New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-12
THE NORTH WESTERN OAR COMPANY.
EXPECTED TO PAY ITS DEBTS IN FULL.
THE RECEIVER THINKS THE CONCERN IS MAKING

THE RECEIVER THINKS THE CONCERN IS MAKING
MoNEY-ERRORs IN MANAGEMENT.
[BY TELEGRAPH TO THE TRTBUNE.l
ST. PAUL, May 1.-THE general belief is that the
Northwestern Car Company will overcome its
troubles and pay dollar for dollar Dir.
E. s. Brown, the receiver, is an old and
careful business man. and all confidence is
placed in him. Mr.. Brown will require
possession of the company's works Immediately,
and will set about obtaining inventory of all the
property of the concern without delay. This prop
erty includes not only the commercial paper held
by the company, the enormous plant and
the large amount Of material on hand at
the works, but will also embrace small lots of
machinery scattered throughout the country in the
hands of numerous agents. Mr.. Brown
stated that he will arrange matters so
as to pay off all tho hands on
May 10. After this payday the shops will be shut
down for three four days, possibly a week, so
that the inventory may be taken with better IA
cility. The suspension of labor Will be only
temporary, and solely for the purpose named. The
receiver thinks that it will take him at least two
three months to obtain all the information nee
essary for complete and accurate setting forth Of
the assets and liabilities of the company. Tue law
requires the statement in such cases to
be filed within a specified number of days
from thetime of the appointment of a receiver, but
in of the vastness of the affairs of this con-
cern, the necessary extensions of the time of filing
will doubtless be granted by the court.
The failure fastened by directors
meeting Saturday morning. Nothing
was SAID at this meeting of recelvership, but it
was understood that the suspension Of the Marine
Bank and of Grant & Ward had ruined the prospect
of securing a large loan of upwards of $75OOOO,
and that the company was in a strait. c. ID. Gil
ian, the first ice-presdent of the company, and
O stockholder to the amount of 100000
decided after the meeting to the books, and the
examination was such that he applied IN the after
noon for q receiver.
The receiver says the company, If it had kept its
affairs separate from outside business matters,
would be In thoroughly sound condition to-day.
AS to the outside business matters, he declined to
speak. He SAID the concern was making money
and only needed time to come out all right
If the negotiations for money had been completed
the concern would have been able to carry its op-
erations on till the fall collections began to come
in and receivership would not have been heard Of
He says that Sabin undoubtedly would lose heavily
in this matter, but he would not lose all he had
Mr.. Brown said that he would have to act, of
course, under the instructions Of the Court,
but his idea would be to continue operations,
running close to orders for goods and without any
unnecessary expenses.
When Mr. Sabn was last in st. Paul, a meeting
of the directors was held in the Merchants Hotel
Messrs. Sabin and Gilfllan had conference also,
and as it was known that the views Of the latter
coinclded with those of H. H. Porter, Of
Chicago, and formerly president of the Chicago,
st. Paul, Minneapolis and Omaha Rail-
road. 1t was decided that of two
plans should be adopted. The first
plan and the one which was on trial when the
Eastern banking troubles occurred was to appoint a
suitable trustee, who would negotiate in the East
large loan. Mr.. Lawrence, of the First National
Bank of Chicago, was chosen as this
trustees. As a, further part of
the same plan, frst-class financial man was to be
secured placed in charge at Saltwater, with power
to systematic the accounts of the company and dis
cover exactly the proportion of receipts to
expenditures and assets to liabilities as shown in
Mr.. Glfllans interview. The monetary depressionin In
the East prevented the success Of the negotiations
for Oan and that necessitates the carrying out of
the second plan-the appointment of IA receiver
c. D. Gilillan went to Saltwater yesterday fully
prepared to take the step he did and as fully con-
Vnced that il was the most likely to secure the
end desired. The payment of every dollar
of indebtedness and the ultimate rise
Of the preferred stock until it shall
sell above par.
Said Mr.. Gfllan: "SenatOr Sabin has a great
deal of activity and executive force, but he does
business in loose way. He is engaged in L
don't know how many schemes, and 1t is
not impossible that some Of them may go down.
He is interested IN SO many concerns that 1t IS
impossible to. tell just how, he stands; lie Is
connected with company which owns 10000 TO
40 900 acres of hard wood back of Hudson, and to
which a railroad has been built, also the Duluth Iron
Works. which, however, have been closed for some
time and with a mandatory east of Eroy, Wis
consin which turns out eight or ten tons of iron
day, and which controls three to fOur thousand
acres of good land rented as farms. If these COM
panies should go down the general effect would not
be serious, since they do business on small margins"