There was a very large orphanage in Owatonna MN, which is only 30 miles from Albert Lea. It was open from 1886 until 1945 as an orphanage, then from 1945 to 1970 as a school for the educable mentally retarded. There is a orphanage museum there now (where I am a volunteer) but we have no records on site. They are kept in St Paul. There is a phone number you can call to get copies of records but I do not have it on me right now so I will have to get back to you with that.
I hope this helps you get on the right track to finding some answers!