The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1911-07-14


One of the most important bust
ness transactions for Mankato from
every point Of view, has just re
Gently been closed, in the transfer
of the management of the MankatC
Electric Traction company to the
hands of Chicago interests with large
financial backing, who propose tc
make not only local extensions o.
the line, but to construct an interur
ban line from this city to Willmar
via Kasota and st. Peter. This viii
give Mankato direct connection with
another large railway system, the
Great Northern.
The negotiations have been in
progress for some time, and have
been conducted without unnecessary
noise or blare Of trumpets. That they
have come to a successful conclu
sion is due very largely if not en-
tirely to the activity and business
sagacity of w. l.. Hixon, the presi
dent OF the company, according to
information which The Free Press
has
J. J. Cummings in Control.
The control of the company now
rests in the hands of ]. ]. Cum.
mings, of the MCGUIRE, Cummings
Manufacturing company of Chicago
manufacturer of steel cars and other
railway equipment. Mr.. Cummings
Visited the city early last spring
End inspected the line carefully and
went over the route of the proposed
interurban line. At that time he
had no thought of taking over the
local line, and was in the city mere
" on the interurban proposition. He
is in no sense of the word a pro
moter, but is an actual builder and
has the money himself and is allied
with financial interests that have
the money to finance much larger
projects than the Mankato-Willmar
one. He has built up reputation as
a successful organizer and builder
and has made a specially of taking
hold of lines that have failed or do
not pay and of building them UP
and putting them on a paying basis
He has done this in many states
of the middle west, and invariably
has met with success. It is said
that not a single failure has result
ed. He is a man of keen insight
and great energy, and his plans are
laid on large scales.
When the management of the local
street car line first put up to Mr.
Cummings the proposition that he
purchase it or take an interest in
it, he absolutely refused to consider
the matter, as he said that the line
would never pay as it is now, and
the city was too small for him to
become interested in. He said that
the city was not big enough and
the line was too short to ever pay
OF itself, but if extended so as to
cover the city and suburbs better
and If connected with an interurban
line it could be made a paying prop
osition, and only on such a basis
would he enter into negotiations.
Deal eliminated Three Weeks AGO
The negotiations extended over q
considerable period, and it was moi
until three weeks ago that they
finally eliminated in the transfer oil
the control and management to Mr.
Cummings. Since then he has been
personally directing the management
of the road, through it's local Off
Gals and has insisted on his or
ders being carried out, even when
not in line with the judgment of the
local directing officials.
By the terms of the agreemen,
with Mr. Cummings he has taken owe,
all of the common stock of the
road, which carries with it the fran
chise at the annual meetings and
the consequent power to elect di
rectors. The annual meeting of the
stockholders will be held later this
month, and at that time directors
will be chosen, and it is appre
hended that changes will be made
on the board. 1t is supposed that
some of the directors will be re
tanned and others replaced.
The common stock has practically
never been issued until this time
only twenty shares each beins
given to those who put the greater
part OF the money in in order that
they could have votes. Mr.. Cum
mlngs gets all of the common stock
without paying dollar either to the
company or to any individual con
nected with it so The Free Press
is authoritatively informed.
Must Furnish Considerable Cash.
BY the terms of the sale or agree
ment, Mr.. Cummings is bound te
furnish so per cent of the cash re
CURED to make certain improvements
and extensions of the city line ant
for building the interurban electric
line to Willmar. The other forty pei
cent Is to be raised locally and alons
the line. When that has been done
the improvements and extensions will
be made. No bonds are to be ISSUED
without the consent of the Mankatc
parties.
The bondholders and holders o
the preferred stock of the road are
nothing out by the change eYoan