The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-10-11

the work Is IN progress. a Dond VIII
make no difference with the men bach
of this enterprise as regards the carr
taken. They are putting in theil
money, risking it on whether tn,
investment is profitable or not, and
should have some say. If a bond was
required, the first men to be asked tc
sign it would be the mayor and alder.
men, if it was his matter. This is
the first time that a bond has been
asked of any company here under
similar circumstances. The company
makes contracts with business men for
thousands of dollars, but the latter
do not ask for bond to ensure the
company's financial standing. The COM
pany is amply back of any damage
against the city, without a bond.
Bond Was Promised.
Aid. Atchison said that Mr.. Hixon
had promised to furnish bond. The
company ought to do what it had
promised.
Fred Kron said that he had gone in
to the company at the last minute to
help the thing along for the city's
benefit. He did not expect to make
anything, and if anyone would offer
to take his interest at 81 900 loss the
chances We're good that he would get
it.
Treasurer w. d. Willard said that
contracts aggregating more than $4,000
had been made, but no bond had been
required by any contractor. The COM
pany is amply able to stand back of
any loss to the city, and should not
be asked to give a bond. Those who
had gone into the company later had
known nothing about bond being re-
quired. The company wants the streets
kept clean,. and members had spoken
to the engineer as much as the council
had.
Mayor Andrews asked whether the
company was liable for the damage
done, and Mr.. Pau thought that this
was the case, and that the company
would stand for it. The company is
incorporated under the laws of West
Virginia, but can and must be sued
in Minnesota. All that the company
wants is notice of the suits, so as
to elect to defend or not.
Not Allowed to Bet.
A question arose as to whether
guard rail on Warren street was still
projecting into the driveway, and En-
gineer Wood denied that it was. Aid.
Atchison offered to bet dollar that
it was still there, and Engineer Wood
pulled out his purse and offered to
cover the bet. AID Atchison threw
down a silver dollar and placed it
in Aid. Mahowald's hands.
At this point Mayor Andrews arose
and said that the men were doing an
illegal act and that the bet must not
proceed. The stakes were then with
drawn.
Assignment Just Filed.
The point was made that the city
did not know in what condition the
company was, or in whose hands it
was. Mr.. Pau stated that an as
signment of the franchise had been
filed that day by Messrs. Hance and
Hixon to the company.
Mr.. Pau was asked upon whom
notice of suits could be served, as pro-
vided in the franchise-whether an
agent had been rlamed-and it devel-
oped that none had been. One will be
appointed. Mr.. Pau said that notice
could be served on the president of
the company if there was no agent.
City Attorney Schmitt said that
all contractors no matter how respon-
sible, are required to furnish bonds.
1t does not belittle anyone to give a
bond. 1t is easier to settle with con-
tractors than with corporation.
HI. A. Patterson thought the case
different, as the street car
directors were merely acting for 300
to 400 stockholders, and the contrac-
tors for themselves only. ~
Mr.. Schmitt said that the bond could
be furnished by a surety company,
and the burden placed on all the stock
holders.
Must Hold Cost Down.
Mr.. Patterson said that the street
car line was doubtful paying prop
osition, and the chance to make it
pay eventually was by holding down
the cost, while building a irst-class
line. The line was being built for the
benefit of Mankato.
AID Gary said that a $1,000 surety
bond would not be expensive.
Engineer Wood cited an instance
where the requiring of an additional
bond had injured the credit of the
company with people it did business
with.
MIR. Pau said that such bonds are
not required in franchises in any city,
and here, after the franchise has been
granted, bond is asked for, which
is not fair.
Agrees to Give Bond.
A recess was taken to talk the mat
ter over informally. After meeting
again, Mr.. Willard said that the COM
pany had been under a misapprehension
as to the cost of a bond, but had
learned from Aid Cary that II did NOT