The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-31
A GREAT FIRMS FAILURE.
TINE INTEREST ON 4. s ". sPR1GUE,S
MORTGAGES UNPAID.
Eleven million Dollars of Indrbtcdmcsr-Rc-
suit of Years Of Trustecship-Finy Cents
on the DoIlar-Thc Sprsgucs' Enemies.

Eleven million Dollars of Indcbtcdmcss-Rc.
suit of Years OF Trustecship-Finy Cents
on the DoIlar-Thc Spragucs' Enemies.
PROVIDENCE, Aug. 30-Tho time has
probably come when the great house OF A. & w.
Sprague will he forced into bankruptcy. To-
morrow is the last dav Of grace for the payment
Of interest on the mortgage notes, aud there Is
no sign or prospect OF the money being forth
coming. The Spragucs' notes went TO protest
In November, lS,3 the amount Of their estimated
assets being then 80 1924, ard Of their deb g,
s1l,,1Q S04. The vllue Of the assets was, how
ever, greatly exaggerated, LIZA acres OF land IN
Crapston, II. J., figuring at sl,000 AN acre, where
IS in fact ii was not worth moro than $500 an
ncre, and It's averaee value now Is less than $50
an acre. The creditors consented to the
appointment Of atrustee, Mr.. Zlcharlah Chaffee
OF this city, to whom the Spragues mortgaged
all their property. and the trustee pu; forth
notes sufficient to cover the Indebtedness. the
obligations having three years to run. and draw
ing interest ut the rate ot seven aud thieetenths
right pay Ave per cent. O: the debt often ms,
IN his jndgmen It might be deemed practicnhlc.
Mr. Chaifee has paid the interest regularly with
IN sixty tys OF the date when rieil Que. Inc
interesi due ON tue LIST OF July, ls'G has not yet
been paid however, ana IL Is generally under
stood will not be, the sixty days expiring ~
morrow.
Tue money for interest has heretofore been
raised by sale Of the valuable personal properiy
Of the Spragues. The Providence and New York
Steam BOAT stock aud the Union Horse Car Rail
road stock have been disposed Of. The Union
Railroad u considered the most pIOutabie horse
line In New England. end Messrs. Steere.
Cluey Aetc4f, who bought IL, made good
bargain.
Ihe highest figure at which any Of the Sprague
mortgage notes nave changed hanos Is my
cents ON the dollar, and this Is the general esti-
mate among business nen OF the ability OF the
1lm To- meet IT. Obligations.
The Sptagues have some otter Toes. The God
dard's their former rivals. have m dc no effort
to iriure them, tut there are others whom they
offended In c days Of their prosperity, VINO are
nov determined to crush them out
Ii J. SAID un the streets here that Frdncklyn
(meaning {. G.. FIauckNn OF the Cunard linc),
II the SpraGues ~ the throat Mr.. Eranckiyu
mtiriec u iioNt, u neics of ex-senator Spr cue.
aud the l0yt children have suit pondiug
AZ inst fh-ir uncle for alleged misinNesi ncnt
Of their property. the Bank 81 Commerce. In
New York Is also "A large creator OF y. W.
spra.ae.
The experience under the trust mortgage
i that not one cent of the principle OF the
dctt has lceu paid: the trustee has failed 10
Iay thc iu'ere-; due this July aud the property
has deufc'ia'ed IN value, until II II now eX-
uem'y doubtful whether u would realize ufty
PEI ccut %. the Indebtedness.
\ creator told me that soOn after tomorrow
q meeting viii proc ably be called to consIder
what COTS" to pursue. The wish to realize Is
becoming general. ana many creditors Will DE in
favor of selling the property for what II Will
ufihg dividing the receipts. and pockellng Their
losses.
The trustee Mr.. Chafee. has obtained money
from SOME source 10 enable him To start the
mills again. he ;, rague factories have been
idle for several months, but the price OF cotton
goods now Justites a resumption OF business.