Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1884-05-16
RIG AILU1E.
4. 8. Brown Appointed Receiver Of the
Northwestern Oar ana = annfactnring
q Company 9ti1lwatsr. 5lS

made that the Northwestern CIR and Manufac-
turing Company at Still water, OF which Senator
ID. III. Sabin ii President, had failed and gone
into the hands OF q receiver. Il had been known
for some time that the company was embarras-
sed, but still the failure caused y great sensa-
ton In monetary and business cirel es; ID. RI
Stemson vice president and manager says:
ss,The stoppage, in all profa blEty, will be tenn
porary, as the company's liabilities are about
b, COO, with available assets Of 81, O00 O0O
of which 81 O00, eco ie In accounts and bills re-
ceivable. The receiYership lis caused by the
general depression which prevails, low prices
of wheat in market, slow collections from far
mers, etc. {&5.5 (. .i$ 5 s
Mr.. ~. 8. Gpodhue, secretary Of the COM
pany, Says the cause is indirectly attributable
TO the failure Of Grant & 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. ,.t s~
Mr.. q. s. Brown, who is the receiver says
he believes was making money and only needed
time to come out all right The 81 900, 800 in
the farmers paper, he believed, was good for
fully 50 per cent " IT, = j3t,,r - =? 7
dent of the company and largely Interested hold
ing slC0, 600 Of the stock, says the banks in St
Paul, he believed, did not bold SIC, 600 worth
Of the car company's paper. He had faith in
the company's ability to meet all it's obliga-
tons if time were given for it to do SO. The
company holds about v, 9oO, 600 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 Is 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 have a
receiver appointed. All know about the
al tn. of he 80 ",
WHIST appears on the books, and the books
show a proportion Of assets to liabilities of four
to one. beieve that substantially all of these
assets are good The liabilities include $3.50, 600
in notes payable about, $5O0, 900 OF which are
held by banks, and the balance by individ-
in New York and Boston, though some is held
by interest banks in Massachusetts Nearly all
OF these notes are secured by bills receivable
held by the company. The accounts
payable amount to 100000 Mr.: Gill
1illan telegraphed Senator Sabin at
Washington Saturday afternoon, informing
him of the determination to place the affairs Of
tho company in the hands Of 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 inclined to endorse for the company
81 know" said he, ''that matters will come out
ell right. All we want is q 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 go on, az it was Of
fered by friends, but he thought best to sus-
pend temporarily 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 Fra
day, the day before the failure, at which f.
nancial exhibit was made. In conclusion the
executive committee--Messrs. D. NJ Sabin, A.
Fl. Wilder, Thomas Lowry, J. G. Pierce and r.
the unanimous conclusion arrived at after con-
sultation with the largest stockholders is that
further distribution Of surplus by way Of aivi-
dends must cease until the losses from fires
are restored.
N W. Kittson of St Paul, on Saturday after
noon could scarcely bring himself 10 believe
that receiver had been appointed He said:
Is it possible? Why, was at meeting of
the directors in Saltwater yesterday, and
nothing of the sort was limited [ have $780,
GOO of the preferred stock, and c. D. Gilhllan
has $1C0, 600 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 a reporter, was thunder
struck
ri was at the directors meeting, Yesterday
sand nothing of the sort was told any of us.
It's the d-dest thing I ever heard Of. Pm as
that there is no reason for alarm. The heavy
stockholders can stand the temporary loss "
p. II. Kelley said 'I have been blamed Sc
verely for selling out all of my sec, 600 stock,
except 81, 500, which have yet, and for not
giving my support to the company can
truly say that { am unfeignedly sorry for the
embarrassment, but am not surprised. Twas
not to be blamed for losing faith in {. company
in which l had invested heavily--Sabin got
half a million out of st. Paul-aud 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 Il Co.,
who were engaged in the manufacture of
threshing machines, engines, freight and pas
senger cars, and machinery, and gradually ill.,
creased their business. The business was con-
Quoted under the firm name of Seymour, Sabin
& Co., until March q, 1882, when it was merged
into the northwestern Car and Manufacturing
Sabin being named as president and Frank B.
The capital stock-~$5. Wo, ooo-was divided
into preferred stock, 81, OO0, 900, and common
stock, $4,000, 600: the s3, coz: preferred stock
to be sold at par, subscribers and purchasers
to receive a bonus equal to 50 per cent of their
subscription in common stock-$5O0, 900 of the
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
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 800 convicts and 200 citizen work
men, the contract with the state calling for 45
cents per diem for the labor Of the cOnvicts
It is believed that the total loss Of the CON-
pany, exclusive of insurance, from the two
fires, reached Gle, 600. '#,.3, =. S
& At the annual meeting of the stockholders OF
The car company, held at Saltwater on March
q, the following officers and directors were
elected: 4i.sIs. ~ @lsg& E.sy7* >.
,Directors-D. N. sabin, Saltwater; Isaac
Staples s. silllWster; G. p G,lillan, St Paul; R.
apolis; C, N. Nelson, Saltwater; N. w Kittson,
st. Paul; j. C. Pierce, Red Wing; A. B. Stick
ney, ST Paul; A. 81. Wilder, st. Paul; George
R. Finch, st Paul; A. Oppenhein1, st. Paul; ).
r. Meagher, Mankato; s. r.. Stinson, SILVIA
ter; G. NJ Seymour. Saltwater; r. 3. Landon,
J. S. Fogg, Boston, Mass. / Tie directors then
elected the following officers .. H. sabin,
president; c.. D. Gilfillan, vice president and
general manager; W. s. Goodhue, secretary; q.
/. Hospes, assistant Secretary; j. G. O'Gor-
man, treasurer; H. G. Akers, auditor; r. s.
Davis, registrar Of transfers; ". 7. Barstow,
transfer agent %ss Il
u "a complete list OF the stockholders is not
procurable. Of the original subscrib ersnear-
" 500 in numbers large majority still retain
their first interest, but a respectable minority
have sold out Among them may be mentioned
6 Gotziau, ST Paul, P. II. Kelly and w. r.
Merriam, ST Paul and J. r Meagh Mankato,
f(partally. 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 Sc
per cent common to 100 per cent preferred,
subscribed and paid ss7 for. The pre-
ferred vas to pay q yearly dividend OF
Sper cent payable quarterly and when the
surplus allowed Of greater di Vidends the extra
amount was to- be paid on the common stock
Following ID q List Of the holders Of preferred,
as far as it is poaaible TO procure it:
ID ne Sabin, Saltwater {. &. B. IS. .. $$ss50, 000
lI8TA f4iI6lIar 81 par, M f1f