Mid-Continent Railway Museum Blog

By: Don Meyer, Manager

Earlier this year Scott Lindsay, President of Steam Operations Corporation, was in North Freedom to inspect the running gear and tender of the Saginaw Timber Company No. 2. And since his visit I have been promising the Mid-Continent members that Scott’s report would be published in its entirety in the Railway Gazette. This way everyone could know the nature and extent of the repairs needed to ready this locomotive for a full fifteen years of operation in compliance with our lease agreement with the owners.

On Friday the office staff completed assembling a packet of materials for the membership that is now taking the slow route known as bulk mailing in order to reach everyone’s respective mailboxes - eventually. This packet contains the promised Saginaw Timber Company No. 2 Gazette, the Steamer newsletter and the 2011 calendar.

It was not in our plan to combine all of these publications into one mailing. It was merely convenient under the circumstances as all three products were available and provided us with the opportunity to save on time and postage. The goal is to distribute these items in such a manner that the membership receives one thing per month. And since both the magazine and the newsletter are quarterly publications our intentions work well in theory when supplemented by the president’s quarterly letter to the members.

Three items printed four times a year equals twelve (conveniently corresponding to the number of months in a year), leaving the calendar to piggyback on one of these mailings at a time when people are thinking about what Christmas present to buy for their favorite funny uncle.

The president’s quarterly letter was scaled back to an annual appeal letter as a cost saving measure at about the same time we made other budget cuts in order to cope with the flood repairs. You may likely see this letter revived but with a slightly different presentation. Discussion at the last board of directors meeting indicated the directors, the management committee or one of the officers (such as the treasurer) will be responsible for drafting a quarterly letter to help communicate what is taking place at the board level.

The timely distribution of the Gazette and Steamer has suffered for other reasons. In prior years these were both handled by one volunteer/member working with me to compile sufficient material for each publication’s content. The challenge of keeping things timely when working in a volunteer environment became evident when this one pivotal member “retired” from his managing editor’s role. The responsibility was passed on to someone who had the desire but not the time to perform at the same consistent level. It is a common problem for all volunteer-dependent organizations like Mid-Continent and sometimes it takes awhile to find an appropriate remedy in order to get back on schedule.

I learned that something as simple as handing over the template for one of our publications poses a problem. You have to own and know how to work with the same computer software that your predecessor used. Otherwise you must start from scratch and that is difficult to do when you have an audience that is expecting to receive a popular product with that old familiar look to which they are accustomed. Disturbing the comfort level of any group is a risky proposition at any time and one we have avoided this time by simply buying the requisite software in order to duplicate the traditional layout for the magazine and newsletter.

That still fails to address the issue about the lack of time in peoples’ lives to do many of the mundane tasks required in formatting a publication as sophisticated as the Gazette. The solution there was to make use of the skills of our new Operations Manager, Jeff Lentz, to assist in the layout work. Jeff has a good deal of computer savvy, as youngsters tend to do these days, which sped up the production process significantly and served as a good example of how the employment of staff can facilitate the work of the volunteers.

What’s most important is that our members are well served. And with the distribution of this packet of materials I believe we have fulfilled that goal. The Gazette is both informative on a critical topic and attractive in its presentation. The Steamer shines light on the volunteer life of the museum. And the calendar, as always, resurrects those historic images our members enjoy most.

So let us commend those who were responsible for the production of these vital products, which serve to underscore our commitment to the educational component of our mission.

Pat Weeden as Gazette editor and Jeff Lentz as his production manager did a wonderful job in showcasing the technical presentation of Scott Lindsay’s inspection of the steam locomotive. Chad Syzmanski as Steamer editor and Jeff Lentz, once again doing the layout work, found an efficient way assemble the news about member activities, which will help get us back on track with the timely distribution of future newsletters. And the calendar crew remained a pure example of volunteer service in the creation of a much loved and anticipated product. Credit this year goes to Mid-Continent members Paul Swanson, Jeff Haertlein, Mike Harrington, and Bill Buhrmaster for compiling an interesting portfolio of images to savor all year.

For those of you who are not members but would like to acquire copies of the magazine and/or calendar, they are available on-line through our web store or by contacting the museum’s office. Toll free you can call 800-930-1385 or by e-mail you can address your message to inquiries@midcontinent.org. I know you will find these items worth your investment.

By: Don Meyer, Manager

Good times come from good people.

I wrote that statement last year in a web log message the Monday before the 2009 Gandy Dancer Festival. The same could easily be said for this year’s event, which took place last Saturday; the best attended in our fourth attempt to charm folks into believing that we can still enjoy a good time despite the news, the economy, or Brett Favre’s decision to play another year in the NFL.

I was taught as a child that pride comes before a fall. Maybe that would explain my precarious position as Mid-Continent’s general manager given the immense pride I feel in being part of this event.

We create happiness. You can see it in the faces of the volunteers staffing the program just as readily as you can in the people who are there to enjoy the festivities. Perhaps the Golden Rule has some credibility after all.

My sincerest thanks go out to the planning committee: Johanna Fabke, Carolyn Hegeler, Sue Dietzen, Dick Royston, Nancy and Dan Viste, Laura Paterson, Bill Patten, Nancy Miller, and Jeff Lentz, plus the entire Village of Mazomanie board, the business community and the Mazomanie Volunteer Fire Department. Saturday’s event was another job extremely well done.

I hope you will find some joy in knowing that plans for GDF V are already in the works.

By: Don Meyer, Manager

“That’s a very good question.”

I hold that statement in reserve when I am working the train. Even though by now I have gained enough experience to properly explain our operations, and have absorbed enough facts to tell the history of our equipment, eventually someone – often a child – asks me a question I cannot readily answer. So I buy time by commending them with this simple declaration that they have asked a very good (meaning challenging) question.

Most questions our visitors ask are simple ones to answer. Their experience with trains is minimal, making our job easier even if we possess just a scant bit of railroad knowledge ourselves. By comparison we are well informed practitioners of a lost art, skilled in the intricate operations of a train moving along a route that never permits a top speed of more than 10 miles per hour.

Somehow the age of the coaches becomes a fair representation of the depth of the mysteries we have the capacity to reveal. And can there be anything we do not possibly know or understand when asked by a seemingly sincere initiate into our faith in the glory of steel wheels rolling along steel rails? Of course there is, though we are often reluctant to admit it.

In my own early experience I could be most eloquent when confronted with a question on a topic I had yet to master. Apparently I was under the delusion that an abundance of words could be mistaken for the truth. It seemed safe considering that most people riding the train knew less than I did. And it filled their need for an explanation. But more than once the folly of my strategy humbled me when I learned that certain people, rail fans mostly, will ask you questions they already know the answer to as a test and a means to demonstrate the vast extent of their own railroad knowledge.

You can tell by that particular grin they hold in common that you have been caught in a lie. But if they are merciful, they won’t betray you by saying anything out loud to point out your error. A nod, a wink, a whispered comment to their traveling companion is the best possible outcome for your innocuous deceit. If they are merciful.

The best way to avoid the potential embarrassment of being found out as some type of history charlatan is to become the one asking the questions. Most of our patrons find a great delight in being the knowledgeable one. And the thing they know the most about is their selves. I have come to learn that by taking an interest in their personal histories you will find a better gateway to their own enthusiasm for the museum and the experience we offer.

This past weekend I was pressed into duty once again as Mid-Continent’s conductor and during one of my walks down the aisle, punching tickets and chatting with the passengers I was fortunate to meet a gentle lady from Ireland, who was traveling with her son and daughter-in-law and her two grandsons. A long time resident of Chicago’s south side, she told me about her adventures coming to this country alone at the age of 27 in search of the treasures her American uncles seemed to ceaselessly bestow on the rest of the family back home. Her mother hand warned her that money did not grow on trees in the new world, but judging from the evidence before me that day she did exceedingly well in pursuit of her dream.

Her son had married a woman whose family heritage was rooted in a different island across a different sea, but with the same dream for a better life. And in their children was that fascinating mix of cultures, pigmentation and aspirations to achieve something they could not attain elsewhere; a wonder on board my train making its way along a rural route of no particular significance save in its ability to collect such a disparate set of people pursuing a common destination.

Most of our patrons have a far less exotic tale to tell, but it is amazing how intimate the conversation can become by asking a few simple questions and paying attention to the responses. And I must admit that I lost count of how many times my picture was taken, usually by someone I had met on the train, gleaning information about the children, their travel plans and their desire to get back home after a long vacation.

A friendship established, it is common for them to want to take home a memento of their trip, if only in the form of a digital image of a conductor who took the time to dress the part and, more importantly, made the effort to inquire after their own well-being; a very good question to ask indeed.

By: Don Meyer, Manager

Outside the Engine House the boiler for the Saginaw Timber Company No. 2 is slowly being ornamented with brackets and fixtures which serve to illustrate that this part of the locomotive is in the re-assembly stage. The appearance of each new piece brings with it a renewal to one’s hope that Mid-Continent will be back in its full glory of steam-powered train operations eventually, if not sooner. Inside the Engine House, however, the story is a little different.

The engine’s running gear is over the pit on track two, where the owner has kept busy in a disassembly effort that will allow him to verify the condition of certain working parts that are not readily visible any other way. Still, this must be viewed as progress. The next step is to move the running gear back outside so that the chassis can be lifted or jacked and the driving wheels rolled out for a further and much needed inspection.

It is expected that some major work remains to be done on these components that have received little attention while the boiler has been the star attraction. Now, with the boiler back at North Freedom and sitting on cribbing awaiting further attachments, the running gear will get its due. And as we learn more about the types of repairs that need to be made to assure that the running gear can complete a full fifteen years of service, we will share those insights with you through this web log.

In the meantime, inside the museum’s office, a related assembly project has been taking place. Our new Operations Manager, Jeff Lentz, has been working with our web master and Gazette editor, Pat Weeden, on the layout for the STCO No. 2 edition of The Railway Gazette. The technology is different as parts are transferred across the internet but the basic storyline resembles the work taking place down in the shop, complete with the requisite adornments, this time in the form of color photos, which help to illustrate the nature of the work yet to be done while providing hope of success.

The virtual communication between Pat and Jeff required the purchase of specialized software, which - fortunately for us - was made available at a significant discount given to non-profit organizations like Mid-Continent. It also took some training time for Jeff to become familiar with the software and the magazine’s customary layout in order to transfer the electronic version of Scott Lindsay’s inspection report on the STCO No. 2’s running gear and tender onto the digital page.

One measure of success came on Friday when the layout was sent to the printer’s with no more effort than a few touches on the computer’s keyboard, proving the value gained by accessing the speed of the internet. We should have a proof by early next week and then we can go to press. Once the ink is dry on the tangible version of the magazine, the thousand copies we ordered will be shipped to the museum’s office.

Here another assembly project will take place, known as a bulk mailing. If all goes well I expect this special issue will be in the mail to our members before the end of the month; possibly even in their hands and ready for consumption by then. The condition and importance of locomotive parts most of us never even knew existed will be made known through the text and images, which should also give us insight into the owner’s personal assessment (made privately to the museum’s president) that the STCO No. 2 will not be ready to run in 2011. There is simply too much work that remains to be done.

Things don’t always happen at the pace that we would like, but the value of equipping the right people with the right tools can be seen in something as basic as the publication of our members’ magazine. The promise that the Lindsay report on the STCO No. 2 would be made available to you has taken another step towards fulfillment thanks to just such an investment.

The promise of steam is on the same route, but with a slower timetable for completion. The STCO No. 2’s owner, Skip Lichter, and members volunteering to help him move this project forward have not given up. You can see the visual evidence of their intermediate success sitting behind the Engine House on track one. And you can measure the depth of their determination by monitoring their progress in completing those remaining repair tasks described in the upcoming issue of the Gazette.

The hope for steam is clearly taking on a more tangible form. But some assembly is yet to be required.

This week’s message is another guest web log appearance by Mid-Continent’s Treasurer. Those of you who are members of our historical society recently received in the mail his eight-page opus on our financial situation and the value being added by the Mazomanie operation. Now he is taking us a step further along the line of reasoning behind positive-sum planning versus retrenchment and a zero-sum game. If you find it a bit challenging in following the comparison between these two strategies, I encourage you to hang in there. His message has a happy ending. Don.

By: Bill Handschin

Many of the comments posted on this blog reflect a zero-sum game or negative-sum game attitude towards the allocation of scarce resources at Mid-Continent. A zero-sum game is a situation where resources are limited and one party can gain only at the expense of another party. Zero-sum refers to the idea that one party’s gain must be exactly balanced by another party’s loss. In a negative-sum game, the resource “pie” is diminishing and, again, one party can gain only at an even greater expense to another party. Some respondents to this blog have clearly taken a zero- or negative-sum game approach in expressing their views about how Mid-Continent should be run.

The reality is that the resource pool at Mid-Continent is painfully meager, and most members are not able to raise money or contribute the resources that would allow us to turn that situation around. Mid-Continent has been run through much of its existence as a negative-sum game. As capital assets (rolling stock and infrastructure) were used and run out, resources were not sufficient to rebuild those assets. One of the inevitable consequences of a negative-sum game is that parties (eager to gain a bigger piece of the pie for their projects) see themselves in conflict and begin to act in ways that are destructive to the organization as a whole. They come to believe that the only way for them to advance their projects is to make sure that no other party is able to increase their piece of the pie. In fact, in a negative-sum game, any party that seeks to increase its piece of the pie does so only by making other parties decrease their share by a sum greater than the first party’s increase.

In a situation where the parties are incapable of increasing the size of the pie, the only way to make sure that your piece of the pie remains the same size is to make sure that nobody else gets their full piece of the pie. And, when the members of the organization start behaving in this manner, nothing constructive gets done and the assets of the organization continue to deteriorate.

But something even more serious inevitably happens. In their effort to make sure that nobody else gets access to any resources, individuals become increasingly suspicious that any activity is designed to somehow diminish their piece of the pie. The loss of trust leads to interactions that take on the form of attack, first between interested groups within the organization, then between individuals. Left to run, those attacks become increasingly personal and increasingly vicious, as parties become ever more desperate in their attempt to gain from an unwinnable situation. We have seen ample evidence of that behavior at Mid-Continent in the spate of recent by-law changes and proposals, and in the behavior of some members who have resorted to rumor, innuendo, insinuation, and unfounded accusations. The end result is an organization that tears itself apart.

The people who have been leading the experiment at Mazomanie are trying to change the game to a positive-sum game. They realize that, in spite of pleas to fix all of the problems at North Freedom before we look outside the organization for additional resources, there are not enough resources internal to Mid-Continent to even begin to turn the situation around. Already, almost all of our resources come from outside Mid-Continent. The only way to make any progress is to increase the size of the pie. That has been the whole purpose of the experiment at Mazomanie: to gain access to resources that we do not have access to at North Freedom. In a positive-sum game, as the pie increases, more is available to the parties that have been competing for resources. And the organization has a chance to survive, grow, and prosper.

So, we are faced with a choice. Members who are playing a negative-sum game can continue to try to block progress at every turn and continue to damage the integrity of the organization, or we can unite in playing a positive-sum game, in which there is at least the hope that we can develop the resources that will allow us to accomplish the things that we say we are trying to accomplish. Access to more resources or the death of the organization. It is as simple as that.

By: Don Meyer, Manager

It has been a quiet week for us in North Freedom. Other than the threat of the Baraboo River leaving its banks once again with every rain storm that passes over during this very wet July, we have simply fulfilled the routine of carrying passengers to Quartzite Lake and back three times a day. The equipment is working well. Track conditions have held up to the constant soaking of the various storms. And there have been no complaints to cope with from guests or crew; at least none that have reached my desk.

The hot topic, when the president is in my office to talk, is the probable outcome of the voting on the proposed by-law changes. I can always gauge his mood by the prediction he makes about the final tally. It also gives me a hint as to who he has talked with last before stopping by the office to take care of some business or just to confer with me.

One point never seems to vary, the belief that this vote will produce a larger response than we normally see with an election. The reason? Concern over our experiment with expanding our operations to a second site. “Mazo or no Mazo” is the way he expresses what he believes to be the driving force behind the number of ballots being returned to the office.

This may be true. I have no basis to disagree with his assessment or to be able to predict the outcome of the vote. It is simply a matter of waiting until the count is made that will reveal what the voting members think about management’s authority to direct the entire organization towards a new path for growth. There is probably little difference between that and waiting to see how high the river is going to get after each day of rain.

My own appreciation for the benefits of our Mazomanie project has changed dramatically since we held our first Gandy Dancer Festival there in 2008. Our initial exhibition in conjunction with the Phil Lewis Regional Design Center was, quite frankly, a matter of convenience. It gave us a chance to add a program to the festival with little effort on our part.

Professor Lewis’ three-dimensional, topographical model of the Milwaukee Road route that connects Milwaukee to Prairie du Chien provided the one point of common interest. It was certainly something the rail fans could appreciate for its historical significance, even if we were a little shy of understanding the implications of his studies in sustainable development. The model and our artifacts were displayed on separate floors, allowing us to tell our separate stories. But as I have come to know the Professor and his work better, I have become convinced that we have more in common than I previously realized.

For one thing he understands the importance of tourism on the American lifestyle. In his book Tomorrow By Design, published in 1996, Professor Lewis wrote, “The research shows that the tourism industry depends on the same resource patterns for its survival as those on which we depend for a satisfying quality of life and the stability of our life-support system. As the world’s major industry, tourism is an invaluable mechanism for education, recreation, and economic stimulus.”

More pertinent to our mission and personal interests, Professor Lewis’ research has provided him with an insight into the correlation between the location of our natural resources and the subsequent building of our rail corridors. He states that “The majority of the outstanding natural and cultural resources of a region usually fall within water, wetland, and steep topography patterns. Coincidentally it is in the river valley patterns with slight topographic gradients that our early railroad networks were built.”

Consequently we in the rail preservation community have a friend who is willing to partner with us in proclaiming the role of the railroads as a vital component in future development at the local, regional and national levels. “Railroads provide at least two attributes of sustainability. First they are an economical and far less energy-consumptive mode of travel than most, and second, they offer a satisfactory way to control the impact of tourism on regional resources. By allowing trains to stop only at adequately designed facilities, scenic and recreational resources can be protected from becoming eroded and diminished by uncontrolled access at many points.”

Adequately designed facilities includes the existence of multi-modal systems, which takes us back to the days when lines like the Great Northern had their own bus system to give their passengers access to such natural wonders as the national parks they helped to develop. Professor Lewis’ vision of the future therefore looks surprisingly familiar to those who know about this aspect of our railroad legacy.

This message is only just taking shape at the museum in Mazomanie. There is certainly a lot more to be learned as we work towards creating compatible exhibits that will occupy both floors of our Museum for the Milwaukee Road. But such growth also insures Mid-Continent of a new voice as an advocate for the future of the rail industry as an educator of its history, proficiency and necessity in protecting the natural and cultural assets of our region.

“Wise planning and design should utilize the rehabilitation of rail systems to link key natural and cultural features.”

By: Don Meyer, Manager

Take a walk along the gravel road that separates the Coach Shed from the main line and you will reach the turn that takes you across the track between the Engine House and the Car Shop. There on Engine House lead number one, just outside the building, you will find the boiler for the Saginaw Timber Company No. 2 steam locomotive.

Its surprise appearance last week came after years of work by the principal owner, Skip Lichter, contractor Gary Bensman, employees at Milwaukee Boiler for any certified welding and scores of volunteer helpers made up mostly of Mid-Continent members. The boiler successfully passed its hydro test on June 29th, endured a few more tweaks and then was loaded up by Mike McCutchin and his crew, who has gained a lot of experience moving Mid-Continent equipment on and off the property since the days of the flood.

You will see that the boiler is sitting up on cribbing made of railroad ties, thanks to the help of our one-man section crew, Dave Lee. The location was chosen as the best place possible, given current conditions, for Skip and others to have access to shop tools and supplies while they start the long task of re-assembly of the several components held in storage since the boiler was dismantled seemingly eons ago.

Unfortunately the view of this location by our second web cam is obscured by the Engine House itself. And while I am not sure about the technology involved, it seems to me to be a good time to invest in a third camera in order to give our many on-line guests the chance to watch any work taking place from the comfort of their easy chair or office.

I’ll simply use this opportunity to drop a hint to our web master, Pat Weeden, to see if he will literally rise to the occasion and climb the ladder to the eave of the Coach Shed and place a third camera there for the benefit of all concerned. Mid-Continent’s finances are sound enough to foot the bill for the purchase of this added luxury and addition to our increased security efforts.

While the physical presence of the boiler provides all steam enthusiasts with visible evidence of progress in our steam program, work is quietly taking place on the summer issue of The Railway Gazette, which will tell the story of what remains to be done on the locomotive’s running gear and tender. Text and photos of this exclusive report is the work of Scott Lindsay, president of Steam Operations Corporation.

As most of you know Scott’s services were contracted for by Mid-Continent to help us resolve any disputes about how best to do the tasks needed to complete this long sought-after project. The magazine’s layout is nearly complete and I anticipate we can have it back from the printer’s and in the mail to you by early August while the summer issue designation is still applicable. I think you will find the content most insightful and worth our investment.

Scott also informed me late last week that his report on the boiler and running gear of the Western Coal & Coke No. 1 is nearly finished. Our goal is to make it the featured article in the fall issue of the Gazette, due out in September, as a means to keep our members and donors fully informed about the work needed to advance that project forward. Then the challenge before the museum’s leadership will be to convert that report into a viable budget in time to support our year-end fund raising for the steam program.

Another hint to Pat: it’s time to update our web pages devoted to the restoration of our steamer fleet. Scott’s reports should provide us with ample information to do just that for a much broader audience than our Gazette readers. And you don’t have to go to great heights in order to achieve this one.

By: Don Meyer, Manager

Mid-Continent’s Educator, Stan Searing, launched us into a series of messages that started mid-April with his introductory guest blog and concluded last week with some insights into our debt situation. His private challenge to me was to keep it interesting and understandable for the layman, especially when writing about topics like our finances. A person can easily get lost in the accounting jargon (and logic) that so often mystifies the uninitiated.

I did my best to comply with Stan’s requests, both in writing on the topics he outlined for us and in keeping it clear – maybe even entertaining – for all who were willing to stay with us through this educational exercise. But, when possible, I did add my own twist to the presentations in order to ultimately address another issue of my own choosing, which for me touches on the true meaning of our mission as a historical society.

We laud our preservation efforts. But what is it that we are actually preserving? Have we done our job by applying new fabric and paint to a derelict coach? Or by machining new parts that return a steam locomotive to an operating condition that will add a little more excitement to a train ride?

No doubt these things we do are appropriate. And I think we can be justifiably proud of our achievements thus far, especially with our wood car restorations. But these are just objects and provide a means to an end. For my answer to what we are preserving is the culture that produced these objects. That is why embedded in some of the messages I wrote as part of this recent series were quotations taken from books and journals written during the period we call The Golden Age of Railroads

My knowledge of history for what is more commonly referred to as the Progressive Era (1890 – 1920) is limited so I was not able to find an appropriate quotation for each message. Still it was fun for me to draw a parallel between our bridge problems and the opening of the Brooklyn Bridge in 1883, the composition of our board of directors and the testimony of J. P. Morgan before the Pujo Committee in 1912, and the application of Lester Ward’s Dynamic Sociology published in 1883 to our own steam program.

I had hoped that someone else would draw attention to this clever use of history in a comment posted in reply to one of my messages. Apparently my subterfuge was a little too subtle, though, and failed to be discovered, leaving it for me to now confess to a sly effort to introduce historical content to these topics of current concern.

The Progressives were problem solvers. America’s success with industrial development and its appeal as a safe haven for European immigrants had a dark side that brought about the need for reform. Not every proposed solution worked. Prohibition for example proved not to be the remedy to our declining moral standards that its proponents had hoped for. But today we take for granted the changes that came about in public education, improved working conditions, a greater distribution of wealth, and the rise of the middle class.

While our definition of the Golden Age of Railroads (1880 – 1916) is rooted in something other than reform movements, my own humble opinion is that there is no accident in the close parallel of its timing with that of the Progressive Era. It is also curious to note that many of its reforms in education, politics, and labor were authored by people from the Midwest. So we don’t have to look far, geographically speaking, for historic precedents that can inspire our own efforts in fulfilling our mission.

And because I have a propensity for giving women the last word, I will close with a quote from Jane Addams; born in Cedarville, IL in 1860, educated at the Rockford Seminary for young women, founder of the American settlement movement with the opening of Hull House in Chicago, vice president of the National American Women Suffrage Association, founding member of the American Civil Liberties Union, charter member of the National Association for the Advancement of Colored People and winner of the Nobel Peace Prize. Reflecting on her own many achievements in social reform she once wrote that, “Nothing could be worse than the fear that one had given up too soon, and left one unexpended effort that might have saved the world.”

So let us not give up in pursuit of our own goals to preserve a specific era of railroad history for the benefit of the general public we seek to serve.

By: Don Meyer, Manager

For a non-profit organization to go into debt is a mistake!

How is that for the start of a message about Mid-Continent’s debt situation? This is the last topic in the series suggested by Stan Searing in his guest blog several weeks ago. We have now dabbled in such issues as the master site plan, flood plain restrictions, the ideal board member, and steam power. Debt service, being the least attractive topic of this series, was saved for last.

Mid-Continent carries four loans. The first is a mortgage, the second our line of credit, third is the amount due the owner of the Saginaw Timber Company No. 2, and fourth is the loan from the SBA to fund our flood recovery efforts. All reflect a financial need which we were ill prepared to meet using any other funding source. I say funding because a loan is not revenue. It is a liability, which is why I began this message by calling it a mistake.

A for-profit business would see no problem with these loans. They routinely finance their operations, particularly their capital improvements, through the use of debt. The rationale is that the money will be invested in a project that will generate revenue at a higher rate than the expense of repaying the loan. Therefore the net result is a gain for them.

For-profit businesses have the added advantage of tax incentives designed to encourage them to invest by borrowing. The interest on their payment is a deductible expense as is the depreciation on any capital asset created as part of this investment. All of this can be used to reduce their income, which results in a lower tax liability.

A non-profit organization is exempt from paying tax so the incentives intended to benefit a for-profit business do not apply to us. In fact the monthly payments on any loan become what economists might call an opportunity cost, meaning that these payments rob us of the opportunity to use the money for other purposes.

We have our own funding advantage, however. It is in our ability to generate revenue through donations, making debt the funding source of last resort. Non-profits use this strategy all the time when it comes to new construction. And Mid-Continent has used it effectively with its restoration projects.

Despite our recent successes, however, the reason we are in debt is directly related to prior decisions or omissions about how to finance capital projects. We chose to construct new buildings with debt, hence we have a mortgage. Financing a capital project this way was no doubt the fastest way to raise the funds needed for a major project but it was also a concession that 1) operations could not generate enough revenue to cover capital costs, and 2) the museum’s leadership was not willing to engage in fund raising activities in order to avoid the consequences of incurring long-term debt.

This second point is the most disappointing admission to make since capital campaigns are generally one of the easiest causes for which you can solicit donations. People are more easily motivated to fund something with a tangible result, especially if their names can be attached to it in some way as a legacy of their involvement with the organization and its mission. By comparison, seeking donations to pay off a loan is next to impossible.

Our predicament with the Saginaw Timber Company No. 2 is comparable with our need for having a mortgage on our buildings. A locomotive is essentially a building on wheels when it comes to the high cost of making capital improvements; the overhaul or rebuild that keeps it in active service. The desired strategy for financing the repair of an existing asset is to follow the discipline of setting aside a portion of the revenue the asset (in this case our locomotive) generates each year while it is running. The money is then held in reserve in order to make those future repairs that will significantly extend its useful life.

We can estimate the amount we should deposit into this reserve account through an accounting technique called depreciation. But the enticement to spend on something of a more immediate purpose often defeats the best of intentions. At Mid-Continent we find ourselves in a situation where our steam program lacks such a cash reserve. So in the case of the STCO No. 2 we must now abide by a court-ordered stipulation that we payback the owner for his expenditures in returning the locomotive to operating condition. And this in turn means recognizing a debt equal to the cost of the repairs.

The line of credit is simply a financing tool to get us through the lean times, such as the winter and early spring months, when we are not generating any revenue. In our business cycle these months do see significant costs being incurred as we make repairs to our track and equipment in preparation for the new season. To cover these costs we draw on the line in anticipation that ticket and gift shop sales during the summer will be sufficient to repay the loan before the end of the fiscal year. Again this requires some discipline to ensure that the loan gets repaid on a timely basis. But at least it is a short-term process with less chance of money being diverted for a more immediate need.

The loan from the Small Business Administration is a case apart from our other loans. It would not exist had it not been for the 2008 flood. The extent of the damage was beyond our means to finance the magnitude of the repairs in any other way. For although our goal was to gain the support of FEMA to fund the repairs, they required us to apply for a SBA loan first, then they would consider funding any shortfall that existed after all of our other sources of revenue (the loan, donations and insurance proceeds) were expended on making those repairs.

I do not believe that we could have avoided incurring this debt. The extent of the damage was simply too great. But I do believe we could have taken prior steps that would have allowed us to cover more of these costs ourselves and minimized our dependence on an outside agency for support. Using depreciation to create a cash reserve to fund repairs to our buildings and equipment would have helped. Increasing the amount of our insurance coverage would have been another act of wisdom, but such a step would also have increased our short-term expenses, which is why we avoided this option. And finally having developed a larger donor base would have prompted more support in the way of charitable donations made in response to the catastrophe. As it was we did benefit from peoples’ care of our museum with gifts to our flood recovery efforts that exceeded our expectations during the challenges of a troubled economy. A broader base could have produced an even better result.

The impact of all of this on our cash flow is substantial. The mortgage and the SBA loan are paid back in monthly installments with a combined draw on our general fund of about $3,500 per month. When there is an outstanding balance on the line of credit, we pay back the principal based on our ability to pay. Otherwise interest is due on a monthly basis. And the amount due the owner of the STCO No. 2 has no payment schedule, but simple interest is accruing annually, increasing the size of the debt the longer it remains unpaid.

Our debt load right now is about $821,000. This is not a cause for alarm among the folks who issued our loans. They know from our financial records and history of performance that we have the ability to pay even if we are only able to generate revenue at our usual pace. The obvious challenge to Mid-Continent’s current leadership is to do better than usual, which takes us back to the urgent need to create a board of directors capable of generating revenue sufficient to retire our debt load while addressing the competing demands on our funds for such things as the steam program, tapping into municipal water and sewer, restoring our collection, constructing new buildings to house the collection and upgrading the existing infrastructure.

Financial management is not for the faint of heart. It does require a disciplined approach by a leadership team that can work in unison in achieving a costly, long-term solution. Patience becomes a necessary virtue if we are to fully eliminate our debts. And the good fortune of avoiding any further disasters would be an added blessing. Donations will have to carry the load of funding our capital projects while the general fund continues to bear the burden of making those loan payments.

A debt free existence is a possibility and one that should remain a guiding principal for anyone who is tasked with leading this organization forward.

By: Don Meyer, Manager

“My country in 1900 is something totally different from my own country in 1860. I am wholly a stranger in it. Neither I, nor anyone else, understands it. The turning of a nebula into a star may somewhat resemble the change. All I can see is that it is one of compression, concentration, and consequent development of terrific energy, represented not by souls, but by coal and iron and steam.”

These words by Henry Adams were indicative of a growing bewilderment in American society as the 20th Century began. The comfort of those moral absolutes of the Romantic era in which Adams and others had been nurtured were being cast aside, while industry discolored the beauty of the American landscape and exploited its natural resources. The industrialists grew exceedingly rich while the government appeared to be unconcerned or ineffective due to the “hands-off” philosophy of laissez-faire.

It was the age of the so-called Robber-Barons. But one symbol of that age emerged as a mythic, even heroic image in the minds of the general public; the steam locomotive. It may have brought noise and convulsions to a formerly peaceful, agrarian landscape, but at least it was moving and promised to get us somewhere, even if we could not at that time understand what the final destination would be.

A century later we still look upon the locomotive with the same veneration our forebears knew. We interpret Adams’ words inversely to his meaning for we thrill at the dynamic of that compression, concentration and consequent development that produced a power rarely experienced outside of those natural forces we so often associate with disaster. Man had learned to harness the volcano and rode it to the utter limits of our continent astride a steel network that defied distance and terrain. All things became possible for those who dared to try.

Those who dared were compelled by a different worldview than the one that seemed to traumatize folks like Henry Adams. Their champions could be found in the philosophy of pragmatism advocated by William James or the sociological findings of Lester Ward as espoused in his Dynamic Sociology, published in 1883. Ward was a leading apostle of the can-do spirit with his claim that “Man’s destiny is in his own hands. Any law that he can comprehend he can control. He cannot increase or diminish the powers of nature, but he can direct them. . . His power over nature is unlimited. He can make it his servant and appropriate to his own use all the mighty force of the universe.”

We are the heirs to that kind of faith, not because we are trying to preserve the actual artifacts of steam locomotion, but because we hold it to be self-evident that we determine our own destiny. And in terms of fulfilling our mission that destiny involves the return of steam power to our train operations, ideally in the form of at least three working steam locomotives. Towards that goal work continues to take place.

The most active project since the setback imposed upon us by the flood has been the repair of the Saginaw Timber Company No. 2’s boiler. This week the hydro-static test will take place and, with a favorable result, the boiler will then be ready to move from the shop of Milwaukee Boiler back to North Freedom.

In the meantime Mid-Continent’s board of directors commissioned Steam Operations Corporation to do an independent examination of the No. 2’s running gear and tender. Utilizing Scott Lindsay’s services was a logical step to take since, at the request of the No. 2’s owners, he had already performed the engineering study on which the boiler repair was based. And the repairs needed for the running gear and tender had yet to be documented as required by a court-ordered agreement between the museum and the No. 2’s owners.

We now have Scott’s written report. It expresses the scope of his work and the nature of his findings generously supported by photographic images of the damages that need to be repaired before the refurbished boiler is placed back on the locomotive’s chassis. Copies have been given to the No. 2’s owners and our intent is to share this information with an even broader audience by publishing the results in the next issue of The Railway Gazette. This should help eliminate any doubts about the type of work that needs to be done, while minimizing the internal debate about how best to proceed. However, you can expect the high cost to be the sticking point for those who earnestly want to see a steam locomotive back in operation sooner rather than later.

Work also goes on with the manufacture of the Chicago & North Western No. 1385’s new boiler. Boiler sheets and super-heater tubes have been manufactured and are ready to be shipped to Deltak’s shop in Plymouth, MN for assembly. Mid-Continent member Mike Wahl continues to serve as the project director, which was affirmed by the board of directors at their summer meeting held earlier this month. Updates on the progress of this program will be shared as sufficient steps are taken and news becomes available.

When Scott Lindsay was on the property to examine the No. 2, he was also asked to investigate the status of the Western Coal & Coke No. 1’s boiler and running gear. His report on that locomotive is still a work in progress, but we expect it to be available to us within the next few weeks and, in turn, to make it available for all to see in the September issue the Gazette.

This past winter a few members worked on plans to continue the rebuild of the trucks for the No. 1’s tender under a program authorized by our Vice President, Dave Schumacher. Unfortunately the leader of the project got a new job on the east coast before he was able to get the needed parts ordered and the project has stalled for lack anyone to replace his drive to procure the replacement parts.

Funding for the steam program varies with each locomotive. The owners of the No. 2 have been paying for the work as they go in keeping with the court-ordered agreement for the locomotive’s repair. Mid-Continent records these costs as a liability on its books in recognition of an obligation to repay the owners at a future date since we also have a fifteen year lease on the No. 2, which begins once the locomotive is ready to be placed in service.

Donations to the No. 2’s restoration can be made through Mid-Continent by anyone interested in supporting that project. But this is not the locomotive the museum has supported in its fund raising efforts. Another aspect of that court-ordered agreement is that all parties accepted the need for the museum to channel all Steam Fund donations to the restoration of the No. 1. It has been Mid-Continent’s top priority and the beneficiary of the donations made to this fund.

People ask why we have been more successful in raising money for coach restorations
than with steam as they look at the Milwaukee Lake Shore & Western No. 63 and the Badger No. 2 now on display in the Coach Shed. And they hear about the high cost of these projects as a consequence of using the services of independent contractors to do the bulk of the work. Why can’t we do this for steam projects as well?

The short answer, and most important, is the shear good fortune of finding a lead donor personally interested in this type of project who was willing to start our campaign with a pledge of half the needed funds. Then he went out and encouraged his friends to donate in order to help us raise the other half. And while we have been able to secure the support of a few major donors for the steam program, they have not been at this level of financial support or personal involvement.

The long answer includes a hidden dynamic we do not like to share publicly. But I think it is time to do so given the growing animosity of a few of our members who believe the museum’s leadership, specifically the manager as primary fund raiser, is shirking its duty to adequately fund the steam program. In simple terms, people are reluctant to give major gifts towards equipment the museum does not own. I have been queried on this many times, even to the point of having prospects suggest it is illegal for me to seek donations for privately owned locomotives. But that, I can assure you, is not true. The existence of a valid lease for each piece allows us to treat each locomotive as a capital asset, which we can maintain through the solicitation of charitable support just like any other piece in our collection or operating fleet.

Still perception is reality for many people. That is why you see some folks specifically designating their gifts to the 1385 as their way of contributing to our steam program. The decision made several years ago to abandon that project in favor of one seemingly less expensive had hidden consequences that have made any locomotive restoration a more costly endeavor. But now is not the time to change course again, if only to avoid giving further credence to the stigma that has haunted Mid-Continent for decades; that once started we cannot finish a locomotive restoration as evidenced by the disassembled relics we have scattered around the property.

Our only choice now is to emulate the mindset of those who built these locomotives in the first place. They refused to give in to the fatalism that plagued others swayed by the science of evolutionary theory and the doctrine that all things are determined by forces outside of our control. As disciples of Lester Ward, they believed and unified behind the theme that their destiny was of their own making. And we can do the same.

Mid-Continent’s voting members will be making an important decision this summer when they are asked to vote on some proposed by-law changes that affect how the directors are selected/elected to the board. Currently the membership elects one director each year and the board appoints three. The proposed bylaw changes will invert that order so that the members elect three directors and the board will appoint only one.

On the surface this does not appear to be a threatening concept. For most of its history the members have elected all of the organization’s directors, with varying results. This trend changed in 1999 when a total rewrite of the by-laws allowed the board to appoint most of the directors in an attempt to upgrade the caliber of those serving at this level.

Mid-Continent also experimented with the concept of having non-member directors. Of the appointed directors, one each year could be a non-member at the time of his or her original appointment. Nothing prevented that person from joining after their appointment and many of them have. Right now all of our directors are members.

The need to use the appointment method was simple enough as no “outsider”, who would be largely unknown to the voters, could win in a popularity contest with an established member. The early opposition to this concept was based on the notion that a non-member would not even be interested in being on our board. But that idea proved to be unfounded, so much so that ultimately the by-laws were changed again to allow more of the appointed directors to be non-members.

As Mid-Continent’s manger I have no official say in the structure of the board. But that has not stopped me from trying to influence decisions about the how and who of director selection. I have made recommendations about possible candidates based on my relationships with our donors and people in the preservation, education or tourism industries. And I have been a strong proponent of the appointment method based on a career of working with non-profits of varying size and mission.

In a club, board membership is typically a reward for many years of service. The method used is popular election. It works because the business of the club is one dimensional and never really changes in scope or cost. A good old boy director does little if any harm.

In an organization that seeks to function as a business, having aspirations for growth and program expansion, the nature of the challenges one must resolve become more complex. The organization requires the assistance of directors with financial skills, influence within the community, and established political connections that provide an immediate benefit for its development.

This is essentially what we have been discussing these past few weeks in this mini-series about the composition of Mid-Continent’s board. We want people who can inspire, fund, promote, participate and supervise, which are functions associated with leadership. So our candidates for the board need to be people with a demonstrated history of success as leaders in their respective areas of expertise, buffered by a reputation that is impeccable; the character component.

When the proposed by-law changes were presented to the members attending the April members’ meeting, there was also a presentation made by our treasurer, Bill Handschin. Being new to this role he had been researching our financial trends and produced an interesting graphic for all to see. Mid-Continent’s greatest financial success has come during the years since the 1999 adoption of appointing most directors. Our before and after profile was no less dramatic than those you see in advertisements for weight-loss programs, only in our case the change demonstrated a desired increase in size not the reverse.

Staffing is a strategic decision. It is best done through careful deliberation by those who have direct knowledge of the person under consideration, whether we are talking about ticket agents or directors. And at the board level this is best done by a competent board acting on the advice of what many in the corporate world consider to be the most important of all board committees, the Nominating Committee.

This will come as an affront to those who view an organization like Mid-Continent as the place where they finally get the chance to be important by ascending to a board position based on their years of membership. And for that I am sorry. But when the ballots go out my hope, rooted in three decades of non-profit experience, is that the voting members will endorse our achievements by voting against the proposed changes.

Next week I will continue with the series of messages proposed by Stan Searing with an update on our steam program. Your patience will be rewarded.

By: Don Meyer, Manager

December 19, 1912. J. P. Morgan, known as the Napoleon of Wall Street, sat before the House Banking and Currency Committee, giving testimony on his lending practices. The Committee’s legal counsel was pressing Morgan to admit that money was loaned only to a few favorites in a tightly controlled financing arrangement by the “money trust” of which Morgan was the undisputed leader.

The Federal Reserve was a year away from being created as a result of this investigation. The economy was regulated informally by a few independent banks, with Morgan being the most influential person in that elite group. From his perspective they were doing the country a great service by providing economic stability. From the viewpoint of those outside of the money trust, the group was stifling competition by making sure that sufficient capital was made available only to a select group of corporations that they, the bankers, had created or reorganized and directly controlled as directors.

Morgan was pointedly asked to identify the primary condition on which he leant money. His answer was so simple and disarming as to defy belief, especially among this group of jaded politicians who themselves were suspect by the very people who elected them to office year after year.

Q: Is not commercial credit based primarily upon money or property?

A: No sir; the first thing is character.

Our topic is not monetary policy, but what should be the composition of Mid-Continent’s ideal board of directors. To reach an informed conclusion I have suggested that we follow the sage advice given in an 1896 article written by architect Louis H. Sullivan, who advocated the philosophy often expressed today as form follows function. This was the summation of his belief that “…the life is recognizable in the expression” which may be more poignantly stated but is harder to remember and not as easy to say as the phrase that has survived him.

A board of directors expresses itself in certain functions, which were summarized in last week’s message with five words; inspire (through the formulation of a strategic plan that motivates others to action), fund (by personally providing from their own resources as an individual donor or director of a funding entity), promote (through direct contact with people they know who can substantially benefit the organization), participate (in the activities of the organization outside of the board room) and supervise (through direct oversight of the one person responsible for implementing the organization’s multiple business functions).

From this list of functions we can now define the form of our ideal director. And even that I believe can be reduced to one word. For in all the time it has taken me to get us to this point, there is no real mystic revelation to what I am about to say. The person we want, the ideal director, is already a leader. Whether we are talking about business, politics, education, or community, the person we are looking for is at the center of at least one of these disciplines and has already proven themselves capable through a series of successful endeavors that requires the kind of activities we have outlined here in order to achieve that success.

The answer is simple, just like J. P. Morgan testifying before a Congressional committee. But that is not my reason for beginning this week’s message with a reference to a 1912 event. Rather, if Morgan is to be believed, then we really do want one more attribute in our directors and that is the expression of character, understood to be of a reputable, reliable, trustworthy nature. To know that about a person requires an intimate knowledge of them in order to evaluate the quality that Morgan said was supreme. And this touches on a topic of immediate concern for Mid-Continent members, which I will address in next week’s message; the best method to select/elect our board of directors.

Morgan died just a few months after giving his testimony. His biographer, Jean Strouse, wrote that “Morgan’s famous remark before the [House Banking and Currency] committee – that credit in the conduct of the world’s business was based primarily on character and trust – came directly out of his own experience and applied above all to himself.” His estate was reported in the newspapers as being approximately $80 million, slightly more than $1 billion by today’s standards. When John D. Rockefeller read the news he was incredulous. “And to think he wasn’t even a rich man.”

By: Don Meyer, Manager

Form ever follows function. And we are following the counsel of architect Louis H. Sullivan, who is credited with advocating this philosophy as the means to address the changing needs and social conditions of the American populace on the brink of the 20th Century.

For Sullivan the answer was in the design of the modern office building, several stories tall with a sleek, uniform exterior pointing to the heavens like a dart without limitations on its trajectory. Public access was through a broad entrance, suggesting the ability to embrace everyone involved in a vibrant, commercially active society.

The ground floor served as the showroom. It was one large center of activity for high volume transactions like those that take place in a department store or bank. Ascending the grand staircase to the second floor, one would find the specialized shops or offices where highly selective transactions took place involving practitioners of the various professional arts such as law, finance, insurance, dentistry and medicine. From there it was a quick elevator ride to the smaller offices, stacked floor upon floor, for managers and their staffs, who processed the endless supply of mundane information generated by all of the activity taking place below.

Sullivan’s vision worked for his day. It has gone through continual refinements as social needs and technologies have changed. But you can still find the drive to construct ever taller buildings in today’s global economy as wealth spreads into those countries we used to consider undeveloped in their “third-world” mindset. So what do Sullivan and the invention of the skyscraper have to do with Mid-Continent and our single-story concepts?

Form ever follows function, regardless the nature of the structure. And for us the structure of primary importance to this sequence of messages is the composition of our board of directors. To get at what that board should look like the starting point is to define its function. And I appreciate the willingness of Stan, Jack and Ed to put their thoughts in public view in response to my request for opinions about a non-profit board’s functions.

Based on their comments I would summarize their ideas in four simple words: inspire, fund, promote and participate. You can easily find much longer lists by reading any of the popular how-to books on corporate leadership, but these few items are enough to keep any conscientious person busy. Still I must add one other word to the list in order to complete what I feel is essential in a director’s role and that is the word supervise.

Inspire: Okay, so no one actually used that word, but this is my spin on the suggestion that a director must be big picture oriented and plan in terms of the long range benefits to the organization. This is strategic thinking as opposed to the tactical approach we call micro-managing. The end result must unify and motivate our members and donors around common goals that impart a sense of meaning and accomplishment in fulfilling our mission as a service entity.

Fund: It is easy to plan, even at the more complex strategic level needed to determine an organization’s long-range direction. Planning always begins with talk and as was noted in a comment submitted a few weeks ago I am fond of saying talk is cheap. Actually my full credo is “Ideas are easy. Talk is cheap. It is only in the fulfillment that an idea finds its true value.” The fulfillment function costs money no matter how extensive the volunteer endeavor for keeping those costs to a minimum. And I think you will find that in other non-profits we consider to be successful, their directors are also among the ranks of their major donors, people who are willing and capable of putting their own money at risk on the decisions they have foisted upon the organization they lead.

Promote: This is something we do through our advertising campaigns to reach the broadest possible audience. But in the context of this message there are certain inherent aspects to a director promoting Mid-Continent that go beyond the regular features of our advertising program. We expect a director to focus on one-to-one encounters with friends and associates. We want those contacts to be with people of wealth or influence who can add significant value to our operation. And we want that impact to be immediate. Our needs exist in abundance. Therefore we want the solutions now.

Participate: A director can point to his or her participation in meetings, fund raising, and promotional activities as fulfillment of this function. But in a membership society, the people in leadership need to be seen by the people they supposedly lead and that is best done by taking on some role, no matter how minor, during a museum event. Physical presence demonstrates a level of investment beyond wealth and wisdom. People need to see your commitment as opposed to merely being a name on paper.

Supervise: Given Mid-Continent’s size and complexity the board of directors must hire and supervise one person in whom they have invested their management responsibilities. Whether that person is known as the executive director or general manager is immaterial. What is important is that the directors know how to hold this person accountable for the financial viability of the organization as he or she carries out the annual plan within the general guidelines of their approved budget.

This is certainly not an exhaustive list of board functions. And if it has inspired some thoughts that you would like to add about this topic, your comments are more than welcome. The more challenging assignment, however, is to move from this list to the one that must inevitably follow as form ever follows function. Here, then, is your chance to describe the “form” of the ideal board member in terms of their qualifications and character given these duties we expect them to fulfill.

By: Don Meyer, Manager

Form follows function.

This well known phrase has it origins in a magazine article entitled “The Tall Office Building Artistically Considered.” It was written by American architect Louis H. Sullivan and published in Lippincott’s Magazine in March 1896.

Sullivan and his fellow architects were living in a time of great change. The American economy was shifting from its rural base to one of commercial interests. Offices were needed in which to conduct that business. People were moving to the cities in pursuit of work. And with the increasing demand for space to build, property values soared. The incentive to construct taller buildings within that limited space was a natural consequence of these conditions, which Sullivan and his colleagues tried to address.

Technical innovations made this possible. Improvements in steel construction techniques were part of the solution. So was the invention of the high-speed elevator, making the vertical ascent safer and far less stressful. What emerged was the modern office building, better known today as the skyscraper. Sullivan wrote that “It has come in answer to a call, for in it a new grouping of social conditions has found a habitation and a name.”

A new grouping of social conditions! Needless to say that with change, critics abounded. The easiest complaint to make was that the look of these monoliths was a departure from the more sedate classic styling of the past. Sullivan’s answer was to admonish people to look at nature (reminiscent of someone else’s call to consider the lilies of the field), to learn from its vitality and adaptability. His own conclusion was expressed in these words:

“It is the pervading law of all things organic and inorganic, of all things physical and metaphysical, of all things human and all things super-human, of all true manifestations of the head, of the heart, of the soul, that the life is recognizable in its expression, that form ever follows function. This is the law.”

It is an American characteristic to simplify things and Sullivan’s credo has lived on in the oft quoted statement that form follows function, the impact of the word ever being lost to posterity. But if we have managed to retain the key point of his philosophy it is because his words have found a broader application than the debate over a building’s design and construction. And this is appropriately so since Sullivan, himself, gave us liberty to do so by his use of that other phrase quoted earlier, a new grouping of social conditions.

Structures of any type, whether they are made of steel and stone or personal relationships, address peoples’ expectations. At Mid-Continent the expectations we must meet can be further categorized as those coming from museum guests, members, volunteers, donors, regulatory agencies, the media and our peers in the disciplines of preservation, education and tourism. And the structure I wish to address, in responding to the list of topics outlined in Stan Searing’s guest blog, is the composition of Mid-Continent’s board of directors.

If we apply the wisdom of Sullivan, then form can be understood as the persona of the ideal board member, which we typically reduce to the concept of qualifications since we are generally ignorant of how to evaluate the equally important attributes of character. Function is the role(s) these ideal directors are to play once selected or elected. And if form does ever follow function then my suggestion is that we, as a virtual planning group, begin the next short series of messages by defining first the function of the ideal board of directors. Then we can attempt to describe the form of the ideal director.

So please be my guests in adding your comments to this week’s message by sharing your thoughts on the function of Mid-Continent’s board. Just keep in mind that to participate requires a positive attitude for contributing constructive ideas. This is not a cheap forum for venting against anyone in leadership. Besides you would not want to say something that would disqualify you from consideration as a board candidate.

Next week I will summarize your contributions and supplement them with my own view on what is important in a functioning non-profit board.

By: Don Meyer, Manager

My father was a Texas boy and even though my parents moved to California before I was born, the first music I recall hearing (other than hymns at my mother’s church) were the country-western songs played on my dad’s favorite radio station. The beautiful harmonies of the Sons of the Pioneers were well known to me long before those of the Beach Boys and to this day I can still recall every word they sang about tumbling tumbleweeds and cool, clear water.

Coincidentally the procurement of clear water, and in sufficient supply, has been a hot topic at Mid-Continent since the organization moved to North Freedom in 1963. Our problem is not that we face the barren waste all day long. We are saturated with water that continually flows from a well loaded with iron particulates, which must be filtered before it is distributed to the various hydrants and taps around our property.

The well’s capacity is another issue. It is suitable for domestic use only. This means it can provide drinking water to our bubbler and an adequate supply to our restrooms so we can flush toilets. What it cannot do is support a fire suppression system, which is a critical need for an organization tasked with the protection of its collection of wooden rolling stock, maps, photos and other paper documents.

When our current Board of Directors meets in June it will mark the 25th anniversary of a report commissioned by their predecessors concerning a plan to access the municipal water and sewage systems of the Village of North Freedom. The study was done by an independent firm of consulting engineers out of Stevens Point, WI. And they brought their expertise to Mid-Continent’s aid by providing options for making the connection with the Village in order to meet both our water and sewage needs.

Unfortunately we do not sing with the same harmonic precision as the musical heroes of my childhood. Therefore we are still without these services; still debating the plan for the installation and commiserating over how it is to be funded. All the while we run the risk of hazardous loss to our collection while incurring the burden of sustaining an archaic delivery system.

The engineering study is fascinating in its detail. The firm proposed two routes for both the water and sewage connections with the Village; option A being along the road onto our property and option B being along the right-of-way. They determined our need based on attendance figures, with an appreciation for the variances that occur during the course of the season. And they analyzed our expenses for pumping the holding tank that was in use at that time. Then they devised the water and sewage systems to meet the peak needs of our operation.

Construction costs were itemized for both options with plan A projected to cost $95,800 and B $130,200. They anticipated that Mid-Continent could not pay for either option in a lump sum, so they calculated the annual financing cost for a ten year note at 10% interest. And to their credit they showed the annual cost of the systems, including the fees that would be charged by the Village for water and sewage usage, net of the savings from no longer having to pay for the holding tanks to be pumped. The increase to operating expenses for the ten years following construction would have been $13,000 for option A and $18,600 for option B. And had Mid-Continued pursued either option submitted as part of that 1985 report, I might have had the honor of paying off the note when I arrived at the museum as the summer manager in 1995. Oh well (pun intended).

But while I am giving credit where credit is due in the drafting of this report, here is one more feature the consulting engineers provided our directors, the contact information for eight foundations that were known for issuing grants for capital improvements. That is certainly music to the ears of any non-profit manager who is constantly on the lookout for possible funding sources. And it should have provided us with an incentive to pursue the project since it gave us a desirable alternative to borrowing. Now for the downside.

The report notes that the Village leadership was concerned about their systems being overwhelmed by our demands should we grow. So the report contains a statement by the Department of Natural Resources attesting to the capacity of the Village’s systems as being adequate to meet our needs up to a projected annual attendance of 50,000 people. That sounds good until you read the fine print, so to speak. Our leadership made a major concession as part of this study, which is captured in one simple sentence: The museum does not plan on using municipal water for its steam engines. Yes, we do. So a new study will need to be conducted in order to understand what the demands will be for the supply of water from the Village in light of all our wants and wishes for a taste of that cool, clear water.

In 2005 President Jeff Bloohm put together a new plan in order to get a more reasonable estimate on what the cost of construction would be at current rates. He followed the basic design of option A from the 1985 report and made the necessary upgrades needed to support our steam program. The plan was then submitted to an excavating firm who returned a bid of $107,592. But please note, this new estimate was for the installation of a water line only. Running a force main attached to the Village’s sewage system was not included in their scope of work.

Three years later I used this information and took a shot of securing funding through the office of our senator who serves on the Appropriations Committee, the people who funded that Alaskan “Bridge To Nowhere.” For my purposes I added an inflation factor, plus the costs for a new engineering study and construction permits and reached a project estimate of $150,000. Needless to say, we did not get the funding. I guess our project had too much sense of purpose behind it to qualify for federal support.

Since that time others have recommended additions to the plan, such as installing the force main for the sewage system while we are trenching for the water lines. And so you have read in a previous exchange through this web log about the cost being nearer the $200,000 mark. And that is the goal Judy and Darryl Gasser have responded to in their pledge to help raise money for this project specifically for the purpose of supporting our steam program.

Twenty-five years after the original report was issued we are still at square one. We need a current engineering study in order to resume our discussions with the Village and the DNR. One bit of good news, however, is that this project is exempt from the flood plain issues our other projects must conform to since this one is underground. Sauk County’s Office of Planning and Zoning has already told us they have no jurisdiction here unless we see the need to add a physical structure above ground, like the type of pump house the railroads used in conjunction with some of their water towers.

So here is another much needed, long talked about infrastructure project lacking the funds for its implementation. In my opinion the solution to our funding problems is rooted in our organizational structure, particularly in the composition of Mid-Continent’s Board of Directors. And that will be the subject of the next few web log messages as we continue to discuss the topics raised by you in response to Stan Searing’s proposal made as a guest blogger.

I sincerely appreciate the wealth of comments received in response to last week’s message. Who knew a bridge could rival steam for generating such a high level of interest? It is my hope that we can continue to use this web log as an open forum for the expression of various – even conflicting – ideas shared in a civil, respectful fashion. You have proven we can harmonize with the best of them even if we are singing the blues.