St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-01-15
Davis Estimate of sabin.

Senator Davis was one OF the counsel
for the stockholders, and in summing up
the case paid the following tribute to
Senator Sabin:
When in the middle of the year 1884, like
thunder stroke in clear sky, it was an
nounced that this great corporation and the
corporation of Seymour Sabin d Co., corpor-
ations upon which the welfare of this state
depended, had failed, it was felt to be great
calamity, not only to the people here. but to
the community at large, to say nothing Of
the individual distress it caused to its Vari-
Gus promoters. And such is human nature
that it was cast about throughout the land;
it was conveyed by electricity and printed all
over this country. that there had been
GROSS FRAUD,
criminal abstraction OF assets, and mlSapprO-
priations and conduct to which terms were
applied which do not care in the least to
perpetuate, until an impression went abroad,
deep-rooted and to some extent inveterate,
that for failure of this magnitude there must
be some truth in the assertion. These charges
went into the pleadings. Those who made
them undertook to prove their assertion. l
have pursued this testimony and fail to find
this SubStantlated. and OF all those who pro-
NOTED the charges no one has dared to say,
except by implication and inuendo. that it
has bit of foundation in fact, and the only
person who appears here to subStantiate
them and base any claim upon them with
any appearance of reliance is Mr.. Porter and
was first charge that there had been an
imposition of the assets of Seymour, Sabin
Co., upon the car company, at a
FRAUDULENT oVERvALUATIoN.
The evidence which entirely refutes that
assertion comes from the mouth of Mr.. Gil
tillan and Mr.. Clarke, their own men. Their
versions are, in brief; that Mr.. Clarke was Sc
lected or suggested by Mr. Porter, man en-
tirely disconnected from the car company.
that Mr.. Gilfilan, by common consent
among the promoters of the enterprise,
which was slill inchoate, was Sc
lected by them; that there was a val
uation made by men above criticism,
conducted in a manner beyond cavil. and
with degree of diligence which one seldom
sees eQualed in cases OF this character. 1t
also appeared that so far as MIR. Sabin was
concerned. after certain developments
among the stockholders of Seymour 4 Co.,
him honor, withdrew entirely from the
matter of valuation and negotiation, and
was away most of the time. 1t appears that
the
VALUATION WAS CUT DOWN
and that in the amount to which it was cut
down in the language of Mr.. Gilfllan.'' a
gross injustice has been done Seymour, SabIn
Il Co, and that, in his opinion, based on the
experience he had had with the car company
up to the time when he testified that injus-
nearly $1,000,0O0. And it may please
your honor, although it was dill
gently disseminated through the public
press and conversation in business
circles, that in some way which would yet be
found out, there must have been, to account
for this enormous failure of the car COM
pany, felonious abstraction of its assets in
the course of its administration, all the
investigation that has been made, extending
over year and resulting in this enormous
mass of testimony, fails to develop anything
of the kind. No witness has been able to
put his finger upon
AN ITEM OF MIsAPPRoPRIATIoN.
But to my mind there is not only ample
reason why this failure not only took place,
but why it must have been inevitable. 1t is
that when the car company went into busi-
ness they started III without cent of work.
ing cash capital, generally speaking, and
which was to enable them to run.
And that condition was known, sng-
gested, planned and carried out by
some of the very men who are now
the way this was being done, and participated
in it. II was known TO Mr.. Gilfillan and Mr..
Clarke, who was vice president and manager
of the concern after Mr.. Sabin was elevated
to political honors. They trusted to the buoy
ancy of the times. thinking that they would
work themselves clear, and that their unlim-
tied credit would enable them to pull through.
But when the time of depression cUme and
misfortune after misfortune overlook this
company, after Mr.. Sabln had, with gener-
osity that surpasses my comprehension,
thrown his fortune into the abyss opened be-
meath his feet in the hope that it would close
up it went the way of all other concerns,
corporate or individual which attempt to do
business upon basis of that character. The
SEEDS OF THIS FAILURE
we're planted in the inception of this corpo-
ration. 1t started with an expense and labor
account of S2UO,00O Il month. 1t paid an In
terest at least S245 900. The damage by fire
was S350.0OO. The car business plant was
increased at cost of $4OO,OuO. They de-
clared, in a business which on any
proper estimate never made a cent,