The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1904-03-18
Business Men Decide to Profit BY
Past Experience.
Will See If Minnesota Central Railway
Is All Right.
lfEis, Then Bonds Of Company May
Be Subscribed For.
Encouraging State of Affairs Brought
Out Last Night.
From Fridays Daily.

From Fridays Daily.
1t begins to look as though the Mime
sofa Central Railway company would
materialize on something more substan-
tial than paper before the year is out.
1t appears that the contract for the con-
struction of the road has been awarded,
and that financial backing has been Sc
cured. What is desired now is that ship
pers and others living along the line
shall take some of the bonds to insure
a local interest in the success of the
road, and thus have favorable influence
upon the business and earnings of the
line This is policy often pursued by
railroads as well as smaller enterprises,
where the income depends upon the pat
ronage of the public To q, large extent.
The bonds are offered at such rate
that they will yield six per cent inter
est to the holders. They are not assess
able, so they would be first class in
vestment and probably as safe as bank
stock.
The Joint meeting held last night
at the board of trade room, and partici-
pated in by the board of trade and the
Business Mems association and other
citizens was fairly well attended, and
proved to be very satisfactory to all
concerned. Dr. j. w. Andrews, president
of the board of trade, presided. The
railway company was represented by the
secretary, Claude H. Mckenzie of Gay
lord, Francis Yarnall of Philadelphia,
who more particularly represents the
capitalists who propose to back up the
road, and Hector B. Cady of Minneap-
oils, the treasurer of the company. The
other two gentlemen who are connected
with the road were obliged to leave for
Chicago yesterday afternoon.
The first speaker was Mr.. Yarnall,
who thoroughly explained what has
been done and what it is proposed to do.
He said that they were trying to get
things in shape financially to commence
building operations on the section of the
road between Mankato and ST. Cloud, a
distance of 10 miles. Work would be-
gin as soon as a local interest in the
project was shown, and the line would
be built from Mankato northward, and
the entire line to St. Cloud would be
operated next winter. He had been look
ing over the route for few days, and
that the cities and farmers along the line
have been as successful as they have
with their limited railway facilities was
remarkable, he thought. He spoke of the
difficulty of going or making shipments
from one point to another. The con-
struction of the road would be high
class, as the specifications had been cop
led almost exactly after those of the
Pennsylvania railroad. Two well equip
ped passenger trains would run daily
each way between Mankato and st.
Cloud He felt absolutely certain that
Int lodu "oulu NC pioh1dUIc' 1hc c"oI
ern capital has been practically secured,
but with the proviso that the eastern
capitalists feel that the people living
along the route should give a substan
tial moral support by taking some of
the bonds and thus enabling them to
dispose more readily of the remainder.
Several towns have voted bonds, and
Hutchinson and Litchfield have promis-
ed to take $4,000 each. st. Cloud prom
cannot vote a bonus, but it can aid the
project by taking $4,000 of the first
mortgage gold bonds, bearing five per
cent interest, running twenty years.
These will be issued at So per cent of
their face value. Fifty per cent of their
face value will be called for when the
line has been completed as far as Mic
.ollet, fourteen miles, and the balance
when the line has been completed to
Gaylord, thirty miles. The cost of the
construction to Nicollet, including the
bridging of the Minnesota river, will
be 100000. Some of the securities
have already been sold in the east at 80
per cent. If the company has moral
support at this end of the line, it, will
be ready to begin work at once and ship
ments of material will be made at once.
Replying to questions, MIR. Yarnell
said that provision had been made to pay
the interest on the bonds from the start.
The total bond issue authorized is $2,-
10000, or $lS,40o per mile, which is a
low rate. The company is conserva-
lively capitalized, and for that reason
should be an unusually prosperous road.
1t is expected to raise $4,000 between
Mankato and st. Cloud, and $4,000 at
each of these cities. There has already
been deposited in banks $4,000.
L. p. Hunt asked what assurances
there were that the road would be built. +
He said that the people might perhaps
be a little skeptical, because there had
been several propositions before this
that had fallen through.
Mr. Yarnall handed two letters to
Benjamin Taylor to read to the meet
ing. One was from the contractors and
the other from one of the capitalists.
They were as follows:
"277 Broadway, New York City, March
"A vATE3S IT