The Portland daily press., 1884-02-25
The Shaw Failure.
The Prospects for n settiemens-Objec
tion 10 Insolvency Proceedings.
From the Commercial ]

The Prospects for N Seuiemens-O bjec-
sion TO Insolvency Proceedings.
(From the Commercial Bulletin.)
It Is now nearly seven months since the fail.
ure of Messrs. f. Shaw & Bros, tanners and
leather dealers, was announced. The proper
ty was Immediately placed In the hands OF Mr..
Ferdinand A. Wyman as assignee, and he hiss
succeeded in holding that position without the
appointment of an associate assignee, though
efforts to that end we're made. During all
these months great amoant of litigation has
been instituted, but affairs have viltoaIly the
same legal bearing as at first. The matter
now assumes an interesting and important
phase, as the offers for settlement must be ac-
cepted or reiected by March /, so that the fusl
settlement of this great failure seems to be
near at hand, or farther off than ever.
Oru readers will recolect that, after several
largely attended meetings, the committee. con-
sstiug Of nine Of the most prominent creditors
recommended settlement proposed BY Mr..
Brsckley Shaw one of the members Of the in.
solvent firm. This offer OF settlement gave
the creditors the option of three propositions.
The first was an offer OF SO 1-3 per cent cash.
Those who would not take that were offered 2b
per cent in cash, and Is per cent payable one
half ia one year and one-half In two years, se-
cured by real estate. Those who did not like
either of these propositions could share with
the Shsws in the marshaling and distribution
OF the property.
The field is so broad and the creditors SO
numerous, being between l 900 and 2 900 in
number aud Sc 000, 900 in amount and possibly
more. that some deay has naturally arisen in
the consummarion OF the settlement. We
learn, however, that at present nineteen
twenti-ths in numbers aud over three-Quarters
in amountof the creditors have accepted one
or tue other of these propositions, mostly the
second proposition. Ths time il getting very
short for the others. however. There being no
national bankrupt law, in order to perfect the
settlement, every creditor must join. Thus IL
appears thai tao task was an herculean one,
but both Mr.. G. W. Morse, the counsel for the
Sba VS. and Mr.. q. o. Billings, the chairman
OF the committee, seem confident that il will
be perfected. About $50 suits pending in
Name, in all of which attachments we're made
aud the larger part of the Shaws' property Is
in Maine. The courts OF that State have iDti-
mated that they should give preference to a.
tachmeDts by their own citizens before &C.
knowledging the rights of an assignee under
foreign assignment. Notwithstanding that
strong vantage ground, all the creditors OF
Maiue. both those who have attached and
those who have not, have agreed to come into
this settlement, and in no single instance has
an extra sum been paid 10 any of them. The
creditors of New Brunswick are substantially
all settled with under one or the oth.r of the
above propos tious, the larger creditors having,
in nearly every instance, accepted this second
proposition, bat no creditor has received any
extra allowance. The Boston banks have all
agreed but one, and that one holds but a small
claim of about $5 600 The settlement has
been made with all the New York creditors at
slight advance in order to buy up their litiga-
ti0D, but in caase over 10 per cent.
extra paid. This, in view of the peculiar laws
of Nav York and the very strong combinations
that have been made there, is reg arded as a
very good settlement for the Shaws. The mat
ter nov rests with 30 or 40 persons, mestly in
Massachusetts,, aud upon whose shoulders rests
the responsibility of defeating this settlement
il it should fail.
II Z said that the creditors committee are
now substantially unanimous in believing that,
under no form o. tnsrshaling, will the est aIe
pay the amount Offered. by Mr.. BTackleg Shaw.
IF, however, the litigation c0ntln ues, as it
must do if this settlement fails, lis extrem ely
doubtful as to the sum which Mass. shusetts
creditors will receive. That is. the creditors
in the s latss where the property is, would GET
the property II the litigation was successful.
AS about "a 900 of the entire Indebtedness
is in NJ Massachusetts,, and not over $500 900 to
$500 GOO OF the assets the litigation, If success
fni, would result in paving the creditors III
New York, Maine, New Brunswick and Cana
da in full. while Massachusetts creditors would
not perhaps get over 3 per Cent, a, the assignee
would be obliged to pay the expenses out of
the sum which heebas in his hands here. To
make this clearer, il must be remem-
bered that insolvency proe sedings have
been instituted, and ars now pendise
in Massachusetts. against K. Shaw &
Bros and 1t Is argued that an assignment will
not stand as against the claims of an assignee
in insolvency. Now, it is perfectly we'll set,
tied that a State iOsolvent law does not operate
beyond the limits OF the State, 80 that, If the
assignment OF + Shaw q Bros, which they
made voluntarily to MIR. WymaD. is broken by
insolvency proceedings, the assignee in insol-
~, uiie property ri sii.ssachrss-.-.r as eonId
not BY virtue of bis assignment take any prop
erty away from attaching creditors in other
STATES. When it is remembered that all the
property in the other States has been attached,
it will be readily seen that the result OF the
il successful, would inure TO the ben
etit OF the creditors III the other States. leaving
Massachusetts creditors out in the cold. Such,
in brief. are the strong arguments in favor OF
the settlement.
The tanDeries and extract works OF r. Shaw
q Bros now being opeI ated only so far
70 finish up and preserve the stock on hand.
No fresh hides are being bought, as the asian
ment TO Mr.. Wyman does not authorize such
course. One of the consequences of this is that
a vast amount of bark. together with large
part of these tanneries, with plant and ma
chnery, are now idle, and the property, es-
pscially the bark, is deterorating daily and is
worth more to use now than it ever will be
again. AS soon ss the settlement is effected il
j probable that the Shaws viii; put in new
hides SO as to utilize and enhance the value Of
this property. Everything is reported as well
preserved as possible by the assignee, and
it is believed tsht the hides and leather have
not beer deterorsting, but rather improy-
ing.
II is understood that, il this settlement is
perfected, Mr.. Rrackley Shaw will come to
Boston and take charge in person, but il is, at
present, uncerl ain whether Mr.. Fsyette Shaw
will take a direct hand in the business.
1t is claimed that many of the creditors who
have not yet agreed TO the settlement have
only been waiting to arrange as TO other names
on the same paper, or for some similar reasons
which Call for some delay before actually MAX
ing the agreement. 1t is expected that such
will sign in the next few days.