The Portland daily press., 1873-10-31
THE SPRAGUES.
Strenuous Efforts to Relieve them.
Failure of the New York House,

Failure of the New Work House
New York, Oct 30.-Hoyt, Sprague 81 Go
do not deny the rumor of their failure, but de
cline to make any statement at to their affairs
at present -.
Foreign banking firms are mentioned as sui
ferers by the suspension of Hoyt, Sprague &
Co. This failure the great talk in finan'
cial circles to-day, and the immediate effect
was heavy decline in value on the Stock Ex'
change and depression outside.
Luter.
The suspension of Hoyt, Sprague & Co., to-
day occasioned much surprise 20 the general
public, but in financial circles there was not so
great shock as might have been expected,
owing to the belief that their assets will ulti-
mately carry them through their present pres
sure.
The Express says there are grave fears that
the event will lead to the closing of important
mills at the East and thus insure further priva-
tons and suffering among eastern operatives.
Viewed in this light, the suspension is sad to
contemplate, and should it involve embarrass-
nent among the banks at the east and drag
down other firms, then it may produce fnan
cial complications likely to disturb confidence
in the future We trust its effects may be
circunscribed than generally anticipated.
Considerable paper of the firm is held in this
CITY, it being estimated that $500, 900 of their
and individual capitalists here. Some of the
foreign banking firms were mentioned as suf-
ferers by the falnre. probably in the way OF
cotton operations for the mills. 1t will take
some days for full development of the effects of
the suspension of Hoyt, Sprague s. Co.
There is no doubt that the antagonism of
rival concerns caused the suspension, and the
publication of the embarrassments of the
Spragues is accounted for in this way arrange
ments having been perfected which would have
carried the concerns through but for these pub
lications.)
The Telegram says Mr. Hoyt is said to have
at least 81 100000 assets in excess of his liza
bilities, although great part of this sum is
said to be now tied up in merchandise of differ
ent descriptions. Great sympathy is expressed
for the firm and gentleman whose name is well
known in Wall street, said that he thought the
creditors of the house in Providence had adopt
ed very short-sighted policy in refusing assis.
lance to house dependent upon which, thou
sands of persons depended for employment,an
whose embarrasSmentS were SO far as he could
judge, only temporary.
The Evening Post says the firm OF Hoyt,
Sprague & Co., of Franklin street, sent mes
sage to the Manhattan Bank this morning to
stop the payment of their paper Beyond the
mere fact of their suspension, however, little
trustworthy information concerning the af-
fairs of the firm could be ascertained. One of
the partners said no information could at pres
ent be given to the public, but that u settle
ment would be prepared as soon as possible. A
messenger from Providence arrived IN this city
to-day and was closeted with the members of
the firm. 1t is understood that his account of
the financial condition of the Providence house
was such as left no alternative to Hoyt, Sprague
q Co., but the suspension There seems how
ever, to be general impression that the fir m
will be enabled to resume at no distant period
if the creditors will assist them by eXteDtiOn OF
time.
1t is reported that the New York house could
have obtained all the assistance necessary to
keep them ahOat through the troublesome
times, both from friends and creditors if a SINH
lar forbearance had been shown to the Provi-
dence firm. 1t was, however, impossible to
separate the fortunes of one house from the
other The impression caused by the suspen-
sion on Wall street was not so bad as some eX-
pected it would be, and although the street was
uneasy this morning, there was 10 appearance
of panic.
Another financial visitor says of the sus-
pension: The dry goods jobbers will feel this
failure keenly and it would not be surprising If
many would make virtue of necessity and re-
solve to suspend while they can preserve the
bulk of their assets intact instead of struggling
on and finally being obliged to succumb. In
quiry among the bank officials here reveals the
fact that there are no apprehensions OF trouble
growing out of these new developments. The
banks have gained over three-fourths of a mil
lion of legal tenderf to-day and are represented
pooling system, which was resorted tosearly in
The panic as a measure of safety and mutual
protection. The banks are now combining
themselves to a legitimate business, and while
they do this they will doubtless get along. all
right. There is no disposition to do anything
in the way of carrying, and indeed the banks
have all that they can do to carry mercantile
paper, while the declarations of bank officials
are founded upon general knowledge of the
situation
ka oil fn,,, ciI 10
events in the Immediate future. There are
certain banks in this city which it would not
be proper to NAME loaded up with dry goods
paper and all depends on the ability of large
jobbing houses to stand up under the load.
Under such circumstances it will not answer to
be too sangune.
1t Effect i'm Wall street.
NEW YORK, Oct. 30-The Times financial
article says: 1.-The announcement of the failure
of the Spraguas was not without serious effect
on the StoLS Exchange and contributed to the
previous gloom of the money market. The
failure in its ultimate effect upon open market
has terminated a damaging suspense. The
most was made of the failure by the bearish
people who were aided by the prevailing uneasy
feeling, and there was general fall in prices
of all stock"
The Times says that the alleged intimation
of unfrendliness of Brown s. Jones of Provi
dence against the Spragues is unfounded and
the former firm a week since contributed to the
relief of the Spragues.
PROVIDENCE, Oct 30.-It is understood that
A, & w. Sprague do not suspend to-day not
withstanding the failure of the New York
house. Upon application at the Office of the
Messrs. Sprague the information is furnished
that the committee of investigation into the af-
fairs of the a.. & W. Spragqe Manufacturing
Company, appointed by the representatives of
the city banks, will be prepared at a meeting to
be held to morrow morning, to make a report,
which it is thought will be highly satisfactory
to the creditors Of A. & w. Sprague and Hoyt,
Sprague & Co.
The surplus of available property at low
valuation over all outstanding liabilities upon
the acceptance of Hoyt, spragne & Co, will, it
is stated, be not less than $11 100000.
A plan will be presented at the meeting to-
morrow, accompanied with q detailed report of
the situation of the firm, which will, it is be-
lieved, if carried out, render the embarrassment
of A. s. w. Sprague and Hoyt, Sprague & Co.
of temporary Duration
Providence View,
There is no change in the condition of A. 81
w, Sprague's affairs tonight. Their maturing
obligations to day were small, and were paid
The committee of the banks is hard at work
with the counsel and members of The firm to
prepare the exhibit and proposition to be sub
mitted to the bank meeting tomorrow. No
intinnation is gwen what the proposition will
be, but the statement of affairs is pronounced
to be favorable, The failure of the New York
house having been anticipated, did not cause q
great sensation, although cavassed with interest
in its bearings upon the case of the Spragues.-
The ability and disposition Of the city banks to
help them through if the report of the COM
mittee is satisfactory, is undoubted. We hear
of no house that is likely to go down with this
disaster. The Spraeue paper is held largely by
the banks and except in the three Sprague
banks in line that are safely within in the
means of the institutions.
Their cotton and other supplies. have been
bought by strong honses and their paper that
has been bought of the brokers is largely in the
hands of speculative men who were tempted by
the high rate, took the risk and can meet the
loss which in many cases is covered by pro- ious
profits on the same risks.