Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1881-04-07
rHuRsD AIRn7 MOSS
NO. S3.

plaintiffs on every point. Ii fully sustained
the legality of the charter, aud declared that
the charges of fraud on the part of the de-
PENDANTS had not been sustained. The Hoyt
heirs appealed the case to the Supreme Court
at Washington. and decision ou that appeal
is expected within a few weeks. The general
belief is that Judge Lowelrs opinion will he
sustained.
THE NATIONAL BANK OF COMMERCE. Sur.
Next to the Hoyt suit, in Importance. stood
the suit of the National Bank of Commerce,
of New York, Their original claim was about
100000. They declined TO accept the ex-
tension notes within the nine months allowed
hv the mortgage. brought suit against the
company. and obtained judgment. They
sold all the property of the company in Rhode
Island. in MAY, 1880, under an execution
granted by the court in October, 1879, bid il
in for nominal sum. and then brought suit
for ejec,mcnt. This suit came up for hearing
in the United States Circuit Court, in this
ctv, on Feb. Of the present year. when it
was announced that Il compromise had been
effected and the suit discontinued.
Trustee Chafee brought up the claim in the
interest of the creditors for Slo0. 900, and his
action was subsequently approved by them.
Tus Srlr HY THE NEw YORK BANKS.
Thus the two principal legal obstacles to
the settlement of this vast estate have been
removed. There was third suit. which may
be mentioned briefly. This was brought by
several New York banks in the Supreme
Court of Maine. These banks had accepted
the extension notes. When the time for pay
ing the notes (three years. had expired, and
they were not paid, the banks attached the
Sprague property at Augusta, claiming that
that property could not he included in the
general assignment under the trust mortgage.
which, having been made in Rhode Island.
was imperative in the State of Maine The
court decided unanimously in favor of the
validity of the mortgage.
TuE LATHAM SUIT.
SO much for the legal hindrances to the de-
sires of the creditors. Within the past year
the movement for the removal of the trustee
has received aid from an unexpected quarter.
4 quarrel has sprung up between the Spragues
and Trustee Chafec, and the former are now
in court with bill of equity for his rcmov-
al They ask from the United States Cir
cult Court precisely what the creditors ask
from the State court. Their suit is brought
in the name of Mrs. Mary A. Latham, a sis
ter of the Spragues, and a creditor and hold
er of their extension notes. They charge that
Mr.. Chafee has grossly mismanaged the pro-
perty, deprecated its value. and used his Of
fee of trustee to enrich himself The plea
offered by the counsel for the creditors is al
so offered by the counsel in the Latham case
as an aid in conducting their suit. This case
was set down for hearing on February 18th
last. butwas postponed Meantime the credi-
tors hold their case in the State court in
allegiance The quarrel is bringing out evil
dence which they sought in vain to obtain.
Both they and the Spragues are now seeking
the same result, the removal of Chafce. His
removal will restore the control of the prop
erty to the creditors, and thev will proceed
at once to liquidate it. No man can to-day
give more than an approximate idea of its
value. Since Chafee has been in control
there has been no satisfactory statement Of
its condition. The best judges estimate that
if the creditors can regain control of the
property it ought to pay them fifty cents on
the dollar. There are various methods dis
cussed for disposing of the property, and of
these the one adopted will probably be to
divide it up into several separate corpora
tions, and assign each creditor stock in them
according to the amount Of his claim.