The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1904-03-18
7th aso4-Mr. w S. lambert, Mankato,


authorized to say if the town of Man
kato puts up her $4,000 in conjunction
with Mr.. Drake of Philadelphia as out
lined TO me my people can handle bal
ance Of bonds.
let me know by return mail the dis
position of Mankato in the matter. 70,
understand it is not so much the i'm
portance of raising $4,000 as it is o.
showing that the people on the grounC
have faith in the undertaking. My PEG
pie are depending on the action of Man
kato to decide the desirability of tn
investment. Very truly yours,
sd. E. BAXTER"
philadelphia, Pa, Maren 3, l904.-Mr
VIM. s. Lambert, Second Vice Presi
dent Minnesota Central Railway, Ameri
can House, Reading, Pa. Dear Sir
After careful investigation of YOU
plans and specifications for that por
ton of your proposed Minnesota Contra
railroad between Mankato and Nicollet
we find that this section will cost in thu
neighborhood of $30O,0OO We are en-
tirely satisfied with the arrangements
you have shown us as to che raising o.
S250,000 of this amount and just al
soon as you CO nshow us the manner IL
which the balance $4,000 is provided
and that the amount is Forthcoming upoI
the completion of the first fourteen
miles and bridge in equally reliable man
ner we are ready to proceed at once
with the shipment of materials and will
begin actual work just as soon as wea
Their permits.
''As to the balance of this censtruc
ton as per our contract with you we
will proceed with each section Just as
soon as you can show us that the money
is provided to pay for that section wher
completed. Your plans as outlined TO us
by your New York man whom you con
ferred with yesterday fer the raising OF
60 per cent of the money for the whole
road is perfectly satisfactory. Youss
very truly.
DRAKE, MARKEE & CO.,
"Per. F. S. Drake"
Mr.. YarneN said that Mr.. Drake was
instrumental in financing the Bingham
ton Southern railway in New York
which was completed last year at cost
of $4,000 a mile. He said that he
would be glad if the meeting would ap-
point committee to look into the reli-
ability of these men and their inten-
ton to carry out the project. The fnan-
ciaI ability of the construction company
and Mr.. Drake and his associates can
be looked up. The Beacher Farm Mort
gage company of Minneapolis is the
trustee, and the bonds are payable in
New York, principal and interest.
Mr.. Hunt asked whether any other
railroad was behind this project, and to
this Mr.. Yarnall replied that there was
not One or two railroads had put out
feelers, but that was all.
Mr.. Hunt asked whether there was
any assurance that the road would not
be turned over to some other railroad,
and Mr.. Yarnall replied that there was
no intention at the present time to do
that. The company intended to build
and operate the road itself. He knew
several of the people who are interested
in the road, and knew that they do not
have in contemplation any project for
turning over the road, and was sure that
they would not in the near future.
w. d. Willard asked whether the COM
pany had already entered into con-
tract with Drake, Marley & Co. to build
the road. Mr.. Yarnall replied in the af
frmative, and said that the road would
be built, but it was desired that $780,
900 of the bonds be taken here to help
in disposing of the other securities in
the east.
Dr. Andrews asked how far the right
of way has been secured, and Mr.. Nc
Kinzie replied that it had been secured
from Nicollet to New Auburn, distance
Of thirty miles.
Mr.. Yarnall said that a syndicate of
capitalists have agreed to dispose of
sixty per cent of the bonds, and Drake,
Markey & Co. would take the other for
ty per cent.
Several gentlemen were called upon
for remarks by DR.. Andrews.
w. L. Hixon said that his experience
N building roads had not been particu-
arly successful up to date, but if there
s anything that the people of Mankato
ire in need of, it is north and south
road. A glance at the map was suffi-
,ient to show that the road would be a
paying investment if it was well man
ICED and not overcapitalized. He sug-
rested that it would be we'll for the city
o profit by its past experience and
hat the chair appoint a committee to
7erify what had been said in regard to
he eastern backing of the company, az
% their financial standing and inten-
ions. If they were found to be all right,
lie could not see but what the propo-
'ition was all right. Bonds issued at IS
Der cent would mean six per cent in
Testment, and he thought that it would
prove safe investment. He saw no rea-
son why the company should not get
assistance in Mankato, and he did not
,hink. that too much was asked of the
.ity, especially as he understood that the
- -.