Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-10-30
THE RUMORS CONCERNING TIE 4
C ". SPRAGUE COMPANY.

The Boston Advertiser of yesterday has
the following:
Con siderable interest was occasioned in the
city yesterday by the posting of despatch in
the Merchants Exchange, of which the fol-
lowing is copy;
Providence, X. l., Oct. 20. 1t is current
here that the Sprsgues are embarrassed and
that 1t is necessary for them to raise one or
two millions to keep from suspension. 1t is
said they have succeeded in pulling through
to-day. but trouble is anticipated to- morrow.
Their assets are said to be seven millions
greater than their liabilities, and want of cur
rent funds is the cause. meeting of their
creditors takes place at o'clock to-day.
In regard to a meeting of creditors having
been called, the wording of the despatch is
probably too general, as it would doubtless
be impossible to secure a meeting of ali cred
itors at moments notice. Perhaps some OF
those largely interested may have been called
together for consultation. In response TO our
inquiries by telegraph, we learn from Provi-
dence that no information in regard to the
financial condition of the Spragues can prop
erly be communicated at present 1t is
known, however, that there have been sever
al meetings of the bank officers of Provi-
dence, Newport and vicinity to-day, and
within thirty-six hours, without any plan of
New York paper of yesterday contains
letter from a correspondent in Providence
| concerning the condition of the Rhode Island
manufactures. He represents that most of
the reports Of the state of affairs there have
been greatly exaggerated. We quote: at
has been said that the leading manufacturing
firm of the State, that of A. & w. Sprague,
has been only saved from falling by the direct
aid-only granted after personal supplication
of the other great house which divides the
supremacy in Rhode Island manufacturing,
that of Brown & Ives. The relations of the
manufacturers of this city and the vicinity
with their New York agents, it has also been
asserted, were hopelessly involved, and that
concerted action among manufacturers had
been taken to pull together out of the mire,
and that combination had been formed
among Rhode Island banks and capitalists to
bolster up the failing forces of the mills and
commission houses, the only means which
could prevent a general crash These and
other stories equally ingenious and unsound
have been freely circulated. The informa-
ton gained from trustworthy sources in this
city pricks these bubbles of air. As the
agencies of many of the chief mills of New
England are here, and as Providence capital
controls the great manufactures of eastt IN
Connecticut as well as Rhode Island, and is
largely interested in Fall River and other
Massachusetts towns, the feeling of manufac-
turers here must be toleraby fair criterion
of their sentiment throughout New England
That feeling is by no means SO detected as
has been opposed
1t is universally admitted that the Rhode
Island banks have pursued liberal policy SC
far as lay in their power. They have dis
counted fully for all kinds of trade at per
cent, and have tried TO relieve the financial
l A. ,Nf
cautious men express a fear thut a part of
them have been a little too eager in giving
help for their own good. But, as in New
York and elsewhere, they have naturally IA
vored most their constant customers, and
have done the" bulk of their business in re-
| newing old discounts, or in helping those
| whom they have already helped so largely
| that il would not be safe to refuse them fur
Their assistance. For this reason many men
of undoubted solvency have been forced to
resort to the street, where notes of first class
| firms are selling at discount of Is and 20
per cent. This depreciation of good paper is
largely due in the opinion OF many, to To-
| cal cause; that is, the amount now out of the
paper of A. & w. Sprague. The rates at
which this has been sold have carried down
| all other notes in market. The extent and
| variety of the business of this great manufac-
turing firm and the rapid way in which, OF
late years, it has been added to in various
parts of the country, have brought vast
quantity of their obligations into the market.
Rumor exaggerated the sum and deprecated
the character of their obligations, and people
have made haste to forget the extent of the
resources of the company in their hasty in
ferences of an embarrassed position. From
this has come the misrepresentation which
have obtained currency in New York as well
as in Rhode Island. An ordinary business
trsnsaction-the recent loan at 1-2 per cent.
of $3.50, 900 by the old Providence Institution
for Savings to the Messrs. Sprague. on the
security of certain stocks deposited
has been distorted into special assistance
given by Messrs. Brown & Tres to save a
rival house from ruin. and i, Was asserted,
only giving At the despaIslss sgiscSiAslaa o..
the junior partner N ra= rFrta asgGse- T1as
story srer fral sss sEe1 sata sss .sai-r lh.llg
influence Of tie sss.L-s - -1-s,:a.-s Il lis. ,,lIt
which loaned shf sssaxF ~ t,sa. .F A.4sir...
BroEn & IEel The aIsnsbi ID l. u
Spragae, w4sh ~ cl5sssss,..11sns lY,erssa sssG-
,oa mlss IL M4la.s. Eslsss,:at lflltasa Eltt Tul.
necglcps, yGG1E1g gT=r 45'.JiIig sp9s,.4s-s~ ~
sides the largest ,-Yss weeks ~ nae ,iiElsGaT
~ CrAnssoa. 81 Ogr&sT4As- E..,.ullsIsE -rgEs-
dence, togesa~r sI1A szrs,sG 4lzst tsasEu rsa-
roads locomotive mills .ssris s1ssss iist:lts.
tory. aai osfs-s sg-xs- Ea,sss syut.Et,+f. 10
speak assert sA45 aA=rs are 1s4 sasur--sts.,s I'D
these mill yrnr-e.slesr a1i- iEE. ttls rtAp+ II
the p0.sessEOas Ii Gsg ssgrzE, ssgaIi LII4,,.stt
I've .iE saa1es sE4 aGssZaG a i.as -2ti-4EE,s,t
of this 1rm. So Elsng Ard l1arsscEH.s ars aissslf
Industries IN shs STATE sAss "a srlss,s-1is AZ
bound UP in their szce@.s. ant R1a.s Asialss
capitalists declare ttazs they voz29 .1situ Il
necessary, to sustain The f0rZsE-s Il 3tsss
house; but among them IL 10 ree13gc1sAs- -
any such necessity nov.