The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-08-01
TaE SHAW FAILURE.
Maine BANKS and Individuals Heavy
Creditors.

The firm of j. Shaw & Brothers, the great
tanners, who's failuEe was announced ycster-
day it composed of Fayette Shaw Of Boston
and Brackley Shaw. William s. Shaw who
was formerly a member died in September of
last year Thaxter Shaw Of Bangor has an
interest in the establishments at Forest City
and Vanceboro. The farther OF the Shaw
brothers owned asmall tannery in Cumming
ton, Mass, over thirty years ago and the boys
learned the business there and finally started
firm OF their own " ith a capital Of only $4,000
There business increased to enormous propor-
tions and the firm is now the largest manufac-
turers Of sole leather in the world. The pre-
sent partnership was formed in 1882 to continue
ten years. The firm has "a branch located in
Montreal known as Shaw Brothers & Cassils
Brackley Shaw living there and being the
overseer OF the Canadian tan neries. The firm
has tanneries 10 Canada, at Forest City, Houl-
ton, Vanceboro, Kingman, jackson Brook and
Grand Lake Stream, Me-, and at Wells, St.
Lawrence, st. Regis, Arets, Lincoln and
Princeton, N. Y There are ex xtrsct works both
in Maine and New Brunswick, and the firm
made an earnest effort during the discussion
OF the tariff law last winter to have the hem
lock bark extract which they manufacture in
New Brunswick admitted free of duty into
this country. The extract works in the United
States are at Houlton, Maine. Connected with
the tanneries are stores for the laborers stables
saw mills and shingle mills. There are rs
tenement houses, which are let to the opera
a. Il. T. o1Ir alrnI
the property of the firm is insurance to the
Nambunt of $l,800,O00. There are 1,50o, 900
Asfes of land belonging to the firm, besides
ygreat quantities OF bark and tanning sextraet.
The firms business for 1882 was a profitable
one and at the beginning of the present year it
was stated that the firms liabilities were less
than usual, and that they had less notes out
than for five years. Their notes have recently
sold at six per cent.
The failure OF the firm is said to be remotely
traceable to the failure OF the Pacific bank
about year ago. To avert general panic at
that time Messrs. f. Shaw & Brothers as
sumed the burdens of number Of their Gus
toners who were heavy losers, and several
bad failures at that time were thereby prevent
ed. But the Shaws have never been able to
throw off the burden then assumed. Several
OF the smaller concerns have not yet recover
ed from the losses caused by the banks fail
ure, apd in some instances their obligations to
Shaw & Bros. have increased rather than di-
minished. The load became greater
than even the immense resources
OF the millionaire house conld carry.
The failure of Copeland & Co., is said have
precipitated the catastrophe, though Mr.. Cope
land denies this and claims that the Shaws
were largely his debtors.
The liabilities and assets of the firm can at
this early date he only roughly spproximatsd.
On Jan. l. 1889, the firm made the following
statement of their assets to Brsdstreets
agency:
QUICK ASSETS.
Cash s2eO 600 bills received and ac-
counts due, S4SS.156................ S6SS, 1865
$50 900 cords of bark at S4............. 100000
Leather In store and at tanneries hides
and other merchandise. ..-........... 934, 500
Quick assets in Canada East ,........... 956,600
ssi7s 25s
Direct liabilities. $4,000
s2,442, ,25e
OTHER ASSETS.
Tanneries and all buildings belonging. S750,0O
Extract factories. dwellings and personal
property, excepting bark belonging .o
thereto ........... ............. 22b.OOO
r. Shaw Bros, Purchase-street store 10000
l,5o0.oOo acres of land, paid-up stump
ages, railroad cars, vacuum pans, en-
Assets Of F. shaw Bros, Canada East,
except quick assets 265,o0O
surplus. lus....................... ,s82, 1855
There is an immense amount of the firms
paper outstanding, one Boston bank holding
for collection for Nova SEQ tia banks 100000.
A Portland hide and leather merchant is q
creditor to the amount of ever 100000 and
the Portland banks hold considerable of their
paper, though how much is not given out.
One of the cashiers thinks IL will exceed $780,
900 and citizen familiar with financial trans
actions estimates it's three times that amount.
The Shaws have been buying goods in this
city for their stores and as result q number
of Portland firms are their creditors. Those
mentioned up to the present time are Deeripg
& Milliken and Twitchell & Champlin. The
amounts are not large however. Messrs. A.
Little & Co. would have been involved to the
amount of $4,000 had the failure occurred
later in the season as they had agreed to furnish
that amount OF goods. About 100000 worth
of thei- paper is held in Bangor. A large
amount has been sold on the streets in that
city lately. The failure will undoubtedly
largely affect the business interest in northern
/, Maine. The blow will fall heavily on men
! with whom contracts have been made for
peeling and delivering bark at the tauneries,
and will also affect hundreds of laboring men
employed by the company. The paper of the
Shaws has always sold readily, and traders
would have advanced any amount of goods on
credit.
| So far the only failure resulting from the
| suspension is that of Mscomber & Green
| wood, wholesale shoe dealers at 123 Summer
mer street, Boston. Messrs. Grsenvile Macom-
| ber and Adelbert Greenwood comprise the
| firm, which was formerly known as Wallace
| & Macomber. Mr.. Wallace retired to enter
the employ of Shaw Brothers, but remains
| special partner. The old firm failed in 1875,
paying about fifty cents. As at present organ
lied the firm has special capital of $4,000.
The assets and liabilities are not known. It
seems that there have been suspicious regard
| the financial standing Of the Shaws for some
time. Their paper has not been ranked as
| first class by the largest of the Boston banks
| and the firm has been obliged to pay about s
| per cent. for funds.
A gentleman representing the firm said to u
Boston Journal representative ''that il it
would have been possible to permanently tide
| over the difficulties by the raising of ready
funds, the firms credit would have placed al
most unlimited resources at its disposal. But
| it was not deemed just to resort to that expe-
dent in view of the fact that that the firm was
actually insolvent. 1t will be impossible, prob-
ably, to settle in full. 1t is hoped that the
creditors will conclude, for their best interest
| to carry on the business through
trustees, for it is believed that such a
course would be vastly more profitable than to
invoke the bankruptcy laws of the various