The Mankato free press., 1904-08-26
Assurances Secured for Build
ing of Electric Line.
Work Will Begin This Fall, If
Stock Can be Sold.
Local Company Could Secure
C0ntractin That Event.
From TUESDAYS Daily.


Senator A. o. Eberhart returned this
noon from his trip to New York city in
the interest of the Mankato Railway,
Light and Power company. His trip was
very successful, and he states that the
city and St. Clair lines are sure to be
built. The question now is who shall
build them, and that is about the only
question. Shall it be local contractor
or construction company or shall it be
one of the eastern companies? If it is
done by local men much of the expense
can be saved, and at the same time the
large construction profit can be kept in
this city. If Mankato man or COM
pany does the work, the control of the
majority of the stock will be retained
in this city and that means that the
company will be purely local and the
local people can say what kind of cars
and other equipment, shall be used, Sc
lecting as good as they want.
On the other hand, if the contract is
let to an eastern company the control
of the stock goes there, which means
that the policy of the company will be
controlled in the east.
In order that the work may be done
by a local man. it will be necessary that
a sufficient amount of the preferred
stock be subscribed for in Mankato to
warrant local man in going ahead. 1t
is expected that about $4,000 will be
taken in Mankato and an equal amount
in the country along the line of the
road. If this amount is subscribed then
the work of construction can begin this
fall, otherwise it cannot begin until next
spring, as it takes three months or
more to place the bonds and get cash
on them. 1t is hard to sell the bonds
before the road has been built, but when
that has been done there is no difficulty.
The way the construction companies
do, generally, is to take half the contract
price in bonds and stock and half cash.
Thus, if cash can be raised at once, the
work can begin at once, but if it cam
not be raised, then work will be delayed
until it is raised. The machinery houses,
ETC., also generally take half cash and
half bonds and stock
1t is proposed that the subscribers for
tho prafarrad StooL chal nov Gov - ~
installments as the work of construction
proceeds.
c. w. Silver of Cincinnati, the western
manager for the Municipal ;Bond and Sc
curities company of New York, will ar
rive in Mankato in two or three days,
and then he and Senator Eberhart and
NJ. G. Willard will see the business men,
property owners and others for the pur-
pose of securing signatures for the
stock. Not much trouble is anticipated
in raising the amount desired. The pre-
ferred stock will draw six per cent in
terest, and will be a desirable invest
ment. The more of this that is issued
the less bonds it will be necessary to
float. Next week, President Norvale of
the Municipal Bond and Securities COM
pany will come to Mankato. A Phila-
delphia man could have been secured III
the place of the Cincinnati man, but il
was thought that the latter would be
more satisfactory, being western man
and more familiar with western condi-
tios and methods.
Mr.. Silver will be authorized to let
contracts, and if the stock subscription
is what is expected he will do so soon
in order that work on the city line may
begin early this fall.
Senator Eberhart saw the officer of the
Colonial Construction company of New
York, and this company stands ready
to take the construction contract for the
entire work, and take its pay one-half in
bonds and stock and the balance in
money. However, MI Eberhart believes
that it would be better to interest local
contractors, and if no single one can be
found who is willing to take it, ther
that construction company be organic
ed by several of them. An outside com.
pany would send in its own plant ana
bring it's labor from outside, and not
as much of the money spent would re-
main at home as if local company die
the work.
The Municipal Bond and Securities
company is willing to put up bond thai
it will finance and build the line as pro
posed. Mr.. Eberhart looked into the
standing of this company and found
that it is first class. While he was
there it made $4,000 deposit that il
would build an electric line in Texas
and also took the contract for building
ITO miles of steam road for the Anamosa
& Northern railway company in Iowa
The company has financed and built the
Nincennes, West Baden & Louisville eHc
trio line in Indiana, the Frankfort &
Versailles Traction company's line il
Kentucky, and Wabash g Roshester
Ind, electric line. These are all rura
electric lines.
While in the east, Mr.. Eberhart saw