The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1904-07-22
From Thursdays Daily.

an electric street car line, at lasI HlShI D
public meeting held in the board of trade
room under the auspices of the Mankato
Business Mems association. As. re-
suit of the deliberations of last night
a subscription paper is now being cir
culated, whereby the signatories agree
to purchase bonds secured by a first
mortgage on the street car system, pro-
yided one is built. The bonds are to
run for twenty years and bear four per
cent interest. The subscription paper
pledges the signers to put up their
money in installments, as the work of
building the street car line goes on. There
is thus no risk of the purchasers of these
street car bonds losing any money, as no
more bonds are to be sold at time than
there is property of the street car COM
pany to secure such bonds. Thomas f.
Deegan of Philadelphia, the street car
line builder, whose work on the Fargo
Moorhead line and whose visits to Man
kato have been previously spoken of in
the columns of The Free Press, will I'M
dertake to build such a road and get it
financed by eastern money provided the
people of Mankato will buy bonds to
the amount of fifty thousand dollars.
Details are yet to be worked out.
1t was quite an enthusiastic meeting
of citizens that gathered in the board of
trade room last night. About fifty rep
resentative business men were there, and
all were deeply interested in the pro-
ject in view.
c. n. Andrews briefly stated the propo-
sition that the meeting had been called
to consider The parties, who are now
building an electrical line in Fargo, have
stated to Mr.. Hance that the same
could be done in Mankato. They came
to the city and looked it over and said
that such a road could be made self-sus-
tanning. These are practical rail
road men engaged in the business
of actually constructing street railways.
They had built many plants that are in
operation today. They are practical
builders and not promoters. They are
backed by a firm of respectable money
handlers that are engaged in putting out
money of their clients for reputable bust
ness enterprises.
Capital for the financing of such en-
terprises as new street railways can be
readily obtained in the east. The east
is burdened with money that the aown-
ers are seeking to put out into such leg
itimate business enterprises. Now that
both political parties have nominated
men who will not cause uncertainty in
money circles, there will be no hesita-
ton on the part of money lenders be-
cause this is presidential election year.
The builders now operating at Fargo
propose to Mankato that company be
organized that will build the road with
out any watered stock The bonds of
the company are to be issued to the
amount of the actual cost of construct
ing the road. No bonds are to be sold
for any other purpose than to complete
the road and get it ready to run.
The citizens of Mankato are asked to
take bonds in the amount of one-fourth
of the cost of the road. The road will
probably cost somewhere in the neigh
borhood of 100000. Probably smaller
sum than this will be obtained to start
with. 1t issexpected to build road
about seven miles long
If the Mankato people will purchase
bonds in the sum of $4,000, the parties
making this proposition will take the
balance and sell them. These bonds are
to be secured by a first mortgage on
the franchise and property of the cor
poration.
This is no stock gambling scheme and
there should be no suspicion of graft.
The bonds purchased by the Mankato
people are to be exactly like those sold
to eastern parties and secured in precise
ly the same way. If the road does not
pay, the bondholders will soon own the
road. Those builders, however, say that
it will pay. They say that the first line
to build is not country but city line.
extended. They say that a mile should
be built if there is only $4,000 available.
1t will grow and take care of itself.
Mankato people can go into the pro-
ject with the reasonable hope that it is
a safe investment. Mr.. Andrews could
see no advantage that could be taken of
the community by these builders.
Henry E. Hance said that early last
spring he had talk with t'ase parties
atFargo, and looked over the line they were
building between Fargo and Moorhead.
This line is to cost about 100000. As
a result of this visit, and conference
that Mr. Hance had with the builders
on the subject of a line in Mankato,
Thomas F. Deegan of Philadelphia incl
dentally stopped at Mankato on one
of his trips between Fargo and the east.
Mr.. Deegan looked over Mankato and
said there was an excellent opportunity
of doubling the population of the place
by a street car line He said if the peo-
pie of Mankato would raise $4,000 to
purchase first mortgage bonds on the
road, he would guarantee to have the
road completed by Jan. l. 1905.