The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1884-05-23

On Saturday last The announoea1eue WAe
made that the Northwestern Car and 1anufAc-
turing Company ct saltwater, ofwhich Senator
D. II. 8abin 10 President had failed and eons
into the hands Of . receiver. Il had besn known
Tor some time that the company was embarras-
sed, but still the failure caused Q great eensa-
ton In monetary and business circles; d. r.
stemson vioe president and manager says:
ssopp:sg in al pTo1,iShtli VIII b tenn
d, i0G,6W with available assets Of q ,oo0. 900.
Of which S2 0o0, 600 is in accounts and bills re-
ceiyable The receivership 10 caused by the
general depression which prevails, low prices
Of wheat in market, slow collections from far
mers, etc
pany, saws the cause IL indirectly attributable
to the failure of Grant l. Ward, In New York
city. Mr. Ssbin had been negotiating stock In
that city and had nearly completed the sale
when tile failure came and the parties about to
invest withdrew from further negotiations and
would not purchase.
Mr. T. s. Brown, who il the receiver says
he believes was making money and only needed
time to come out all right. Tho d, Our, 100 In
the farmers paper, lie believed, was good for
fully 10 per cent
G. D. tiillRllan Of st. Paul, first vice presi-
dent Of the company and largely interested hold
ing of The sGH n,t says ysi The s,d an nl
of the car company's paper. He had faith in
the companys ability to meet oil its obliga-
tons il time were given for it to do no. The
company holds about 9l, !DO,0OO worth Of pa
per, which has been given by farmers on them
selves, and his experience and calculations
pond on collecting about u Per cent
failure of the eastern negotiations for money,
Mr.. Giillan said, i've thought 1t best to have
receiver appointed. All / know about the
financial state of the car company is simply
what appears on the books, and the books
show proportion Of assets to liabilities Of four
to one believe that substantially all Of these
assets are good The liabilities include $50, 600
in notes payable about, $4,000 of which arc
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 Massschnsstss Nearly 81
payable amount to tioo,o1S Mr.. Gil
lillian telcgraphed senator sabin At
Washington Saturday afternoon. informing
him of the determination to place the affairs OF
the company in the hands Of receiver. Nh.
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
Il know" said he, ''that matters will come out
all right. All We want is q little tlineto wealth,
er the capes, and we will be all right .
Mr.. Salin said further that he could have had
all the money needed to 80 on, as it was Of
fercd 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 meeting of the directors on Fri
day, the day before the failure, at which A.
nancial exhibit was made. In conclusion the
executive committee-Messrs. d. NJ Sabin, A.
H. Wilder, Thomas Lowry, ]. G. Pierce and r.
L. Hersey-whO make the report, state that
the unanimous conclusion arrived at after COIL
snltation with the largest stockholders is that
lends must cease until tho losses from fires
are restored.
N. ". Kittson of st Paul, on Saturday after
noon could scarcely bring himself to believe
that q receiver had been appointed He said:
Is it possible: Why, was at meeting Of
nothing of the sort was hinted l have $780,
QUO of the preferred stock, and c. D. GilAllan
has 100000 The most Of the stock, IL 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 receivorship by areporter, was thunder
struck
81 was ct the directors meeting, yesterday"
"and nothing of the sort was told any of u.s.
It's the d-dest thing ever heard Of. TIM %
much surprised as any one can be, but can say
that there il no reason for alarm. The heavy
Stockholders can stand the temporary loss "
p. H. Kelley said: 81 have been blamed Sc
verely for selling out all of my s26, 90 stock,
except $3.50, which l have yet, aud for not
giving my support to the company can
truly say that am unfeignedly sorry for the
embarrassment, but am not surprised Twas
not to be blamed for losing faith in Q company
in which had invested heavily-Sabin got
half q million out of st. Paul-and concerning
which the chief made so many misstatementa
We had been fed OH wind until got tired of it /"
Tho Northwestern Car company is the out
growth of the old firm Of Seymour, Sabin & Co.,
who were engaged in tho manufacture OF
senger cars, and machinery, and gradually in
creased their business. The business was con-
Quoted under the firm name of Seymour, Sabin
4 Co., until March 81, 1882, when it was merged
into the Northwestern Car and Manufacturing
company, with capital of s5N,OO,u0, D. n
Ssbin being named as president and Frank B.
Clarke of st Paul secretary.
The capital stock-s5, OF, OO0-was divided
into preferred stock, Oil, 0OO,OOO, and common
stock, 5000 QUO: the %, 600 600 preferred stock
to he sold at par, subscribers and purchasers
to receive bonus equal to SO per cent Of their
subscription in common stock-$5OO, GOO of the
latter to he held in the treasury The capacity
Of the mandatory was increased SO AZ to be
able to turn out nix threslling 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
erected At the time of the fire, on Jan. 8,
1884, the Northwestern Car company utilized
the labor of3OOconvicts and 100 citizen work
men, the contract with the state calling for 45
cents per diem for the labor of the cOnvicts.
1t il believed that the total loss Of the COM
pany, exclusive Of insurance, from the two
fires, reached S1l5,0O0
At the annual meeting Of the stockholders of
the car company, held at Saltwater on March
=, the following officers and directors were
elected:
Directors-D. NJ sabin, saltwater; Isaac
Staples, saltwater; O. D; GllAllan, st Paul; r.
+. Hersey, saltwater; Thomas Lowery, Mime
St. Panl;J. G. Pierce, Red Wing; A. B. Stick.
ney, St Paul; A. H. Wilder, st Paul; George
T. Finch, st Paul; A. Oppenheim, st. Paul; ].
=. Meagher, Mankato; =. R. Stimson, Stillwa-
ter; G. NJ. Seymour, saltwater; Il B. Landon,
Minneapolis; G; p. Coggswell, Norwich, Con. !;
elected the following officers: D. N. Sabin,
president; G. D. Gilfllan, vice president and
general manager; W. 8 Goodhue, secretary; E.
Il HOspes assistant secretary; j. c. OtGor-
man, treasurer; H. G. Akcrs, auditor; Il. s.
Davis, registrar Of transfers; W. T. Barstov,
transfer agent
A complete list of the stockholders is not
procurable Of the original subscribers-near-
Y Do in nnmber-a large majority still retain
their first interest, but respectable minority
have sold out Among them may be mentioned
z. G0tzian, St Paul, +. H. 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
per cent common to 100 per cent preferred,
subscribed and paid for The pre-
ferred was to pay yearly dividend Of
Spcr cent payable quarterly and when the
surplus allowed Of greater dividends the extra
amount was to be paid OH the common stock.
Following is q list of the holders of preferred.
as far as 1t il possible to procure it:
D. NJ. Sabin, Saltwater. ............, $4,000
.. d. Gilfillan, st. Paul. ....,. 1OO.WO
n. W. kittson, st Paul. 100000
Il. u. Porter, Chicago. ..,.......... 100000
7. y. Nelson, saltwater. ............ 10000
;. Il Merriam, 81 Paul. 10000
Isaac Staples, saltwater. .,,.,,,,,,. 5000
j. j. Hersey, Saltwater. .,,,,,,..,.. 5000
a y Wilder, st. Paul. 10000
y. n seymour, saltwater. .......... 5000
=: B. Langdon, Minneapolis. ,,,,,,. 5000
Thomas Lowry, Minneapolis. ....... $4,000
D. l. Hersey, saltwater. 25000
=. Il Hospes, Saltwater ............ 5000
Horace Thompson, St. Paul .....,., 25OOO
Mrs. J. +. Thompson, st. Paul. ...., 5000
Mrs. r. A. Fogg, "; Paul. ....... -. 25,OOO
GEORGE Finch, st Paul. $500
i Dernhelmer Brothers, New Y0rk.... 5000
William Window, Winona. ,.. 5000
W. L. Merriam, st. Paul. ... 1h(N0
J. F. Meagher, Mankato. ... 140iHl
+. D. Clarke, st Paul. .............. 1855