The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-12-29
TOBIE & co. TO GET CONTROL
Negotiations Are Now Under Way and
the Deal Will Be Closed in a
Few Days.
The following story is from The Al
hort Taa Standard.

authority that the Alphabet railroad ha.
been sold by President Reed and his as
sociates of the roiginal management anC
that contracts, deeds, of assignment anC
other necessary instruments conveying
the franchises and entire property Of
the road have been executed and are Oh
deposit, that the money will be paio
over, the transaction fully closed ant
possession will be given to the new
owners this week.
"The deal has been financed by Z. L
Tobie & Co. and this firm with some
other capitalists have provided the nee
essary funds to take over the property
The Standard is assured that the Alpha
bet is to remain under independent
management, that no other railroad will
have any control of it, but of course. il
does not follow that later it may not be
absorbed by one or the other of the big
through systems. This, however, we
may in all likelihood depend upon. The
line between Albert Lea and Mankato
at least will not be built"
The Free Press is in possession of in
formation which is to the effect that
negotiations for the sale of the road are
now under way, and that Tobie & Co.
will take charge of all the property. Cap
tain Reed is still president of the road,
but in name only. The deal will be
closed in a few days.
The Albert Lea Enterprise has this to
say on the railroad situation:
No deal has yet been consumated
whereby the interests controlled by Cap
tain Reed and his friends in the alpha
bet" road have been transferred, and in
spite of the story which appeared in
The Minneapolis Journal of last week
as special from Albert Lea, to the eff
feet that while Captain Reed had been
re elected president, the real executive
head was another gentleman whose
name is not given out, it would appear
that the Glencoe man still holds the
whip hand and if Mr.. Tobie or the peo-
pie whom he represents desire to own or
control the new road they must show
the color of their money.
1t is possible that the negotiations
for the purchase of the road, as set
forth by the newspapers two weeks ago,
were being conducted in good faith.
The Albert Lea Enterprise has learn
ed, however, on the best of authority,
that Mr.. Tobie insisted that the stock
should be eschewed in some bank and
ceptance. Reed contended that Tobie in
tended to get the stock into his hands
before paying over any money and no.
titled Mr.. Tobie that no stock under his
control would be turned over to him un-
til the money was paid over.
In the meantime Captain Reed had
learned that Tobie was scheming with
the Royal Trust company of Chicago,
trustee of the company, who held the
bonds of the railway company in trust,
to keep the bonds from being delivered
to him, supposedly to Great financial
stress of the railroad company, in which
event he could better buy or force the
directors out on his own terms but fail
ing to get money enough before the day
of the recent annual election of the
stockholders, he probably thought that
by the aid of his friendly directors he
could easily elect his own board and
settle with the stockholders as he pleas
ed, get rid of the liability of his $4,000
surety bond, and possession of the $780,
900 of the first mortgage bonds that
were coming to the company and the
$4,000 of local township bonds that
had been voted to the company along
the line.
Mr.. Tobie being the owner of quite
a block Of stock invited several of his
friends to attend the stockholders
meeting with him, instructing one of his
friends on the board by phone. to hold
the meeting open until he could get
there. President Reed anticipating what
might happen if the Tobie crowd should
come insisted on immediate action. at
twelve o'clock, called the stockholders
to order, secured the selection of cahir-
man and secretary and proceeded to
elect seven directors to serve for the en-
suing year, as follows: A. FL. Reed, 7,
L. Pollock; j. S. Davis, f. Vollmer, HUI
bert Bruels, Frank Z. Reed and Robert
z. Odds. These members after filing
their acceptance elected the following Of
ficers: A. H. Reed, president; f. Voll-
mer and +. L. Pollock, vice presidents
Frank f. Reed, secretary and treasurer
One of the Tobie directors took his
hat and left the meeting before the vote
was declared and hurried to the train
to bring Mr.. Tobie and his friends in
in time to vote. but as they entered the