New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-30
FINANCIAL DISTRUST.
THE FINANCIAL EMBARRASSMENTS OF A.
d w. SPRAGUE.

NEEDED BY A. W. sPRAGUE, AND S1,0O0,OOO BY
| HoYT, sPRAGUE Co.-rHE LIABILITIES AND
ASSETS OF EACH FIRM-AIL EXCEPT FOUR BANKS
DECIDED TO AID THEM-THE CONDITION OF THE
"sPRAGUE BANKS 1.-THE PROSPECT IMPROVING.
lBY TELEGRAPH TO THE TRBUSE.l
PROVIDENCE, GOT 29-The mystery which in
Providence has been thrown about every detail OF
the position of the house Of A. q w. Spraguo d
Co. and of the New-Yorb house of Hoyt Sprague Il
| Co. wrought it's natural result IN much lying rll-
mors, which have shaken the city TO its center,
and have been dispersed over the country
az to the management Of the firm Capt.
| talsts of Providence and journals here keep
Omnons silence, increase distrust, and cause ten
fold alarm. The embarrasSments caused by the
panic have been magnifed into death blows, and
| hourly the majority Of people, left to gno-
rant conjecture and dreful hints of sensation
seekers, have expected the announcement of sus-
| pension. Garbled and exaggerated reports printed
in Boston and New-YOrk remained uncontradicted
by proper authority, thus exaggerating popular
fears While A. a. w. Sprague clam they can show
an encouraging exhibit, they carefully keep 1t from
the public. Of an immense amount of liabill-
ties of the A. s. w. Sprague Manufacturing
Company there can be no question. They
themselves have 81, 100000. Tho enormous amount
of their resources is equally unquestoBable 1t in
kinds goods stocks, etc. The aggregate they put at
Sl3,40OOOO. They control so large part OF Rhode
Island industries are interested in so many banks,
corporations and business enterprises Of all kinds
that their failure would be terrible blow to Rhode
Island and New-England. But Rhode Island CAPT
ais Is say they win not allow them TO fail
The bank officers of this city, alarmed by the
quantity Of obligations of a. & w. Sprague, asked
for q settlement of their position. The answer made
was that 4. & W. Sprague must have loan of
S10OO000 to weather the storm, and that
Hoyt, Sprague & Co. OF New-fork
must raise another million IN New-York.
The Presidents Of the Providence banks have held
several meetings to consider the matter. On Tues
day evening they met and resolved chat A. d w.
Sprague must furnish fuller information of the
position Of Hoyt Sprague Co.. that they
might be assured that the desired loan of
81 100000 would be sufficient and would not be
consumed for Hoyt, SpTague IL Co., without relev-
ing a. 81 W. Sprague. In answer statement OF
Hoyt Sprague & Co. was submitted to the bank
Presidents, in session yesterday afternoon showing
that the resources of that firm exceed
its liabilities by at least s. 100000, and that its
liabilities outside OF the acceptanccs Of the Atlantic
Dolaine Company in this city tmost of the stock of
which is owned by Hoyt, Sprague q Co.., and of the
do not exceed $90Oo,OO0, and are all pro-
tected by the sales of goods or notes for
goods sold. 4 dispatch from Hoyt, Sprague d Co.
announced that $4,000 of the 100000 loan re-
ouIrcd by that firm in New-Yorll had been raised.
The exhibit of A. & w. Sprague showed that at
low valuation their resources are $3f0,OO.
Their mills are yaluedd at S3,00OOOO
less than their cost, while there
are no mortgages or claims on their property. The
only hypothecation of securities made by them was
the placing of stock Of the Rhode Island Locomotive
Works lof whose stock they own one
third as collateral for a loan OF S250,OOO
from the Providence Institution for
Savings one month ago. On this showing
the meeting resolved that the several banks
sbould sustain A. g. w. Sprague to the
extent of 100000 by a distribution of the
loan among them pro rata, according TO their
capital. provided that committee of four, APP
pointed for the purpose should report after exam
nation that no more would be necessary, and that
sufficient mexccptonabe security could be given.
Ex-Gov. Seth Padelford, Rufus Waterman, eX-
Gov James s. Smith, and George +. Wilson
were appointed that Committee and are to report
nj noon tomorrow. james Y. Smith, President OF
the Union Bank offered in the meeting 100000 OF
the loan. and the Rhode Island National, per cent
on its capital, S3GOOOO. The general sentiment
among capitalists is in favor of the loan.
During to-day the expectation of the failure OF A.
& W. sprague has caused great excitement IN this
CITY, which might have been allayed by an author
lied statement Unfounded stories that meeting
of creditors had been held and that Providence capt.
talists and business men had met IN large numbers
to consider the necessity of assistance were eagerly
caught up. There have been no meetings except OF
bank officers some Of which were informal a run
was made upon the Franklin Savings Bank and the
Cranston Savings Bank which are connected with
the Globe, National. and First National,
which, together with the Second National are CON
trolled by the Spragues. Savings banks require 60
days, notice for the withdrawal of sums over S25.
Three hundred dollars in small sums was drawn
from the Franklin which obtained $4,000 from an
other bank. The three Sprague banks-Globe, First
and Second Nationa--have been under suspicion be-
cause they were known TO hold so much Sprague
paper. A. b. Mygatt, United States Bank Examiner
for Rhode Island, has examined them,
and q committee appointed by the Asso-
cated Bank Presidents also Investigated
their condition. From Mr.. Mygatt and
from James Y. Smith of that committee an encour-
aging statement was obtained. The associated
banks have agreed to sustain the SpraRue banks
and meet their liabilities to depostors. Mr. Mygatt
said 4: An arrang cement is perfected by which the
GLOBE, fhst Nallonai, anu co'ohu A'"""""' W" D'
sustained and their depositors fully protected by
the other banks, which pledge themselves to furnish
required amounts AZ necessary" Only four banks
remain to take action and are expected to unite
with the others tomorrow.
William SpraQue is President of the Globe, its
capital 100000 Amasa Sprague of the First Ma
tional, capital SeOo.OOO; and Thomas A. Doyle,
Mayor of Providence. OF Second National,
capital i$5oO.0OO. The aggregate surplus Of
these banks is about 100000, the Globe