The Portland daily press., 1886-08-19
A BOSTON FAILURE
Caused BY the .DefaIcation of the
Late Treasurer Gray.

Boston, Aug. 1S.-Samuel r. Payson to-
day made an assignment to Samuel johnson
of Hovey & Co. Announcement of this as
signment caused great surprise, as Payson
men in Boston. His financial difficulty is
stated to have been caused by an endorse
ment of the paper of Indian Orchard Mills,
which are virtually owned by himself and
family. VIM. Gray, Jr., whose dead body
was found this morning was treasurer of
ally the sequel of Gray's heavy defalcation
Mr.. Payson is man of the highest standing
and his difficulties elicit sympaty from every
quarter and it is thought by many that they
Will prove of a temporary nature.
Samuel r. Payson is 73 years old, and is
now the proprietor of Derry Woolen Mills.
at Gaff's Falls, N. H., and president OF the
City National Bank, of Boston. He started
in business with A. G. Peck & Co., import
ers and jobbers Of dry goods and subsequent
ly became connected with the firm of j. c.
Howe & Co., commission merchants. He
amassed fortune and retired from busi--
ness some years ago. The assignee, Samuel
johnson, is not in town and Mr. PaySon Is
at present. PaysOn has submitted his .resig,,
nation as president of the City National
Bank and it will be acted upon by the direc-
tors at meeting tomorrow. His liabilities
are estimated at about $350,Q 900. PaySon
stated this morning that he thought he had
edness in full, but his affairs are in such a
condition that the property could not be re-
allied upon at decent value at forced sale
so it is believed the best interests of every
one to make the assignment failure Is
due to shrinkage in the shares of the In
dian Orchard Mills. Payson Is large
owner in the Hallowell Manufacturing Com
pany of Hallowell, Maine
PaysOn retired from active business in
1874, but has since looked after various man
ufacturing interests with which he was con-
nected He has been a director in the Ma
tional City Bank many years, and about two
years ago was elected its president. Payson
was president of the Manchester Cotton
Mills, at Manchester, NJ. H., which has a
capital of $2,OOO,0OO: He is president and
Goff's Falls, Manchester, N. H, which has a
capital of 100000. He has ten sets of cards,
80 looms and 1888 spindles, and is assessed
for $4,000 The Hallowell Cotton Manufac-
turing Company Of Hallowell, Me- was OF Of
Payson is:president; F. c. irving, treasurer,
the directors being Jacob Wendell, G. X.
Payson, George S. BullenS, Henry S. Hoyey.
Payson is said to own most of the stock OF
this company and it is stated on the authOri-
ty of one of the directors that Payson had
borrowed money on his notes for that COM
pany. He had also borrowed for Derry
Mills. He was director in the Atlantic
Mills, also in Indian Orchard Mills, in which
he owned $150,OO0 of stock. The immediate
cause of assignment is said to be the fact
that the banks called for more collateral for
money he had borrowed stock he had put
up being largely of companies of which the
late William Gray, Jr., was treasurer 1t Is
said he owes about $350,000, about 0ne-half
being covered by collateral. The director of
the CITY Bank states they are amply secured
The president of the Boston Bank says
Payson has not endorsed any paper for the
Manchester mills, nor for the Indian Or
chard mills for one year. If any is in exist
ence it is forged and he thinks Payson can
pay in full. Samuel johnson, to whom it
was reported Payson had assigned, was seen
tonight at his residence, and when
asked if such was the fact, he replied,
"No, sir, Richard Olney, counsel for Pay
son, saw me today before left Boston, and
| acquainted me with Payson'S trouble. He
| wanted me to be his assignee, and l con-
| sented, but no definite figures were men,
| toned: and when l left Boston ii
| was decided that Olney should bring
| the papers down here tonight and we
| would then conSummate the assignment
| One thing can assure you of, Payson has
| acted in perfectly honorable manner and
| in nv mind there is not the slightest doubt
| that he will come out of his difficulties with
colors flying"
While the interview was in progress des-
| patch came from Olney, saying it was i'm
| possible to bring down the papers tonight
| and asking for an appointment for tomorrow
| noon in Boston, which was agreed to. The
| papers will probably be formally passed al
| that time. Olney refuses to make any state
| ment.