The Portland daily press., 1873-11-03
THE SPRAGUES.
Report sfthe Bank Commissce.-The Aid
Cannot be Furnished-Thsyf Rec emmend
that an Property be put Into the Hands
of Trastees-The spraguss Consent
Action Of the Banks.

PROVIDENCE, r. l., Nov 1.-The adjonrned
meeting of bank representatives was held at
noon to-day, when the report of the COMMITTEES
appointed TO examine the affairs of A. & w.
Sprague was presented.
As the result of the examination the commit
tee say they consider the assets of the A. a.
w. Sprague Manufacturing Company to be $40
ASS, 247, the liabilities of the same 10 be Sll,-
475, I43, surplus of SS,0l9,S6i. A detailed
statement of the property accompanies the re-
port
The committee further say, to determine
whether lhe mortgage proposed would be valid
and from objections under the provisions Of the
bankrupt act, they were compe He'd to ascer
tain whether the amount OF aid asked would Ia
all probability be sufficient TO enable the COM
pany TO meet its maturing obi cations IN the
regular course of business. The unsettled con-
dition of financial affairs and of business at the
present time, and the large amount of obliga-
tons of the company. maturing during the next
ninety days, preclude the possibility of your
committee reporting that the sum of 81 100000
would enable the company to meet its engage
ments regularly in the future, and as in the
event of failure to do so, the validity OF the
security might be questioned, your committee
under the advice of counsel, are of the opinion
that the sum asked for cannot safely be furnish
ed
Upon coming to this conclusion your commit
tee were requested by the company to express
their recommendation of the best course to be
taken under tine circumstances, 10 eHdDlt tnc
company to secure its creditors the payment OF
their claims, and to preserve as far as possible
from shrinkage the vast available property In
the hands of the company.
TLey therefore recommend that the A. & w.
Sprague Manufacturing Company, and the in
diyiduals comprising that corporation, mort
gage all their property to three trustees, who
shall practically have all the control and man
agement of the entire property, these trustees
to insure the notes to an amount which shall
Fnl 10 fEp MT nF mt da N
these obligations having three years to run, and
drawing semi-aDuual interest at the rate of
3-10 per cent. of the debt as often as in their
judgment shall be practicable.
1t is believed that all creditors will accept
these evidences of Indebtedness, and if the
trustees have the full authority asked for, then
they will be able to avert great calamity to
thousands of operatives, make the mill prop
erty valuable, prevent an Immense further
shrinkage of values. and pay in full the indebt-
Company, together with that of all its depeni-
ing establshments-it being the duty OF the
trustees to convert the property and pay the
debts at as early day as possible.
1t is not unlikely that the whole Indebtedness
may be cancelled in much less time than the
three years.
This report is signed by j Y. Smith. Seth
Padelford, Rufus Waterman, G. F. Wilson.
The counsel of the Sprague Corporation an
nounced that the trust deeds were being made
to Gov. Henry Howard, Rufus Waterman, and
Ex-Governor James Y. Smith These deeds
would be submitted to the meeting of the cred
itors, and if not accepted, the alternative would
be to go into bankruptcy.
Honorable Action of the Company.
At the meeting of the bank representatives
to day, after the report of the Committee, was
presented, Hon. B. f. Thurston, counsel for
the A. & w. Sprague Corporation, stated in be-
half of the members of that corporation that
thav in fnll oord wit no w IN
have made this recommendation, and propose
to adopt in full, and have adopted in full the
recommendations of the committee.
Senator Sprague had retired by voluntary
consent from the presidency of the corporation,
and Amasa has been designated 10 fill the place
A mortgage deed has been prepared for the pur-
pose of securing all the property and assets, pri
vate and corporate, for the benefit of the cred
itors of the company, agreeable to the principle
suggested in the report. A meeting of the
hoped they will see the plan that has been pro
posed, and the execution of it is the best posi-
BILE thing that under the circumstances can be
done for their interest.
1t is in their power to accept or reject; but
the alternative of rejection will be throwing
the property into the banks and its sacrifice as
a necessary consequence, or at least, the imper-
ling of the value of the obligations, of the
company, which are held by these creditors.
Ex-Governor Smith of the committee stated
that every facility was proffered by the corpo-
ration, the books were opened, and everything
done that could be done to facilitate our labors.
Mr.. Thurston remarked concerning the trust
Decd that at present it was not ready for in
spection. The creditors of the company will
see when they come to inspect that instrument
that there is a perfect, absolute and complete
control on part of these trustees acting in the
interest of the creditors of the vast property; so
that while on the one hand the company which
has met with an immense disaster, is not to be
overwhelmed in this the hour of its adversely,
with unmerited insult at the same time the
property of the company is to be preserved in
such a 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
l can state in behalf of the corporation, that
there will be the fullest and most heartiest CO.
operation on the part of the corporation with
the creditors, through their trustees, in the
management of this property, so that the out
side dependencies of those excresences, or rath
er those parasites which have fed upon the CEN
trail tree shah be cut off and leave intact that
manufacturing 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 recon-
mendations that are devolving upon the credi-
tors. The new phase of the matter is cauvassed
with interest, bnt as copies of the trust deed
are not yet ready, no clear idea of the probable
aCUlOn Oh tne creuiUOrS call DC glNen.t
The creditors are very numerous and repre-
sent every possible interest and feeling.
1t would not therefore be strange if serious
objections should be raised to individual trus-
tees, or to the terms of trust mortgage under
which they are expected to act, The general
features of the plan however seem to meet pop
ular approval.
The Latest.
PROVIDENCE. Nov. 2.-The Sprague mortgage
deed of trust is not yet ready for publication,
and cannot yet be considered ia the details by
the creditors.
Perhaps some notifications of its terms may
be desired, and one or two changes of trustees
may be made. but the general feeling of leading
creditors seems to be In favor of trusteeship,
rather than bankruptcy
Referring 20 this matter the Journal of TO-
morrow VIII have the following, which proba-
bly, reflects thefeeling here:
The proposed mortgage covers the entire
property not on.y of the A. & w. Sprague
Manufacturing Company, but also the private
property of the individual members and the
whole is pledged for payment of rates to be
given, equal in amount to the present. indebted
ness and which the creditors are asked to &C.
cept in place of the obligations they now hold.
These notes are to run three years, at an inter-
est of $40 per cent. The trustees are to lave
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 90
with Amasa Sprague for President, and it is
understood the stockholders are willing that
any guaranty shall, be given against a change
in the direction, not satisfactory to the credi-
tors; or that representative of the creditors
shall be made the President if that could be
more acceptable. 1t is also said that the COM
pany are willing that the creditors shall nomi-
nate the trustees if any Of those proposed
should decline, or should for any reason be I'M
satisfactory.
1t Is desirable for very evident reasons that
this splendid property, the fruit of three gener-
ations of active life, should not 60 linto bank
ruptcy. With careful and intelligent manage
ment it can be made to pay its debts and prob
ably leave a surplus If closed at once and sold
in the present condition of business, it would
pay but a moderate dividend, and the loss
would fall with special severity upon some who
are little able to bear it as the depostors in the
savings banks, and some of the stockholders in
the national banks.
The closing of all the works for So long
time as would be necessary to wind up so
great and complicated an sestate in bankruptcy,
would be severe loss to many poor people, and
a serious interruption to general prosperity; yet
st is exceedingly difficdlt, and Only by many
concessions that such conclusion can be
avoided. The forbearance of all the creditors
of whom necessarily only few could be con-
suited in these preliminary proceedings is requi
site, or of all whose claims the others would
net purchase. We hope for the general good
AI.aAt @kAr - H.