The New York herald., 1879-02-25
A. Il w. SPRAGUE.

HEARING OF THE MOTION TO RELIEVE MB.
CHAFEE OF HIS TRUST POSTPONED TO TIE
LAST OF MARCH-PLANs FOR SETTLEMENT
Mr.. CHAFEE's DEMANDS.
(BY TELEGRAPH TO THE HERALD
PROVIDENCE r. L.. Feb "a. 1879.
The Arst important in the affairs of the house
OF A. W. sprague came up in the Supreme Court in
this city to-day. 1t consisted of the petition Of
creditors representing s. 900 900 Of the firms
inebtcness praying for the removal OF the trustee.
Mr. Zachariah Chafce. for fully set forth in
the HERALD some time ago. Counsel for the
creditors desired TO have the continued for
few days. The Court. however, could not
find it convenient to grant the request. but sug-
gested that il the hearing was to be continued
at all 1t had better be continued to the March term.
This proposition being acceptable to both parties the
case was continued to the fourth Monday in March.
Creditors Of the house appear to look upon the delay
with good deal OF favor. they to be i'm
pressed with the idea that Mr.. Chafee in the mean
time will aid them in consummating an arrangements
for forming q new corporation for the purpose Of
protecting their interests and using the unused prop
critics of the firm to the best advantage IL is
proposed after organizing the new company
to offer the various mills and other properties
tor sale in parcels. II no outside parties can be
found to purchase at satisfactory neure then the
creditor would be expected to take stock pro rdso nc.
corng to the extent of their claims, or, in other
words the creditors to step into Mr. Chafees shoes
and make the best possible compromise with the
parties who have liens and attachments upon the
property. The new company would also dispose OF
the property fast and the in
debedness BY securing corporate rights they would
be able to sell the property and take the stock in ps
ment, and this. IL is claimed, would make demand
for the stock and enable parties who desired 10 engage
in manufacturing business an opportunity 20 do
easy terms. They cannot. however take RMS
course unless stock company In formed. and they
cannot under the present arrangement, exchange the
property for the extension notes.
CHArrEs POSITION.
HERALD correspondent called this afternoon
upon Mr.. Chafee, Mt the Office of Mcssrs. A. 4 w.
Spraguc. That gentleman intimated. in unmistak-
able language. that he did not propose to rehquish
his until the creditors indemnify him from all
prospective litigation the part of the creditors
who were not in favor of his turning the property
to the petitioners who represent mostly banking
would "step down and ont In his annual
statement. printed in the HERALD, he
stated that he would cooperate with the
creditors. He does not propose to be harassed with
endless litigation in he gave up the trust, and
he thinks that <S.0UoOOO at least invested in gov
ernment bonds other first class securities, should
be deposited with some bank or other custodian
litigation which might arise. He is in control Of tho
business to protect the interests of ali concerned.
and he respects the claim of the smaller we'll
OF the larger creditors.
II appears therefore. though the creditors CON-
mttec mistaken in regard to Mr.. Chafce's plans.
Many of the private creditors opposed to his
tring from his present position.
Among the counsel who appeared for the creditors
to-day b. II. Brstow, ex-secretary of the Treas