Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1883-11-02
Bosroy, Nov. /.

statement of the condition oil anairs IN reply
to the report of the investigating committee.
He claimed that the committee greatly over
estimated the value of assets in their report
show ing them TO be ~ per cent. Of liabil-
tiles. The firm offered to settle at thirty three
cent. on the dollar, cash. Shaw claimed
that the creditors will not be able to realize
more after long delays with the property in
the hands Of trustees At the time of the
failure, last July, the firm reported its assets
70 amount to IS ,262, 900. IL now estimates
the assets to have been only S2,664 900, al
that time. No explanation was given OF the
remarkable reduction of the estimate. The
investigating committee reported the ap-
pointment Of James b. Forgan trustee
with Mr.. Wyman. A statement was also
made in reply to that given by the firm to the
effect that the committee does not in any
wise change its views of the condition of the
firms assets which they estimate at y pei
per cent of the liabilities. Furthermore the
committee recommend that no other offer OF
settlement than 80 per cent cash be accepted.
The statement made today at the meeting
of the creditors of Shaw Bros. caused aston
ishment, as the firm was reckoning the net
assets at nearly three million dollars less
than at the time the first meeting was held.
The firm in the statement made today, claim
bark losses on the St. Croix and Machias
rivers. largely over-estimated in value A
large quantity of lands in Maine and New
Brunswick are subject to rights of dover on
account of the wives of members of the con-
Germ; that the large class of the Indebtedness
paid in full, as well as damages arising out OF
the breach of bark contracts. The value Of
the extract works and bark lands and tam
neries were greatly over estimated. The ex-
tract works and bark lands were considered
BY the committee as of value to be continued
in operation in connection with the tanneries,
but their enterprises were merely expert
mental. The experiment was a failure and
it was that failure, with other things, that are
given in the committees report, well known
to the public that brought about the disaster
The extract works, as such, are absolutely
valueless, With the exception of one or two
which might be converted into tanneres
The bark at these works and adjacent woods
are also valueess, the same being too remote
for practical use. The very large tannerss
are no more valuable than the small ones,
owing to the insufficient bark resources in
their localities. The accounts reckoned as
good should be reduced to 100000 as
there have been some failures and offsets.
The deduction in the estimates the raw hides
alone to the amount of 100 900 must be made,
owing to 10 per cent lowering in the market
value thereof. Much of the land scheduled
by the committee at cost price has been
stripped of timber and bark, some burne
over and some sold Another serious item is
liability of the firm for costs in some two
two hundred suits brought against it.
In conclusion, the statement is made that
33 per cent is the largest sum the firm can
safely assume to pay, and upon this basis
they feel that business can be resumed upon
reasonably solid foundation. No help can
be obtained from Canada and reliance must
be placed upon the friends Of the firm in the
State. who will doubtless extend such aid as
necessary.
decided to the Shaw family, the report en-
plains that Fayette Shaw bought the prop.
erty eighteen years ago and was not entered
on the books at all. The houses built for
Mr.. Shaw's daughter were built upon thi.
real estate. The entries on the books of ex
penses were connected with this property
and were strictly private accounts of Fayette
Shaw and no member of the firm ever as
sumed otherwise, or that it, was an invest
ment of the firm.
The report OF the advisory committee OF
creditors advises the creditors not to accep
less than so per cent of the claims, and al
the expenses with right claim the full
amount of their notes against the indorsers
and other parties liable on paper, and coun
sells acceptance of the offer of 80 per cent
Thescommittee had been asked by Mr.. Morse
counsel for Shaw, asking them to reconsider
the vote by which 80 per cent had been FIXED
This the committee consented to do, but de
clined TO change the vote.
At the conclusio n of the reading the cred
itors asked what the firms interest was in the
Montreal firm of Shaw Bros. & Cassils.
Mr.. Morse replied that they owned tan
neries only. and that the capital was supplied
by Mr.. Cassils.
Chairman Dunn said the committee had
done nothing to authorize the Shaws In a
statement made by the Shaws in January
last, among the assets were: .Quick assets
in a Canada house 1000" We sent tive
men to Montreal to inquire about the Canada
item. They returned as wise as they went.
You have before you four reports of the con.
dition Of the Shaw Bros. one made in Jan
uary showing a surplus of S., 664. 900 ;another
in July, showing the assets to be SIS, 620. 900
another by your committee, showing the as
sets to be $500, 900. Another one from Shaw
showing the assets to be only
$4,000, 600. Gentlemen, you have
paid your money and you can take your
choice. The committee has made its own