The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-28
MOhfGAGED FOR MILLIONS.
CL4IiTS IGIINST THE VAST ESTATE
or IHE SPRA0UES.
scyerni Ius-tticd SnIis-W what they are For
nrd WHY fnstituted-Chnnee Accused OF
ACKNOWLEDGEMENTS WORTHLESS MN Property.

Several tusetttcd Sutts-Whnt they are For
nnd Nby Northumberland Accused OF
Encouragement Worthless MN Property.
PEovipiNrr II. l., Dee. q The validity
OF tn SIrngU" trust mortgage Is not affected by
the Judgment lately entered in the United
States Crcut Court. in this cltv-Judgo
Knovlc. prcsiding-in tie suit OF the National
Bank oi Commerce OF Now York agt. tho A.
4 W. Sprnluc Manufacturing Company and
the assertions made on the subject and
the correspondence of certain New York papers
arc erroneous The Bank OF Commerce de-
clincd from the first to accept the mortgage
notes AMI attached tho property OF the firm.
Should tho trust mortgage be set aside in other
proceedings hereafter then tho judgment in
favor Of the bank may have effect against the
estate. The trus, mortgage was executed for tho
benefit oithc creditors in 1873. 1.-THE time Of the
Spraguc failure and covers property valued at
from al 100000 to SIS. 900 600 and the under
Standing in executing il was that tho mills
should lie run for tho benefit Of the creditors.
and the property gradually sold of TO the best
advantage until the debts should have been
paid with interest the remainder. after the nay
meni OF III" debts and interest; to go to the
Spraguc family. The trustee Mr.. Iechariah
Chare". says that he is carrying. out this pur-
pose a. The best Of his ability. and an attempt
recently mado to Gust him failed. Should tho
proro,din the judgment obtained by the
Ban "a. 'ommcrce viii be vaueless.
=. Tic suits pending against tho Spragues are:
First. that 81 the children OF the late Edwin
Hoyt, who. ne grandchildren and heirs Of the
Stat District Court Of Rhode Island to obtain
possession ot One.SiNth OF tho real and per-
soma! property. with all the interest. rents. and
profits acoruing since about 1856 that belonged
10 A. W. Spraguc ut that time-a partnership
composed u !he heirs OF Amasa Spragus. de-
ceascd, nnl " llunn Spr1gue. After tho death
OF william Spraeue. in order to facilitate
the division Of III? property ,aamong The
whole partnership estate. was transferTcd to
two corIorations-the A. \ W. Sprague Manu-
featuring Company and the Quldnick Com.
Of stork equal to his or her interest In tho
whole property tho amount Of interest being
Court 81 lIhoie Island. Now. the Hoyt heirs set
ny III. claim tlat the creation Of the CORPORA
lion ~ The A. W. Spraguc Manufacturing Com
PAM WIS unconstitutional, and that as they
wore minors at the time the transfer by their
guardian Of their interest IN the partniSrship
TO stock in the new corporation WAS illegal ;
Therefore they claim one-sixth OF the prop
erty. with interest. &C.. not subject to any debts
tack tho QudniSk Company. as thew have sold
thor stock III that corporation. This suit II de-
sroan E oy wePS Of nsS
tpu years tciore the suit was instituted and
thnt IN that tine they accepted dividends and
other reasons This suit was argued
befot" ne lWte Judg. Shiplcy who died before
his lie l,iun was rem Tered. and II therefore must
b. regrcned before the new District Judge lust
Next II the suit 81 the Bank Of Commerce OF
Now urk. t. obtain Judgment for balance due
the bank on account Of drafts 81 the A. h
W 81 I.suc Manufacturing Company. on
dors ii ~ the Atlantic Dcane Company,
discounted hv tho bank. At the tlmc
this sGi WIS Instituted. but after the irnnsfer Of
the property by the CORPORATION TO Il, Chnifee.
FIRST uy !. dee! ~ trust. aud secondly 10y an as
siEnmont under tho State laws Of Rhode Island.
the rolcrty was attached 10y the bank. In this
case the Plaintiffs have Just obtained judgment.
but be:os" u lew can be made they must prove
that the trust deed and assignment to ChHiree
are inutrlatiN".
rhr n"Nt suit Is that Of the Franklin Insttu-
ton for Savngs for about $500. 900. which is
very in. lar To- that OF tho Bank OF Commerce.
exccui that they nave not obtained Judgment.
NeAt IL SUIT in equity. in which
ex-Sarrctary Bristow has been retained.
Instituted by creditors representing about
t.hu.OUu 81 tao extension notes issued
by tAalier ne trustee. to take up the old
paper II the concern. on which no interest has
been laid since Jan. !. 1S7G-on the ground that
he has mismanaged the properly in many
ways, but principally because he has not
g. the creditors. This. il is avcrred on
his part, he has not done because Il
would To impoesible-even II tho times were
MOI" prop'iols 80 that any one could b. found
90 giy" n fair price for the property-to find A
purchaser AT any price, subject. as il must be. a.
the II, u o. tho HOyt heirs in the suit pending
A. AN instance Of tho difficulty in selling
mill property. the Atlantic Dclnine Company
here WIS pat into bankruptcy about July. 1874
and although the trustees in bankruptcy have
had Il clear tile ever since, 1t has not been sold
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