Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-11-03
The Sprague Embarrassment.
STATEMENT OF COUNSEL
Other Matters.

the bank representatives to-day, after the re-
port of the committee was presented, Hon. b.
+. Thurston, counsel for A. & w. Sprague
corporation, stated in behalf of the members
Of that corporation, viz. Mrs. Fanny Sprague,
Mrs. Mary Sprague, Mr.. Amesa Sprague,
Senator William Sprague, and two sons and
daughters of Mr.. Edwin Hoyt, that they are
in full accord with the committee who have
made this recommendation, and propose to
adopt in full and have adopted in full the re-
Communications of the committee. Senator
Sprague had retired by voluntary consent
from the presidency of the corporation and
Amasa has been designated to fill the place.
mortgage deed has been prepared for the
purpose of securing all the property and as
sets, priv ate and corporate, tor the benefit of
the creditors of the company, agreeable to
the principal suggested in the report
meeting of the creditors will be called at
an early day, and it is hoped that they will
see the plan which has been prepared, and
the execution of it is the best possible thing
that under the circumstances can be done for
their interest. 1t is in their power to accep,
or reject. But the alternative of rejection
will be throwing the property into the banks,
and its sacrifice as necessary consequence,
or at least the nperlling of the value of the
obligations of the company which are held by
these creditors.
Ex-Gov. Smith, OF the committee, stated
that every facility was proffered by the cor
poration; the books were opened and every
thing done that could be done to facilitate our
labors.
Mr. Thurston remarked, concerning the
trust deed, that at present it was not ready
for inspection. The creditors of the compa-
ny will see when they come to inspect that
instrument. He said that there is perfect,
absolute, and complete control on the part of
these trustees, acting in the interest of the
creditors of this vast property, so that while
on the one hand the company which has met
with an immense disaster is not to be over
whelmed in this, the hour of its adversely,
with unmerited insult, at the same time the
property of the company is to be presented in
such way that the creditors shall see that
by no bad management and by no possibility
of bad counsel, except such as may
come from the corporation themselves,
through their counsel, can this property be
subjected to sacrifice. | can state in behalf
of the corporation that there will be the full
est and most hearty cooperation on the part
of the corporation with the creditors through
their trustees in their management of this
property, so that the outside dependencies of
those excresences, or rather those parasites
which have fed upon the central tree, shall be
cut OH dHu iSdNc iutASt tHat iuS
property, which for years has been the glory
and pride of the State.
The meeting voted thanks to the committee,
but of course took no action concerning the
recommendations that are devolving upon the
creditors.
The new phase of the matter is canvassed
with interest, but as copies Of the trust deed
are not vet ready, no clear idea of the prOba-
BILE action of the creditors can be given. The
creditors are very numerous and represent
every possible interest and feeling. 1t would
not, therefore, be strange if serious ohjec-
ton should be raised to individual trustees,
or to the terms of the trust mortgage under
which they are expected to act. The general
features Of the plan, however, seem to meet
popular approval.
Providence, r. L., 2. There was scarcely
anyt hing doing in printing clothes last night.
The Franklin and Cranston Savings Banks
are doing no business under the new board OF
directors. Cranston will doubtless wind up
depositors. The depositors in time will get
their money of the Spragues in full.
The Sprague mortgage deed of trust is not
yet ready for publication and cannot yet be
considered in the details by the creditors
Perhaps some modification of its terms may
may be made, but the general feeling of lead
ing creditors seems to be in favor of trustee
ship rather than bankruptcy. Referring to
this matter, the journal Of tomorrow will
have the following, which probably reflects
the feeling here The proposed mort
gage covers the entire property, not only of
the A. & w. Sprague Manufacturing Compa-
ny, but also private property OF the individ-
ual members, and the whole is pledged for
the payment of rates, to be given equal in
amount to the present Indebtedness, and
which the creditors are asked to accept in
place of the obligations they now hold. These
notes are to run for three years at an inter-
est of 3 10 per cts.
The trustees are to have the power to sell
any portion of the property and apply the
proceeds to the reduction OF the debt. The
business of the corporation will go on under
the direction of the stockholders with
Amasa Sprague for President; and it is under
stood that the stockholders are willing that
any guaranty shall be given against change
in the direction not satisfactory to the credi-
tors, or that a representative OF the creditors
shall be made the President il that could be
more acceptable. 1t is also said that the COM
pany are willing that the creditors shall NOM
mate the trustees, if any of those proposed
should decline, or should for any reason be
unsatisfactory.
1t is desired for very evident reasons, that
this splendid property, the fruit of three gen.
era,ions of active life, should not 60 into
! bankruptcy. With careful and intelligen,
management it can be made to pay its debts
and probably leave a surplus. If closed a
once and sold in the present condition OF bus
! mess, it would pay but a moderate dividend
and the loss would fall with special severity
upon some who are little able to bear it, Al
the depositors in the Savings Banks and som,
OF the stockholders in the National Banks.
The closing of all the works for SO long
time as would be necessary to wind up 81
great and complicated an estate in bankrupt
cy, would be severe loss to many poor peo