The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-12-29
i 4 e.. 4sfaf T.
Dealfor the Alphabet Is Put
Through.
REED RESIGNS PRESIDENCY.
Line Will Be Built 10 Mankato and
Fifty Miles Beyond; Plenty Of
|. IS = Capital.
From Fridays Daily.

Late yesterday afternoon the deal
whereby the Duluth, st. Cloud & Man
kato reailroad becomes the property of
the Tobie interests was practically clos
ed. The money will be turned over
next week. probably on Tuesday. Cap
tain Reeds resignation from the presi-
dency has been received by the direc-
tors and it will be accepted within a
few days. The road will be completed
to Mankato and fifty miles beyond.
There will be no lack of finances to
carry out the original plans.
There have been many reports in cir
culation as TO what is being done or
not being done regarding the north and
south road" The following is from The
/ Glencoe Register:
The Register called on President Reed
of the Duluth, CT. Cloud, Glencoe &
Mankato Railway company for a state
ment of facts concerning the selling out
or turning over of the franchises of the
road in view of the fact that The En-
| terprise last week made such statements
as has caused friends of the road to be-
come more interested and desire to
know the exact facts, Ceptain Reed said !:
"While it is not good policy to give
ont the action of railway corporations
know better how to prejudice the other
interest, but | think l can give you
enough of facts in regard to our stock
holders meeting held here on Dec. 5th,
and the transactions which led to its ac-
ton without prejudicing the interests
of any friend of the road We had con-
tracted with one +. l.. Tobie & Co. to
construct and equip the entire line from
Albert Lea to Mankato and have it
ready for operation by Jan. lst, 1905,
and secured a guaranty bond from him
of $4,000, that the contract should be
| fulfilled to the letter. Being unable
to fulfill his agreement and contract
and realizing that his bondsmen might
be called upon, Tobie began to nego-
| tate with the directors of the Mankato
end, soaring them into selling out to
him cheaply by Mr.. Tobie intimating to
them that receiver might be appointed
unless we turned all the stock to him.
After long and urgent pleadings by two
directors. | signed an option agreement
with them to sign over. all of our stock
to them for stated sum and a bond
to pay all company Indebtedness and to
indemnify us against any and all liza
bility that we were under, or might
arise on account of our action as direc-
tors of the company; giving Tobie
twenty days to accept the option and
fifteen more to pay the money and fur
nish his indemnity bond. AS l had heard
that Tobie was instrumental in prevent
ing the Royal Trust company of Chi
c1,go, trustee of our mortgage bonds,
from delivering us the number of bonds
due us supposedly to create financial
stress with our directory and force them
to sell out more cheaply, and his inters-
est shown in trying to find out how
many voting shares of stock we had out,
led me to believe that it was his inten-
ton to get control of the directory be-
fore he paid over any money or compli-
ed with his agreement, hence anticipat-
ing that the Tobie element would be
here in full force on the 1890 train and
| that they might control votes enough to
elect their board of directors | called
| the stockholders meeting to order
promptly at twelve o'clock as authoriz-
ed By our bylaws and we proceeded to
| elect new board of directors for the
ensuing year. Mr.. Tobie made his APP
pearance at the meeting soon after our
| directors had been elected. with three
lawyers and one railroad president.
1 NltHout tiic HioHSy Ht Was W pay VI
the bond he was to put up, and for one,
believe we could make a better set
Element with him and get more for our
stockholders with n board of directors
of our own choosing than with him. The
gentlemen accompanying Mr.. Tobie
were: Robert Kerr of the law firm of
Kerr & Kerr, Chicago, attorney for the
Royal Trust company of Chicago; Sem
ator Morgan of the firm of Morgan g.
Meighan, Albert Lea; F. NJ Catlin Of
st. Paul, attorney and w. II. Fisher.
eX-president of the st. Paul & Duluth
Railway company.
Directors of the alphabet" are not
disposed to enter into a controversy with
Captain Reed, but they appear to be
well satisfied with the course that af-,
fairs have taken. Mankato people will
be glad to learn that the road is 10 be
constructed from Albert Lea to this
point.
TO CURE A COLD IN ONE DAY.
Take Laxative Bromo Quinine Tablets.