The Portland daily press., 1874-04-01
The Sprague Bankruptcy.

PROVIDENCE, X, L., March ol.-ProceedlngS
in bankruptcy against the A. w. Sprague
Manufacturing Co., were instituted to- day the
National Bank of Commerce, and citations
were issued but are not yet served upon the de-
PENDANTS. The announcement of this proceed
ing this morning caused intense excitement
among business men all day, and extraordinary
efforts were made to induce a suspension or
discontnuance of proceedings. A call for the
meeting of stockholders of the bank to request
the directors TO suspend action has been signed
6y representatives of $4,000 shares, all who
should be reached to-day. Ii is understood to-
night, however, that the pressure has been una
waning and no agreement to stop proceedings
mas been secured. The trust mortgage bill has
peen III trust fonr m mon tbs tomorrow.
Statement of MIR. Chafee.
The providence Journal publishes the fellow
ing which is addressed to the creditors of the
Spragne Manufacturing Co:
when I accepted, on the LIST day of Decem-
Der, 1872, the position of Trustee. under The
Sprague decd of mortgage, 1 entered upon the
discharge of my duties with a firm resolution
to administer my trust faithfully the inter-
est of creditors. l am able to say, that in all
respects the pledges made by the A. & w.
Sprague Manufacturing Co., ard A. W.
Sprague to the general meeting of their credi-
tors, that Their property and their best energies
should be devoted to the payment of their
creditoss have, up to this time, been entirely
fulfilled and l have been seconded by them in
every particular.
The record of my admin :stration may be thus
briefly stated: Two hundred and twelve cred
itors, including several of our city and country
banks, representing in the aggregate nearly
four millions of Indebtedness, have accepted
the notes secured by the trust mortgage in ex-
change Tor their claims, and large number of
creditors, including banks and savings institu-
tions, in addition, have signified their intention
TO exchange their paper Immediately after the
1st of April.
The business Of the mills and print work
has been conducted thus far with reduction
OF expenses equivalent to a saving of three
hundred and fifty thousand dollars per annum
The profits of the business from the 1st day
of December to this date assure me that could
pay to-day, if it were due, the inteeest on the
mortgage notes which will become due on the
LIST day of July next
have arrangements in contemplation and
in progress for the disposition of large amount
of valuable property not required for the manu-.
featuring business, which confidently believe
VIII enable me to pay dividend to creditors on
the 1st of July next.
have been able to obtain my supplies for the
mills and print works upon terms as favorable
as any other purchaser in the market.
have made the foregoing statement for the
reason that have been sufficiently informed
by the President of the National Bank of Com
merce in this city, that that institution will f.e
a petition in bankruptcy this morning against
the A. & w. Sprague Manufacturing Co. l
WISn tne responsibility Tor this act TO rest
where it properly belongs.
More than twelve thousand persons. includ-
ing men, women and children, are in the en-
ploy of the company, and are dependent upon
the mills and print works ior their daily bread.
Upwards of fifteen thousand people derive their
entire or chief support from the industries con-
nected with the business.
Upen the filing Of the petition / must close
the various works and turn these people out of
employment The immediate loss which this
will entail upon creditors will amount to at
least quarter of million of dollars, and the
calamaitous consequences which will ensde to
the operatives every mind can picture for it
self.
will not yield to this necessity until 1 have
declared my firm conuiction that the A. & w.
Sprague Manufacturing Company would, in the
absence of proceeding against it in bankruptcy,
be able to pay and discharge in full within a
reasonable time every dol.arsof it's obligations.