New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-11-02
MISCELLANEOUS.
Report on tae Condition Q: the Affairs Of
thn Snr

Report on fae Condition Q: the Affair. o
the Spragues.
| Providence. November An ad bourne.
meeting of the bank representatives wa
held at noon to day, when the report of III
committee appointed to examine the affair
OF A. & w. Sprague. was presented.
The committee say that they consider tn.
assets OF the A. Il w. Sprague Manufac
turing Company to be sl9,i95, 427: and tn,
liabilities Sill ,45,443; surplus $S,Oi9.984. A
detailed statement OF the property accom-
panies the report.
The committee further say that to deter
mine whether the mortgage proposed would
be solid and free from objections under the
provisions OF the bankrupt act they were
compelled to ascertain whether the amount
of aid asked would. in all reasonable prob
ability. be sufficient to enable the company
to meet its maturing obligations in the re-
| gular course of business.
The unsettled condition Of financial
| affairs OF business at the present time, and the
large amount of the obligations of the COM
| pany maturing during the next ninety days.
| preclude the possibility Of your committee
reporting that the sum of million dollars
would enable the company to meet its en-.
gagements regularly in the future and, as
IN the event OF failure to do so, the sol.
| ldity OF its security might be questioned
youA UuuoI tut duNICt OF CUUn.
sci, are of the opinion that the sum asked
for can not be safely furnished.
Upon coming to this conclusion, your
committee were requested by the company
to express their recommendation of course
to be taken to secure to its creditors the paw
ment OF their claims, and to preserve, as far
as possible, from shrinkage the vast avail.
able property in the hands of the company.
They therefore recommend that the A. e. w.
Srra M ,far
individuals comprising that corporation, do
mortgage all OF their property to three
trustees, who shall practically have all con
troll and management of the entire prop.
erty. These trustees to issue notes to an
amount which shall fully cover the amount
OF the present Indebtedness; these obliga-
lions to have three years to run, and draw
ing semlannual interest at the rate of
seven and three tenths per cent per annum
with the right reserved to pay FIVE per cent
OF the debt as often as in their Judgment
1t shall be practicable.
1t Is believed that all the creditors will
accept Of these evidences of indebted
ness, and if the trustees have the full au-
thority asked for them they will be able to
avert great calamity to thousands of or
eratives, make mill property valuable, pre-
vent further immense shrinkage of val
ues, and pay in full the indebtedness of
the A. & w. Sprague Manufacturing Com
pany, together with that of all the depend
ing establishments.
1t being the duty of the trustees to con-
vert the property and pay the debts at as
early day as possible, it is not unlikely
that the whole Indebtedness may be can
celed in a much less time than three years
Respectfully submitted,
JAMES Y. SMITH,
SETH PADDLEFORD.
RUFUS WATERMAN,
GEORGE +. WILSON,
Committee.
A meeting is now in session and will
probab! y adopt the suggestion of the COM
inlttee in some form
Ldier.-The report was received, and the |
counsel for the Sprague corporation have |
announced that the trust deeds were being !
made to Governor Henry Howard. Rufus |
aterman and Ex-Governor James Y.
smith. These deeds would be submitted |
% meeting of the creditors. and, if not
accepted, the alternative would be to 60
nto bankruptcy. The feeling generally
prevails that the deed of trust Will be &C.
epted.
At meeting Of the bank representatives