The Dickinson press., 1884-05-17
As1o rAr1uaa
E.s Brown Appointed Rsesiver of the
Nortawsstsrn Car and Manufacturing
Company SALTWATER.

On Saturday last tho announcement was
made that the Northwestern Car and Manufac-
turing Company at Saltwater, Of which Senator
D. NJ. Sabin is President, had failed and gone
into the hands of a receiver. It had been known
for some time that the company was embarras-
sed, but still the failure caused a great sensa-
ton in monetary and business circles; D.. r.
Stemson vice president and manager says:
sSThe stoppage, IN all probability, will be tenn
porary, as the company's liabilities are about
sl,l0o,OOO, with available assets of 81 900, 600,
of which $1,000, 600 is in accounts and bills re-
The receivership is caused by the
general depression which prevails, low prices
of wheat in market, slow collections from far
mers, ETC."
MI. w. s. Goodhue, secretary of the COM
pany, says the cause isG indirectly attributable
to the failure of Grant & Ward, in New York
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
the farmer's paper, he believed, was good for
fully 30 per cent
G. D. Gillfllan of 81. Paul, first vice presi-
dent of the company and largely interestedhold-
ing 100000 Of the stock, says the banks in st.
Paul, he believed, did not hold $4,000 worth
" l IhO CtA COuApuut6 paper. IO udu 1dltO Ill
the c%ompany's ability to meet all its obliga-
tons if time were given for it to do SO. The
company holds abou 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-
N that paper In time. After the
failure of the eastern negotiations for money,
Mr.. Gilillan said, 1--WE thought it best to havea
receiver appointed. All I know about the
financial state of the car company is simply,
what appears on the books. and the books
a proportion of assets to liabilities of four
to one. I believe that substantially all of these
assets are good. The liabilities include $3.50, 600
in notes payable about, $500, OW 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
these notes are secured by bills receivable
payable pays a ~ amount a@e company 1 s4oo, o Na' Mr. s''09 aiis
lillan telegraphed Senator sabin at
Saturday afternoon, informing
him of the discrimination to place the affairs Of
Sabin replied promptly to go ahead, that he was
good spirits and expected to come out all
right. He will return to Minnesota at once to
matters. The senator will not be per-
Bonally involved in the matter, except so far as
he may be inclinedto endorse for the company.
= hASN3 oasAu nv SLAhV VII COtuC Jul
right ALI we want is o little tlmeto wealth
or the capes,. and we will be all right"
Sabin said further that he could nave 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 thatnono
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 fl
nancial exhibit was made. In conclusion the
committee-Messrs. d. NJ. Sabin, A.
H. Wilder, Thomas Lowry, J. G. Pierce and R.
the unanimous conclusion arrived at after con-
with tho 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
that a receiver had been appointed. He said:
Is it possible: Why, Twas at a meeting of
directors in saltwater yesterday, and
nothing of the sort was limited. I have $780,
OOO of the preferred stock, and G. D. Gilfllan
has 100000. The most Of the stock, is in the
concern to be seriously embarrassed for the
want of money.
Thomas Lowry of Minneapolis when told of
the receivership by a reporter, was thunder
struck.
II was at the directors meeting, yesterday"
~AAA OSAAAA Va wv oOAe Woo tOAu lily VI U.s.
It's the d-dest thing I ever heard of. I'm as
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 Sc
except $4,000, which / have yet, and for not
giving my support to the company can
truly say that I am u%nfeignedly sorry for the
embarrassment, butt am not surprised. Twas
not to be blamed for losing, faith i'll q company
in which I had invested heavly-Sabin got
half a million out of st. Paul-and concerning
which the chief made SO many misstatements
We a been fed wind until I got tired of it. "
The Northwestern Car company is the out
growth of the old firm of Seymour, Sabin e. Co.,
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
g. Co., until March II, 1SS2, whenit was merged
into the Northwestern Car and Manufacturing
company, with a capital of $50, OO,0N, D. NJ.
Clarke OF 81. Paul secretary.
The capital stock-$5,WN ,000-was divided
into preferred stock, Sd, 1000 600, and common
stock, s., GOO, 600: the $3,0O0,00 0 preferred stock
to be sold at par, subscribers and purchasers
to receive q bonus equal to so per cent. of their
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
erected. At the time of the fire, on Jan. 8,
1854, the Northwestern Car company utilized
the labor of Nconvicts and1 200 citizen work
men, the contract with the state calling for A
cents per diem for the labor of the c%onvicts,
1t is believed that the total loss of the com
nQnv ayn111SIva of inS11r.oran pNonn No %",
fires, reached $3.50
At the annua meeting of the stockholders of
the car company, held at Saltwater on March
rs, the following officers and directors were
elected:
Directors-D. NJ. Sabin, Saltwater; Isaac
Staples, Saltwater; G.. D. Gilfllan, st Paul; r.
+. Hersey, Saltwater; Thomas Lowery, Mime.
apolis; G. N. Nelson, Stillwater;N N. w. Kittson,
st Paul; j. Q. Pierce, Red Wing; A. B. Stick
ney, st. Paul; A. H. Wilder, st. Paul; George
R. Finch, St Paul; A oppenheim, St. Paul; J.
ter; q. N. seymour, Saltwater; +. B. Landon,
Minneapolis; c; P. Coggswelll, Norwich, Con.
J. S. Fogg, Boston, Mass. The directors then
elected the following officers: D. NJ. Sabin,
president; c. d. Gilillan, vice president and
general manager; w; S. Goodhue, secretary; E.
L Hospes, assistant secretary; j. {. OGor-
man, treasurer; H. G. Akers, auditor; r. s.
Davis, registrar of transfers; w. F. Barstow,
transfer agent.
A complete list of the stockholders is moi
procurable. Of tho original subscribers-near-
ly 500 in number-a large majority still retain
their first interest, but a respectable minority
have sold out. Among them may be mentioned
g. Gotziap, st. Paul, P. H. Kelly md ". 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 81
per cent common to 100 per cent preferred,
subscribed and paid for. The pre-.
ferred was to Pay a yearly dividend Of
surplus allowed of greater dividends the extra
amount was to be paid on the common stock.