The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-01

The Attleboros have been favored with
remarkably few failures the past year, az
was also the case in 1906 The jewelers.
suffered no business reverscs and there
were only three minor suspensions among
the merchants. with an aggregate OF sZ2.-
600 OF debts and S5.l00 assets.
CAPITAL INSUFFICIENT.
More failures are caused. as "a rule. by
lack OF sufficient capital than for any
other rca son. and the year 1877 has been
no exception i'm Rhode Island. ~ per cent.
of the failures being assigned TO thaa
cause.
The failures from other causes were as
follows: incompetence, p per cent; In
experience. . per cent; reckless granting
OF credits. per cent; failures of others.
per cent; neglect of business. ) per cent;
unfavorablc circumstances beyond con-
troll of debtors. per cent; speculation, 3
per cent; fraud. 10 per cent. There has
been an increasing number OF fraudu.
lent failures I'm this state. and the usual
method has been to sell the goods in
bulk and conceal the assets. Massacnu-
0etts. Connecticut and many other
states have long had laws penaliZing the
sale of goods i'm bulk without previous no
tce has been given 20 creditors such n
law is greatly needed in Rhode Island,
end would be of much assistance i'm pre-
venting this corrupt practice.
Tho suspension OF the Union trust
company and tho jewelers. National bank
OF North Attleboro have, thus far. been
an insignificant factor in commercial fail
urcs. Indeed. it can be said, that tho
Closing oil tncSt pd0hS NdN iPi h'fll lnt
direct cause OF any failure, although the
life OF two or three business houses
might have been prolonged Tor little
time except for this reason. Tho very
fact that no moro failures have occurred
during the past two months Is a strong
testimony 10 the stability OF business
men, firms and concerns In this locality.
The year 1905 proved disastrous IN the
grocery trade i'm ProvidenJc, while during
the past year casualties In building oper-
ations have been more marked. The fall-
ure OF the Home Realty company IN July,
being closely followed by that of Vanity
Fair, with aggregate liabilities Of half
million, caused an unsettled condition IN
the building trades for considerable
period. The bankrupt O'Gorman company
is the most important failure which has
occurred In the retail dry goods and de-
partment store line in a decade. and per-
haps In the history Of Providence. There
has been but one failure I'm the woolen
Industry, that OF the Taylor Manufacture
ing company. Hope Valley. in April.
OUTLOOK FOR 1908.
A comparison OF the business outlook
for 1905 with that Of q year ago makes
sad contrast. The year 1906 closed upon
the most prosperous period In the history
of the state, and 1897 bid fair TO n con-
tinuance OF that prosperity. The markets
I'm general were empty of goods aud ma N
ufacturers were working on orders book
ed for I'm advance. In March. 1907 wide
break I'm stocks caused n slight setback in
general business but IL was soon forgot
ten. industry took ON fresh impetus and
prices for many commodities SCARED Go n
new high level There were signs. how
ever all through the summer months
that n business depression was impending
and n began IN earnest in October caused
apparently b. failure OF financial institu-