Daily Kennebec journal., 1884-04-23
MAINE DISPATCHES.
THE SHAW BUSINESS.
"yman's Statement About the Distrlbu.
ton Of the Assets TO Creditors
Strong Statements Made
Against the Firm.

Inc case OF the Gi0be National Bank vs..
+. Z. Wyman, trustee for F. Shaw & Bros,
which is an application of the creditors of
the Shaw Bros, for pro rata division of
such portion of the failed firms assets as
have been converted into money, was heard
/ by Judge Colburn of the Supreme Court,
sitting IN equity, this morning. The answer
OF Wyman, assignee, was read, setting forth
that five millions dollars of the six million
dollars of the claims had accepted the as
signments made by the firm. He stated that
he now holds about $3.50 900 in cash which
he is anxious to distribute amongr the cred
itors as soon as their claims are duly proved
in court Richardson & Denny, Fogg Bros
Co., Julius Adams and the Phoenix Ma
tional Bank of Providence petitioned to be
Joined to the defendants without affecting
their suits now pending against f. Shaw &
Brothers.
Richardson and Denny, in their plea, make
startling allegations. They set forth that
+. Shaw & Bros. obtained from them by false
pretenses S29, 900 worth of hides. and they
allege that then F. Shaw Bros. entered into
a conspiracy with Wyman to defraud the
creditors; that before making the assignments
f. Shaw made drafts to q large amount, rails
ing money which was concealed and which
was not used in regular business or for pay
ing debts, Mortgages were made and then
f. Shaw left the country and remained be-
yond the jurisdiction of the courts. They
oil oil thafW 10 plv the,
agent of Shaw Bros, and intends to turn
over all the property to Shaw Bros as soon
as they have compelled the creditors to agree
to compromise.
r. o. Teel, for Fogg Bros, sets forth that
+. Shaw < Bros. borrowed 100000 from
that firm on the day before the failure, Fay
ette Shaw representing in writing that his
firm was worth $5,000,000. The counsel for
Shaw argued against the proceedings in insol-
vency. He said his clients were ready to
give the creditors pro rata every scrap of
property the firm possessed. The settlement
which had been proposed was for the purpose
of allowing the Shaws to settle the estate be-
cause they only can do it to advantage. The
nature of the assets is such that they would
bring hardly more than 10 per cent. at sale.
but while continuing the business the Shaws
could develope it to full value. The compro-
mise is approved by all of the committee of
creditors.
The counsel for Richardson & Denny pre-
sented the sworn statement of the book-keeper
and the Shaws. showing that in January,
1888, the liabilities of the firm was only
s737, 900 and the assets s., ,000, 900. In ex-
cess of that sum he contrasted the experts re-
port of the condition July 2Sth following,
when the liabilities were So, ,479,940 and that
in the interim the assets were concealed and
removed He instanced Fayette and Buck
lev Shaw's great interest of the firm of Shaw
Brothers & Cassiels of Montreal, a rich firm
No attempt was made to get at these assets.
The counsel believed that if the estate was
settled in insolvency much more assets
would be found, many claims be disproved
and the real creditors would receive much
larger dividend. The assignment was COLI
ceived in fraud and carried out in fraud.
Mr. Hoar for the trustees compared the
opponents of the motion to the wreckers who
wanted to smash in which they would be
the only survivors He was willing to grant
that the position of Fogg Bros, who ask only
protection of their attachment, is tenable.
Mr.. Brooks, for the petitioners, replied to
the charge of assignment carried out in
fraud. He did not defend the frauds com
mitted by the debtors.