The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-08-16
THE SHAW FAILURE.
Meeting of the Creditors Yester-
day.
Interesting Facts and Figures about
Assets and Liabilities.
lFrom the Boston Jonrnal.l

of the creditors of f. Shaw & Bros. was held
this afternoon at the ro oms of the New Eng
land Shoe and Leather Association, Bedford
street. The meeting was called to order at 2.30
p. m. by Mr.. George w. Morse, counsel for the
Messrs. Shaw, and organized by the choice OF
Edward W. Hayden, of Woburn, as chairman,
ann Mr.. e. FL. Dunn, of Dunn, Greene & Co.,
as secretary. Mr.. Fayette Shaw then read the
following statement:
Statement of Fayette shaw.
Gentlemen-The house of f. Shaw & Broth
ers have been in businessithirty-fve years; and
through all the financial crises which have
now, stood firm. The years 1880 and 1881 were
prosperous years for u.s.
When the failure of the Pacific Bank late
in 1881, took place, bringing with 1t somewhat
of a financial shock to our community, several
of cur large customers came to us and asked
for help. Their difficulty seemed to arise rather
from a lack of confidence, and difficulty in
obtaining ready funds, than from their want of
assests. From the hasty glance which we were
able to give they seemed solvent II these
houses had suspended at that time it seemed
likely to bring about calamity which all were
desirous of averting.
Our house was strong; our single name paper
was in quick demand upon the street at very
low rates of interest. We decided to assume
the burden of helping these unfortunate con-
Germs, and We did SO. In doing so, for long
time we took their paper, placing our own
names upon it, and got the money for them, or
gave 1t to them 10 get the money. In most
cases, for nearly one year, we asked for nothing
IN return; that Is, we got from them no money,
and did not use their paper for on raccommo-
dation Meantime, the volume of paper which
had been used to raise money for them had be-
come large, and we found it affected our single
name paper; and finally, as mere temporary
emergency, as we supposed at the time, we
were obliged to ask them for their paper for our
own use.
As said, we regarded this as temporary
emergency, for we expected business would
improve, and leather would advance; bat it
has failed to do so, and the market failed to re-
spond to decided effort which we made to
advance it.
The result has been that our single-name
paper has been practically driven from the
market, and we, in common with these other
concerns, have had to rely upon the double
name paper. This sprung, in part, from an
unfortunate rivalry between two concerns of
brokers, aud partly from causes which are fa-
mlliar to all of you. We continued on to a
point where we saw clearly that, unless these
other houses could take care of themselves and
their paper as it matured, our house could no
longer carry the burden.
When 1t became morally certain that that
could not be done, which point was not reached
until the day before we stopped, we decided to
suspend payment-indeed, we had to-
Ihe amount OF paper made and endorsed by
us for the use of ourselves and for these other
houses is very large-very much larger indeed,
as you will see by the statement, than We our
selves expected; but as we are ON substantially
all the paper we believe, that these other
houses are on, the amount of our liabilities
represents substantially the total calamity
brought about by the circumstances which I
have given.
/ do not desire here, and it is not necessary
for me, to 60 into the state of the account with
these other concerns; neither do I desire to
make any reflection upon any one of them. 1
desire only in straightforward business way
to give you the facts.
Most of their affairs are now in the hands of
committees. ] trust and expect that this
meeting today will appoint committee who
will examine carefully. and report fully; and
we shall be content to abide their verdict If
that committee desires to consult with me in
the course of its investigations / shall be most
happy to afford them all the information possi-
BILE, and to give them all the advice in my
power.
A large number of the creditors, represented
by eminent counsel here present, have kindly
offered us the aid of an able professional ac-
countant in making up the statement about to
be given; and we prefer that he should present
to you statement of our assets and liabilities,
as he stands substantially in the shoes of the
creditors.
In making up our list of assets we do not
consider it necessary to put in all this paper on
which our name appears in common with
these other houses, as an asset of Il. Shaw &
Brothers. If we did SO, our assets would be
very large. Whatever balance final ac-
counting shows in our favor, with these several
concerns will of course be an asset. At pres
ent we do not know what that balance is, al
though in many cases it is very large; neither
have we any intimation of what the dividend
will be.
When suspension became inevitable we were
advised, and indeed, it seemed self evident,
that an assignment should be made, to hold
this large property, scattered through various
States and Provinces, together, if possible, so
that no one should get AN advantage over 9th
ers, and so that, If settlement could possibly
be effected, it would be held together to that
end.
We assigned to f. A. Wyman, one of our
head men, because we considered him an able
and faithful man and knew that the was well
acquainted with the property and knew what
should be done in the interval between our sus-
pension and the point when any authorized
trustee or assignee could be put in possession.
And we know, furthermore, that his aid would
be indispensable to such additional officer, il
any such should be appointed We have left
it open to yod, when the time comes, to choose
such additional representative. In the mean
time MI. Wyman will faithfully care for the
property in his charge. Mr.. Wyman will now
make a statement to you of the condition of
the assets, and of what he is doing. l intro
duce to You Mr. Ferdinand A. Wyman.
The Assignee's Statement.
On the 2Sth day of July last 1 received a
deed of trust, which is called in Massachusetts
e III.
r. Shaw & Bros, and of their individual prop
erty. Acting under that deed, Immediately
caused it TO be recorded in all the counties in
which any of their land was situated; and al
SO took possession, either personally or by my
authorized agents, of all the property that be-
longed to f. Shaw & Bros
Since that date have endeavored in every
way to preserve the property for you; to keep
it covered by insurance; to employ workmen
enough 10 keep the hides in process Of tanning
from deteriorating in value, and generally to
keep all OF your property in good shape.
regard my deed as good, having the legal
opinion OF leading lawyers in all the States
an Provinces where the property is situated to
that effect. Creditors to the amount of some
two millions of dollars have already signified
their acceptance of it. was greatly relieved
last Thursday by an offer from the various
banks of the services of an expert accountant
to assist in making up the figures for this meet.
ing. Before Mr.. Piper presents his statement
L VIII say Dut Iew WORDS 10 explain the situa-
tion. do not consider it wise to enter into
any controversy with the several gentlemen
and firms with whom we have been connected
more or less intimately for the past few years
In most of the cases where they have failed,
committees are already at work upon their
statements and accounts, and do not desire
to forestall their reports. The firm of f. Shaw
& Bros. can well afford to await their public
report for the details of the transactions be-
tween them.
The deed to me from f. Shaw & Bros. pro-
vides that / shall hold the property in trust, to
pay from the proceeds there of all debts liabili
ties and obligations Of II. Shaw S5 Bros, "with-