The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1884-05-23
Aa1a rA1LuRn
e. 6. Brown Appointed Receiver Of the
Northwsstsrn Car and Manufacturing
Couauauy Stfll watsr.

AoSGlW 60tofn Gar anu Manufacturing 4,
Company saltwater.
On Saturday last the announcement was
made that the Northwestern Car ard Manufac-
turing Company at Saltwater, of which Senator
D. NJ Sabin is President, had failed and gone
into the hands of a receiver. 1t had been known
for some time that the ompany was embarras-
sed, but Still the failure caused q great sensa-
ton In monetary and business circl es; d. r.
stemson vice president and manager says:
Tho stoppage, IN all probability, will be tenn
sll,lQ0,ooo, with available assets of s4,0oo,0oo,
of which 81, OK cD is in accounts and bills re-
ceivable. The receivership is caused by the
general depression which prevails, low prices
OF wheat in market, slow collections from far
Mr.. w. s. Goodhue, secretary Of the COM
pany, says the cause is indirectly attributable
to the failure of Grant g. Ward, in New York
city. MI. Sabin had been negotiating stock in
that city and had nearly completed the sale
when the future came and the parties about to
invest withdrew from further negotiations and
would not purchase.
Mr., E. S. Brown, who is tho receiver says
he believes was making money and only needed
time to come out all right. The $1,000. 9O0 in
fully 30 per cent.
G. D. .Gillfillan of st. Paul, first vice presi-
dent Of the company and largely nterestedhold
ing s10O,OO of the stock, says the banks in st.
Aaui, Ia uel1eNeu, diu not nolu 1lV,UVU worth
Of the car company's paper. He had faith in
the %company's ability to meet all its obliga-
tons if time were given for it to do SO. The
company holds about $l,9Ou,00O worth of pa
per. which has been given by farmers on them
f SaS Shown and b his t esPe 1bn som and calculations aanla 1n'
pend on collecting about 95 per cent
on that paper in time. After the
failure Of the eastern negotiations for money,
Mr.. Gilfllan said, 1--WE thought it best to have a
receiver appointed All / know about the
financial state of the car company is simply
what appears on the books, and the books
show a proportion of assets to liabilities of four
to one. l believe that substantially all of these
assets are good; The liabilities include $3.50, 900
in notes payable. about, $4,000 of which are
held by banks, and the balance by individ-
uals. The banks holding the paper are chiefly
in New York and Boston, though some is held
by interest banks in Massachusetts. Nearly all
Of these notes are secured by bills receivable
payable amount to $1,000 c Mr.. GIL
iillan telegraphed Senator sabin at
Washington Saturday afternoon, informing
him of the determination to place the affairs of
the company in the hands Of u receiver. Mr..
Sabin replied promptly to go ahead, that he was
in good spirits and expected to come out all
right. He will return to Minnesota at once to
arrange matters. The senator will not be per-
sonally involved in the matter, except 80 far as
he may be inclined to endorse for the company.
= hiioN5 AsiANt 4iOs LlhO ~ 4 EOiiIS OuA
all right. All we want is little m to wealth
err the capes, and we will be all right. y
Mr.. Sabin said further that he could have had
all the money needed to go on, as it was of
fered by friends, but he thought best to sus-
pend temporarily without risking or involving
other persons it is asserted positively that none
of the company's paper is in the st. Paul banks.
There was a meeting of the directors on Fri
day, the day before the failure, at which a f.
nancial exhibit was made. In conclusion the
n~nnrfiva appNp Niftnf, 10 NFa,Sru n NJ C.L:.
H. Wilder, Thomas Lowry, j. G. Pierce INT r.
l. Hersey-who make the report, state that
the unanimous conclusion arrived at after con-
sultation with the largest stockholders is that
further distribution Of surplus by way of divi-
dends must cease until the losses from fires
are restored.
n. W. Kittson of st Paul, on Saturday after
noon could scarcely bring himself to believe
that 9 receiver had been appointed. He said:
Is it possible? Why, ! was at a meeting Of
nothing of the sort was limited. l have $780,
O0o of the preferred stock, and G. D. Giltillan
has 100000. The most Of tho stock, is in the
hands of men who would not have suffered the
concern to be seriously embarrassed for the
Thomas Lowry of Minneapolis when told of
the receivership by a reporter, was thunder
struck.
81 was at the directors meeting, yesterday
aand nothing Of the sort was told any Of us.
as - oaSSe GhA1S L v u y. i III dS
much surprised as any one can be, but can say
that there is no reason for alarm. The heavy
stockholders can stand the temporary loss
P. H. Kelley said: 81 have been blamed So
yerely for selling out all of my SIC, 0oostock,
except $4,000, which I have yet, and for not
giving my support to the company 1 can
truly say that I am unfeignedly sorry for the
embarrassment, butt am not surprised. Twas
not to be blamed for losing faith in a company
in which | had invested heawly-Sabin got
half a nlIIInp rfvf IF Vi Do1,l ,,,1 49, -
which the chief made SO many misstatements
We had been fed on wind until l got tired of it. ):
The Northwestern Car company is the out
growth of the old firm of Seymour, Sabin & Co.,
who were engaged in the manufacture of
threshing machines, engines, freight and pas
senger cars, and machinery, aud gradually in
creased their business. The business was con
Quoted underline firm name of Seymour, Sabin
d Co, until March 81, 1882, wheni it was merged
into the Northwestern Car and Manufacturing
company, with a capital of $500 900, d. NJ.
Sabin being named as president and Frank b.
Clarke of st. Paul secretary.
Tho capital stook-s5, 00O, 000-was divided
into. preferred stock, IS, 1000, 600, and common
stock, ss,oloo,00: the 49, o,,ooop referred stock
to be sold at par, subscribers and purchasers
to receive a bonus equal to so per cent. of their
subscription in common stock-$5W, GOO of the
latter to be held in the treasury. The capacity
OF the mandatory WAS increased SO as to be
able to turn out six threshing machines, two
r " ~ Aok hLAa NSatN ~
per day and six passenger coaches per month.
From tim to time extensive improvements
were made and additional buildings were
erected. At the time of the fire, on Jan. s,
the labor of300 ~convicts and1 200 citizen work
men, the contract with the state calling for As
cents per diem for the labor of the ~conyicts.
It is believed that the total loss Of tho COM
pany, exclusive of insurance, from the two
fires, reached s1l5,00
- Ar the animal tnaefipp of tho rto olho1lor "a
the car company, held ut Saltwater on March
elected:
F. Hersey. Saltwater; Thomas Iowery, Mime.
apolis; q. N. Nelson, Stillwater;N w. Kittson.
St Paul; J. o. Pierce, Red Wing; A. B. Stick
ney, 81. Paul; A H. Wilder, st. Paul; George
r Finch, St Paula o%ppenheim, st. Paul; ].
ter; 9. NJ seymour, saltwater; r B. Landon,
Minneapolis; c. P. Coggswell, Norwich, Con.
j. S Fogg, Boston, Mass. The directors then
elected the following officers: D. M. Sabin,
president; D. Gilallan, vice president and
general manager; w. S. Goodhue, secretary; Z.
l. Hospes, assistant secretary; J. c. O'Gor-
man, treasurer; H. G. Akers, auditor; r. s.
Davis, registrar Of transfers.; w. +. Barstow,
transfer agent.
A complete liz. Of the stockholders is not
procurable. OF the original snbscribers-near-
y 500 in number-a large majority still retain
their first interest, but a respectable minority
have sold out. Among them may be mentioned
g Gotzian, st. Paul, P. II. Kelly and W. r.
Merriam, st Paul and j. F. Meagher, Mankato,
(partially.) There are scores, of small holders
in Massachusetts, Connecticut, and New York.
Under the original plan the common stock was
issued to holders Of preferred at the rate of SO
per cent common to 100 per cent preferred,
subscribed and paid for. The pre-
ferred was to pay a yearly dividend of
8 per cent payable quarterly and whom the
surplus allowed of greater dividends the extra
amount was to be paid on the common stock.
Following is a list of the holders of preferred,
rs far as 1T is possible to procure it:
D n. Sabin, Saltwater. ........... s75o,0oo
{. D. Gilflllan, 81. Paul. 100000
N. w. Kittson, st. PAUL, 0O'UD