The Warner weekly sun. (Warner, Brown Co., Dakota [S.D.]) 1883-1885, 1884-05-16

e. s. brown Appointed Receiver OF tae
Northwestern S=- I'D Manufacturing
Company saltwater.

uduO Indt ku0 NOItlNbclOlh NhA buNA @AH
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 company was embarras-
sed, but stu the failure caused q great sensa-
ton In monetary and business circles; ID. K.
Stemson vice president and manage says:
The stoppage, in all probability, will be tenn
norary, as the company's hablhues are about
81 100, 600. with available assets OF $4,OOO,eO,
of which so, 600, 600 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
mers, etc" .. fHM
Nj. W. s. Goodhue, secretary of the COM
pany. saws the cause is Indirectly attributable
10 the failure of Grant d Ward, in New York
city. Mr.. Sabin had been negotiating stock In
that city and had nearly completed the sale
when the failure came and the parties about to
invest withdrew from further negotiations and
would not purchase.
Mr. E. s Brown, who is the receiver says
he believes was making money and only needed
time to come out all right The $1,000, 800 in
the armer paper, he believed, was good for
fully 90 per cent
CD. Gillfllan of st. Paul, first vice presi-
dent of the company and largely interested hold
ing 100000 of the stock, says the banks 81
Paul, he believed, did not hold $4,000 worth
of the car c%ompany'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 81, 100000 worth of pa
per, which has been given by farmers on them
selves, and his experience and calculations
had shown him that the company could de-
pend on collecting about % per cent.
on that paper in time. After the
failure of the eastern negotiations for money,
Mr.. Gilfllan said, I'VE thought il best to havea
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. / believe that substantially all of these
assets are good Tn liabilities include $150,0W
in notes payable about, $500 600 of which are
held by banks, and the balance by indiyid-
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
held by the company Th accounts
payable amount TO 100000 Mr.. Gil
fllan telegraphed Senator Sabin at
Washington Saturday afternoon, informing
him of the determination to place the affairs of
the company IN the hands of a receiver. Mr.,
Sabin replied promptly to go ahead, that he was
in good spirits and expected to come out all
right He viii return to Minnesota at once to
arrange matters. The senator will not be per-
sonally involved in the matter, except so far as
he may be inclined TO endorse for the company.
81 know, said he, ''that matters viii come ont
all right, Au we want is a little time to wealth
Va hIO N0tO1a aAAA ~ Va ~ IA iIHAA
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 10 sus-
pend temporarily without risking or involving
other persons it is asserted positively that none
of the company's paper Is in theS st Paul banks.
There was a meeting of the directors on Fri
day, the day before the failure, at which a IL
nancial exhibit was made. In conclusion the
executive committee-Messrs ID. NJ. Sabin, A.
II. Wilder, Thomas Lowry, j. 9. Pierce and II.
m III a-aaz. n a. $1,000 49, L&l.NH
the unanimous conclusion arrived at after con-
s~ultation with the largest stockholders is that
further distribution of surplus by way of diyi-
dends must cease until the losses ftom fires
are restored.
N. w. Kittson Of st Paul. on Saturday after
noon could scarcely bring himself to believe
that q receiver had been appointed He said:
Is ii possible? Why, / was at a meeting of
the directors IN Saltwater yesterday, and
nothing of the sort was limited / have $780,
600 of the preferred stock, and G. ID. Gilfllan
has 100000 The most of the stock, is in the
hands of men who would not have suffered the
concern to be seriously embarrassed for the
want of money.
Thomas Lowry of Minneapolis when told of
the receiyCrship by a reporter, was thunder
struck.
81 was at the directors meeting, Yesterday"
"and nothing of the sort was told any of us.
It's the d-dest thing / ever heard Of. I'm as
much surprised as any one can ha, but can say
that, there is no reason for alarm The heavy
stockholders can stand the temporary loss y
p. II. Kelley said: Il have been blamed Sc
yerely for selling ont all of my $50, 600 stock,
except $500, which / have yet, and for not
giving my support to the company / can
truly say that / am unfeignedly sorry for the
embarrassment, butt am not surprised. Twas
not TO be blamed for losing faith in a company
in which i had invested heavlly-Sabin got
half a million out of 81. Paul--and concerning
which the chief made so many m~isstatements.
We had been fed on wind until i got tired of it
The, The N 20 .hn ess Gar company j the out
who were engaged in the manufacture OF
|threshing machines, engines, freight and pas
senger cars, and machinery, and gradually in
creased their business. The business was con-
Quoted under the firm name Of Seymour, Sabin
a CO., until March II, 1882, when it was merged
into the Northwestern Car and Manufacturing
company, with q capital Of $50,0O,OU0, ID. M.
Sabin being named as president and Frank b.
Clarke of St Paul secretary.
The capital stock-$5, UO. 000-was divided
into preferred stock, ~, GOO, 000, and common
stock, $1,000 600: the $1,000, 900 preferred stock
to be sold at par, subscribers and purchasers
to receive q bonus equal to 80 per cent. of their
subscription In cOmnlO stock-$5OO,O00 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
portable farm engines and twenty freight cars
per day and six passenger coaches per month.
From time to time extensive improvements
were made and additional buildings were
erec.od At the time of the fire. on Jan. &,
lg84, the Northwestern Car company utilized
Jhe labor of 3~00convicts and 300 citizen work
men, the contract with the state calling for AS
cents per diem for the labor OF the ~convicts.
It is believed that the total loss of the com
pany, exclusive Of insurance, FROM the two
fires, reached &f15,0O0
\ At the annual meeting Of the stockholders OF
Ne car company, held ut Saltwater on March
3, the following officers and directors were
elected:
Staples, saltwater: G. d. GilGllan, ST Paul; r.. |
Z. HerHey, Saltwater: Thomas owery, Mime
ap0lis; G. N. Nelson, saltwater; N. w. Kittson, |
st Paul; J. G Pierce, Red Wing; A. B. Stick