Savva Mamontov possessed commercial courage, business acumen, and intuition. He often took risks and almost always won. However, how did it happen that he could not protect his business and reputation?

In the late 19th century, Savva Mamontov was a well-known entrepreneur, philanthropist, and patron of the arts. In 1892, he began collaborating with Finance Minister Sergey Witte, who supported the idea of purchasing private railroads for the state.

Witte proposed that Mamontov participate in the reconstruction of factories in exchange for lucrative concessions for building new railroads. Savva Ivanovich agreed and began acquiring and leasing enterprises.

In 1893, Savva shared his idea of constructing the Northern Railway with Witte. In 1894, Mamontov received a concession to extend the road from Vologda to Arkhangelsk. This was the first experience of building a railroad in the conditions of the Far North. Despite the difficulties, the line was opened in 1897.

The reconstruction of the enterprises that Mamontov acquired in the early 1890s required significant financial investments. Unexpectedly, Witte denied him a state loan and revoked the promised concession for the profitable railway line. As a result, in 1899, Savva Ivanovich had to mortgage shares of the Moscow-Yaroslavl road to obtain a loan from the bank.

Mamontov could not repay the bank, and the Ministry of Finance began an audit of his enterprises. The audit revealed that from 1890 to 1898, the reconstruction of Mamontov's factories was financed from the funds of the railway company. Savva Ivanovich never concealed the transfers of money between enterprises from the board and the Ministry of Finance, but the law prohibited such operations.

Lawyer Fyodor Plevako proved that Mamontov had no criminal intent. The court acquitted him, but he emerged bankrupt. His reputation was destroyed, and his property was sold off. While Sergey Witte came out ahead, Mamontov's private railroad passed into state ownership.