The New York herald., 1879-02-09
A. w. SPRAGUE
Statement Of the Condition Of The Estate
from Trustee Chafee.
A FAIR SHOWN G.
The Manufacturing Works Kept Running
with Good Results.
LITIGATION IN PROGRESS.

PROVIDENCE, H. l.. Feb. 8, 1879.
Mr.. Zachariah Chafee the trustee OF the immense
property of the firm of Messrs A. X W. Sprague, has
made his long expected statement to the creditors
1t makes good showing when the depressed
condition OF business throughout the country is
taken into consideration. During the past year"
said Mr. Chafee 1.-THE cotton manufacturing interest
of the country has suffered continued depression and
the business under my management has shared i'll the
common misfortune. The mills and print works have
been kept in full operation and have been attended
with large increase in production. The result OF
the years business from running the machinery
is much more favorable than would have been
the condition case the business had been stopped
The whole property has been maintained in good
condition, and the machinery has been kept up to
the full standard OF efficiency. The business
has paid all expenses of care and manage
ment, taxes, insurance and ordinary
pairs and substantial betterments to the
extent of about $4,000 have been made. The bal
ance in favor of continuing the machinery in opera
ton. against allowing it to remain idle is
S51,509 Ii. appears by the following state
ment. which shows gam on on running 1'
1878, not including expenses which would have had
to be met were the machinery stopped; A. w.
Sprague Manufacturing Companys net profits from
manufacturing S67 1852 %; taxes and insurance.
charged to manufacturing thereby decreasing profits.
which would have had TO be paid II the works had
been stopped S37,922 05; total, $105074 3d. running
expenses S122.933 81, showing net loss of
S11 $50 "a amount charged to manufacturing
during the year for repairs and improvements
on buildings, machinery &C.. ssoG65 46. Quid-
nick Company-Net profit OF manufacturing
over and above running expenses. sl9,2s7 os;
taxes and insurance charged to manufacturing.
thereby decreasing profits. which would have
had to be paid If stopped s10O42 81. showing . gain
during the year for repairs and improvements ON
buildings machinery. &C.. $9,373 0?. Recapitula-
ton -9uidnich Company, net gain; ssDs2s s: 20;
$17s49 "a. Net gain on both companies. Sl1.470 G5
improvements charged to manufacturing-A. 4
Quidnick Company, s9373 02 total. $4o.oss 4s: net
amount in favor Of keeping machinery in operation
S51,509 IL.
INABILITY TO SELL THE PROPERTY
It has been impossible for me to make sale of any
portion Of the trust estate in my hands during the
past year. for the that the whole estate is
numbered with the claim that is made by the heirs Of
the late Edwin Hoyt that they are entitled to pre-
ferred lien over all creditors to an amount
which il sustained will absorb large proportion Of
the property in my hands Suits are now pending
in the United States Court on the part. of
these heirs to enforce this equitable lien
and to have trust declared in their favor;
and an equal if not greater embarrassment
in the way Of sale of the property has arisen from
the pending attachments in the suits by Winthrop
De Wolf receiver OF the Franklin Institution for
Savings and the National Bank OF Commerce OF New
York, which have recently gone to judgment, and
under which these creditors claim that they have
obtained first lien upon the property. on the
notion that the trust deeds are invalid However
groundess this claim 1t is sufficient to cast cloud
upon my title and deter purchasers wish it to be
distinctly understood by the creditors that stand
ready to cooperate with them in working out
any plan for turning over the property to them
upon which they can agree In the meantime
shall endeavor as in the past to save the property
from depreciation by keeping, IL possible.
the mills and print works in operation, and by
expenditures for reasonable and proper repairs.
THE ESTATE HAS BEEN HANDLED.
The Spragues suspended in 1878 with liabilities
amounting to $l1.000,O0O. and the surplus was
rated at s19,0OO,00o. in order to protect all the
creditors alike it was deemed best to have
the estate put into the hands of a trustee,
to be managed for the equal benefit of
the creditors and the debtors. The trust deed was
executed in November, 1873. and Mr. Chafee. one of
the shrewest business Of the State. legally
constituted the trustee; He at once s,,,',i. took
January, extension notes were issued. pay
able in three years from January l. 1874.
Sprague paper Mr.. Chafee has managed the property
since the execution Of the trust deed. and
holds it in his hands firmly and securely.
interests. paid the expenses of the business and
it is acknowledged has done fully as much a. any
one man could do during the years Of depression
money and taxes alone amount to s2OO0OO
q year. and every dollar Of this sum.
been paid which is good a record can be shown
by any other manufacturing concern in New Eng
land making the same line OF goods. The interest
since January Is: 1876. and the notes
are Of course, overdue. By virtue Of
the trust deed and also of an assignment made by
the Spragues under the State law in April 1874 Mr.
Chaee is able to continue in possession OF the estate
and to keep all the creditors away from it until such
time he fit to make a settlement.
EMPLOYMENT GIVEN woRKMEN.
As over twelve thousand persons are employed in
Company Mr.. Chaee contends that it would be wrong
TO attempt to close up the business aud turn this
army of laborers adrift in order to make forced
settlement, which would not result in anything but
serious complications and suffering.
REDUCTIONS OF THE DEBTS
The indebtedness of the firm has been reduced
during the past three years TO about $4,000 900 by
the dividends from the receiver of Hoyt. Spragues
Co.. of New York and by certain arrangement of the
business and effects Of with which the
Spragues were connected outside of their corpora
ton interests that is. they now probably some
thing like $S0W.OO0 and have, ut low valuation
about $4,000 of assets.
PENDING LEGAL CONTESTS.
The fight the validity of the deed will be
awaited with interest, together with the hear
ing of the bill in equity, filed by creditors
representing one.half of the indebted
ness full particulars of which have appeared
I'm the HERALD. One OF the creditors said to your
correspondent this after noon, he coming
out of bank on Westminster street. which held
a large amount Of the Sprague paper that he
was pleased with Mr.. Chafces kind offer to
cooperate with them (the creditors) in arranging
the best plan for settling the vcxed problem. and he
that this would be very pleasing news to the
general creditors. large number OF the creditors
want oust Mr. Chafcc from the position, a. stated
in long article upon the subject, which appeared
In the HERALD early in November last. Judgments
for S59.Os4 In favor of the National Bank OF Com
merce New York. and OF about Ss23UO0 in favor Of
the Franklin Institution for Savings of this city.
have recently been decided against tho A. Il w.
sprague corporation. but these Judgments really
amount to nothing they cannot be col
lectcd ON account of the existence of tho
trust deed Therefore the real battle will commence
when the Franklin Institution files its bill in equity
TO have the deed set aside invalid far that
bank IL concerned. Mr.. Chafee will be prepared to
answer the bill The National Bank Of Commerce of
New York discounted Sprague's notes. The bank
retained the notes after the failure OF the
spragues, and would not join with the other cred
itors accepting the new notes given under the pro-
visions OF the trust decd. Suit to the
Of the notes commenced in the Supreme Court
of Rhode Island in December, 1875. with the
above result. The had been put of for
years by interposing technical objections, but
when II 10 trial no particular defence made.
and as the notes the bank obtained udg-
mcnt The Bank of Commerce has attachments on the
property but nothing be touched while the trust
deed remains in force, and tho bank directors in
order to secure the amount for which they have
secured judgment will be obliged to file bill in
equity similar to one which the savings bank receiver
is to hle. 1t is said that this course will not