The Portland daily press., 1883-08-24
THE SHAW FAILURE.
A Warrant for the Arrest Of Mr.. Fayette
Shaw Issued in New York-Statements
BY his Counsel.
Boston Advertiser Aug. 2s)

Boston Advertiser Aug. 2S)
An afternoon paper yesterday published the
following:
There are rumors on State street this after
noon that one Of the most prominent parties
interested in the recent failures in the leather
trade has left the city. The reasons of his
flight are supposed to be to avoid threatened
criminal proceedings.
Doubtless this refers to Mr.. Fayette Shaw,
and the "rumor" is only true so far as that
Mr.. Shaw has left the city. Mr.. Shaw's alb
sence is on business, and he is expected to re-
turn in q day or two. Mr.. George W. Morse
Of Newton, counsel for f. Shaw & Bros, wbo
was at the office yesterday afternoon, regards
9hs whole affair as part OF the New York at
tempt to break up the immense leather trade
which the Shaws have centred in Boston, and
to transfer it to New York. A warrant for
Shaw's arrest, "on the ground that all Of his
paper is not proper paper" has been issued In
New York. No requisition, however, has yet
reached the Office of the Governor from New
York, and 1t does not yet appear whether the
warrant is issued in New York for scare or
whether an attempt will be made in good earn
est to procure Mr.. Shaw's arrest. SO long as
such motive is suspected, it goes without
saying that very good reason would have to be
shown before the Massachusetts authorities
would cooperate with those Of New York in
Tue euOrt, db Subp6Ct6u, 10 cripple bD0 leather
business in Boston. In the absence Of Gov.
Butler, His Honor Lieut.. Gov. Ames is chief
executive. Any requisition coming to him
would be referred to Attorney General Sher-
mon for his official opinion as to facts, and IL
would depend largely upon Mr.. Sherman's adj
vice what course Mr.. Ames would pursue.
AS to the firms statement OF last January,
which, perhaps, Is part OF the ground Of COM
plant, 1t is explained-and the explanation Is
said to be satisfactory to the creditors here at
least q far infant Ia fnI
lows:-The statement was made by Mr.. Deane,
the bookkeeper, and not by Mr.. Shaw. 1t Is
not certain whether Mr.. Shaw saw 1t or not,
but,whether he did or not, it Is strictly true as
matter of bookkeeping, and as 1t appeared on
the books of the firm. Tie direct liabil-
tiles" OF the firm, viz, notes payable made
by them for their own use, and which
they were positively Doundn to take care
of when due, and their open accounts payable,
amount to the sum of statement On the
other hand, there was a large amount Of
paper which was indorsed by the firm for the
benefit OF other houses and themselves, which
appeared upon the books as an indirect or con-
tingent liability. Among this was included
their regular business paper receivable, which
they had discounted in their regular course OF
business. This was in a strict technical sense
all indirect, because the parties on the face OF
the paper were primarily liable. 1t Is COM
mented that in this matter the house through
its book-keeper made serious mistake, for
great deal of this Indebtedness, though In form
indirect and contingent" was an absolute
Indebtedness in substance, the paper having
been negotiated really for the benefit of II.
Shaw & Bros. The assertion is made, and
with good ground that the statement made by
the book-keeper, according to their method OF
bookkeeping, was correct. 1t Is said that
it was made hastily, and that no one believes
that 1t was intended to defraud or misrepre-
sent.
Regarding the absence of Mr.. Fayette Shaw
from Boston, it seems that he had been
anxious to go to Montreal at the earliest possi-
bic time, for the purpose Of looking into that
end OF the business. and ascertsining what
can be counted on from their interest In the
firm of Shaw Bros. & Cassil, toward paying
creditors OF +. Shaw q Bros, and with that
purpose in view he left Boston yesterday.
The Park Bank Of New York, it is said, has
shown rather belligerent attitude, and threats
have been heard from the band and from par
ties who inspire its action, for 1t seems that the
parties interested in the Park bank are either
leather dealers, or are directly or indirectly in.
terested in the leather business 1t is reported
that scheme has been on foot for some time
in Newt York, in which the Park Bank or its
people are prominent, to wipe out" the con-
Germ OF +. Shaw & Bros. On Monday or Tues
day the Park Bank demanded the payment OF
all the paper held by them, whether due or
not, alleging as cause for such premature de-
mand that the paper, which was of the same
character as that held by Boston and other
banks-viz., exchanged paper was not strict
ly commercial paper. OF course no payment
was made in response to this demand, and it is
understood that 1t Is by the authority of the
Park Bank, that the process has been sworn
out in New York for the arrest Of Mr. Shaw.
ASf hs sS process s IN New York may
be In pursuance of a statute which exists in ev-
cry State, viz: the arrest Of nonresident
debtor in civil process. As to the nature of
this paper, in regard to which the New Yark
bank complains, it is said to be the same as
that held by Boston banks, and ia OF charac-
ter well-known in mercantile circles Even
exchanged paper" is not so new commercially
that the New York parties should be expected
to express surprise or distress over it.
Further Observation-Disclosures of Mr..
Wyman.
BOSTON, Aug. 23.-F. Shaw, OF the firm of
Shaw & Brothers, who recently failed, has left
town, which fact has given rise to conflicting
opinion as to the cause OF the departure. 1t is
learned that on the day before Shaw's depar-
ture the attorney for the National Park Bank
OF New York came to Boston and made
formal demand on r. Shaw & Bros. for money
which the bank claims was furnished through
fraudulent representations Shaw had made
to it regarding the financial condition Of his
firm. The bank is q creditor to the amount Of
S1S3. This demand upon Shaw's firm was
known to be preliminary step to the COM
mencement OF criminal proceedings which
the sbank proposed to institute against Shaw
and which it is understood has since been be-
this is looked upon with strong suspicion by
many of those interested. On the other hand
Assignee Wyman makes the following state
ment: "Shaw has been attempting ever since
the failure to find an opportunity to go to
Maine, New Brunswick and Canada to find
out thd precise condition Of his business there,
and he started away for that purpose Tuesday,
and Is now either at the tanneries of Shaw
Bros. & Cassil in Canada, or on the way there
via the Maine & New Brunkswick railroad,
The fact of his departure, coupled with the
outcry raised by certain creditors in New
York, gave rise to some rumors absolutely un-
true, viz: that he left Massachusetts to escape
process. An overwhelming majority of the
creditors believe Shaw and the firm acted
honorably and have done nothing criminal,
and that the New York parties are seeking to
bulldoze advantages out of the firm"
Shaw. i'm Montreal.
MONTREAL, Aug. 23.-Fayette Shaw of Bos-
ton, is here on visit to q brother AN extensive
merchant in the leather and hide business In
this city. He stated tonight that his object In
coming here was to have a consultation with
his brother about his embarrassments. He de-
clined to converse about his affairs, which he
said were in the hands of the official assignee
and the creditors.
rTInZEAHrU1