The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1886-04-30

Hons. Is. Is. langdOn ana IL. IL. fraZee
were present and had some knowledge
of some mysterious sale of the stock OF
the railroad in question. Here is a let
ter from Mr.. Langdon, dated Minneap-
oils. April 81, 1856:
~ II. Baker, Esq.--Dear Sir: Yours Of the |
2ist received; In reply can only say that was
not present at the sale Of the st. C., A.
railway, and know nothing about the matter |
except newspaper talk ~. Yours r. truly Iy,,,.
Mr.. Frazee gave the same answer to
Mr.. Campbell M Mr.. Iangdon,
Another falsehood, formerly promul-
gated with vigor, was that We had sold
the stock to the Manitoba company, or
To J. J. Hill, and that company securing
the franchises, had locked them up To
prevent the building of the road; that
st. Paul had set itself against the build
ing of the line; that we were thus par
ties To, and connived at, the prevention
of the building. This was denied by us
with no avail. Mr.. Hill was willing to
he summoned before the house com
mittee, but was not Here is II DISPOSE
ton ofthat matter by his own authori-
ty:
st. Paul, Mimi. April 81. lsso-Hon. w. II.
Omcer-Dear Sir: have your favor Of the
18th inst E. and In reply beg To say that neither
myself nor the st. Paul, Minneapolis 4 Mani
toba company purchased any oil the STOCK OF
the st. Cloud, Mankato & Austin Railroad
company three years ago, and further, that no
impedimcnts were placed In the way of the
construction of that line by any other railway
10 INV knowledge. l think the efforts made
would have succeeded in building the road,
excep; for the general depression of business
following the time when the enterprise was
taken up. Yours very truly, JAS. j. Hill.
The whole story that st. Paul had
gone into combination 10 obtain and
I al, oil nj,
There is not a particle of evidence in
the world that st. Paul ever bothered
her head about it.
HISTORY OF THE CASE.
| We must he INDUCED with brief his
tory of the case to get it properly be-
| fore us. The corporation We are con-
sidering is the product, by consolida
\ ton of two railroad companies, viz: the
Austin 4 Mankato and the st. Cloud x
Mankato Railroad companies. This
| consolidation took place i'm 1879, by au-
| thority of an act of the legislature, and
| henceforth became the st. Cloud, Man
kato Il Austin Railroad company. Up
To this time the company was wholly
without means, being nothing but pen
niless organization under the general
laws of the state. In the summer of
1879, the parties interested made con-
siderable expenditures and incurred
heavy liabilities, which became person
nj indebtedness. These are the parties
against whom this investigation is now
made. This Indebtedness was occa-
stoned by careful survey Of the entire
line, making protiles and detailed esti.
mates of the work on the whole route.
These expenditures, which were still
personal, were largely increased by the
. / "A
the legislature, To procure the passage
of laws necessary tn the advancement of
the enterprise. About this time, the
parties interested sought and made a
consolidation with Il railroad company
known as the Minnesota x Iowa Mid
land company, which WAS Il branch of
the Minneapolis Il st. Cloud Railroad
company, and possessed Il land grant of
four sections to the mile, from st. Cloud
in a southerly direction. When this
consolidation was finally secured, an
amount of new stock ofthe new CONSOLE
dated company was issued to the parties
hitherto owning the stock of the Iowa
Midland, in part consideration of their
interest. This stock was subsequently
bought and paid for by the persons
heretofore mentioned and these rights
and franchises became their property
rs represented by the stock. In this
manner and by these long, laborious
and expensive efforts, the company has
now acquired franchise and the right
To earn lands, which gave it some little
prospective Importance and value,
But the company, unable by them
selves, however, to build the road, in
dustriously sought the aid of some ex-
istIng and strong railroad organization
which might be induced to take the
| franchises and land grant and build and
operate the proposed line. Much time
and considerable expense was incurred
in these protracted efforts. About this
time, by accident, while in Chicago, the
attention OF the company was directed
To the Railway improvement Company
of North America, whose place of bust
ness was i'm New York. A correspon-
dence ensued. They were found to be
strong corporation, organized to build
lines of railway for speculation, and sell
| ling, when built, to other lines, to whom
they might, once built, be a necessity
They sent ont their agent and an en-
gineer of their own to 60 over the line,
making careful examinations. The re-
mort was favorable. This Improvement
company, after some correspondence
| finally agreed to construct the entire
line. 1t was the only opportunity or
proposition the company ever had Of
fered of securing the construction of the
line. 1t was the only opportunity and
| it was accepted. Under the conditions
| of this contract that company became
possessed of q large majority ofthe stock
of the company, and were thenceforth
responsible for the construction of the
line. The majority of the stock, as
| agreed, was duly transferred to the
Railway Improvement Company of
North America, and 80 remains to this
day The chief and controlling consid-
Grafton for the stock was the building of
the road. Coupled with tins was the
agreement to discharge the old COM
panies' liabilities, to reimburse them
for moneys actually expended. and to
partially compensate them for arduOns
services rendered, through more than
three years and half.
The old company fully obligated itself
to perform certain duties in the raising
of a stipulated bonus of 81 600 per mile,
being 100000 for the entire line. This
obligation was fully performed by the
former directors after much labor, per-
sonal inconvenience and great expense.
The contract contemplated and required
the speedy building of the road, which
was TO have been begun within thirty
days after the raising Of the bonuses.
As evidence of the purpose of the Rail
way Improvement company to execute
this contract without delay, could sub
nit dozen letters, any of which de-
mOnstrates its purpose and good faith.
/ will submit one, dated at the com
pany's office in New York city, March
i9, 1888, and addressed to J.. II. Baker,
secretary st. Cloud, Mankato x Austin
Railroad company, st. Paul, Mimi:
"Sir: have received your favor of the 10th
Inst, and contents noted. IL is the intention
of the company TO put engineers I'm the field AT
once, or as soon as they can move comfortably
which suppose will be not later than the
you IA soon as the full amount Of bonds has
been voted, and To receive, at the same time,
u list of the municipalities with memoran
DUN Of the amount given by each munlcipali-
ty. Very respectfully, j.. o. BLOss, Pres't
A long list of such letters showing
good faith on the part OF the company
could be added.
THE FAILURE To BUILD.
In the spring of 1883 the construction
company, which had purchased the
stock and franchises of the road, placed
their surveyors i'm the field, and under
the direction of Gen. j. w. Bishop,
president of the road, expended 5000
in surveys and definite location and |
preparing for construction, when the |
company became embarrassed by reason |
of financial difficulties, and delays Oc-
Cured. They finally explained TO us
that the general financial condition of
all railroad securities was grievously af-
fecting them and they must necessarily
be INDUCED with delays. They would,
renew the enterprise as soon
as circumstances would permit. Their
affairs never permitted resumption of
the work before the eXDiratlon of the