The Mineral argus., 1884-05-22
I FAILURE
E. S. Brown Appointed Receiver OF the
Northwestern Car and Manufacturing
mpau saltwater.

/ uiaut LldL lit WNnN1A C0A
turing Company at Saltwater, of which Senator
D. M 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 still the failure caused a great sensa-
ton in monetary and business circles; ID. IL.
Stemson vice president and manager says:
THE stoppage, IN all probablhty, VIII DC tehl-
| norarv. as the company's liabilities are about
81. 100000, with available assets of s4,OOO,OOO,
Of which So, 900, 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 tar-
Mr.. W. s Goodhue, secretary of the com
! pany, says the cause is indirectly attributable
TO the failure of Grant h 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,OOO,@OO in
the farmers paper, he believed, was good for
fully 90 per cent
c. D. Gillfllan of st. Paul, first vice presi-
dent of the company and largely interested hold
ing S10O,0 600 of the stock, says the banks IN st
Paul, he believed, did not hold $4,000 worth
of The car company's paper. He had faith IN
the company's ability to meet all its obllga-
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 90 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 havea
receiver appointed. All l 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. 1 believe that substantially all of these
assets are good. The liabilities include $750,OO
in notes PAYABLE about, $500 600 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 y to $400,OCO. Mr.. Gil
lillian 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 will 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 inclinedto endorse for the company
81 know, said he, ''that matters will come out
all right All we want is a little time to wealth
er the capes, and we will be all right"
Mr.. Sabin said further that he could have had
all the money needed to so on, as it was of
fered by friends, but he thought best to sus-
pend TOM orarily 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 fl
nancial exhibit was made. In conclusion the
executive committee-Messrs ID. M. Sabin, A.
H. Wilder, Thomas Lowry, j. G. Pierce and Il.
L. Hersey-whO make the report, state that
the unanimous conclusion arrived at after con-
s~ultation 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 q receiver had been appointed. He said:
Is it possible? Why, l was at a meeting of
the directors in saltwater yesterday, and
nothing of the sort was limited. | have $780,
900 of the preferred stock, and c. 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 receivership by 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 be, but can say
that there is no reason for alarm. This heavy
stockholders can stand the temporary loss y
p. H. Kelley said: Il have been blamed Sc
verely for selling out all of my $26, 600 stock,
except $500, which l have yet, and for not
giving my support to the company / CA,
truly say that | am unfeignedly sorry for the
embarrassment, butI am not surprised. Twas
not to be blamed for losing faith in a company
in which l had invested heavlly-Sabin got
half a million out Of ST. Paul-and concerning
which the chief made so many misstatements.
We had been fed on wind until / 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
apOppr ears and machinery and GRADUALLY in
creased their business. The business was con-
Quoted under the firm name of Seymour, Sabin
& Co., until March n, 1882. wkanit was merged
into the Northwestern Car and Manufacturing
company, with a capital of $50,0O,OOO, D.. M. |
Sabin being named as president and Frank L.
Clarke of st. Paul secretary.
The capital stock-$5, 000, 000-was divided
into preferred stock, 80, 600, 900, and common
stock, 81, 000,0 600: the S 3 1000 coo preferred stock
to be sold at par, subscribers and purchasers
to receive a bonus equal to 80 per cent. of their
subscription in common stock-$500, 600 of the
latter to be held in the treasury. The capacity
of the mandatory was increased so as to be
able to turn ont 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 |
1884, the Northwestern Car company utilized
the labor of 800 convicts and 200 citizen work
men, the contract with the state calling for As
cents per diem for the labor of the cOnvicts.
1t is believed that the total loss of the COM
pany, exclusive of insurance, from the two
ores, reached $4,000.
At the annual meeting of the stockholders of
the car company, held 1T saltwater on March
., the following officers and directors were
elected:
Directors-D. NJ. Sabin, saltwater; Isaac
Staples, Saltwater; G.. d. Gllfllan, st Paul; r. |
Z. Hersey, saltwater; Thomas Lowery, Mime
apolis; G n. Nelson, Stillwater;N N. W. Kittson,
I "a -. ~ 49, NJ NJ Il So u |