The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1884-05-13
Northwestern Car Company,
A Failure in Minnesota which Attracts
General Attention.

The suspension of the Northwestern Car Com
pany of Saltwater, MINI. Saturday of which Senator
Dwight NJ. Sabin is president. and of the Touring
mills Of j. H. Townshend s. Co. of saltwater In
which Senator Sabin was general partner, caused
some surprise. The company had in its board Of
directors AID among its stockholders number of
the wealthest and most successful business men of
the Northwest, and it was not supposed that they
would allow the concern to go under Saturday af.
ternoon, however the District court applied TO
for the appointment Of a receiver, and Judge Nc
Clnre appointed Z. R. Brown, Of the Saltwater firm
OF Hersey, Beal Brown, lumbermen, receiver of
the assets and business of the company, The flour
ing mill of j. H. Townshend & Co., Intimately con-
neeted with the car works suspended simultane-
OF the failure. Townshend & Co.'s note for $4,000
went TO protest Friday night.
The capital stock Of the Northwest Manufacture
ing and Car Company was $5,O00,000 Of which
100000 was preferred stock and $2, 900 900
common stock. The preferred stock had been pay
year past until the fire of last April. AT that time
it was voted, account of two fires which oc.
CURED within the six months preceding. and which
destroyed considerable amount Of the company's
property and interfered somewhat with its bush
nees, to pass the usual April dividend.
The company was the largest manufacturing cor
poration in the Northwest and had been buiit up by
the enterprise and skill of Senator Sabin from very
small beginnings The company manufactured
threshing machines, steam farm engines (not loco
motive engines, as has been enormously stated
doors, sasheS and other articles of use to agricu-
turists, and railroad freight cars. The company
has contract with the State of Minnesota for the
labor of 800 convcs in the penitentary 1t the
rate of 40 cents per man per day. This contract
nas sun seven OF SlgHI yeSIs 70 run and mas given
manufacturers of this line of goods
The liabilities of the Manufacturing and Car
Company are stated at 81 100000. The assets are
given &C over S4,O00O0O, and will nominally
amount TO between $4,O00.00O and S5,OOO,t 90.
OF these assets nearly 81 5000 are stated to be
the machines sold to the farmers. The company
holds lien on every machine sold to the farmer,
and takes his note with another indorser AS a
rule the percentage Of loss to the company has been
small in comparison to the profit ade and collec-
tions have been fairly prompt. The nature of the
business has been such, however. that q large
amount Of material has necessarily been carried all
the time, and the monthly payroll of the company
has been very large, compelling the large amount Of
borrowing every season which has actually taken
place. Ia the Autumn the farmers would receive
considerable money from their now growing wheat
CROP. and this money they would have used in
said TO have had good deal to DO in retardDg col
lections.
Senator Sabin has been a heavy borrower for the
car company from capitalists in New York, Boston,
and many of the smaller cities of New England
He has sold stock in Norwich, Conn.,, Fitchburg,
Lowell, Manchester, Bangor, and many other
places Trust funds said to be largely invested
10 it, The preferred stock has been sold in con-
siderable quantities. with half as much OF the COM
mon stock thrown in as bonus. One firm in Bos-
ton is said to hold nearly 500, 900 In stock and
paper of the car company.
ST. PAUL, Minn May 12.-Mr. e, S. Brown the
receiver of the Northwestern Car Company takes
hold of affairs today and the company will 20 on as
usual. The appointment of a receive- was asked
after the failure of d. M. Sa in to negotiate loan
of 81 100000 in New York, in order that the bust
ness might be without the danger of an attach
ment by the creditors until the formers notes for
farm machinery, which are held to the extent of
over two million dollars, could be realized upon and
the creditors paid 1t is the opinion Of the business
men of this city that the affairs Of the company
have been run upon too large scale. The compa-
ny has on hand half million dollars worth of iron
which bought on credit, and is sufficient to last
three years.
NEW YORK, MAY 12.-Wayland Trask, an init,
mate friend of Senator Sabin says: "No one in the
East will be hurt by the failure of the Minnesota
| firm"
FITcHBURG, Mass, May lathe stock of Sa-
bins Co., was sold here by Worcester parties and
President Lawrence of the Wachusett Bank who
says the stock is all held by strong parties who
will not be embarrassed by the cOmpany's suspen-
sion. He is confident the company will pay All
| debts and that preferred stockholders viii lose
nothing.
NORWICH, Conn.,. May 1850 far as can b.
learned, not over $25, 900 or $4,000 is here in
| vested In the Northwestern Car Company Person.
al loans TO Senator Sabin very small. No hard
ship Will result to any one here far as is known
| MISNEAPoLIs, Mimi, May ia special from
| Saltwater, says that run was made on the First
| National Bank this morning, growing out Of the
| Checked. When All the demands had been met on
4 ly about S25 900 had been paid out. The Car Com
pany' hands and TOwnshend Mills are 81 IL atwork
| Senator Sabn is expected home to morrow night
ST. PAUL, Mimi. May IA saltwater special
| says the feelings here tCday is much better thar
| YESTERDAY. Receiver Brown ha entered upon hi:
duties aud announced his intention OF continuing oI
| erations. Townshend q Co., have not suspended
and saw that they can make no statements as to it
| condition until Senator Sabin returns, as they d.
| not know themselves how they stand, or how deep
ly Senator Sabin, who is partner is involved.