm.

Roger that kay, some have...

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Roger that kay, some have arrived now and more will come in the future and eventually 850 workers will be replaced with 1600 workers and every thing will be abuzz like a bee hive and like I said before, the city will have to bring back the parking meters, and that will employ a few more workers. It will build on itself like a snowball rolling downhill, picking up speed and picking up energy.


Submitted by Anton1965 on October 9, 2007 - 4:15pm.

Anton- Like your ideas but...

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Anton- Like your ideas but the Snowball analogy won't work, remember the "MAYOR" said the Falls wasn't cold anymore. Here is a thought- tear it down and put the FALLS back in INTERNATIONAL FALLS (Miss Stury - Remember?, NO Abbreviations for I. Falls). Then when tourist come we can be proud and show them something besides a blue building.


Submitted by JRS 68 on October 9, 2007 - 5:03pm.

Now there is one for the...

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Now there is one for the record books, it brings tears to my eyes. I sure am glad some one else remembers Miss Stury. Now there is something worth remembering along with the others like Batemen, Jung, Pete, and Neimi. WOW! Those were the days when we had real teachers. Miss Stury told a story to my dad and my mother a hundred years ago about picking blueberries on the 4th of July in the snow, while teaching them. They told me to listen carefully, and sure enough, Miss Stury told the same story in 1963 to my english class. Thats a lesson plan I guess she never found a need to have to change. WOW!!


Submitted by Anton1965 on October 10, 2007 - 10:44am.

You know so many things that...

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You know so many things that have been done are so simple to fix. Instead of Chamber of Commerce people working at a business after hours they should have the chamber office open on the weekends. The new chamber head is a people person with alot of business experience so maybe things will get better. Go back to what worked and that was Ice Box of The Nation and Ice Box Days. Sure we can add new exciting stuff but we can't take the weather away so highlight it and make it better. I never heard what is happening with Rocky and Bullwinkle. Maybe the Daily Journal can do an update. Add some seasonal stuff and try to advertise in some different areas such as major magazines. Send some better representives to the sport shows. If you don't have any, advertise for some. I would love to go and talk about our area and I am sure there are others. Just a few thoughts on such a beautiful day.


Submitted by kay on October 9, 2007 - 5:21pm.

It seems that no one is...

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It seems that no one is happy living here. Well I really like it here. There are days that I wish I was somewhere else but all in all its ok. I have went elsewhere and it was nice, more places to eat and shop and the people were ok but home is home. I don't have to dress up to run to the grocery store. I really don't have to make many decisions about shopping, the lake is beautiful and going to the shack is something I look forward to. I seem to know everyone and to me people are friendly. Crime is low and yes the weather sucks but you can't have everything. I do know that some people are snobs but such is life and they will be everywhere. It is hard when you have left and returned but I think people are jealous that you even gave it a try. If you love to shop this isn't the place to be but if you like the outdoors this is it..


Submitted by kay on October 9, 2007 - 5:49pm.

Its not so bad kay. In 18...

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Its not so bad kay. In 18 months one family was afraid to come here, one is trying to leave but nobody will help him go because they want him to stay, one today says they will leave next year but thats a long way off, and Kelli and her husband moved here last month and have not said one bad thing. I have been all over the world except the Antarctic, where I hear shopping "Really" sucks, and never forgot home in International Falls, Minnesota. If you ever wore a dress, I would be a bit concerned as I am sure you would be if I wore "Tux". Shopping is just fine here, not the Mall of America, to be sure but just fine. All my shopping seems to be adequately done at the Gateway at Kabetogama, Rogers Corner and the Forestland, Local drug stores, bait stores and Ronnigs and Menards. In fact, there is far to much of a selection at a couple of them stores and that taxes my brain sometimes. Easy and simple is just fine with me and easy and simple is what we have to offer. Clean, fresh air, walleye, lots of berry picking, good hunting and women that don't need to wear dresses when they go shopping at the grocery store...it don't git no better then that.


Submitted by Anton1965 on October 9, 2007 - 6:15pm.

Yes sir Anton, I love it...

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Yes sir Anton, I love it here. After the crap place that I lived in on the Tx/Mx border, I-Falls is a dream. I may have a limited amount of choices for stores - but praise God that I have stores. YEAH.

I love my old house, the people have been very nice to our family.... oh I could go on and on. My friends from TX call me and ask me how I am doing and I only have great things to say.

But, I am an outsider looking in and haven't been here long enough to be tainted by either government or the water (hehehehe).


Submitted by kellib on October 9, 2007 - 11:02pm.

They say if you drink our...

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They say if you drink our water and eat the walleye you will gain weight. They say this because they say our water and our fish contain mercury. I have been eating the walleye and drinking the water for 60 years and am still a skinny little runt. My dad has been eating the walleye and drinking the water for 93 years and is smaller them me. I think the story is not true!!


Submitted by Anton1965 on October 10, 2007 - 10:24am.

Anton, What's wrong with a...

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Anton,

What's wrong with a woman wearing a dress to pick blueberries? Saves time if you ask me. The bears don't mind watching em bend over for those juicy berries!! LOL So, everyone tell me about all of these hundreds of workers who are coming to the Falls?? I've heard of a new hotel/motel, new VNP Headquarters, what else is being built, or were you pulling my leg? 1,600 workers, for a couple of construction jobs? Sounds like a public works project!!


Submitted by roj2000 on October 9, 2007 - 8:22pm.

I have friends and relatives...

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I have friends and relatives from the Baudette Warroad area that come to the Falls to shop. The draw for them is on the westside of town Menards, Kmart. They get the supplies they need go get groceries eat at Hardees and go home. There is nothing to draw them to the downtown area. Sad but true. If we had the big draw to our area other things could spring and grow. Knowing the history of the business' that couldn't make it no one wants to invest their money at this time. The old saying "it takes money to make money" is so true. Where that will it come from is anybodies guess.


Submitted by six-shooter on October 10, 2007 - 7:28am.

Thank you, Mr. McCourt on...

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Thank you, Mr. McCourt on your timely letter. This is a reality of the new world order, that is, corporate raiders do what they need to do to make money. No longer does a company provide allegiance to a community and in fact, hold us hostage to provide them with financial resources to further their bottom line. Just look at last summer's fight over the Will Sheeter. We would be prudent to be skeptical rather than optimistic. We don't know anything about the new owners and their long term plan, if they indeed have one. Places like I. Falls mean nothing to them, I would guess, but the profit they could make does.


Submitted by norpole on October 10, 2007 - 8:28am.

This is good commentary,...

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This is good commentary, keep it up,it is sensitive not negative.


Submitted by Doorsman 54 on October 10, 2007 - 9:17am.

On a more positive note, I...

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On a more positive note, I have some relatives who were raised and graduated from school here and left town tohave very successful careers. Upon retirement they bought homes and property in the county nothing fancy and spend form 5-6 mo. a year here. They pay taxes here and spend their money when here. Their needs are very simple but they are never bored. If their health were better they would live all year round. Having been there and done that from being in the service to traveling thro the years I guess it's how you look at things. Is your glass half full or half empty? So you can retire here if you choose it just depends on what you need to make you happy.


Submitted by six-shooter on October 10, 2007 - 10:07am.

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