The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1902-07-04
THE DEAL Is OFF
Collins Contract Declared to be
Terminated.
Street Railway Directors Meet and
Take Unanimous Action -Nego-
tiations With FaIk Co.

the Arbuckle Ryan Co for the con-
struction of a lighting plant and street
railway is finally off. The directors
of the Mankato & st. Peter Railway
and Lighting Co . met Monday
and took unanimous action to this
effect. 1t was voted to terminate the
contract with Mr.. Collins, as it was
felt that he has not commenced con-
struction WORK in good faith, although
has had NJ B. Haynes at work for
one day and has secured an option on
property to be used as a site for the
power plant.
The money will be paid back to the
subscribers as fast as they call at the
banks The board thinks that it is
only fair that the actual expenses Of
Incorporation, etc., should be paid by
the subscribers pro rata. As these
amount to $500 to 5000, this would
be two per cent. These expenses
allow nothing for Mr.. Collins, who is
thought to be out about 1000. The
subscribers are requested to pay two
per cent to meet expenses. and will be
given an opportunity to do so when
they call for their money at the
banks. The money has been advanced
by the directors, as they had no au-
thority to divert any mercy of sub
scribers for any purpose. If any of
the subscribers do not care to stand
their share of the expense, they need
not do so, and can get the full amount
of their subscriptions back.
The incorporation fee was $175, and
a forfeit of 500 was deposited with
the city treasurer The expenses of
holding a special meeting of the
county board, VIII, h the company
agreed to stand, were $50. The cost
of publishing the articles of incor
poration was $44. The expenses in
Cured by F. Fl. Kneeland in his trip
to Chicago, and livery hire and a
variety of small items, such as record
ing the articles of incorporation, etc.,
go to make up the total. Messrs.
Hixon and Clark do not ask any
thing for their time or personal ex-
penses.
The beard suggested that some COM
pensation ought to be given to Mr..
Clark for his services as secretary, but !
he declined to accept anything, saying |
that he and Mr.. Hixon made no claim |
even for their personal expenses.
Mr.. Clark teiegraphed Mr.. Collins
the action of the board Mr., Clark |
is convinced that Mr. Collins has no !
claim on the board in any way, as
the contract expired Saturday. He |
does not expect that Mr.. Collins will |
try to make any trouble. He will be
out the option paid on the power house
The board voted to allow the Falk !
Co. of Milwaukee fifteen days in
which to submit proposition for the
construction of lighting plant and |
power house. w. D. Willard has writ |
ten to the company, notifying it of
the action of the board. -
Before the board adjourned, Mr.. !
Clark took occasion to call down. his
which he did in proper
shape. He denounced as false and
malicious any report that he would
have received "rake-o off" had the
Collins deal gone through. He had
been working for the interests of Man
The outcome Of the deal with Mr..
Collins is no more than has been ex-
pected by the public for some time
past. He was acting the part Of a
promoter, and his people demanded
more than he was able to procure at
this end of the line. There is no
doubt but that he acted energetically
and did all that he could to swing the
deal, but the commencement Of John
B. Meagher's injunction suit discour-
aged the people whose money he was
trying to get invested here, and the
work of those who were trying to
"knock" the enterprise in the inter-
est of the present lighting company
added to the obstacles until they be-
came practically insurmountable.
In dealing with the Falk Co., the
directors will not be dealing with |
but with the builders
direct. If the Falk Co. considers the |
proposition to be to its advantage
sufficiently it may build the line, but |
our people will be slow to get their |
expectations to high pitch in view
of the past.
= Secretary Clark states that the
$50, 900 was so hedged about with |
conditions that there was not one
chance in ten of Mr.. Collins being
able to get it if he had built the line |
and that there was no occasion for |
anyone being frightened.
j. B. Meagher, when asked whether |
his suit would be pressed, now that
the deal with Collins was off. gave it |
out that the suit was not aimed par
ticularly at the Collins proposition, but |
at any attempt to similarly combine
the lighting contract with street |
car enterprise. He said Mr.. Collins |
stands high as successful promoter
of enterprises, and his failure here is |
not encouraging for others.