St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-09-30

cars that was expected, and
brought into market the lively competition
of the many concerns in Chicago and the
east, who have also found themselves with
out work. so that this car building venture
has not only proven a losing business but
has also crippled the resources of the concern
by tying up nearly S400, of capital which
would otherwise have gone into material for
threshing machines and engines, and thereby
save to the company an equal amount of bor-
rowed money and consequently the same
amount of Indebtedness.
In the line of misfortunes and miscalcu-
lations comes the great fire of January last,
on which the most underestimate is placed
at $500, 900, but which those most CONVEX
SAINT with the business think that the actual
loss, general delays and damage will not fall
short of $780, 600, having lost five large
shops, filled with valuable material and
machinery; the works then being run to their
utmost capacity, having on our pay
rolls 1,300 men, requiring 500, 900 per
month to meet the same. Neither has our
business on the Pacific coast proven the sue
cess promised, owing substantially to the
failure of crops two years ago, and the very
sharp competition with old established houses
who evinced a lively interest and determine
ton to prevent the minnesota Chief'' get
ting foothold on the Pacific coast if posi-
ble. This business being so far away and
out OF our reach the losses were not devel-
oped until our final settlement this season
and will not fall short of $125, 900.
We have also paid in dividends to stock
holders, since the company was organized,
nearly $500, 900, which as has since been de-
veloped in our losses and slow collections,
ought to have been reserved in the treasury.
You will see in all these items of losses and dis
appointment in collections, nearly 81, 000,-
600, which the company ought to have had
and which would have paid running ex-
penses, labor bills, material, etc., instead of
being in the field as borrowers.
There is also an item of about $500, 900
stock of the company, which was taken by
Seymour, Sabn 81 Co., and unsold,
which, had the same been placed, the money
would have gone into the Car company's
treasury instead of remaining with the
Seymour, Sabin & Co. interest to-day, and
would have been cash rather than a charge
against the Seymour, Sabin & Co. interest
on what is called the accommodation paper.
From these figures, without going into de-
tails, you will readily see that had
the times proven propitious for
the consummation of so large
scheme as was embodied in the Car COM
pany's expectations, the concern would have
been in good condition to-day, and with a
comparatively small Indebtedness. In short
if the expectations in the matter of collec-
tons could have been realized, there would
| have been little or no Indebtedness to the
company"
Reporter-'I would infer then, Senator,
that the car company must have been a
general disappointment all around9n
Senator S.-''That is practically the case.
In fact, there have been a great many
disappointments in the past year, especially,
in all branches of business and depression
in manufacturing interests, in the disap-
pointments of which this company has not
alone suffered"
Reporter-"You speak of the stock held by
Seymour, Sabin 81 Co. VIII you please ex-
plain this transaction, as it is one in which
various statements and rumors have hereto
fore been made!'
Senator SIT is very simple matter
indeed. Seymour, Sabin & Co. took stock
of the car company for their assets, and
were unable to place the same, and
carried it on their notes, endorsed by the
Car Co., which, had the stock been sold and
the money gathered into the treasury of the
| Car Co., their liability as endorsers would
| cease to just the same extent and manner
| as any other bills receivable when paid by
| the maker.n
Reporter-"Has the Company been
endorser on any other papers.'
Senator S.-"Certainly, large amounts Oft.
| They have taken hundreds of thousands of
dollars of car paper from railroads, and all
general business paper which has been used
as any other receivables."
Reporter-"Would you be willing to state
what your personal relations are with the
company"
Senator S.-'T suppose that everyone
knows my personal relations, which has been
that of president of the company"
| Reporter-"You misunderstood me, OF
perhaps l do not make myself plain; I would
like to know If you have any personal COM
| plications or are involved in the liabilities OF
the company9"
Senator S.-''My friend, that is rather a
broad question, and do not think of any
special interest to the general public. II
1t is of any interest, however,
to your paper, will say that am very much
interested, complicated and involved with
the company. My pecuniary interests are
largely there, my personal interests and pride
are acutely involved, and likewise my per-
sonal endorsement and outside collaterals.' u
Reporter-"What are the prospects of a
speedy settlement of affairs, and of your
again taking possession of the company!''
Senator S.-''That depends entirely upon
the view that creditors, especially, take
of the situation, and somewhat
upon the stockholders. / have no doubt,
however, that some amicable arrangement
will be arrived at, either by set
tlement or reorganization within a reasona-
Bile time. The character of the property i:
such that a forced liquidation would of course
pay but a small PERCENTAGE, while patient
treatment will, think, get all parties out in
a reasonably satisfactory shape.'
Reporter--"Will the concern continue bus
mess during this probable interim of settle
mentl"
Senator S.-"Certainly, there is no other sal
Walton to all parties in interest, except for the
business to continue and work up the mate
rial on hand, which, in its present condition
is dead property. and must be converted into
available and saleable property in order tc
realize any fair prices out Of il"
The Senator is evidently hale and hearty and
in the best Of health and spirits, and from
his genial demeanor one can but come to
the conclusion that be expects to manufac
to come. We certainly hope he may, anC
wish him a speedy and happy outcome from
all the company's present embarrass ment.
Recetrer BrOtcn interviewed.
Mr.. Brown, the receiver, being inter
viewed, declined to go into details but to thu
inquiry as to information on the general sit
uation, remarked, that it was substantially
and fully set forth in his report; that he wa:
devoting his entire time to the business ant
especially to the collection department; thai
tbe sales of this season had been very salts