The New York herald., 1873-11-04
TIE RHODE ISLAND CRASH.
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! main reason Of tho embarrassment. Of the house ss
Abandant sxpsrsnce has sSSa ses sHns sever see
me desirability OF carrying out the plans OF tine
committee il apparent 10 every saiuiui 81 :, an, aau
mi IN tentions of the committee were clearly set
forth In the special kilograms 10 tue HERALD sun
day night, gs,raS ana wn ths, S Whatever disposition
NAV be made OF the outside possessions tne pusi
ness estabisnmenIs Of Rhode Island may be pre-
served. ., ,,rno,,r
covers the entire property, not only OF the A. W.
6prague Manufacturing Company, but also the pri-
vnie nroperty OF the individual members, and the
whole is pledged for the payment Of notes 70 be
given equal in amount to the present indebted
ness and which the creditors are asked to accept,
In place OF the Obligations which they now hold.
These notes Of are anS " run or dnree ~ an
trustees are to have power TO sell any portion OF
the property and apply the proceeds 70 the reduc-
zion OF the DEBT. The business Of the corporation
VIII go on under the direction OF the stockholders,
with Amasa Sprague for President, and II is under
guarantee shall be given against change in the
direction not satisfactory to the creditors, or that
representative OF the creditors shah be made
president II that would be more acceptable, and TO
this end that they willing TO give 10 the trus-
tees power OF attorney irrevocable TO vote on
their stock. II is also said that the company are
willing that the creditors shall nominate the trus
tees II any OF those proposed should decline or
should for any reason be unsatisfactory.
THE FEELING IN THE COMMUNITY
Is wen illustrated by the following remarks OF tnc
yoapssal In reference to the properly III hhode
Island
It desirable for very evident that this spen
cid property me rut o. three e S asgs e
gent can be made % pay ITS debts nd s. and
probably eays rTpos % wond D but IA
moderate dividend and the loss woud fall with especial
the ao0a Tn0 hs
Y%e fSe closing 81 !n ., ali the works for 50 long lime
as would be neeessary s 10 wna up % SO gres.
,Ss S snd &
sion can BE svoiaed The orbearsnse Of all the ered
nss ey + q OF sre al
tors win doubtless claim they right 70 claim
to be consulted IN the selection Of trustees and in the
good that the matter may taken up kindly and
%s for se So' and
Ree q the are identified w, the eiams IN Of
Atons that employ so many hands
THB LESSONS FROM ALL THIS BITTER EXPERIENCE
OF the Spragues are manifold. Too great expan-
sion and consequent strain upon resources are
things especially to be avoided in times OF money
stringency. No firm, however confident they may
feel about their security, can long carry on such
policy without endangerlng themselves, and this
TACT mas amply Illustrated by the crisis in the
Sprague affairs. 1t Is sincerely to be hoped, too,
that the banks especially the savings institutions,
viii pursue more cautious and safer policy than
leaning their deposits for unreasonable expansion
OF territorial acquisition in outside localities and
lesson is shown relative the city's interests in
this matter by the following paragraph in the
J0tLyndi:-
% the deposits Of the sprsgue bank. the de-
sGs 9 the s sse In the he % san to
Hany The policy which has been followed OF spending
:s i s asS m e Of
interest is not matter OF small consideration When
Company that @ 10 city, a,
has mad ass city e1sa ns
street for money at twelve aud eighteen per cent.
GOVERNOR HOWARD DECLINES.
vs,neae neae mas mas oeen pracucay notnng h new de
6prague Co. Both the Senator and Colonel
Amasa Sprague, with their counsel B. F. Thurston,
are busy arranging for the presentation OF the
mortgage deed TO creditors, who have been, by
call issued this afternoon, summoned to meet IN
this city within a week.
Governor Howard, who, as was stated yester-
day, was absent from the city Saturday evening,
and who was not consulted in regard to his ap-
pOlntment as one OF the trustees, has, have been
Informed this evening, declined the position the
ground that his duties officially and privately, pre-
have already indicated his appointment gave gen.
eral satisfaction, and his declination win be re-
ceived with regret i called this evening at the
once OF the Messrs. Sprague to learn II any APP
pontInent had been made 10 I'LL the vacancy, but
tee had not as yet been selected, the choosing OF
one being, however, under consideration. The
6pragues' attorney, Mr.. Thurston has entire super
vision and management of the affairs OF the house
1t present, and all callers interested in the con-
cern are referred to him, who is ever ready to
cbeeruly impart all desired information as lar as
Is consistent with his duties.
RErIcENcE OF Mr.. IVES. OF BROWN 4 IVES.
In an interview had by your correspondent with
Robert H. Ives, OF the firm OF Brown a. Ives, this
evening, that gentleman absolutely declined TO
make any statement whatever in reference 10 the
relations between his house and that of the
Spragues. When questioned as to whether there
was any foundation Tor the reports In circulation
Affecting the attitude OF Brown a Ives towards the
Spragues he refused TO anything, and pre-
tended 10 have no knowledge OF their affairs other
than what he had read in newspapers.