The New York Herald Newspaper, November 7, 1873, Page 3

a ne ae = A. & W, SPRAGUE. Se The Meeting of the Creditors the, Failen House. —_—_—_-——_ THE RESULT OF THE CONFERFACE. ——-——_—— Absolute rand Complete Surrender of the Téroperty to the Creditors. Rufus, Waterman, Amos D. Lockwood amd George C. Nightingale Appointed Trustees. Provipince, R. 1, Nov. 6, 1873. ; ‘mong the young men attacned to the business wiMces of the A. & W. Sprague Manofacturing ‘€ompany, in this city, it 1s common to speak of the ‘Senator and his brother as “these boys,’’ and to vrefer to their predecessors as the uncle, the father and the grandfatner of thea boys. In the days of their prosperity it was a common pride with the Sprague people to point out the increase of the business since the grandfather of these boys founded the house, or their uncle, “the old Gov- ernor,” a8 the first Senator Sprague is familiarly called, left it to them in the first glow of its remark- able prosperity. Now, when the day of adversity has come, the older people, at least, recall reminis- ences of the past magnaminity of the first cotton spinner of the family. This was old William Sprague, the grandfather. Perhaps the most char- acteristic story that is told at this time is one re- dating to old Samuel Slater, one of the first, if not the first, cotton spinner of Rhode Island. Slater suddenly found himself with large lia- Dilities, and assets far exceeding his debts, but unable to dispose of his property, and consequently ‘without the power of meeting bis obligations— “with plenty of goods, but no money, just as these ‘woys are to-day,” say the gray-beards. Under ‘these circumstances he called his friends together—‘‘just as these boys were compelled to do”’—and laid the condition of his affairs before them. They received his statement in silence, their speechless faces alone betraying their sympa- thy. At last old Quaker William Jenkins, moved by the spirit, remarked that Friend Slater had made avery good showing. Everybody acquiesced in this, but nobody appeared able to solve the prob- Jem which Mr. Slater had submitted to them, til) old William Sprague—“the grandiather of these boys’’—arose and said that, though he was by no meansa rich man, he was ready co advance $75,000 out of his capital to put the embarrassed Manufacturer on his feet again. The moral of thts 4a, of course, that now, when the successors of this magnanimous old Sprague find themselves in Mnancial dificulties, everybody in general, and Brown & Ives in particular, should do the same ‘vy “these boys.’? THE GROWTH OF THE SPRAGUE BUSINESS. Before I proceed to show why any such action on ‘the part of many manufacturers, and especially of Brown & Ives, is a little too much to ask of human nature, I must call the attention of the reader to other facts, which will make the explanation com- paratively easy. It matters very little when or how the Sprague business was founded. On this Point it will suffice to say that William Sprague, the grandfather, created it almost out of nothing. Itcontinued to grow under his hands and under the management of his twosons, Amasa and Wil- liam Sprague, so that when the property de- scenfed to the children of the latter—the grand- ehildren of the first of the house if ‘not of the nmame—it was already a vast inheritance. Amasa and William Sprague the elder were m some re- epects very like Amasa and William Sprague the younger. Without recounting the fact so weil known that the old Governor and the young Governor were both Senators of the United States, I can show their similarity by a more striking circumstance. Both Amasas always gave particular attention to the print works at Cranston and both Williams applied themselves to ‘the cotton milla and the growth of the business. Amasa Sprague, the father of the present Amasa and William, died as early us 1843, erroneously supposed to have been murdered by the Gordons, workmen in his employ, one of whom, though innocent, was tried, convicted and executed, The entire charge of the business then devolved upon William Sprague, the old Governor and Senator and ‘the uncle of these boys.” He continued to exercise what was partially a trust with great ability apd skill till 1856, when he died. At that time, as 1 have already remarked, the extent and value of the property was immense. The Cranston Print Works were much more than a nucleus for the buildings which compose the present vast establishment. The Quidnick property, con- sisting of the two milis at that place and the well known Arctic Mill, had been previously acquired, and the Natick Mill was pur- ‘chased during the lifetime of the uncle. At the time of his death the immense Baltic Mill, the largest in the country, was in the course of erec- tion and equipment. This was afterwards com. pleted, and some additional property acquired, notably the Augusta Mills and the flax mill, turned into a cotton mill, at Central Falls. According to the report of the committee appointed to ascertain the value of the Sprague property, the estate which came to the present possessors in 1850, in- Cluding ail improvements since made, the comple- tion of the Baltic Miil and the rebuilding of the Arctic, destroyed by fire, is as follows:— of ‘The Cranston Print Works................ «$1,100,000 ‘The Baltic Mill 76,000 spindles. The Arctic Mill 42,010 spindles, 118,000 spindles............ 1,770,000 two milis.. 31,000 spindles, 27,00 spindles. ++ 58,000 spindles. Total... Quianicic— retic... Total. 1,450,000 Total. 1,000 Besides this there was a vast personal and real property, and this, we may assume, is far below the actual value of the mills, especially if the ‘business had been confined within its legitimate channels and extended only within the allowable lings of the capital employed. When the present possessors succeeded to the business of A, & W. Sprague they changed the foregoing property of the firm, except the mills composing the Quidnick @ompany, into the A. & W. Sprague Manufacturing Company, and added, by purchase and .otherwise, mill property as follows :— Auguste (Me) estate, 40.000 spindles... Sn $1,200,000 ted States Flax Gompany’s co ton mill, 38,400 nde: . erences see 495,000 TotAl........s.+5 * «$1,695,000 These are, in reality, the legitimate manufactur- ing interests of the A, & W. Sprague Manulactur- ing Company, besides which the corporation and the Individual members of the corporation have other interests, the result of the general exten- sion of the business, which I shall call the political interests and treat more fully in a subsequent part Of this letter, THR SPRAGUE FAMILY. From what I have said of the early history of the Sprague family, and the vastness of the inheritance ‘which feli to the children of Amasa and William Sprague, the elder, it will be a matter of interest to most readers to ascertain how the family is at present composed. The A, & W. Sprague Manu- Sacsuring Company comprises Mrs, Fanny Sprague, Mra. Mary Sprague, Mr. Amasa Sprague, Senator ‘Witiam Sprague, and two sons and two daughters of Mr. Edwin Hoyt. The two ladies orst named are the widows of Amasa and William Sprague, re- spectively. Amasa and William Sprague aro both ons of Amasa Sprague, and the Hoyts are the children of @ daughter of Wilham Sprague, who married Mr, Rdwin Hoyt, the head of the house of Hoyt, Sprague & Co., of New York, Amasa Sprague had daughters, who are married, one of them to the Hon. Thomas A. Doyle, for many years ed bg of this city, but Who seems to dave no terest in the oorporation, and William Spr ue hat Sn only son, Byron Sprague, Who sold out of the com Dany three or four years, previous to his death, ‘wuio.h occurred in 1866, completes the Sp: gue family @Xcept those of it who belong to the rising gene ier ton, Of the latter it is only necessary to hie son of fle Seyator, now aliggst alad, Who may it there is a fourth William Sprague, ' diree yet hope to. Guceced to his fathgfs business and more than P:s father’s power, _ THE $B’.aT0R’S INFLUENCE WITH THE FAMILY. In @ &% rporation where the family and the com- pany “re identical it # only natural that some one shov,id control all the others and their affairs. AJ.er the death of his uncle this position naturally V.evolved upon Amasa Sprague ; but Amasa, Shouse no prude, Was not bold enough to undertake the management of so large a property. Neither he nor his brother William had received an edueation adequate to so great a task. But Wiiliam Sprague ‘was of a bolder temperament, and under @ moody, outside he carried & most sanguine disposition. He was ready to accommodate the spirit of his ewer brother and allow Amasa to content bis soul among the printing machines and the operatives: in tue works at Cranston, while he swayed the financial business ol the concern im the offices in Providence. In consequence Amasa became one of the most expert mechanica in the country, while William was worshipped by the iamily a8 a genius, ana even came to regard himself as one of the greatest financiers in the United States, No man in his position could have imaginea such a thing without inordi- nate personal vanity, and in his case vanity bordered upon monomania. He was ambitious to employ and control 100,000 men, He wanted to ex- ercise a controlling power over the manufacturing interests of New England, and even had Enongts. of g the monetary interests of New York. In ye of course thought it necessary to carry ular vote of Rbode Island in his breeches His ambition was boundless. He was able to bend his family to his absolute will His workmen were ev * ready to do his bidding. The toadies of his be ®, of whom there were thou- sands in the Cv and State, fawned and cringed in bis presence. He was at least more a tyrant than Charlemagne, and was regarded by his Jollowers a8 not Jess infallible than the Pope. He ‘was a young man ol splendid position, courted and flattered wherever he went. ‘The ambitious daugh- ter of aneminent public man thought an alliance with lus house the best in the country. In nis youth the Governor of his State, in his early man- hood a Senator of the United States, successful in business, in politics and in love, it was no wonder his family should worship him or that he should worship himself. Ii he had been a man of stronger mould, if his inteliect had been fired with a steadier flame, the result might have been different, If he haa even been surrounded by able men in whom he could confide and had been ded by their advice, his career might have been Pritliant to the end. But he believed thor- oughly in himself, and he believed in no one else. He was afraid of abler men than William Sprague, even though they held obscure positions and were forced by circumstances, if by nothing else, to be loyal to his interests. Accordingly, the best men employed in_ his legitimate business were mere bookkeepers, and his principal political friends had no _ higher duty than to keep check books of the voting popu- lation of Rhode Island and distribute petty bribes at his bidding. Such @ policy, supported by his successes, might seem @ crown of gioryin the eyes of the female members of his tamily and kindle the enthusiasm of his prospective brother-in-law, Mayor Doyle. It is doubtful if it long continued to dazzle the eyes of his wife, for Kate Chase has too keen an intellect and knows too well the were of politics and politicians to be long deceived, But it might well belog his brother Amasa, and it certainly charmed and be- witched his own vision. He was at once the Sardarapalus and the Belshazzar of the family—a bewitching tmage in the eyes of his friends and followers, effeminate even when he was most sul- len and morose, but a doomed adventurer in the opinion of others, of whom the handwriting on the wail declared that he could not long be king. THE OPPOSITION TO THE SENATOR'S CAREER. Though he could brook no opposition, Senator Sprague could not expect to have his own way at alltimes, Other men ia Rhode Island had aims and interests in life—political and business am- bition—as well as he. Atleast one grease house, if not so ostentatious, was even richer than the Spragues. This was the house of Brown & Ives, which has been in existence over 200 years, whose account books even now are labelled ‘Province of Rhode Island and Providence Plantations.” These people had long controlled the University ana had exercised great political influence in the State; but the latter Was passive ratner than active. Neither Mr. Brown nor Mr. ives had any particular am- bition of his own. ‘they were both comparatively old men when Sprague came to the top, Their greatest wrong to him, or the one which he and his friends would feel most keenly, was that they looked down upon him irom a@ lofty height and regarded him as a parvenu. Socially they never allowed him to be upon or to affect a level with them. Politically they were old whigs, and he, a young democrat, met upon the common ground of the republican party during the war. Ip business they were of the old Jashioned no credit, pay-as-you-go school, while he was a speculator, entrenched behind an extensive legitimate manulaccuring interest, but dealing largely in promises to pay and acceptances. Under such circumstances tere could be no sympathy between the rival houses, and their adherents were soon at war. So notorious did their feuds become that a nenereeen Bohemian made a few dollars by dubbing them the Montagues aud Capu- lets of Rhode Island. Besides, another generation had grown up under the eyes of Brown & Ives, and this generation is the real «(Brown & Ives” of whom we have heard so much during the last few years, The Goddards, nephews of the two old men who are the head of the house, are the active pocket. spirits of what S-*may call “The Brown Ives Political, Land and Cotton Com- pany.” Colonel William Geddard 1s of about the same age as Senator William Sprague. He would not object to being Governor of the State, or even to taking Sprague’s place in the Senate. Naturally the rival of Sprague, he opposed Sprague’s politi- cal aspirations at all times, aud his iriends, or “the friends of Brown & Ives,” which included all of Sprague’s enemies, whether they knew or cared for Brown & lves or not, sometimes routed the Sprague faction, horse, foot and dragoons. God- dard sometimes laughed at Sprague’s method of dging business, and the sneer was re-echoed in every corner of the State in a very short time. It even found its way to Wall and Church streets, ana, whether intended to have this effect or pot, Sprague felt its rebound in the depreciated credit of his house. Many eninge were saia against the young Senator which Goddard never uttered, but, Maturally enough, Sprague attributed every disadvantageous report to the one tnspirin source ot “Brown & Ives.” By the year 1869 the teu had become exceedingly bitter, and Sprague was goaded to fury. Then it was that he made his tamous speeches in the Senate, striking nght and leit at his unseen enemies in blind wrath ana making a figure of himseli such as no Senator ever made before. if he had any settled purpose in making these speeches it was to save his credit from the evil effects of what he considered detrac- tion, but in this he completely overshot the mark by the bitterness he evinced, making a hundred enemies where before he had but one, and by his egotism, arrogance, crudeness and obscurity he succeeded only In becoming a laughing stock before the whole country. SPRAGUK’S SINGULAR POLITICAL METHODS. I have already indicated that a large part of the Sprague property may be called the political extension, I have purposely excluded from the list any increase of the mili property, for this was in a legitimate direction if warranted by the capital of the company, The political extension consists mostly of cash advanced to the following companies :— Rhode Island Horse Shoe Company, Sprague Mowing Machine Compan: Comstock Foundry Company Point street iron Works... Wilcox Caloric Engine Compan. American liorse Nail Company Perkins Sheet lron Company... The mill property in the State, and even the landed property, Which, wanting in fertility as it is, has been estimated as worth about $4,000,000, would be important aids to the political ambition ofany man, They Jorwarded tne ambition of William Sprague vastly; but, with growing opposi- tion, they were not enough to be relied upon in every emergency. Sprague saw that he must keep up an army of retainers, and that the only way to keep them was to give them employment. This Was a method which harmonized with all his thoughts and feelings. It was his boast that he could successfully employ 100,000 workmen. The extension o1 his business into other channels gratified his vanity and furnished him constant evidences of what he regarded as his business Sagacity, while he belicvea it was making him all powerrtul in elections and the State Legislature. ‘There was something enchanting in the multitude of his undertakings. If you rode out on horse- back the shoes on the animal's feet and the very nails which held them to the hoof were of Sprague manufacture. If you | edocrag ate the street cars you sat upon Sprague cushions and paid your five cents indirectly to A. & W. Sprague. ‘ihese boys” even gathered up the slops of the city and fed it to the pigs which you afterwards bought as full grown, full fattened pork in the market. It seemed as if you could not breathe, move and have your being without gulping down at every respiration something obtained from the Spragues. ‘They were a wonderiul family, and the Senator es- pecially appeared, or wished to appear, as limitiess almost inenterprise as in thought—the political leader of the poor, the friend and counsellor of the workingman, and the benefactor of everybody and everybody's friend. But the cloth of all of Senator Sprague’s enterprises was cut by the same measure—the measure of his per- sonal vanity as a ;owerful and sagacious business man, and of his political ambition to bold Migh sta- tion and rule the State, possibly the nation, ashe ruled his own workshops. He never contemplated failure in anything he undertook as possible; hee Napoleon, he had eliminated the word trom bis yo- cabulary. Unfortunately, hie political extensions did not pay, and became paraaites apon his mill, property, drawing the capital away from ms te-\ gitimate enterprises, and paralyzing the previously healthy body of his business. ANd to-day he is at the doors of the Court of ry te AT with his creditors—even the most insignificant—nvt to launch the terrors of bankruptcy process’ upon him, this misfortune being mainly due to, his singulur political methods, ’ SPRAGUE’S FAMOUS SPEROHES IN THE SENATE. It was at the time these political methods were in their most active stage of development—at the time when his personal and political enemies in Rhode Island most clearly saw his future downfall— that he rose in his place in the Senate to fight the great battle of bis life. The covutry only knew him a8 a rich young Senator, Who, as Governor of Rhode Island, had made some stir early in the war, and had gone into Congress by the aid of his money, ‘The extent or the character of his enterprises was imperfectly understood—is imperiectly understood even now, It was expected at least that he was Capable 0! arapylag With the abstractions of Eng- NEW? YURK HERALD, FRI lish grammar and was not more liable than most men to be dashed to pieces on the Seylia or Charyb- dis of imperfect syntax. ‘The speeches sur- prised everyboay. ‘They were more like the wild ravings of @ maniac just let loose from Bedlam than the common sense statements of a Senator from New England. Their purpose was Lo crush his enemies in Rhode Island; their effect to deepen the foundations of iia ruin, and almost to crush him. A newspaper Bohemian, who saw in the story which had never been told— the story which Sprague had tried to teil but could not—a hewspaper sensation, did more to save him than he could do for himself, These speeches, which filled columns of the Globe, and were read wito avidity for their bad grammar and their ob- scurity, had in them only three elements :— First—A financial plan which was to be a panacea fo all monetary evils, and which was to make ali na prosperous and everybody happy. ‘Secoud—A pean tuned to the glory of his own enter- prises, and especially of his sheet iron and print cloths. Thrd—Abduse ot his enemies—Brown & Ives—and their adnerents. There are many char, r 8 3 in those parte of his speeches relating to hi olitical aud business vais which ought never to have been made—some which could not be sustained and otners which were puerile and unworthy of the man and the tace. The only things he uttered on the third ranch of his subject which are vital to-day were in the charges he made against his enemies that they circulated rumors to the effect that his busi- ness was extended and his credit impaired, Sprague’s main purpose was to counteract these damaging reports; and, if he had been as strong in financiering as he was feeble in debate, I have no doubt he would pare, accomplished it and would be to-day the richest mah in Rhode Island, SPRAGUB’S FINANCIAL PLAN, Sprague’s financial panacea ig worthy of a little more than a@ passing notice, because his own financtering was somewhat in harmony with it. He seemed to want the government to loan money to everybody who wanted it, thateverybody might have borrowed capital sufficient to develop every- thing. Evidently he would have made a capital borrower of capital, and he always was, besides, @ good lender. In the last few years he has made advancements to parasite corporations in this city alone amounting to nearly $1,500,000, and that, too, in face of the fact that his liabilities amount to over $11,000,000. His paper has long been a drug upon the market, and !tis said he has been payiyg as high as tweive and fifteen per cent for money. No capital ever was sufficient to Stand such a drain upon it, especially when it is also lavishly drawn upon for advancements which bring no return. With his method of doing busti- negs all the resources of the whole country could not have sustained his company forever; and, with our manulacturers and merchants, most of whom are in debt, borrowing largely from the gov- ernment, it is doubtful if all the printing machines in the ‘Treasury Department could have supplied their Wants, Sprague’s panacea for monetary ills was, perhaps, the worst that ever was invented, and that is saying a great deal. SHEET IRON AND PRINT CLOTHS—A REMARKABLE EPISODE, Ir I remember correctly Sprague showed the Senate a piece of sheet iron which he said was equal to the best Russian article. It was the pro- duct of the Perkins Sheet Iron Company. This company was to enrich everybody in general, and Charles H. verkins and William Sprague in par- ticular. Perkins is president of the company. He is a man of some pounce aspirations, and bas been a member of the City Council and the State Legislature; but 1t was in his character as a me- chanic and inventor quite as much as in his other character as a politician that he commended him- self to Sprague, Himself a genius, Sprague affects to admére genius immensely—especially mechani%al enius. ‘as not Perkins the mventor of the orseshoe machine, which turns eut a shoe while Nelly Bly winks her eye? This was sufficient witn Sprague, as it ought to be with any man whoadmires mechanical genius in a politician. It is doubtful, however, whether Sprague will ever show the Senate any more sheet iron manutactured by Per- kins, for the liabilities of the company are only $545,000, and the excess of the indebtedness over the assets amounts to $309,000, But Sprague ad- mires mechanical genius, even when it is combined with the refinements of science and is embodied in the person of an Alsatian adventurer, It will be remembered that in his Senate speeches he gave some vague hints of his ability to control the print market of the world. Privately he declared that he could make print cloths four cents a yard cheaper than anybody else could.make them, It tnis was true Le must Save found the puilosopher’s stone; but, in fact, he had only found an adven- turer, named Parof, who professed to have a secret whereby extract of madder, instead of madder itself, could be employed in making fast colors, Parof is perhaps the most accomplished impostor in the country. He is now said to be engaged in New York in making butter out of suet by bringing every particle of the lard and tallow into contact with some part of a cow’s udder, To say the least of this scheme, it is un- reasonable; but scientitic men are said to have been infused with the notion thatic is practicable, A charlatan who could impose a theory so absurd upon two or three eminent chemists might well captivate the imagination of Sprague aud cause him to adopt a foolish theory, injure his business and lighten his purse. Sprague believed in the new process most religiously. It was always on the point of success, but never succeeded. The prints were as pretty as pictures, but somehow the washerwomen always played the deuce with them, If there had been no washtubs, no sunshine, no dampness in the atmosphere and no dirt, there might have been Paroflan gowns without number. But the elements were stronger the Parof’s manipulations or Sprague’s predictions, and the only thing which completely yielded to the Parofian genius was Sprague himself. 1t was aiter- wards discovered that the adventurer’s secrets were taken from some old Austrian or Hungarian volume. If Parof got nothing out of the matter it is said that be managed to extract $80,000 out of Sprague, and that the loss irom the experiment to the A. & W. Sprague Manulacturing Company was little short of $1,000,000. 1t will thus be seen that these two pwans of glory were pitched in tuo high akey and that these proud boasts brought only disaster and tended to prevent that retrenchment a was necessary even then for the saiety o/ the Ouse, HOYT, SPRAGUES & Co. The New York house of Hoyt, Spragues & Co., even at that time, sadly needed all the aid that re- wrenchment in every department could give to it. it was aiready practicaliy bankrupt in 1869. The floating debt of the concern was then over haifa mullion of dollars, and the Atiantic Delaine Mull, always a losing property, was eating away what- ever life there was init. Many persons find tn this mill the true secret of the embarrassment of the Spragues. It is not here, but everywhere. Still, in this mill and in the operations of the New York house are to be found some excellent reasons why the Spragues should be compelled to yield in the end. Senator Sprague, as the financier of the company, had timely notice of this. The Atlantic Delaine Mill was bought about the time Senator James was elected to the United States Senate. The property had already ruined James, It ran along for a ee many years under what may be loosely calied the management of Mr. Hoyt, but so tar as I can learn it never made any money, Aiter Senator James’ death his estate became involved in a chancery proceeding with 1ts present owner, in the course of which it became evident that Hoyt, Spragues & Co. were, to say the least, heavily involved, Later on Sprague had fresn evidence of the condition of this house, and during the winter of 1870, according to his own declaration at tne time, he was compeiled to stay Ekg at his seat in the Senate in order to succor it. is friends say he has been succoring it ever since, and yet this is the bank committee’s statement of its cendi- tion:— The statement made by this house says the indebtedness, outside of A. & ¥ Sprague, Atlantic and Riverside, ii eee sressseeceases 600,000 —all covered by saies or by go nd. 200 00 After careiul review of their books they estimate, 540) /000 rtnership assets in excess of abilities Mr. Hoyt estimates his property at. Leaving available assets at... $3,700,000 which may be affected by the three accounts above mentioned. We consider Mr, Hoyt’s interest in H., 8. & Co, and his private property makes the account of h Hs, & Co. good, he being a stockholder in the Delaine Co. If this is correct the interest of Amasa & William Sprague in the house of H., 8. & Co. will add to their assets as previously estimated. s ‘unless there is loss by the Riverside M! ig not probable. This meagre and flippant statement ts very un- Satisiactory, especially when we consid tha’ Hoyt, Spragues & Co, made it for themseive: the indebtedness of the Atlantic Delaine Mill is unknown, the assumption that Mr. Hoyt’s private property will cover it being only an assumption, and that Hoyt, Spragues & Co. hold five and a haif millions of acceptances irom A. & W. Sprague, and owe the latter over $2,000,000, part o1 the accept- ances possibly being for goods soid, but not even spun. From this it will be seen that both houses are so deep in the mud that neither can see the bottom of the pool, Notwithstanding the commit- tee put the available assets of Hoyt, Spragues & Co. at $3,700,000, and the additional assets of A. & W. Sprague from this source at $850,000, it must be remembered that $900,000 is a very heavy debt for any house to float, And in this case it has been Kept floating for years and was con- stantly increasing instead of diminishing in amount. It must be confessed, however, that there are in this statement no evidences of succor from A. & W. Sprague, and that, instead, the boot seems on the other foot, If it is even nearly ac curate it will prove all the worse tor the finan- ciering of William Slat nd show that instead of “succoring” he was th jucker.’? SPRAGUE AND HIS ALLEGED DETRACTORS. This brings us back to the third proposition of Sprague’s speeehes in 1869—his alleged detractors. There certainly was agreat deal of taik about Sprague’s extension and the weakness of his credit, as there must be in a@ State clothed with Tull political powers where every man in the Com- monwealth seems to know the entire popuiation, AS & great manufacturer, and especially because he aspired to be a political leader, Sprague’s business $80,000 , which was, naturally enough, freely discussed. He ielt ‘the influence of the chatter upon his credit, and as it was far from being mere detraction he felt it all the more keenly. He haa bis own retainers who ‘ were practically spies and who carried to him ut- \Srances heard at street corners.and in barrooms and biliiard halia Even the faces of men who were known to be politically opposed to him were Scrutiuized and the most terrible malevolence was seen in the hearts of men who seldom gave Sprague a thought. And the other side was no better. There was a bitter feud iu the community, and this set the tongues of everybody wagging ail over Rhode Isiand, There was unquestion- ably a desir@ that Sprague should fail in business that be might no Jouger succeed iu pol DAY, NOVEMBER 7, 1873.— ties, Everybody familiar with his affairs and his methods of doing busiuess, except himself and bis immediate iriends, knew that failure must come in the end. Why he fatled to know it is one O those mysteries which surround ail great finan- ciers who do business on credit and pay twice as much interest as they can possibly make profits. But even Sprague might have known it if be had not been blind with business vanity and political fury and egged on against his enemies by the feeble politicians who surrounded pim, instead of curtailing every source of outlay and contracting rather than expanding his investments, he con- tinned his mad career, giving his enemies tresh cause tor “detraction” almost every day, and added to their rancor by a rancor as violent as theirs, And so it came that political feuds and erroneous business ideas ruined him in the end, SPRAGUE’S MISCELLANEOUS INVESTMENTS. There would be sufficient evidence in the exten- sion of Sprague’s mill property and in his im- mense political investments to convince any un- prejudiced mind that the corporation of A, & Ww. Sprague could not endure the strain many years. We read in the report of the committee that the firm of A. & W. Sprague, both members of which are stockholders in the corporation bas assets as /ol- lows :— 215 shares Washington and Georgetown Rail- oad COMpany, BE 70.......0.c.-ceeceveersasse+ $15,050 1,506 shares Kennebec Land and Lumber Com- pany, atl00...., ; eee 185,500 Tshares Khode [sland Horseshoe Company. 70 20 shares Khode Island Sule Deposit Company (total 50)....... 8 ; 20,000 Kennebec Land and Lumber 18,987 Real estate b 20,000 Columbia \ 116,000 Bills receivable # 805! Coburn Land Company’ (400, 1,457, 00 Interest in four schooners nabeees 23,000 Wctalreavsassatssiscsnoceescrecopvidasearenessd $1,995,537 Besides this extreme extension the firm and the corporation have bank and uther stocks amount- ing to a8 much more, put which cost as much more and probably haif as much again. Outol a capital of about $20,000,000 fully one-half was diverted into other and uncertain channels— diverted from the necessities of cotton spinning and printing. Could any man fail to have “de- tractors,” under such circumstances, or could any man, Who did business, as I have shown William Sprague to have done it, and who abused his busi- ness and political rivals, without stint, during the whole time he was on the road to ruin, expect them to come forward “at this time and lit him up, now that he is down? ‘The answer seems so natural that any further explana- tion of the reasons why Brown & Ives will not sustain Sprague appears unnecessary. It Will require much more than the magnanimity of old William Sprague when he succored Slater tor Brown & Ives to succor the Spragues of this gen- eration. And so straightlaced and severe in their business notivus are the members of this, “the great lamily of Rhode Island,” that Ido not ve- lieve they would save the spragues, if for no other reason simply because of the manner in which the Senator stripped his banks, and, in the case of the Cranston Savings Bank parucularly, imperiiled the earnings Oo! the poor. THE END AT LAST. At last the end came. The Buchu bankers in Wall street tailed, and the consequent shrinkage in values and stringency im money immediately afiected the Spragues. It was impossible ior the greatest financier in the United States to go on Inuch longer, and he said that he must either arrange with his creditors or go into bamkruptcy. In the end I believe it will be bank- ruptcy, in spite of every effort to the contrary. ‘There are too many diverse interests, both mone- tary and political. Sprague has too many credit- ors and too many enemies to secure him from bankruptcy, even aiter the trustees assume their junctions and are in the tull exercise of tweir au- thorit Though the Sprague poets, avtuning their harps to the catching air of “When the Band Be- gins to Play,” may sing— If all will just keep quiet Until the “squall”? blows o'er, é Spragues will do the honest thing And open Treasure’ door; They're gentlemen whom all can trust, They mean just what they say, And When tey give tue order ‘then the banks will surely pay; yet I doubt if they will ever be able fully to realize the last line or the refrain of the chorus :— Oh, we'll feel so awfully jolly when the*banks begin to pay, Yes, we'll feel so delightfully happy when the banks begin to pay, 2 For our fiances are lowering, We're almost “broke” to-day, We're waiting for the savings banks to pay—pay—pay. Politics is the imp which even now keeps guard over “treasure's door,” and which makes the Spragues’ money drawer ouly a Pandora’s box. As @ matter of course the Senator 1s poiitically ruined, But his partisans want to keep the faction together and ex-Governor Smith desires to lead it. Twas 18 in accordance with the desires of the Senator also, jor he has not lost all hope, and Smith, though stubborn and tenacious, is narrow and feeble, and could be pushed aside at any moment. 'Tnis accounts for the strong desire to make Smith one of the trustees, and ulso for the strong opposition which his nomination inspired from the very mo- ment his name was first suggested. The creditors of the Sprague faction sought his appointment because he would be their political as well as financial trustee, and the creditors of the other faction opposed him for the very opposite reason. None of the trustees originally named are really able men, but smith being the most tenacious, the most aggressive, and the most ac- ceptable to tue Spragues, the design evidently has been all along to concentrate all or nearly all the trust power in his hands, the Senator hugging the delusion that his cousin would do well envugh ior @ figurehead till he got on his feet once more and was able to assume the reins himself. Thus politics was in the beginning, in the middle and in the end the bane of Sprague’s lite—the wi.l-o’-the- wisp which tempted him into the wilderness and continued to bewilder him even after his strength was gone. The sequel to this remarkable story Wul be told in the account of the meeting of the Sprague creditors to-day in Armory Hall, THE MEETING OF CREDITORS. A Change of Front on the Part of the Spragues—The Property Absolutely Surrendered by the Corporation— Rufus Waterman, Amos D. Lockwood and George C. Nightingale Appointed Trustees—The Deed Not Yet Ready. PROVIDENCE, R. L, Nov. 6, 1873. The final action in regard to the proposition or plan suggested by the Examining Committee ap- pointed by the banks to examine into the affairs of the A. & W. Sprague Manufacturing Company was taken to-day at the meeting of creditors at Armory Hall; that is, all the final action that is possible where the liabilities are so immense and the creditors so numerous. The meeting was a very large one, compietely filling the hall. It was or- ganized by the appointment of Mr. Amos (, Barstow, formerly Mayor of this city, and a busi- ness man of repute, as chairman, Immediately after the organization A COMMUNICATION FROM AMASA SPRAGUE as president of the corporation, and A. & W. Sprague was submitted asking the creditors to designate a committee with whom they could have a free and full conference for the purpose of devising the best plans for securing the large property in their hands to their creditors, and enabling all claims against them to be satisfied in the shortest possible space of time. In this communication the A. & W. Sprague Manufactur- ing Company and A, & W. Sprague pledge to their creditors their utmost efforts to co-oper- ate in the means to the above end which upon conference may be devised. This sud- den change of plan in the appointment of trus- tees was made necessary on fctount of Governor Howard’s refusal to serve, the indifference of Mr. Waterman and the violent hostility to ex-Governor Smyth, who was dropped because his appoint- ment was tantamount to the complete failure of the trusteeship, in. consequence of which no alternative would have been left but bankruptcy, 4 LONG DISCUSSION ensued, in which Deacon William J. King took the leading part, When a man is adeacon in Rhode Island he has @ right to talk in season and out of season, and as the Spragues owe him nearly $500,000 he had a double right to be heard on this occasion. He talked a great deal, but he did not not say anything. The only important thing saia in the early part of the meeting was in the speech of Mr. B. F. Thurston, the counsel of the Spragues. Mr. Thurston is, perhaps, the ablest man in the State, and he gave the Spragues’ view of the appoint- ment of the trustees with great clearness, He said i— MR, THURSTON’S SPEECH, Last evening [had an interview with Governor Sprague, and he desired to say to this meeting, if the occasion should be fitting and should require any statement, that his soie object and purpose was that the property in the hands of the corpora- tion and the hands of A, & W. Sprague should be devoted primarily to the payment of all the debts and obligations of the company and of A, & W. Sprague. Ho would desire that the trustees, if that plan should be adopted by the committee of the creditors, should be friendly to the house only in th sense—that their object should be to preserve, far a8 possible, after the payment of the debts due from this- corporation, and from A, . Sprague, the property which should remain, rather than adopt a line of policy which would tend to dissipate and scatter it. Thus far he has an interest in the appointment of the trustees, and no further; and I aesire—speaking for myselt and my associates on behalf of the corporation—that any committee which shall be appointed to ascer- tain whether the pian proposed is acceptable (and itis generali; nuderstood that it is acceptable) and suMicient, that committee shall be su a] pointed ag to preclude the possibility of any ‘douvt as to the firmness of its constitution and the pur- oser for which it 1s to be employed. The ob; ject, 7) Chxttman. i 4 have sugh an understan TRIPLE SHEET. 3 acceptable to the great body of creditors here re- presented, and acceptable | may say also to the in- terests of the house which is 80 deeply involved, that will tend by the accomplishment of the result #0 much desired be all, which is the obtaining of the greatest security possible tor these obligations, Theretore it becomes important that the appoint- ment of this committee should pe such that it will be impossible to have it said that there is any in- fluence bringing about that appointment other than the cotnmon interest and advantage of all. THE CHAIRMAN’S VIEWS, There was some difference of opinion as to whether trustees should be appointed at all; even Mr. Barstow, the chairman, having a place of his own. He stated it as follows:— It seems to me that the embarrassment of plac- ing a property so large as this and so diversified and so widely scattered as this is into the hands ot vrustees, with the understanding that itis to be managed and kept in operation a considerable eriod of time, first by its owners and then by its rastees, And again the divided ownership and divided management could not work in any other way than injuriously to all concerned, You might secure a very harmonious management of this property—harmony, I mean, between the trustees—and you might secure anything but har- mony, and, if the management were toiack har- mony, nothing but injury could result %o the credi- tors. Now, so far as I know, the creditors of this corporation have confidence in the skill, the honesty and the integrity of the mem- bers of the corporation, and they have also confidence that there {8 property enough here to pay all the debts. If this be the case, why may not the property re- main where it is under some oversight and direction, if you please, and control of a commit- tee, not of trustees, put of a committee of the creditors, under written obligations and assent of the debtor corporation, secure @ wiser and better management than can be had in any other hae 44 Now, the surplus here is larger than it was in the case ol the New York corporation, wiere there has been a recentembarrassment. The creditors there stepped in and gave an extension, all the exten- sion that was asked, and I don’t know but that in the long run the Dr ORGS ig as valuable and as easily turhed into money it was in that case. Perhaps it is not so entirely, and in every sense, but in the long run it is a» valuable a merchandise | a3 that shop could have been. | MR. B, DEXTER LEWIS wanted a committee to be appointed to ascertain how many of the creditors would be willing to ex- change their indebtedness for the property of the A. & W. Sprague Manufactaring Company at its ap- praised value, and be announced himself as willing to buy Sprague property, paying for it on receipt in full, THE NEW YORK INTEREST. Mr. J. L. Riker, of New York, speaking in behalf of the creditors of New York, said:— The New York creditors know nothing further than what they see in papers; and trom the gen- eral position of tne afair it will be avery dificult thing to convince the merchants and thinking men ot New York that this corporation, or the managers of it, should receive back the entire thing un- so to speak, gsettied and run it into the ground, loaded ag it now is. I doubt if those mer- chants think that the corporation has the ability to carry the business on in safety. If such a course is pursued and unless some arrangement is made tending to a proper trusteeship I think that it will be almost impossible to get a settlement with the great number of creditors who reside in New York. Speaking lor myself, while under a proper modification of the trustees, I am willing to give them all the time that is asked for, I have not felt that they should retain possession of their property during the three years in which the credi- tors are to be paid. THE LADIES’ SHARE. The only other speech made during the meeting which was of any importance was by Mayor Doyle in reply to @ remark of ex-Governor Padelford, to the effect that the resolution appointing the con- ference committee was faulty m not including a large amount of personal property owned by lady | members of the house. In reply Mayor Doyle, who 1s a brother-in-law of Amasa and William Sprague, said :— The property of ladies is all to be included, though under proceedings in bankruptcy it would not be. Their desire, however, in common with all the other members, Is that every creditor snall receive his {ull indebtedness, and they believe every creditor wili receive it. Mr. Barstow, the chairman, at first hesitated about taking the responsibility of appointing the conference committee; but a recess of half an hour was taken, alter which he named the follow- ing gentlemen :— THE COMMITTEE OF CONFERENCE. Messrs. William J. King, John L. Riker, of New York; Henry Howard, William H. Hopkins and Daniel Remington. OPINION OF THE MEETING. These appointments were generally acquiesced in, after which the 1ollowing resolution was passed unanimously, and the meeting adjourned till three o'clock to await the report of the Conference Com- mitiee:— Resolved, That in the opinion of this meeting it is eminently desirable that tue property of A. & | W. Sprague and the A. & W. Sprague Manulactur- | ing Company and of the individual incorporators | should be placed in trust ior the benefit of all the creditors, and that those trustees who shall be acceptable to a majority of the creditors shall be appointed to receive this trust. | The creditors reassembled promptly at the ap. | pomted time, butafull hour elapsed before the meeting was called to order, the delay being occa- sioned by the non-arrival of the committee, who up to that time were in conference at the office of the Spragues with members of the Sprague corpora- tion, The creditors, however, awaited patiently THE RETURN OF THE COMMITTEE, and the intervening time was spent ina general and informal talk about the situation and the prob- | able result of the meeting. Atiour o’clock the | committee re-entered, and the meeting was then | called to order by Chairman Barstow, who asked for the report of the committee. Mr. William J. King, | chairman of the committee, announced that Mr. John L. Riker had been elected secretary by the committee, and he called upon that gentleman to present the report. Mr. Riker, therefore made A VERBAL REPORT OF THE RESULT of the committee's conference and deliberations as follows :— At a gener.l meeting of the creditors of the A. & W. Sprague Manufacturing eed ined and of A. | & W. Sprague, held this day, a conference commit- tee of tive were appointed, who met at the office | of said corporation to ascertain the views of the members comprising it aud what powers they were willing to delegate to trustees, and the gen- eral plan and form of the deed. At the meeting | there were present personally the President of the corporation, Mr. Amasa Sprague; Senator Sprague and other members of the corporation, together with representatives of the Hoyt family, and all said they desired to give full power to the committee to submit to the fullest extemt to the wishes of the creditors, and they are willing to give the trustees, or, at least, a ma- jority of them, the power to act in the disposition of the property to meet the obligations, and in case of resignation the creditors to have power to ap- point successors. In regard to the form of the deed the Spragues and other members of the com- pany, corporatedly and privately, wished the creditors to understand that they were willing to have it o1 the fullest sort to protect their interests, and, furthermore, they are willing that the word- ing of the deed be leit to counsel. With these facts and statements before us your committee passed @ resolution declaring that we believe THE PLAN SUBMITTED, in its general features, is the best that could be de- sired ior the conversion of the property and pay- ment of the debts. So far as mention of the cor- poration is concerned, there was general consent to meet the creditors in every way to secure har- mony and the best interests of all. They even went so far as to express the wish to accede to anythin, that any reasonable man could ask, and desire that the creditors should receive from the trustees the fullest assurance that their rights would be protected as well as can be under the trusteestup. In Tegard to the names of the trustees there was some division and diMculty upon uniting, but after full and deliberate discussion your committee agreed upon the tollowing names THE TRUSTEES PROPOSED. Rufus Waterman, Amos D. Lockwood and Geor; ©. Nightingale, (Applause.) In relation to the deed, that, of course, requires time, and will be drawn up under the supervision of counsel of the trustees and of the Messrs, Sprague, 80 as to cover the rights of all, GOVERNOR HOWARD'S SPEECH. The report being finished, Mr, King, chairman of the committee, called upon Governor Howara to express the views he gave at the conference, whereupon the Governor said: It is obvious that an examination of the deed must be very imperiect and cursory, but it cer- tainly appears to be all that is asked tor, and we are impressed with this fact, that the Messra. Sprague have acted in this affair the honorable and manly part. The surreader of their property is absolute and complete. I am of the opinion, however, that the deed before being fully decide upon should be submitted to learned counsel, re- tained and employed by the creditors, So far as the conduct of all parties 1s concerned the deed in its general plan was most cordially and unani- mously approved by the committee, the length ot time occupied in the conference being irom the diMculty in uniting upon the matter of trustees, Upon motion the report was unanimously ac- cepted. Governor Howard said there having been no consultation with either of the gentlemen named as trustees there should be some arranges ments to fill vacancies in case any should occu THR TRUSTERS APPOINTED. Upon motien of Mr, Gorham HU. Pomeroy the , the poor, committee’s recommendation of trustees wa unanimously adopted, the vote eliciting applause. Mr. Pomeroy further moved that the Committes! of Five be continued, with power to fill vacancies, and bis motion unanimously prevailed, The com. mittee were iurther instructed to settle and approve the form of deed to be executed, Thecom- mittee were also empowered to fill any vacancies: in their own members that may occur. The meet« ing then adjourned. WHO THE TRUSTEES ARE. Mr. Waterman is the only name on this list orig inally suggested as a trustee. He is a man of property and standing, though, politucally, he {s supposed to sympathize with the Brown & Ives faction, Amos D, Lockwood is a manufacturer, which, in Rhode Island, means a cotton spinner, He is treasurer of the Quinebaug Company and Stands well in the community. George C. Nightin- gale is also a manufacturer and a man of good business standing. They are all practical men, and, taking them altogether, they ought to be as acceptable to the creditors as any persons who could be named, THE LABOR PANIC IN JERSEY. —_-—__—_ Good News and Bad News from Newark A Factory that Intends Keeping Over 1,000 Hands Busy All Winter—Very Dull Times Among Machinists and Hatters. For several days past a report has been in cireu- lation in Newark to the effect that the Clark Thread Factory, which probably employs mora hands than any other establishment in the State, was about throwing out of work a large number of its male and female operatives. ‘The report. caused @ good deal of uneasiness throughout business circles in the city, and in order to test its truth a HERALD representative visited the factory yesterday. It is located on the bank of the Passaic River, some distance above the Morris. and Essex Railroad bridge, and is an imposing and’ extensive brick building. The superintendent, Mr, Clark, said that there were employed in the factory altogether 1,050 hands, male and female, young and: old. It was quite true that in their business, as inj all others, trade was dull; but, as their goods were: sure of sale some time, they proposed going on asi usual unless matters became very much worse than they were at present. It was their intention now to keep all their hands employed throughout the winter on full time and full wages. This news, | we it is read to-day by Newar HERALD readers, wi e HAILED WITH JOY by business people generally, and the working’ ; classes also. Mr. Clark went on further to say that he, @ business observer, felt sure trade would spring up by next spring, and that in the, meanwhile he thought it was very bad policy for | people to cry “mad dog” before the dog himseifi | Put in an appearance, He was overjoyed to know that the HERALD would contradict the erroneous rumors about the factory. Subsequently, when the reporter visited other business establishments and set at rest the idle rumors, general gladness was expressed. A tour AMONG THE MACHINISTS found things very dull and not very hopeful. The largest shop in town, Hewes & Phillips’, which usually employs 260 men, has now but 100 doin; anything. The firm say they can get plenty 0: orders, but can’t get cash. 11 things get any worse they would have to discharge some of the 100, At the Rink an inteiligent workingman stated that there were only about one-tenth of all the machin- ists and boiler makers in the city now on full time. and full wages. THE HATERS, | according to an employer, Mr. James Robinson, are in a worse condition now than 1n 1857. He saya that then they could get plenty of work but no money; now they could neither get work nor money. In Newark Mr. Robinson estimated there were about 1,300 soft hat makers and_ finishers, but | few of whom were doing anything. This, however, is the dull season for tie trade, Of silk hat makers there are only about a score, and these, too, are doing next to nothing. THE CARRIAGE SPRING MAKERS number about 200, and only about fifty are em ployed, and these oniy on half time at that. “SOUP HOUSES INSTEAD OF SUPPERS.’? On Wednesday night the Burns Association, of | Newark, held the first meeting of the season, and during the course of a discussion on the subject of holding the annual supper celebration in honor of the bard, ex-President John McGregor opposed any definite action for the present. He said that if things went on as it now seemed they would, there wouid probably be more need of soup houses than suppers. The club thereupon reconsidered a pre- | vious resolution to have a supper and | lett the question open for the present. | Thee clergy of Newark, stimulated doubt- less by Mayor Ricords’ prompt suggestion to the Poor and Alms Committee, are moving in view of the expected privation and destitution among A sonia of them, Rev. Messrs. J. F. Stearns, J. Few Smith, W. J. R. Taylor, H. C. | Fish, William R. Nicholson, William B. Brown, A. L. Brice, C. Sims and George S. Hare, have held @ consultation with citizens in ‘regard to what measures are desirable in view of the probable extreme suffering among the poor this winter, and were authorized to invite a meet- ing of all the clergymen o! the city of every de- nomination, and one layman irom each congrega- tion, to devise some plan of systematic relief. They therefore affe:tionately urge each clergyman of Newark to select, in such way as he shall jadge best, one member of his congregation who will surely attend, and to be present with him ata meeting to be held in the lecture room of the First Presbyterian church, on Monday, the 17th inst., at three o’clock P. M. The Labor Crisis in Paterson. There 18 little new to report in regard to the situation of affairs among the Paterson manufac- turing establishments, The machinery of the Whitney Sewing Machine Company im the Dale Mill was sold yesterday afternoon at bankraptcy sale tor $20,000 by Mr. A. A. Hopper, of the Merchants’ Loan and Trust Company. It is said the works will soon be started under the name of the Whitney Manu- facturing Company, with a large capital to back them, and with every prospect of success, It is expected to start in a week orso (the machinery being all ready for commencing) with a force of fiity or sixty men, which will be increased as the business increases and times improve. ‘This 18 a bright rift in the black cloud which envelops all uther branches. A few hands were yesterday put to work in the foundry of the Danforth Locomotive Works for a few days to finish up a little work incomplete, What will be the permanent arrangements for the winter cannot yet be decided. At the Rogers and Grant Locomotive Works things remain unchanged, The Ivanhoe 1s running about 150 hands full time. The Common Council holds a Cl meeting on Monday night, to consider what is best to be done’ to prevent suffering during the coming winter, in consequence of the de- ression in business, Several of the churches have held meetings with the same object in view, and there seems to be a general dis- position on the part of all hands to make charity and benevolence “fashionable” this winter, so that if any one starves to death it will be largely his own fault. No cases of suffering have yet been reported, nor has the number of applications to the poor authorities for relief yet materially increased. The warmth of the weather tor the time of the year has doubtless gone a good way towards deferring the day of suffering. HARD TIMES IN KENTUCKY. LOUISVILLE, Nov. 6, 1873. The results of the panic, although not widely disastrous in this city, have caused great strin- gency in mercantile circles and much suffering among laboring people. ‘Tie banks refuse to dis- count, but as yet there have been no failures among the merchants, It Is feared that before the 1st of January some of the best houses will go under unless money becomes easier, Many manu- facturers of iron have either closed up their estab- hshments, are running orm naif time or have re- duced wages to old time rates. One or two are paying full wages and running on fulltime. All classes of manufacturers seem to be working with great caution and sell only for casi. It is probabie that within a few weeks all the great foundries wili be closed. The workmen generally belong to Nl and in many cases rejuse to accept the reduced wages. One large Foundry has notified its employés to- day that it would lave to reduce wages; the men refusea to accept the proposed reduction and the proprietors immediately closed up the foundry, thus throwing over 100. workmen out, of sept. ment. in the case of the New Albany Rolling Mills to-day the men demanded higher wages, Which it was utterly impossible for the proprietors to pay, and the men refusing to work at the suggestion of the masters 400 men were thrown out ofemployment. About 2,000 men have thus far been discharged from the vario' jacturing establishments arow The begs ase ae aiso Ny A , working force. @ Woo! emplo; womer, are working on hal{-time, nud much sue fering i8 expected among the giris. Probabi within the next two weeks 6,000 workpeopie wil be without employment in they. ea ly there 1s considerable destitution repor THE SI0K CHILDREN'S FUND. The following additional subscriptions for the sick children have been received at tue HeRaLD omice :— Messrs, G. Schimst & Co., Anonymous.........