The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1914-05-21
VOTE
APPROVAL Upon
ELECTRIC LINE
Luce Project Endorsed
at Mass Meeting
Last Night.
$4,000 IS ASKED
With This Amount of Stock,
Promoter Says the Line
Will Be Built.
From Tuesdays Daily

ooltioH dS SeI loill NY wi. u. u. LUIGI
of Minneapolis, for the sale of $780,
600 of stock under contract to eX-
tend the Luce electric short line
system from Madison to Mitchell.
Under the terms of the contract
by which the stock will be sold in
Mitchell, with each 500 block of
preferred stock, which is non-as-
a~ssessable and non-accumulative,
bearing 6 per cent interest, will be
given a bonus of $50 of common
stock. The stock will be sold under
a contract to build the road into Nit
chell within six years, the subscrip-
tions to be held in escrow until the
stock is delivered.
George A. Silsby, a member of the
committee of the Commercial club
Minneapolis a month ago, acted as
chairman of last evenings meeting
in the city hall auditorium. The ses-
sion was attended by about 200 of
the representative business and pro-
fessional men of Mitchell.
History of Project.
Col. Luce, general manager of the
corporation, occupied the floor prac-
tically the entire evening. He first
related the history of how he and
his father, E. l.. Luce. had retired
from a line of elevators in Mime
sofa several years ago and finally
cast upon electric railroads as the
best system of investment. With this
idea in mind, and the success of a
short stub line owned by the Luces,
had been conceived the idea of the
road now building. sn.
In Analysing the history >of cleo
trio railroads, Col. Luce declared
that large cities had almost invari-
ably grown in recent years at the
intersection of several railroad sys--
tens. Through railroads, the land
In the surrounding territory is null
tiplied in value, a means of sound
investment is provided, and a con-
venience for trade and is
afforded.
This electric road" he said, els
a two-sided proposition. If it's goes
1T helps the farmers as we'll as the
residents of the cities. The oftener
you get people into your city, the
lore sales you can make. The bet
ter facilities the farmer can have for
getting his produce to market, the
more money he can make the more
valuable his land will become. The
history of electric roads has shown
that they generally bring in five
farmers where there was one be-
fore.
Will Reduce Mileage.
Our proposed short line will cut
the 90 from, Mitoholl ~ G,;-,
apolis down about fifty miles. The
cheaper freight means a better mar
ket. If we didn't want to come to
Mitchell, wouldn't be here tonight.
We are as anxious as you to get the
line built, and | anticipate that with
your support we will reach Mitchell
within the next twenty or twenty
four months.
aside from obtaining further fin
ancial support, our chief purpose in
asking for the subscription of stock
is that We may have the support of
our stockholders. Every farmer
along the line who is interested in
the enterprise will favor us. And
the fact that within the past week.
representatives of three railroads
have been in Mitchell investigating
the situation shows that they realize
we are planning to tap a valuable
piece of country"
Col. Luce then went into detail in
the construction work that has act
ually been done, illustrating with
steroptican slides. Aside from the
terminal property, located in the
heart of Minneapolis and worth
about $3,00O,O0O, the company has
IL miles of road now in operation.
By July, forty miles will be COM
pleted with double tracks. Mr.. Luce
declared that the affairs and bust
OF the company was open to in
v~estigation throughout, and stated
that Mr.. Gregory, member Of the
state securities commission, had
made a favorable report on its con-
Six Years Limit.
In detail, Col. Luce outlined what
was asked OF, the people of Mitchell.
attempt will be made to sell $780,
600 of preferred stock, each block
Of 500 to be accompanied by al
of $50 of common stock. The
stock is to be sold with a contract.
detailing just what is promised by|
company and furnishing an abb
stract of the company's holdings.
The road is to reach Mitchell within
six years. If it does not build into
Mitchell within this period, the
money is to be refunded, with what
have accumulated.
The promise of the contract is
by the personal guaranty of
he Luces. as well as the property of
he railroad company. When the
'orty miles of road is completed, it
will be bounded for money to com
,lete the system, At present, the
inc is unencnmbered, and with the
criminal property, which is owned
the Luces individually and not by
company, will all be given as
ollateral for the bonds. /
Hundred Million Capital.
In response to questions, Col. Luce
eclared. that the company is capt.