The New York herald., 1877-10-22
The SPRAGUE ESTATE.


MENT os THE TRusr-A MOVEMENT FOR IN
AcccoUNTING-ExrENT OF THE INDERTED-
NESS AND VALUE OF THE pApER-AN IN
TRIcATE SITUATION OF AFFAIRS.
PROVIDENCE II. l., Oct 90 1871
1t Is tour years tn6 great house Messrs
A. & W. Sprague obliged TO ask The indulgence
Of their creditors they being indebted at that time
under liability, primary or secondary, 'n divers sums
OF monoy to divers persons, amounting In the aggre
gate to about the OF Sl40oo,00o Itis oil course
well known fact that the firm. comprising Mrs. Fanny
sprague, Mrs. Mary Spraguc, Mr.. Amasa Spraguc,
Hon. William Spraguc, and two aud daughters OF
Mr.. Edwin Hoyt, being desirous Of funding their In
debtcdness conveyed their vast estate In trust TO Mr.
Zachariah Chanee, OF this city, thnt gentleman being
empowered to manage the property for the best IN
terests OF all concerned
Negotiable promissory notes issued, made pay
able to the OF the hrm and by them indorsod,
payable three years from January 1874 with inter-
est from that date payable emiannuay Ut the rate
OF seven and three-tsntrs per cent per annum TIL
the principal pad, whether at after maturity.
All insalments OF interest in to bear inter-
est at tho rate mentioned ill paid but they reserved
the right 10 pay said notes before maturity in install
ments not loss than i've per cent OF the principal.
Sixteen thousand Ave hundred OF these Is
sued. they being duly numbered and ictterod, in
amounts from $50 TO $4,000
In the meantime but three instalments OF Interests
have been paid tho creditors and, might be sup
posed, this tact occasions no little comment here,
especially among tho creditors, who now getting
exasperated at tho turn which matters have taken
the present Of affairs. Your correspondent
called upon the leading creditors, the principal
being the First National Bank, which now holds, IN
round numbers, $780, 900 worth Of their paper, and
from the statements OF the officers Of which led
10 the conviction that something will bo done by them
at once to secure the amount due them, aud TO SEQ
whether they have any rights IN the eyes of the law
They clam that tho conditions OF tho mortgage deed
conveying the property trust to Mr.. Chafce have
been broken. Tho feeling almost a. lever heat,
but they hardly know wnat to do. Ihoy understand
very well that the present is time think OF sell
ing the property, and they we'll Of the de-
pressed condition Of The cloth They that
the firm, dong business under the name OF the
Quidnick Company, with Mr. Chadce treasurer.
have made report OF their business to the Court.
They have, instead, volunteered to mako reports
committees OF creditors, and In fact have ado state
inonts to SAID committees, but which have not been
very satisfactory far tho 'showing up" Of tho
business Is concerned
CREDITOR SAID.
One Of tho prominent creditors and gentleman
oc lpyng several positions OF trust said TO me-
I'VE, creditors, have held several meet
ngs, IN which tho situation freely discussed. We
were determined to assert our rights. como what
would We agreed to draw up paper to represent
$1,000 900 of The Indebtedness, which IS over onehaf
of tho present Liabilities Of the nrm aud
cecdcd Ia that movement We would 60 TO the Court
with counsel and see what could DO done in the
premises. My individual plan would be 10 Call Mr.
Chafeo to account Tor his stewardship and TO place
hlm under tho government OF ,he Court II We can
get the desired amount on the paper-and have
doubt that Can, for already have signers
attached 10 the representing over $40 600
of he inlp cd mas II ha In
decide IN our avor or ut least give US the benefit OF
all doubts
majority Of the other creators, strongly favor
OF navng their properly placed in tho hands o. trus-
tees, but we a think differently at the present time.
Wo Lave had a sad lesson and one which will
forget Bankruptcy IN my opinion would have be
waited patiently for four years without dong any
thing, and We have now arrived AT that point where
we believe some action should be taKen and that TOO,
without delay, 10 DO sure we don't ieel like selling
The properly now, with oil the attachments hanging
10 IL, but you state In the HERALD thai wc
ment, and We viii never take either twenty
or twenty-five cents Tor II. Az the last public sale
Board oil Trade II brought twenty one aud haf cenls
tue dollar, and It general the
friends the nrm buying in the paper and which,
II true, rather questionable transaction Mr. ChaeJ
has openly purchased somc Of tho paper at this hgure,
but he bought II IN his own namc, and OF course Il
would not do TO say that he purchased II Tor the rm.
Recently Wilbur Jackson brokers, sold $15. 600 OF
their paper at twenty and hall cents and know
himse, out was authorized by his riends make the
Offer We shall defer action the suit the Hoyt
In Boston, next week. Should a favorable do
cision DO gwen for the plaintiffs l think IL
would darkcn the prospects Of tho other creditors
All 0i their mills running and | tail
TO rec any reason why we should pot receive the
tercst, pcr agreement, In the mortgage deeds The
time been when Mr.. Cuatiee should have sold oil
certain parcels oil real estate, Tor now that same
property would not bring one-quarter what IL would
have dono years ago, aud the nrm is obi sed to
Alter the trust decd mad becn arranged aud for ear
that IL would DO brokou IN some form an altempl 10
do SO being made by certain bank, they went 10
work and mado an old-fashoned assignment Of all
their property TO Mr. Chaiee, thus making themselves
Your correspondent, upon informing other creditors
Of the resdlt OF his interview With tue gentlemen
ierred ", was told that he had the right
ana ono who could speak Tor the creditors. aud who
Understood tic situation Ia all Its Details and they
were glad that he had consented 10 'spoak out ia
meotpg,' ior II was high time something should be
said or doDe
Mr. Alexander Farnum. tho receiver Of the Cranston
Savings Bank winch institution went down with tue
Spragues, was found al the occ ol the Rhode Island
Hospital Trust Company Of which he Is the President
pro xm This gentleman, It was understood, mad
drawn up tho agreement referred TO, and he kindly
furnished copy OF the same 10 youf correspondent
Mr.. Farnuu,, ~ referring TO the Gocument saa:--
at means Just what II snys. nothing moro or less,
aud we induced 10 taso this move ~ Justice TO
Ourselves and the many interests we represent You
are at iperty TO use you see ht ana would ssy
right here that the NEW YORK HERALD has always rep
resented us lnriy and am conndcut that you, QUO
before the puDilc.n
Tgxr CREDITORS AGREKMEST.
/ The following Is a copy OF tho document
The gned creditors OF the w. spraguo Manu-
featuring psny believing that the time arrived
when duty take steps to protect
10 advance such hereby unite
for the purpose adopting such Ia prem
iscs may desirable, the conditions following
/. That conditions nerein expressed s4ail become
binaing when ustituJns and individual creditors
Chains against the above 10 the
amount o at least 10000 shall have snod this present
Agreement.
:. rhat when this agreement shall have been
sgned thereof shall be eacd together shall
executive committee OF hyc which committee
shall consider what steps desirable TO
carry into elect the OF tails and
shall report meeting meetings said
signes It's eOncIusioIs and shall
authority 70 carry It's commentators Into effect
That this Executive Committee, when thus authorized
to take action In behalf OF the subscribers hercuno s0a
also have the rght from time time
upon AL such Subscribers rataby In proportion to the u
value 0 Their respective claims such
be incurred IN the exercise OF kutbot,
which assessments soyeray bind ourselves
successors demand to tho shat shall be
appointed or chosen treasurer rcinatter provided.
provided however, tnat such
shat not In the onchaf per
VI the amount OF respective claims except
written consent 10 any ncroase hs
/