The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-06-23
Surety Concern is 10 Put Up
This Amount of Money.
Common Council Holds Meeting
With Its Representative.
Railroads Must Not Leave Any
Cars on Pike Street.
From Wednesdays Daily.

From Wednesday Dally.
The council held a special meeting
last evening, the representative of the
Fidelity and Deposit company of Mary
land, which is on the $1,000 bond of the
Practical Gas and Construction company
of North Chicago, being present. "A
compromise was reached, by which the
surety company is to pay to the city
81 800 cash, and the bond is to. be sur
rendered and cancelled.
This is considered to be a very good
settlement. While the city would un-
doubtedly have won its suit on the
bond, the litigation might have been
long and expensive and the payment of
the money deferred. 1t is needed bad
ly now. on account of the street i'm
provement. No one imagines that the
company would have been willing to set
tie if it mad not considered itself legal
lv liable. While it demurred to the
complaint on the ground that the char
ter allows franchises to be granted for
only twenty wears while the franchise
to the Practical Gas company runs
twenty-five years and is thus invalid,
this was mere bluff. As a matter of
fact, the only charter provision limit
ing the length of franchises is the one
relating to street railway franchises.
There is nothing said about any other
er kind of franchises.
All of the aldermen except Aid. Viii
mot were present. Mayor Taylor an
nounced the object of the meeting.
RE. Hamilton of ~Chieesas represent
ing the Fidelity and Deposit Co, said
that while there was "A limit on what
ne could offer, still he had considerable
discretion. He went into the history of
the granting of the franchise, which the
Practical Gas and Construction Co. had
obtained on a guaranty of LOCO to l.
200 consumers Only 600 OF 700 con-
sumers were secured. The company
went ahead. however, but there was a
furry in the money market. Then 1t
cot man to agree to advance the
money. but he failed the company at
the last moment This man made a
failure everywhere he went. At one
place he agreed to put in plant that
would make gas at a profit at ten cents
hot
ply ridiculous. 1t was necessary to pull
out the plant and put in new one. lie
made more trouble at Deadwood, S. d..
and also here. With these three eX-
ceptions. there is no blot or stain on
the company. Gas people are enthusiasts
tic and are easily taken in by persons
claiming to have a process by wIlch
gas can be produced more cheaply. In
law suits, one side or the other always
loses, and there are ways of slipping
out Although the company did not
put in plant, it succeeded III reducing
the prices charged by the local company
which is also making better gas now.
While the Practical company has put in
over 100 plants, it will have to appear
before councils in other cities, and any
money paid here will be with the UNI
Outstanding that it is to have the good
will of the people and not their i'll will
The company is willing to pay $1,000
When he came he thought that 81 ,001
less the expense, about 500, would be
eabout right, but he had been well re-
ceivcd and concluded to raise it. He
had discretionary power to 90 little
higher, if pressed, but had a limit.
Aid. Heinze said that it was the opin-
ion of the aldermen and other citizens
that they ought to have the full
amount of the bond, $1,000 because OF
the precedent, for there are other bonds
that may have to be enforced But il
view of the fact that the price of gas
mas been lowered, and to avoid the
expense of law suit, it was thought
that $l,S00 might be accepted. The peo-
pie do not bulge below that amount.
Aid. Schroeder suggested that re-
cess be taken, and this was done
Afterwards, Aid. Schroeder offered a
resolution accepting 81 800 in full settle
ment of the claim, otherwise instructinp
the city attorney to prosecute the
claim.
Aid. Heinze moved that the resolu-
ton be adopted.
Mayor Taylor stated to Mr.. Hamil-
ton that this was the very least amount
that the city would accept.
Mr.. Hamilton said that he was it,