The New York herald., 1878-11-07

In the capital stock of the Qundick company, the
corporation under which the firm are now
doing business OF great value and that after he had
cepted the conveyance he became treasurer OF this
company III which capacity he entered into an agree
ment or contract with himself for the transaction
of business, by means OF which the value OF the
shares in the capital stock has greatly depreciated
also that the property has been mismanaged wasted
and reduced in value and rendered wholly inadequate
TO discharge the debts the payment OF which II IS
held in trust to and in their opinion he has
kept proper books of account and of their knowl-
edge they that he has made no full and accurate
statement to the creditors OF the condtion oi ,ne
property of his transaction trustee that he has
refused to allow them to examine his books or papers
and that he has in all respects identified himself with
wishes and interests of the debtors and not OF the
creditors In view Of circumstances they have
lost all confidence in his ability and purpose so 70
manage and dispose of the property as to secure and
the of the ceditors also that he has
not the ability and purpose TO protect their interest
or to execute the interests created in the con-
yeyance according to its true intent and
meaning. They claim that it was his duty
as early as January !. 1870 TO s.,, take nm I'm,
from that time to hold manage and dispose of it in
interest and for the benefit of the creditors and TO
and disposition Of the samet but they claim that in
violation of his duty and in breach of his trust upon
that time until the present allowed the debt
to remain in possession control and management
Of the property and 70 %se 'he ne and Iof
advise with the creditors as 70 the management and
disposition of the property and has refused 20 give
them any account of his stewardship. He tChatee.
as might be supposed. positively refused to unite
with them FOR the purpose of procuring the appoint
ment of trustee or trustees, under the conveyance
A NEW MASTER WANTED.
In view Of all these facts briefly recited above
which they declare contrary to equity and tend
the manifest wrong and injury of the creditors they
will at the approaching term of court request that he
be removed from his Office trustee, and that some
suitable person persons may be appointed in his
place. and also that he be removed from his office as
assignee and that he may be required to render true
account of his dongs trustee and assignee
and to make due conveyance Of all the property in his
hands to his successors. They will also pray that
Mr.. Chaee and the other defendants agents and SER
wants may be enjoined from interfering with. man
aging controlling the property, and more espec
ally from conducting the business of cotton spinning
calico printing other manufacturing business, ex
cept with the consent of the creditors and under the
direction of the Court. They will ask for
writ of subpoena to be directed to the defendants
commanding them to appear before the Court there
to all and singular the premises and to stand
to perform and abide such order and decree as the
Court shall seem meet.
OTHER SIDE.
Several of the leading creditors of the Spragues have
been waited upon by a HERALD correspondent. He
finds that while they appear to be as determined as
ever to get some redress through the courts,
they are feeling more friendly toward Mr..
Chaee the recent business failures, especially those
which about by the rascally transactions OF
some of Fall Rivers mill managers, being the princi-
pal cause They that he is paying all the expenses
OF the new hrm and Is paying the u insurance. M s;s ae s
the A. w. Sprague Manufacturing Company Tor the
purpose Of seeing what he had to say in regard 70 ne
allegations Of the creditors. He was unusually
busy in attending to the numerous details
of his immense business. but as soon as
he found the of the writer's visit he freely
discussed situation He denied in the most posi-
tive the allegations OF the creditors, VINO he
said were simply banks and not individuals. The
individual creditors have not been inveiged into the
present move which, he said was an expensive one
and would result in no goot for ne was c9nnaen.
both sides would be apt to delay the matter
long possible. as they knew they had
q good thing and il would be unlike lawyers to bring
matters to an end He was confident that many of
the creditors felt that they had made mistake and
they could that he doing az well with the
property as was possible to be done I'VE have
said Mr. Chaee more square inches or property with
which 70 pay debts than any solvent concern in
the country We employing nearly twelve thousand
persons in the various mills and printeres. and II
was to do a few of the creditors want me TO do
wcnld turn all these people upon the charity OF the
public The property us in bright running order,
and is being kept up, but am satisfied that at the
present state of the market money can be made.
We are getting, however, a new dollar for old
dollar. and are keeping large number or people
say but that il is better do this than to allow the
machinery to rust out for wantof work. 1t IS some
thing to note. however that while we are not making
aID money have paid our insurance taxes and re-
pairs We have not reduced the wages of our en-
ployes since the first of last March, and wages
my recollection; our rents however, we
the tenenents. about onefourth the price of
supply our help with their groceries. produce and
meats at the lowest possible price as we buy such
Insurance costs 100000 and our taxes about
the amount. You may state III the
HERALD that shall make statement
at the beginning of the year, when the books
will be made up. We have put in considerable ma
chinery, and on the whole the property is in better
condition than it when took charge II is I'M
true that I act in the interest of the Spragnie
family Amasa attends to the calico print
ing ing m nhs details sna bosh are s Constantly "t
work They living economically, all reports
to the contrary notwithstanding. They never dictate
or awerye from my purpose in carrying ont the
wishes of the creditors am here to PROTECTING in
erests Of both parties, and who will deny but what
the Spragues have been true to their principles and
to say that the country does not contain two
better or nobler citizens. want everybody to
understand THAI i in absolute charge of the
property, and while in the capacity, of re-
ceiyer and assignee. positions which | never
sought. and which reluctantly accepted, VIII pro-
tec alike of the creditors well of
the debtors and that in will 90 contrary to
what I believe to be law and equity. Some Of the
creditors say am ugly, cross and saucy This. in =
measure. ia true. They irritste and ply all man
nor Of questions TO me while am busiiy engaged at
ePv work woua insy snsst tnsm in s P1op more
considerate Their lawyers don't ike and
say that II they could only get out OF the way they
could better their clients Now IL any creditor
wants 10 know how the business Is progressing. will
inform him. aud if they desire me to do go and 40.
will do a. they want to do il ! think that it is
proper that / should do so. and If i
not carry out their wishes will give them
my reasons in writing cannot sell the real estate
the titles to which. you being completely
obscured by laweut- and attachments.
INVOLVED INTERESTS.
The bill in equity was filed by of the creditors
asking my removal and the appointment OF new
trustees. duly answered the bill and the case is
still pending. There other litigatioDs pend
ing After my appointment under the trust decd the
Hoyt children children of Edwin Hoyt. of the New
York firm Of Hoyt, sprague X Coz, who inherited
onc-sixth interest heirsat-law OF the late
George william Spraeue in the a. \ W. Sprasue prop
er.y ~ held by the hrm before being put into
poration filed bill in equity to set aside the
of their interest by their guardian to the corpora
tion and to have the whole change into corporation
declared void ~ 10 them and that a trustee pay
10 them their one-gixth interest, in priority to the
rights of the other creditors Of the corporation.
or that the whole corporate property be declared 10
be affected with trust In their favor in priority ~
the rights of the other creditors. These bills
heard and argued before the late United States Judge
Shepley, in Boston, who died before rendering de-
cision, aud the viii have TO be argued
again and So you will that there is prospect
OF endless litigation In that direction. There
ara also heavy attachments on the property
by the Franklin Institutions OF Savings, of
this city, and also by other institutions.
propose to stick. shall do my duty and manage the
property for the best interests OF all concerned and