The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-06-22
Commercial Club Is Given the
Details of the Plan.
STOCK FOR LOCAL CAPITALISTS
None Of the Money Need Be Paid
Over Until the Road Is
In Operation.

street railway. In tact, the city seems
to be nearer an electric line than it
ever was before The matter was pre-
scented to the Commercial club at the add
journed meeting last evening by mem
bers of the prospective company, and
the proposal as outlined was favorably
received and the club took steps to as
sist in carrying it through. All that is
needed is for the citizens to take $25 900
in preferred stock, and the road will
be go. A special meeting of the coun-
ell will probably be held this week, at
which a franchise ordinance will be
presented.
The meeting last night was well at
tended, and much interest was shown.
c. n. Andrews said that he supposed
that the city had not passed the stage
when it wanted a street railway line if
it could get one. 1t is now in that po-
sition midway between village and a
CITY when it needs a street car line to
push it over the border line. The ex-
perience of other cities has shown the
advantages of street railway service. Elk
perience has shown that street rail-
way in a city of this size is on the bor-
der line as to whether it is a pay
ing investment. The construction of a
line would not be warranted as the city
is now, but in a few years a third or a
half more street car business can be add
ed as a result of the car line. The city
has not advanced perceptibly in popula-
tion in ten years, but has advanced
greatly in appearance and solidity.
Experience here has shown that it is a
difficult matter to enlist capital All
of the capitalists have said in the past
that large part of the capital must be
raised in Mankato, so as to have local
interest. We have been asked to put
up $4,000 to $4,000 and the capitalists
the balance. The present plan is not un-
like the others, and yet is different in
many essentials. Dissentions in the past
have hampered the project, but now
that a Commercial club has been or
gained the time seems opportune to
take the matter up.
In order to get outsiders interested,
some few local men have to get inter-
tod rnrlyn m
and outsiders had decided to form a
company to build the line, and ultimate
ly perhaps to turn it over to the owning
company, but the whole proceeding
would be one concerted and consecutive
move. Perhaps the franchise would be
asked in one mans name until the COM
pany was formed. The company would
install an adequate, modern and up to
date system with it's own money and
put it in operation before anyone need
contribute. 1t has been decided that
there shall be raised in Mankato $25, 900
on preferred stock of the company, to
be paid when the road is installed and
in operation. The two old companies
had lists aggregating $4,000 of sub
scriptiOns, and this might have been
made a little larger, but it was desired
that the present proposition come to
the city with a feeling of relief that the
road can be secured without hardship.
This sum will be scarcely felt in Man
kato and will ensure the success of the
enterprise.
Preferred stock is second mortgage
or obligation, and the issue of this sum
will eliminate the necessity of that much
bonds. The Mankato men have entered
into private contract with the outside
men. and the amount of the bond issue
will be only enough to construct the
road on dollar for dollar basis. The
amount of common stock will be issued
as the bonds and preferred stock. Mr..
Janney has primarily charge of the east
ern interests and has come into the un-
derstanding at the instance of Mr.. DAILY.
They brought Mr.. Darlington, one of the
leading engineers of Philadelphia, who
spent week or ten days in the city and
made a thorough investigation of the
project and went back and laid the
whole matter before his associates, who
now comes back prepared to carry it
through. The local members haven't
quite the strength to carry the deal
through. If they had, they would prob
ably do so Before asking for a fran