New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-11
HEAVY FAILURE IN MINNESOTA.
TROUBLE IN SENATOR sABINs COMPANY
THE LIABILITIES OVER MILLION or .DoILARS-
RELATIONS TO THE MARINE BANK.
LEY TELEGRAPH TIE TRIRUNE-l


THE LIABILITIES OVER MILLION or :DorLARs-
RELATIONS TO THE MARINE BANK.
IBY TELEGRAPH TRIsUSE-l
ST. PAUL, May lO.-The news came to this city
this evening of the failure of the Northwestern Car
| Works of saltwater. of which ex-senator Sabin 10
president 1t has been a matter of confidential in
| formation among st. Paul bankers for some months
that the company in desperate SDancia straits
and that it was gradually becoming harder and
harder for Senator sabn TO make loans for it, But
from the fact that the list of stockholders embraces
| many wealthy men. it was not suspected that a
| failure could occur The interest of the stock
holders was large that st. Paul bankers said that
they could not afford TO let the concern go under
Alta late hour this afternoon however, the Dis
trict Court applied TO for the appointment of
receiver. and Judge Mcclure appointed E. r.
Brown. OF the firm Of Hersey. Beal Il Brown. lum-
bermen at saltwater, receiver OF the assets and
business of the company. Mr.. Stimson, vice-pres-
dent of the works, states tonight that the stOppsge
will in all probability he temporary, as the liab-
ties are about Sl1OO,O0O, With available assets of
S4 OOO, 300, Of which $2OOO,OO0 in bills recev-
able and accounts.
aThe receivership is rendered necessary" said
Mr.. Stimson, by the general depression OF bust
ness. The low price of wheat has clOgged the
whole machinery of collections from the farmers.
In this stat of affairs efforts were in progress for
relief by loans and the sale of stock in the Last.
Senator Sabin who has always been the general
manager and negotatOr for the concern. had nearly
consummated a sale of q large block of North
we~torn Car Company's stock through the Marine
National Bank OF New-York. The failure of that
bank and OF Grant & Ward made the carrying
ont of this sale impossible. Had Senator Sabin
been successful and the failure not taken place,
we should have been enabled 70 tide over the DUH
| al har a. nAf inr
which there is now every good sign, ana IN period
of easier collections all would have come out right.
There course left to us in order to protect
our creditors but to have a receiver appointed"
The company has a large amount OF raw material
hand. and on the road whch, to be available aud
cause little loss possible 10 creditors, Will have
10 be worked up intO engines, thTeshng machines
and railroad cars. Mr. GOodbue secretary of the
company. says that this fact will undoubtedly in
sure the operation OF the works under the receiver
The hOurng mill of j. III. 1Ownshend Il Company,
intimately connected with the car works, suspended
simultaneously with the company. and is awaiting
the result Of the failure. Townshend a. COmpanys
note for $1,000 went to protest on Friday night
The Lumberman's National Bank and the First
National Bank hold little of the paper of the
company and are not affected by the failure. The
extensive numbering firm of G. n. Nelson Il Com
pany, the Union Depot and Passenger Company and
the saltwater Elevator Company, In oil of which
Mr.; Sabin was interested, are not affected By the
failure
Among the large holders Of stock ana in the CON-
sabin personally, s125OoOo \: v. KittsSn, st.
Paul, SlOO,O00i c. ID. Gll1uan 81. Paul, SlOO,OOU;
II. A. Porter Chicago 800, 900; j. L. Merriam, St.
Paul. $4,000; Horace Thompson, st. Paul. $40,
OOOi Mrs. J. L. Thompson, st. Paul, $4,000;
K. b. LangdOn, Minneapolis $4,000: Thomas
Lowary, Minneapolis, $4,000; II. L. Fogg, ST.
Paul, $4,000; v: r. Merriam, st. Paul 1000
John T.. New, Of Indianapolis, was large stock
of the Chicago and Northwestern road
had 100000 but sold all except
except 81, 900 last winter. Townshend 81 Co., the
milleTs will pay. Their liabilities $500,000
They will wind up their affairs as soon possible
and will make an assignment Monday. Isaac
Staples & Company win not be affected by the col
lapse.