The New York herald., 1873-11-04
| THE RHODE ISLAND CRASH.
Review Of the Past Weeks Events and
Present Position Of the Spragues.
A KITE WITH TOO LARGE A TAI,
How the Investigating Committees Re-
port Was Received.

PROVIDENCE, r. l., Nov. 8. 1878.
or the crisis in the affairs Of the A. 4 w. Spragdd
Manufacturing Company and Its agents In New
fork-Hoyt, Spragues Co.-the readers OF th0
HERALD have been fully advised by the special tele-
graphic reports Of your correspondents; ana little
now remains to be done but to briefly review she
events OF the past week and sketch the present
appearance OF matters.
when the great financial panic, which resulted in
the failures OF Jay Cooke & Co.. ana numerous
other firms, first burst upon the country, there's
was, as might naturally be expected wide-
spread fear and alarm almost akin tn
that created by the memorable panic OF 1867
and the shock was felt to very considerable ex-
tent in nearly all parts Of the country. But the
Cooke Co. failure not disastrous in Its eff,
fects as 1t would have been had the firm been ena
gagged In the manufacturing business instead Of
stock interests and speculation. Millions were In
voved in that failure, 1t is true but the masses OF
the people were not seriously affected because that
money was invested almost wholly In railroad
stocks, banking houses and commercial tnstituI
tions. But how different 1t Is In
THE CASE OF THE sPRAGUES co.
The two great houses In Providence and New
York have been almost entirely engaged in manu-
factures, encouraging enterprise In various parts
OF the country and investing large capitaE
where 1t would be or direct and sub
stanttal benefit to the masses by furnish
ing employment to thousands OF people, and tnusa
the two concerns became wound up the busi-.
ness interests OF the country to the extent OF mi
lions and became an immense monetary and COM
mercial power in the land. But, as is apt 70 bo
generally the case and as has too often beeu
proved, too many
SUCCESSES ARE PRODUCTIVE OF ExCEssEs,
even in business, as well as in social and political
circles and this has been the case to great ex-,
tent with the Spragues. Manufacturing institution
after institution established and gradually the
lines were extended until they not only coveredB
the greater portion OF Rhode Island, but EVEN
embraced localities far East Maine and South
as Georgia. the outside possessions including
great land interests In the Pine Tre0
State, Kansas, South Carolina and other
States. Besides the immense profits yielded
by the vast number Of establishments belonging tor
the Spragues, large sums OF money were obtanedl
from several of the more prominent OF our banking.
institutions at high rate Of interest, and nearly
every dollar Invested In the acquisition of rear
estate and the spreading OF the manufacturing
I establishments. The panic at last came upon the
country with Its failures, financial disorder andp
extensive business stagnation; but Rhode Eslandi
merchants and traders manifested at first no very
alarming apprehensions, fearing no immediate or
serious consequences and much less did they anti
cipate any disastrous effect upon the wealthy houses
OF the Spragues. Even Senator william Sprague
himself. who has devoted long and ardent atten-
tion to
giving expression to his opinions repeatedly upon
the ioor Of the national Senate, and VINO has taken
1 counsel with many Of our leading national fnan-
ciers, appeared not to be far seeing financially
/ as TO discover any evidence OF threatened money!
| depression of his company, and continued In hiss
policy OF largely borrowing and investing in prop
erty, needless, to all appearances. OF the great
! etrngency In the money market, the DEE
| n
| easlness and want Of confidence In the;
ene % sdnnne n ns Sny without Dns
ing the danger In times like these and by de-.
panic and tie rm nav aWaKeneS 70 no tneir
prestige at stake their very existence bustness
sns Ier New
lame Mills In OlneyviIle just outside tins city. hrst
showed symptoms OF financial ditiicultes and the
When the situation became apparent, when II vast
perceived that the TWO houses we're so interw0vens
that the interests OF one were the interests OF the
other, and the failure OF The New York house
threatened the existence OF the firm here, them
IMPERArIvE NECESSITY FOR PROMPT RELIEF,
the great house would go to the wall But theret
its agents, and the newspapers here were silent,
until the nature OF the situation was revealed byi
Of the danger was made evident. Gradually the,
facts were developed, and substantially confirmed
81 s Ns% x
nSpes that tha s company could ne
effect and put iurther or the aid essentiaE
to the preservation Of the parent concern butt
notwiths tandlng all dlscouraging aspects thei
friends Of the house did not DESPAIR but only RED
doubled their efforts. The encouraging statement'
was given out by the Spragues that on the iollowl
ing day the committee would report satisfactorily,
but scarcely had the statement gone forth when the
news came that the paper OF the spragues had gone
to protest. which increased the alarm and made
THE CASE OF THE FIRM
appear more hopeless than ever, but their frendA.
persisted
anticipatons, and the statement was further
nos be that snrss ns n here the
parently disastrous consequences OF the failure.
Up to this time the affairs during this great CRISIS
were under the immediate supervision oil Colonel
Amasa Sprague, the senior member OF the firm,
who remained actively engaged day and night ini
come and compelled to seek temporary relaxation.
but 1t was only temporary and Of very short dura.
business and in conference with mis- counsellors.
and the committee TO the best mode OF ADJUST
rom 'pH utter annihlation by the seemingly over
whelming disaster. AT this stage oiafrairs
arrived from New York, accompanied by . son OF
Edward Hoyt, Of the arm Of Hoyt Spragues Co..
active part In the deliberations AS stated by YOUR
correspondent, which statement was copied by thel
p *. the for the
senator william, who by his large land invest
ments me absorbed nearly all the available money OF
known is more conservative in his business policy.
and was understood not to fully approve OF ths
expenditures OF the Senator In such direction.
taking the money out OF the State where 1t waSs
most needed, especially In such q stringency'
localities Apparently with full realization Of
the weight Of this heavy responsibility, though hei
would not admit II, and deeming that his reten-
tlon Of the ONCE OF President OF the corpora,
tlon would under such circumstances be objectedi
to, ne
RESIGNED THR PRESIDENCY
OF the corporation ana Colonel Amasa SpraRno
was assigned TO the position AT last tne Uommlta
at the Saturday noon meeting OF the Dank reprej
sentatives presented their report giving n detain
the nature OF the possessions or the Messrs.j
Sprague, their valuation. the assets ana naplnuc1
Of the concern, and making their recommenidn-t
tons IA to the best manner or meeting the h&Dllk-s