The Portland daily press., 1883-12-25
The Shaws' Last Offer.

About two months ago the bankrupt firm
of +. Shaw & Brothers offered to settle with
their creditors for 33s cents on the dollar in
cash. This offer was considered at a meet
ing OF the creditors and was rejected with
a promptness and unanimity which clearly
indicated that it was regarded as much
smaller than the estate was able to pay. At
ter an interval of nearly two months the
same offer is repeated with two others. Brack-
ley Shaw, who is at the bead of the Montreal
house, offers to take the assets of the bank
rupt firm and pay to the creditors 33A per
cent of their claims in cash within sixty
days from January l. To those who do not
choose to accept this proposition he offers
20 per cent in cash within sixty DAYS from
January and Is per cent additional in notes
payable in one and two years with interest,
the notes to be secured by the real estate of
the bankrupt firm. If any of the creditors
do not choose to accept either of these offers
he proposes that they remain in and share
in the marshaling and distribution of the
property, the same as if no arrangement had
been made with other creditors. Neither Of
these propositions is to be binding unless all,
or substantially al, of the creditors assent to
one of them within sixty days from Janua-
ryl The first proposition is precisely the
same as the proposition rejected at the No
vember meeting of the creditors. The sec
ond, assuming the security for the notes to
be adequate as it probably is, is substantial
ly an offer OF 40 cents on the dollar. The
third is indefinite and it is impossible to say
how large percent the creditors would re-
aliZe under it.
A meeting of the creditors to decide upon
the acceptance or rejection of these PROPOSE
tions is to be held Thursday The proba-
bility is that nearly all the creditors will ac-
cept one or the other of them. The second
is probably regarded as the most favorable,
though it is said that considerable number
of creditors will prefer to take their chances
under the third. The feeling among the
creditors is that while none of the above
propositions are as favorable as they might
reasonably expect, they are as favorable as
any they are likely to get. The alternative
to the rejection of them they believe to be
insolvency with an almost interminable
light in the courts which will eat up the
bulk of the estate and leave them nothing.
such distinguished lawyers as William G.
Russell of Boston and the Hon. William
L. Putnam OF this city have expressed the
opinion that the case would prove me re pro-
life of suits at law than the Spraeue
case which has been in the courts fifteen
years and is still unsettled. The property
OF the Shaws is situated in New York, Mas
sachusetts, Maine, New Brunswick and Cam
ada West, and in the absence of a national
bankrupt law the validity of insolvency pro-
ceedings begun under the laws of one state
would not be recognized voluntarily in
the others, but only after long
and expensive contest in the courts,
the result of which would be somewhat
uncertain. Already Trustee Wyman finds
himself compelled to defend the title to the
bankrupt property conferred upon him BY
the laws of Massachusetts in Maine and
New York and in the provinces, and his bill
for counsel fees is very heavy These con-
siderations alone would probably have been
sufficient to secure the creditors assent to
one of the above propositions.
But there are some others which have had
weight in bringing them up to it. The per-
sonal property of the .bankrupts is rapidly
depreciating, and before the questions which
would be raised by insolvency proceedings
could be disposed of it would come to be of
very little value. 1t is probably valuable
enough now to pay the cash offer which Mr..
Brackley Shaw makes to the creditors but
it is OF very perishable nature. Another
consideration which has probably had a
good deal of effect is the fact that the shut
ting up of the tanneries has caused much
suffering among the laboring men who were
employed in them and will inevitably cause
much more if continued. Especially is this
true of the tanneries in this State. At Grand
Lake stream there is great distress conse-
quent upon the closing up of the great tan
merry there, as it is the only reliance the pop
ulation have for livelihood. The same is
true to less extent in all the other towns
where the Shaws' tanneries are located