19711. Franklin Institution For Savings (Providence, RI)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
October 29, 1873
Location
Providence, Rhode Island (41.824, -71.413)

Metadata

Model
gpt-5-mini
Short Digest
f632a2c9

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Full suspension, Books examined

Other: Receiver appointed and bank placed in chancery; long-term winding up and dividend payments described in later receiver's report.

Description

Contemporary articles (late Oct–Nov 1873) report a small run/heavy withdrawals on the Franklin Savings Bank tied to the Sprague panic, the bank then stopped doing business / suspended in early November 1873. Later material shows a receiver was appointed (receiver assumed duties Aug 19, 1874) and by 1876 the receivership was settling deposits — indicating permanent closure and administration. OCR errors in articles corrected (e.g., dates and firm names).

Events (3)
1. October 29, 1873 Run
Cause
Local Banks
Cause Details
Withdrawals triggered by rumors and the crisis surrounding A. & W. Sprague and related Sprague-controlled banks; panic and reports of Sprague failures led depositors to withdraw funds.
Measures
Obtained $15,000 from another bank; savings banks require 60 days' notice for withdrawals over $25 (limiting immediate outflows).
Newspaper Excerpt
A run the made upon the Franklin Savings Bank ... Three hundred dollars in small sums was drawn from the Franklin, which obtained $15,000 from another bank.
Source
newspapers
2. November 2, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension caused by the firm's (A. & W. Sprague/Hoyt, Sprague & Co.) embarrassments and heavy exposure of the bank to Sprague debts and acceptances, producing insolvency concerns and stoppage of business.
Newspaper Excerpt
The Franklin and Cranston Savings Banks are doing no business. The former will probably resume business under a new board of directors.
Source
newspapers
3. August 19, 1874 Receivership
Newspaper Excerpt
the receiver, Winthrop de Wolf, which had been made to the Supreme Court ... assuming the duties August 19, 1874 ... amounts collected from all sources amount to $1,554,148.83, and the amount paid out in dividends to $1,350,167.26 . . . the failure of which was brought about by the embarrassment of the well-known house of A. & W. Sprague . . . the report states that the amounts collected from all sources ... . (New York Herald, Nov. 14, 1876).
Source
newspapers

Newspaper Articles (14)
1. October 30, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 30, 1873

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FINANCIAL DISTRUST. THE FINANCIAL EMBARRASSMENTS OF A. & W. SPRAGUE. A STATEMENT OF THE POSITION OF THE FIRM ARKED BY THE PROVIDENCE BANKS-$1,000,000 NEEDED BY A. & .SPRAGUE, AND $1,000,000 BY HOYT, SPRAGUE & CO.-THE LIABILITIES AND ASSETS OF EACH FIRM-ALL EXCEPT FOUR BANKS DECIDED TO AID THEM-T CONDITION OF THE 'SPRAGUE BANKS "--THE PROSPECT IMPROVING. LBY TELEGRAPH TO THE TRIBUNE. PROVIDENCE, Oct. 29.-The mystery which in Providence has been thrown about every detail of the position of the house of A. & W. Sprague Co. and of the New-York house of Hoyt, Sprague Co. wrought its natural result in much lying ru mors, which have shaken the city to its center, and have been dispersed over the country as to the management of the firm. Capitalists of Providence and journals here keep ominous silence, increase distrust, and cause tenfold alarm. The embarrassments caused by the panic have been magnified into death blows, and hourly the majority of people, left to ignorant conjecture and !direful hints of sensation seekers, have expected the announcement of suspension. Garbled and exaggerated reports printed in Boston and New-York remained uncontradicted by proper authority, thus exaggerating popular fears. While A. & W. Spragne claim they can show an encouraging exhibit, they carefully keep it from the public. Of an immense amount of liabilities of the A. & W. Sprague Manufacturing Company there can be no question. They themselves have $7,400,000. The enormous amount of their resources is equally unquestionable. It includes real estate, manufacturing property of many kinds, goods, stocks. etc. The aggregate they put at $13,400,000. They control 80 large a part of Rhode Island industries, are interested in 80 many banks, corporations, and business enterprises of all kinds that their failure would be a terrible blow to Rhode Island and New-England. But Rhode Island capialista say they will not allow them to fail. The bank officers of this city, alarmed by the quantity of obligations of A. & W. Sprague, asked for a statement of their position. The answer made was that A. & W. Sprague must have a loan of $1,000,000 to weather the storm, and that Hoyt, Sprague & Co. of New-York must raise another million in New-York. The Presidents of the Providence banks have held several meetings to consider the matter. On Tues day evening they met and resolved that A. & W. Sprague must furnish fuller information of the position of Hoyt, Sprague & Co., that they might be assured that the desired loan of $1,000,000 would be sufficient and would not be consumed for Hoyt, Sprague & Co., without relieving A. & W. Sprague. In answer a statement of Hoyt, Sprague & Co. was submitted to the bank Presidents, in session yesterday afternoon, showing that the resources of that firm exceed its liabilities by at least $4 000,000. and that its liabilities outside of the acceptances of the Atlantic Delaine Company in this city (most of the stock of which is owned by Hoyt, Sprague & Co.), and of the acceptances of the drafts of A. & W. Sprague, do not exceed $9,000,000, and are all protected by the sales of goods or notes for goods sold. A dispatch from Hoyt, Sprague & Co. announced that $800,000 of the $1,000,000 loan that firm in New-York of A. & W. Sprague quired The exhibit by had showed been $3,400,000. that raised. at their resources are mills are valuedd at their cost, less low Their valuation than while $3,000,000 there The mortgages or claims on their property. of securities made of stock of the Rhode Island are the only placing no hypothecation by Locomotive own them one- was Works (of whose stock they third) as collateral for a loan of $250,000 for from the Providence Institution Savings one month ago. On this showing banks the meeting resolved that the several sustain A. & W. Sprague to the extent should of $1,000,000 by a distribution of their the loan among them pro rata, according to capital. provided that a committee of four, appointed for the purpose, should report after exam- that ination that no more would be necessary, and sufficient unexceptionable security could be given. exEx-Gov. Seth Padelford, Rufus Waterman, James S. Smith, and George F. Wilson Gov. appointed as that Committee, and are to report were noon to-morrow. James Y. Smith, President of at the Union Bank, offered in the meeting $100,000 cent of the loan, and the Rhode Island National, 6 per on its capital, $360,000. The general sentiment among capitalista is in favor of the loan. During to-day the expectation of the failure of A. & W. Sprague has cansed great excitement in this city, which might have been allayed by an authorized statement. Unfounded stories that a meeting of creditors had been held and that Providence capitalists and business men had met in large numbers to consider the necessity of assistance were eagerly caught up. There have been no meetings except of bank officers, some of which were informal. A run the made upon the Franklin Savings Bank and with Cranston Savings Bank, which are connected National, the Globe, National, and First which, together with the Second National, are controlled by the Spragues. Savings banks require 60 days' notice for the withdrawal of sums over $25. Three hundred dollars in small sums was drawn from the Franklin, which obtained $15,000 from another bank. The three Sprague banks-Globe, First National-have been under cause were known to hold so Mygatt, United States paper. and Second they A.B. examined Bank much suspicion Examiner Sprague them, beRhode Island, has and for a committee appointed by the Assoeiated Bank Presidente also investigated and condition. From Mr. Mygatt from their James Y. Smith of that committee an encourstatement was obtained. The associated aging banks have agreed to sustain the Sprague banks and meet their liabilities to depositors. Mr. Mygatt said: An arrangement is perfected by which the Globe, First National, and Second National will be sustained and their depositors fully protected by other banks, which pledge themselves to furnish required the amounts as necessary." Only four banks remain to take action and are expected to unite with the others to-morrow. William Sprague is President of the Globe, its $600,000; Amasa Sprague of the First Nacapital $600,000; and Thomas A. Doyle, of Providence, of Second The aggregate Mayor capital tional, capital $500,000. surplus National, Globe of banks is about $400,000, the these West National 0105 000 the

2. October 31, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 31, 1873

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to of tee make their Four. for and detailed exhibit fit now No for could ing. publicity statement to The made given. exhibit partial Wednesday of assets bank claimed officers, meeting corwas for against $7,400,000, liabilities $13,400,000 a 80 was hasty it rect only far but memowent, too in and the from books, pencil fragmentrandom to ary go before public. the to causes Mr. indicato declined Thurston no but led the had which prudent embarrae too that in man Island business questions and Rhobitions tensive multiplied bor and and enterprisoredkless business the up volto at keep interest been have radually should which have weak which causes contracted, their the power ened It Spragues, to the stress the withstand in city this IOWING ume of business have been and the taken of away the crisis. that was feared generally & Co. bring must of Hoyt, Spragues suspension disand W. & and A. down apprehension and. indeed, ruled may throughbusiness was of all out source Every classes. the at. were and information eagerly streets five minutes Hardly with crowds. this of York afterthe Newthe after papers coming in the Few, be city. one not could bought noon, of the with position those except acquainted firm the to this admits that the hour firm, know of in the is event except hand, that all. trouble fears relief the to-morrow, for and The Savings Franklin by the are Bank, controlled Savings Cranston of in the hands have been put Commission Spragnes, for The by ers Gov. Howard. and Commission Jesse the are Metcalf, Harris, Cyrus Franklin the B. Pearce, for Wm. Edward Greene; Cranston, J. M. These and Farnum. Whitaker, Alexander of the ability, are highest in felt their and conclusions. the obligabeside are There of but the realized tions Spragnes, will depend of W. entire morehammedence consideral is assets amount to on be the result business. Sprague's he has that savings the fullest of State of Gov. Howard confidence in generally. by the depositors adjustment told your Coundnessof correspondent The the Spragnes saving banks No deposits beside are now and still connection the with the Franklin. the Franklin. of are Both notices the but after have banks the no the and Cranston for or withdrawal Cranston received, and depositpholic to-day stopped depositors, of The will report do so the Franklin that the total on the to-morrow the Franklin is are There commission are The total resources of in the stock $2,819,723 City banks, Loan. bonds, liabilities surplus of to 52, $48,658 of which 97. $50,000 $163,000 Elizabeth in are the Jersey (N.J.) City and bonds. the Providence $50,00 New-York in the City The loans loans on real estate on collaterals Water $100,000 State in of Iowa are $1,561, 243 of 05; A. & & bonds, $8,000 in the mortgages $87,700; on Hoyt, Spragues Co. & and Horsegood, shoe Company, in the hand cash $67,500; Sprague's good drafts W. Sprague notes considered Arba B. of the one says that bank officers, Dike, Co., W. $670,000; $87,000; is $25,280 even if the on their pay should nothing obligations Spragues 20 cent per could exceed the losses the for the at institumost. prospect in the arrangments involved embarrassm & Co. ap& W. of A. Spragues of list manitheir say, judges the tion The is vast Sprague and Hoyt, mills. works however, and that of their suppension a national single the Globe, banks pear fold enterprises. from the would Good State. not Only three Second Na of banks go might suspension bank in the First National held and very largely under their paper. in ensue and times distressful the from Island Rhode complete run Many would failure of A. and & W. 28 near 280,000 They spindles Sprague. and emin and works, print mills printing works print Their great over 10,000 ploy operatives. out turo and can 12,000 persons, employ Cranston R. I., At they week. Natick, at 600 Arctic, hands; run 5,000 hands; run they 22,000 they have R.I., 83,000 500 spindles, hands; at 40,000 70,000 pieces spindles, and spindles, have and 32,000 have spindles. and and 100 and at Central spindles, at Me., Augusta, mills gupply at R. I., Quidnick at Baltic, Falls, Conn., R. I., 32,000 34,000 gpindles, their print and by them, most hands; near hands. 500 hands: These of cotton the print week clot when used Beside running their on mills both prises, 700 works, with about 35,000 now pieces: on half run time other great In Maine entervast mills, have they timber in great making full time. and print works and without they the saw State. mills, numbers and like of employed property, In Newduring Hampshire columbering.ru At is theirs. Columbia, property and have great C., in land Kansas and and men stock more they forward. Texas. own valuable In They and this unimproved. also city own and this Cranston. is city great the their in extent Union real emand estate. in improved They control in street railways, 100 cars. value owning all 500 horses, and valuation Presi300 stock Wm. Steamship about and employe own property of the which property has valued not be at $1,000,000. embarra Though ed beRailroad, of with ploying dent Company, capital owns men, $800,000. of will $600,000, steamers, New-Yor Sprague York is This 500 of the stock the hands, Company and the it is Spragnes claimed, A. Perkins W. they Sprague Sheet in Provider and having half their 300 usual hands Elm-st. force Machine on Comcause they control, minority are Company of largest the vidence, undery, the Rhode Company when Island full. half now Horse Iron Shoe with one- Iron Foundery Machine and the American And-third of Horse the Sprague Foundery, also own Island men, and stock known over Their time; Shop. Nail stock Company. of Stove the the which well They employ Rhode Company. 1.000 estimated Locomotive Their mill BoWorks, Nichols Evaluation. $1,000,000. day of the at their print approached works 25,000 : Sprague. tlantia Hoyt, Sprague Co., whose Delaine property. and has a the stock W. of employ the over On this hands. property this & property own mills most of Olney is an indebtedncas INVOLVED. INTERESTS near 2,000 NONE 140.000.000. OF THE FALL Mass., RIVER Oct. 30. -The impression RIVER, FALL

3. October 31, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 31, 1873

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The interest of yesterday's financial nows contrea in the critical condition of tho Spragues' affairs. The facts, as sifted out of the conflicting reports, are substantially as follows: Hoyt, Spraguo & Co., the : Now York agents of the Rhode Island Spragues, have suspended, and their . suspension is one of the gloomiest features of the panic, three millions of their acceptances being afloat in New Yorkalone. The condition of the Rhode Island Spragues still remains critical, but their fato will bo docided at the bank meeting in Providence to-day. The Providence & New York Steamship line, in which they are concerned, is reported to be unembarrassed, but their banks have suffered, the Cranston Bank having made a bad failure, the Franklin having temporarily suspended, and three others in Providence being Bomowhat crippled. Another item of importance is the fact that the Trustees of the Union Trust Company find its capital unimpaired, and have passed resolution to resumo Dec. 1 with their a capital increased to $2,000,000,-doublo tho present amount.' The reports . from the manufacturing districts do not lighten up the general situation. From overy quarter coines the news of reduction of timo and wages and discharge of operatives. Thousands are now without employment in Massachusetts, Pennsylvania, and Now York.

4. November 1, 1873 The New York Herald New York, NY
Article from The New York Herald, November 1, 1873

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It shows that of the $2,366,935 represented as liabilities the notes and securities of the Messrs. Sprague, direct and indirect, amount to $1,172,100. By this it is seen that the Sprague hold nearly sixty per cent. This report makes a very unfavorable exhibit, and gives rise to the belief that other institutions are similarly disastrously affected. Both the Franklin and Cranston savings banks, as might be expected with such a showing, are under suspension. To show how erroneous, in view of the New York failures, were the expectations given out yesterday that the Committee on Investigation into the affairs of A. & W. Sprague would to-day be able to make a highly satisfactory report of the concern, is the further development made known at the adjourned meeting of the bankers and merchants held at noon to-day, that the committee were not able to report, and asked for a still further continuance of the timeuntil to-morrow noon-which the meeting granted, and then adjourned until that hour. Of this meeting great anticipations were held by many: but the knowing ones had no hope that any satisfactory plan of relief would be afforded, or the house saved from the impending ruin. Thus the anxious public has been disappointed and misled by false impressions circulated by over-confident agents. The local papers dismiss the matter lightly; but, as the facts became known and were carefully studied by the people, loud expressions of dissatisfaction were made on nearly all sides. EX-GOVERNOR SMYTH STILL CONFIDENT. At noon I had a brief interview withex-Governor Smyth, who still persisted in giving assurance that all was encouraging, and stating that to-morrow the committee would report satisfactorily for the firm. Bnt I then believed that his hopeful "to-morrow" would never give any such satisfaction, and later events have proved how well founded was my belief. Though the Investigating Committee failed to report, the organ of the Spragues, in an article this evening on the situation, still clings to the tond hope that the recommendations of the committee will insure the safety of the house and creditors. The paper speaks as follows:It is understood that a plan in general features has been agreed upon which involves practically an extension by the creditors of the house. If the plan meets with favor and is accepted by both the banks and the house then another meeting, composed of its creditors, must be called at as early a time as is possible for their consideration of the plan. The action of the banks at their meeting

5. November 3, 1873 New-York Tribune New York, NY
Article from New-York Tribune, November 3, 1873

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GENERAL PROSPECTS. WHAT CREDITORS OF THE BROKEN BANKS IN WASH INGTON MAY EXPECT'- FURTHER ALLEGED FAILURES. WASHINGTON, Nov. 2.-From the best information that can be obtained, it is thought the First National Bank of Washington will pay its creditors from its present assets about 50 per cent in all. The payment of a larger dividend will depend on the business capacity of Jay Cooke & Co. The receiver of the Washington City Savings Bank has informed depositors that they will receive ultimately 75 cents on the dollar. The time of payment may be long distant, as, owing to the effects of the panic, money cannot be realized at present on some of the collaterals. It is said that the Commissioners selected by all the banks which adopted the device of certifying checks instead of paying out currency held a meeting last night for the purpose of closing up their affairs, as the time has passed within which it was arranged that checks would be certified. The duty of these Commissioners was to give a sort of clearance to these banks after examining their securities. The arrangement expired yesterday and it is expected that such banks will resame payment to-morrow, and the necessity of requiring their debtors to at once redeem their obligations is said to be the moving cause of further alleged failures here. WAGES REDUCED IN THE ALEXANDRIA COTTON MILL. WASHINGTON, Nov. 1.-The operatives of the Alexandria cotton factory have submitted to a reduetion of 25 per cent rather than have the factory closed. REPORTED PENNSYLVANIA FAILURES DENIED. PHILADELPHIA, Nov. 1.-The report that Chadler, Hart & Co. of this city hadfalled is WILLIAMSPORT. Nov. 1.-The banking house of Rowell & Co., published as a branch house of Lloyd, Hamilton & Co., is not connected with them, has no money in their hands, and is in no way affected by the suspension of Lloyd, Hamilton & Co. CONDITION OF PROVIDENCE BANKS. PROVIDENCE, Nov. 2.-The Franklin and Cranston Savings Bauks are doing no business. The former will probably resume business under a new board of directors. The Cranston will doubtless wind up. Depositors will in time get their money if the Spragues pay in full. The Sprague mortgage deed of trust is not yet ready for publication, and cannot yet be considered in its detail by creditors. Perhaps some modification of its terms may be desired, and one or two changes of trustees be made, but the general feeling of leading creditors here seems to be in favor of a trusteeship. WASHINGTON, Nov. 2.-The Controller of the Currency received a dispatch last night from Bank Examiner Mygatt, who has been looking into the condition of the banks in Rhode Island. The Bank Commission in Providence have reported upon the affairs of A. & W. Sprague, and Mr. Mygatt considers the report very favorable, as showing a surplus of eleven millions of dollars in their favor. He reports that the banks are in good condition and working smoothly. TIME REDUCED IN MASSACHUSETTS MILLS. LOWELL, Nov. 1.-The Eagle Mills at West Cheinsford are to begin on three-quarters time next week, and the largest mill of Graniteville on half time. IRON WORKERS DISCHARGED AT BANGOR. BANGOR, Nov. 1.-To-night a number of workmen in the iron works of this city will be discharged on account of the lack of work. Various mannfacturers also intend to reduce the working forces of their establishments. STRIKE OF RAILROAD EMPLOYES. KNOXVILLE, Nov. 2.-On account of a general reduction of the wages of the employés of the East Tennessee, Virginia and Georgia Railroad Company, the engineers, firemen, machinists, and blacksmiths quit work. Some delay in the running of trains resulted. but the Company has succeeded in supplying the places of the engineers and fremen so as not to interfere with the passenger service. The Company ordered a reduction of 20 per cent to be made. The employés are willing to work on short time, but object to a decrease of wages and not of time. The Company will not recede. No demonstrations have been made by the employés. WAGES CUT DOWN AT LOUISVILLE-DISCHARGED LABORERS GOING TO MEMPHIS. LOUISVILLE, Nov. 1.-The woolen mills around the Falls have reduced the wages of employés 15 to 20 per cent, beginning on this day, for the season. Several iron manufacturers have reduced wages on skilled labor 10, and on common, 20 per cent. Many discharged workmen of the railroad companies have gone to Memphis for work, now that the fever has abated.

6. November 3, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, November 3, 1873

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BANKING INTERESTS. Special Dispatch to The Chicago Tribune. THE NATIONAL BANKING SYSTEM. WASHINGTON, D. C., Nov. 2.-The opinion obtains hero that the National Banking system is daily growing in disfavor throughout the country ; that the banking associations will not be able to resume payment ; that the whole system is badly shattered ; and that the shrinkage in values of the socurities hold by these banks can nover be remedied by inflation. The experts in finance say that every hour of suspension makes resumption more difficult, since a new channel of trade is meantime being established by a class of men whose interests will be hostile to the suspended banks, and who will shortly control the money business of the country. It is bell- red that the banking associations intend to postpone resumption until Jan. 1, in the hope that they will be relieved by Congressional legislation. Nevertheless the opinion gains strength here that a free banking system will be popular, and, with the recommendation of a plan of that sort in the annual message of the President, this scheme will assume a formidable shape. special Dispatch to The Chtcago Tridune. INCREASE OF LEGAL-TENDERS IN THE BANKS. NEW Yonx, Nov. 2.-In addition to other encouraging features, it Was discovered on Saturday that there was an increase in legal-tenders held by banks of $4,000,000. This 18 doubtless due to the fact that some banks did not put all their lega-ltenders in the pool, but concealed them as special deposits or otherwise. [To the Associated Press.] BROKEN BANKS. WASHINGTON, Nov. 2.-From the best data that can be obtained, the First National Bank of Washington will pay its creditors from its present assetts about 50 per cent in all. The payment of a larger dividend will depend on the businoss capacity of Jay Cooks & Co. The Receiver of the Washington City Savings Bank has informed the depositors that they will receive ultimately 75 cents on the dollar. The time of settlement may be long distant, as, owing to the effects of the panic, money caunot be realized at present on some of the collaterals held by the institution. THE PROVIDENCE BANKS. PROVIDENCE, R. I., Nov. 2.-The Franklin and Cranston Savings Banks are doing DO business. The former will probably resume business under a new Board of Directors. The Crauston will doubtless pay up, in time, and depositors will get their money if the Spragues pay in full. Special Dispatch to The Chicago Tribune. WASHINGTON, D. C., Nov. 2,-The Federal officers who examined the several banks affected by the suspension of the Spragues report that these concerns will be able to bridge over and avoid serious embarrassments, if they can get assistance from other banks.

7. November 4, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, November 4, 1873

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THE SPRAGUES. Special Dispatch to The Chicago Tribune. PROVIDENCE, R. I., Nov. 3.-The prospect today is cheering. The general opinion is that the worst is over, and that the Sprague Company will be able to discharge their obligations if their creditors are not too pressing. THE FRANKLIN SAVINGS BANK will probably resume business BOOD. The now Directors will command public confidence. The Cranston Savings Bank has not 80 cheering a prospect, the value of deposits depending mainly on the issue of the Spragues' affairs. The bank will pay in full, undoubtedly, if the Spragues' obligations are met within a reasonable time. All the mills of the Spragues are running half time, as during the past week. A CALL FOR A MEETING of the Sprague creditors WAS issued this afternoon. Whether the A. & W. Sprague Manufacturing Company stands or falls largely depends on the action of the creditors at that meeting. [To the Associated Press.) PROVIDENCE, R.I., Nov. 3.-The meeting of the croditors of the A. & W. Sprague Manufacturing Company and M. W. Sprague will be hold on Thursday, Nov. 6. Until then all further movements in the Spraguo affairs will be hold in aboyance, BO that the expression of views of creditors.ma be obtained as a basis of action. Gov. Howard has declined to be a Trueteo of the estate. The exoitement in the matter has subsided, but deep interest is felt for a successful issue of the grave situation. There is a strong desire on all sides that the Trusteo plan may be adopted, but the difficulties arising are increasing momentarily.

8. November 5, 1873 Watertown Republican Watertown, WI
Article from Watertown Republican, November 5, 1873

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The Claflins and the Spragues. NEW YORK, November 3. -The business firm of H. B. Clafin & Co. is going on as quietly as usual, and they are generally believed to be sound to the core. Since the circulation of the first stories impeaching the stability of Claflin Co. rumors of a like damaging character have een started concerning the Central National Bank, one of the depositories of the firm above referred to. With the intention of arriving at the truth of the matter, the Clearing-House Committee have made an investigation into the affairs of the bank, which was concluded this evening. The committe reports that the de posits in the bank are amply secured, and that the bank's capital of $3,000,000 is, in their opinion, impaired to the extent of $720,000. One of the employes of the bank said to-day that this impairment had its origin in the depreciation of securities held as collateral on loans to members of the firm of Hoyt, Sprague & Co., and their employes are engaged in getting the accounts of the firm intc order, preparatory to their negotiations with their creditors. PROVIDENCE, R. I, November 3 The prospect to-day is cheering. The general opinion is that the worst is over, and that the Sprague Company will be able to discharge their obligations if their creditors are not too pressing. The Franklin Savings Bank will probably resume business soon. The new Directors will command public confidence. The Cranton Savings Bank has not so cheering a prospect, the value of deposits depending mainly on the issue of the Spragues affairs. The bank will pay in full, undoubtedly, if the Spragues' obligations are met within a reasonable time. All the mills of the Spragues are running halftime, as during the past week. A call for a meeting of the Sprague creditors was issued this afternoon. Whether the A. & W. Sprague Manufacturing Company stands or falls largely depends on the action of the creditors at that meeting.

9. November 6, 1873 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 6, 1873

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that the creditors may deem necessary for their security, and all parties appear disposed to labor for this end, laboring not alone for the house, but for the crowd of employes as well, who unless some arrangement is made to continue the business, must spend the coming hard Winter in idleness, and at a severe and to many overwhelming loss. The savings banks are taking no deposits and paying none, but are not closed. No action has been taken relative to them, and probably none will be until the determination of the pending negotiations concerning the future of the firm. It is thought, probably, that the Franklin Institution for Savings will resume business under a new direction, which will insure the confidence of the people, but the prospect of the Cranston Savings Bank is not quite so hopeful. Its resumption and value of deposits depend upon the result in the Sprague affairs. The Associated Bank agreement to sustain the First, Second, and Globe National Banks is very fortunate, for in the First the city largely keeps its deposits. The result of the creditors' meeting will be simply this: "If the plan proposed is adopted, the bonds will come out well and the mills here continue to run, but should they be rejected, bankruptcy will follow, with a failure of the banks and loss to depositors, the shutting down of the mills and throwing out of employment 12,000 persons." Senator Sprague is lying ill at his residence in this city, but not seriously. - New York Times.

10. November 7, 1873 The True Northerner Paw Paw, MI
Article from The True Northerner, November 7, 1873

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# NEWS OF THE WEEK. The East. The serious results of the panic still continue. The extensive print works of Garner & Co., at Little Falls, Cohoes, Rochester, Pleasant Valley, Newburg, and Haverstraw, have shut down, discharging 10,000 men. The pay-roll of this firm amounted to $500,000 monthly. Other extensive factories, of various kinds, have suspended work, or have reduced wages and time. The prospect looks gloomy for the winter. The third trial of Edward S. Stokes for the murder of James Fisk, Jr., has been concluded at New York, and resulted in a verdict of manslaughter in the third degree. The prisoner was sentenced to four years' hard labor in the Penitentiary. Three persons—a man and two women—were recently run over by a train of cars at Frankfort, N. J., while attempting to cross the track in a wagon. They were horribly mangled, and lived but a short time. The Beecher-Bowen-Tilton scandal is again stinking in the nostrils of the Boooklynites. Tilton has been summoned to appear before a committee of Plymouth church and tell what he knows about the matter, but refuses on the ground that he is not a member of that church. A number of New York firms have failed, including Lloyd, Hamilton & Co.; J. T. & W. H. Daley, C. Mattman, Schmid & Co.; and Hoyt, Sprague & Co. The latter are the agents of the Rhode Island Spragues, the extensive manufacturers, and their suspension is one of the gloomiest features of the panic, $3,000,000 of their acceptances being afloat in New York alone. The failure is also announced of Morgan, Young, Altemus & Co., one of the heaviest Philadelphia dry goods houses. The reports from the Eastern manufacturing districts do not lighten up the general situation. From every quarter comes the news of reduction of time and wages and discharge of operatives. Thousands are now out of employment in Massachusetts, Pennsylvania and New York. The Cranston and Franklin Banks, of Providence, in which the Spragues are largely interested, have suspended. The deposits, amounting in the aggregate to $3,500,000, were made chiefly by working people, who will suffer great privation if they lose their savings. Twenty thousand working girls in Newark, N. J., have been thrown out of employment by the stopping of manufactories. Thirty-seven mills in Fall River are now running on half time. The Merrimac Woolen Mills, of Lowell, will close up in a few days. Over 25,000 working women are reported idle in Philadelphia. It is evident that this will be a hard winter for the classes dependent on daily earnings. There has been another serious fall in stocks in Wall street. Northwestern common touched 30, the lowest price it ever sold for, being five cents lower than when Henry Keep picked it up, seven years ago. Vanderbilt shares suffered an alarming decline, and it is said the venerable cormorant was taxed to his utmost resources to keep his head above water. Western Union went down to 45¾, New York Central to 80¾, Lake Shore to 58½, and Union to 15. A New York dispatch states that the great dry goods house of H. B. Claflin & Co. is seriously embarrassed. The Chesapeake and Ohio railroad has defaulted on its interest. The reported failure of the great New York dry goods house of H. B. Claflin & Co. was a canard. The firm is perfectly solvent. The committee of Providence bank representatives appointed to examine the condition of the affairs of the A. & W. Sprague Manufacturing Company report the assets of the corporation to be $19,495,247, and their liabilities $11,475,443. They recommend that the members of the firm mortgage all their property to three trustees, who shall have entire control of it until their affairs are settled, their obligations to run three years. One of the Stokes jurors is in trouble, being under arrest and indictment for disregarding the obligations of a juror. During the three months ending Sept. 30 there arrived at New York 68,588 emigrants, of whom 24,381 were Germans. Jay Cooke & Co. have again issued circulars to their creditors requesting their assent to the proposed agreement. One of their heaviest creditors says if the firm is forced into bankruptcy they cannot pay over 25 cents on the dollar, but if allowed to settle themselves they will pay every dollar, and have a nice sum left. The gold coinage at the United States Mint in October amounted to $11,010,000 in double eagles. The gold weighed 38 tons. The freight business of the Eastern railroads is suffering severely from the financial disturbance. Stokes has entered upon his four years' residence in Sing Sing Prison. It is believed that the Sprague Manufacturing Company will be able to discharge their obligations and continue business uninterruptedly if their creditors are not too pressing. Between $700,000 and $800,000 in silver of various denominations will be coined at the Philadelphia Mint this month. Steps have been taken for the formation in New York of a bank devoted entirely to the grain interests of the interior. That bale of cotton donated for the benefit of the Memphis sufferers has been again sold in New York for $2,875, or more than $6 a pound. The consumers of beer in New York having for a long time complained of the quality of their favorite beverage, the brewers have resolved to raise the price from $9 to $10 per barrel, as they claim that it is impossible to make good beer at the former price. The firm of H. B. Claflin & Co., of New York, has made a statement to its creditors, showing their assets of all kinds to amount to $22,508,000, and their indebtedness, both domestic and foreign, $15,584,000, leaving a surplus of $6,924,000, not counting the personal assets of the members of the firm. Upon this t

11. November 8, 1873 Ashtabula Weekly Telegraph Ashtabula, OH
Article from Ashtabula Weekly Telegraph, November 8, 1873

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. Stocks touched 11 pretty low figure on Friday last, showing that monetary affairs are far from reaching a settlement. The particular stocks affected are those known as the Vanderbils stocks. Western Union went down to 451, New York Central to 80g Lake Shore to 581/2. and Union Pacific to 15. North Western common touched 30, the lowest price it ever sold for. Hoyt, Sprague & Co., the New York agents of the Phode Island Spragues, suspended and their suspension is one of the gloomiest features of the panic, three millions of their acceptance being afloat in New York alone. The condition of the Rhode Island Spragues still remain critical. The Providence & New York Steamship line, in which they are concerned, is reported to be unembarrassed, but their banks have suffered, the Cranston Bank having made a bad failure the branklin having temporarily suspended. and three others in Providence being some. what crippled. Another its iii of importance is the fact that the Trustees of the Union Trust Company find us capital unimpaired, and have passed a resolution to resume Dec. 1, with their capital increased to $2,000,000,double the present amount. The reports from the manufacturing districts do not lighten up the general situation. From every quarter comes the news of reduction. of time and wages and discharge of operatives. Thousands are c now without employment in Massachusetts, r. Pennsylvanaa, and New York. The notes of A. & W. Sprague went to protest on Friday alternoon. e The most astounding rumor of Friday, was that the firm of H. B. Claflin & Co., one of the al greatest dry good firms on the Continent were embarrassed, and without accommodation must suspend. One of the firin stated In that the assets of the firm above liabilities e were not less than ten millions.

12. November 13, 1873 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, November 13, 1873

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NEWS SUMMARY. The East. THE Beecher-Bowen-Tilton scandal is again stinking in the nostrils of the Brooklynites. Tilton has been summoned to appear before a committee of Plymouth church and tell what he knows about the matter, but refuses on the ground that he is not a member of that church number of New York firms have failed, including Llovd, Hamilton & Co.: J. F. & W H. Daley; C. Mattman, Schmid & Co.; and Hoyt, Sprague & Co. The latter are the agents of the Rhode Island Spragues, the extensive manufacturers, and their suspension is one of the gloomiest features of the panic, $3,000,000 of their acceptances being afloat in New York alone. The failure is also announced of Morgan, Young, Altemus & Co., one of the heaviest Philadelphia dry goods houses. The reports from the Eastern manufacturing districts do not lighten up the general situation. From every quarter comes the news of reduction of time aud wages and discharge of operatives. Thousands are now out of employment in Massachusetts, Pennsy lvania and New York. The Cranston and Franklin Savings Banks, of Providence, in which the Spragues are largely interested, have suspended. The deposits, amounting in the aggregate to $3,500,000, were made chiefly by working people, who will suffer great privations they lose their savings. Twenty thousand working girls in Newark, N. J., have been thrown out of employment by the stopping of manufactories. Thirty-seven mills in Fall River are now running on half time. The Merrimac Woolen Mills, of Lowell, will close up in few days. Over 25,000 working women are reported idle in Philadelphia. It is is evident that this will be hard winter for the classes dependent on daily earnings The Philadelphia Mint is now coining silver at the rate of $1,500,000 month Freehold, N. was recently visited by a destructive fire, over $150,000 worth of property being burned. THERE has been another serious fall in stocks in Wall street. Northwestern common touched 30, the lowest price it ever sold for, being five cents lower than when Henry Keep picked it up, seven years ago. Vanderbilt shares suffered an alarming decline, and it is said the venerable cormorant was taxed to his utmost resources to keep his head above water. Western Union went down to 457, New York Central to 803. Lake Shore to 581. and Union Pacific to 15. A New York dispatch states that the great dry goods house of H. B. Claflin & Co. is seriously embarrassed. THE Chesupeake and Ohio railroad has defaulted on its interest The reported failure of the great New York dry goods house of H B. Claflin & Co. was a canard. The firm is perfectly solvent The committee of Providence bank representatives appointed to examine the condition of the affairs of the A. & W. Sprague Manufacturing Company report the assets of the corporation to be $19,495.247. and their liabilities $11,475,443. They recommend that the members of the firm mortgage all their property to three trustees, who shall have entire control of it until their affairs are settled, their obligations to run three years One of the Stokes jurors is in trouble, being under arrest and indictment for disregarding the obligations of a juror. During the three months ending Sept. 30 there arrived at New York 68.588 emigrants, of whom 24.381 were Germans Jay Cooke & Co. have again issued circulars to their creditors earnestly requesting their assent to the proposed agreement. One of their heaviest creditors says if the firm is forced into bankruptcy they cannot pay over 25 cents on the dollar. but if allowed to settle themselves they will pay every dollar, and have nice sum left The gold coinage at the United States Mint in October amounted to $11,010,000 in double eagles. The gold weighed 38 tons The freight business of the Eastern railroads is suffering severely from the financial disturbance Stokes has entered upon his four years residence in Sing Sing Prison. IT is believed that the Sprague Manufacturing Company will be able to discharge their obligations and continue business uninterruptedly if their creditors are not too pressing. Between $700,000 and $800,000 in silver of various denominations will be coined at the Philadelphia Mint this month Steps have been taken for the formation in New York of bank devoted entirely to the grain interests of the interior That bale of cotton donated for the benefit of the Memphis sufferers has been again sold in New York for $2,875, or more than 86 pound The consumers of beer in New York having for long time complained of the quality of their favorite beverage, the brewers have resolved to raise the price from $9 to $10 per barrel, as they claim it is impossible to make good beer at the former price The firm of a H. B. Claflin & Co., of New York, has made statement to its creditors, showing their assets of all kinds to amount to $22,508,000, and their indebtedness. both domestic and foreign, $15,584,000. leaving a surplus of $6,924. 000, not counting the versonal assets of the members of the firm. Upon this showing the creditors have unanimously agreed to grant an extension of four months on the monthly payments, and the business will go on as usual. LOUIS GAYLORD CLARK, the well-known author and magazinist, and who was editor of the old Knickerbocker Magazine during its existence, died in New York last week, aged 63. THE rumor that Tom Scott, the railroad king, had failed, is indignantly denied by that gentleman. The mother of the late Edwin M. Stanton is d aged Nine fishermen were drowned from S sail-boat in the St. Lawrence river, on the 5th inst. [arrisburg has been viisted by a destructive fire. The State Journal office, with several other establishmente, were burned Total logs about $150.000. Gold in New York was down to 1067 last week-the lowest point since 1862 Several large Boston dry goods houses are seriously emb proceedings against Jay Cooke & Co. have been commenced in the Philadelphia courts. The West. SENATOR WINDOM'S Transportation Committee visited Louisville, the other day, and were received on 'Change, where resolutions were passed commendatory of the James River and Kanawha canal. The committee examined Capt. Adams and other engineers in regard to the Louieville canal, and seemed satisfied of the necessity of the improvement of the Ohio river, and control of the-canal. Gov. Beveridge has succeeded in preventing the St. Louis roughs from having their.prize-fight on Illinois soil, and Allen and Hogan propose to maul each other on Canada soil, near Detroit, The Wayne county, Ind. county seat war is over, and order reigns once Mike McCoole the St. Louis brniser.

13. November 14, 1873 The Andrew County Republican Savannah, MO
Article from The Andrew County Republican, November 14, 1873

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# NEWS IN BRIEF. THE EAST. THE New York Board of Aldermen have atoned for a great many short-comings by making the handsome donation of $50,000 to the Memphis Relief Fund.... Phelps, the defaulting Cashier of the New York State Treasury Department, has been committed to jail for trial in default of $15,000 bail.... The furniture factory of John H. Morrill, in New York city, was destroyed by fire last week. Loss, $150,000. A watchman was burned to death while trying to extinguish the flames. ....A dispatch from Providence, R. I., says the Spragues are seriously embarrassed. Their assets are said to be $7,000,000 more than their liabilities, and want of current funds is the cause. THE serious results of the panic still continue. The extensive print works of Garner & Co., at Little Falls, Cohoes, Rochester, Pleasant Valley, Newburg. and Haverstraw, have shut down, discharging 10,000 men. The pay-roll of this firm amounted to $500,000 monthly. Other extensive factories, of various kinde, have suspended work, or have reduced wages and time. The prospect looks gloomy for the winter.... The third trial of Edward S. Stokes for the murder of James Fisk, Jr., has been coucluded at New York, and resulted in a verdict of manslaughter in the third degree. The prisoner was sentenced to four years' hard labor in the Penitentiary. Three persons-a man and two women-were recently run over by a train of cars at Frankfort, N. J., while attempting to cross the track in a wagon. They were horribly mangled, and lived but a short time. THE Beecher-Bowen-Tilton scandal is again stinking in the nostrils of the Brooklynites. Tilton has been summoned to appear before a committee of Plymouth church and tell what he knows about the matter, but refuses on the ground that he is not a member of that church. ... A number of New York firms have failed, including Lloyd, Hamiltion & Co.; J. F. & W. H. Daley: C. Mattman, Schmid & Co.; and Hoyt, Sprague & Co. The latter are the agents of the Rhode Island Spragues, the extensive manufacturers, and their suspension is one of the gloomiest features of the panic, $3,000,000 of their acceptances being afloat in New York alone. The failure is also announced of Morgan, Young, Altemus & Co., one of the heaviest Philadelphia dry goods houses. The reports from the Eastern manufacturing districts do not lighten up the general situation. From every quarter comes the news of reduction of time and wages and discharge of operatives. Thousands are now out of employment in Massachusetts, Pennsylvania and New York. The Cranston and Franklin Savings Banks, of Providence, in which the Spragues are largely interested, have suspended. The deposits, amounting in the aggregate to $3,500,000, were made chiefly by working people, who will suffer great privations if they lose their savings. Twenty thousand working girls in Newark, N. J., have been thrown out of employment by the stopping of manufactories. Thirty-seven mills in Fall River are now running on half time. The Merrimac Woolen Mills, of Lowell, will close up in a few days. Over 25,000 working women are reported idle in Philadelphia. It is evident that this will be a hard winter for the classes dependent on daily earnings.... The Philadelphia Mint is now coining silver at the rate of $1,500,000 a month... Freehold, N. J., was recently visited by a destructive fire, over $150,000 worth of property being burned. THERE has been another serious fall in stocks in Wall street. Northwestern common touched 30, the lowest price it ever sold for, being five cents lower than when Henry Keep picked it up, seven years ago. Vanderbilt shares suffered an alarming decline, and it is said the venerable cormorant was taxed to his utmost resources to keep his head above water. Western Union went down to 45, New York Central to 80½, Lake Shore to 58½, and Union Pacific to 15....A New York dispatch states that the great dry goods house of H. B. Claflin & Co. is seriously embarrassed. THE Chesapeake and Ohio railroad has defaulted on its interest.... The reported failure of the great New York dry goods house of H. B. Claflin & Co. was a canard. The firm is perfectly solvent.... The committee of Providence bank representatives appointed to examine the condition of the affairs of the A. & W. Sprague Manufacturing Company report the assets of the corporation to be $19,495,247, and their liabilities $11,475,443. They recommend that the members of the firm mortgage all their property to three trustees, who shall have entire control of it until their affairs are settled, their obligations to run three years.... One of the Stokes jurors is in trouble, being under arrest and indictment for disregarding the obligations of a juror..... During the three months ending Sept. 30 there arrived at New York 68,588 emigrants, of whom 24,381 were Germans... Jay Cooke & Co. have again issued circulars to their creditors earnestly requesting their assent to the proposed agreement. One of their heaviest creditors says if the firm is forcel into bankruptcy they cannot pay over 35 cents on the dollar, but if allowed to settle themselves they will pay every dollar, and have a nice sum left.... The gold coinage at the United States Mint in October amounted to $11,010,000 in double eagles. The gold weighed 38 tons.... The freight businers of the Eastern railroads is suffering severely from the financial disturbance... Stokes has entered upon his four years' residence in Sing Sing Prison. IT is believed that the Sprague Manufacturing Company will be able to discharge their obligations and continue business uninterruptedly if their creditors are not too pressing.... Between $700,000 and $800,000 in silver of various denominations will be coined at the Philadelphia Mint this month....Steps have been taken for the formation in New York of a bank devoted entirely to the grain interests of the interior.... That bale of cotton donated for the benefit of the Memphis sufferers has been again sold in New York for $2,875, or more than $6 a pound..... The consumers of beer in New York having for a long time complained of the quality of their favorite beverage, the brewers have resolved to raise the price from $9 to $10.

14. November 15, 1876 The New York Herald New York, NY
Article from The New York Herald, November 15, 1876

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DE WOLF AS A RECEIVER. HOW THE DEPOSITORS or A PROVIDENCE SAVINGS' BANK ARE GETTING BACK THEIR DEPOSITS-THE RECEIVER'S SALARY FOR A YEAR THIRTY-EIGHT THOUSAND EIGHT HUNDRED AND SIXTY-THREE DOLLARS AND SEVENTY-TWO CENTS. PROVIDENCE. R. I., Nov. 14, 1876. There was a lively meeting to-day of the depositors of the Franklin Institution for Savings, in this city. the failure of which was brought about by the embarrassment of the well-known house of A. & W. Sprague. The meeting was to consider the first report of the receiver, Winthrop de Walf, which had been made to the Supreme Court and referred to a Master in Chancery, and which, in the minds of the persons mostly interested, was far from being satisfactory. The report states that the amounts collected from all sources amount to $1,554,148 83, and the amount paid out in dividends to $1,350,167 26. In the amount paid ous, and which is of vital interest to the depositors whose bard earnings have been placed in jeopardy by unfortunate speculation, and which has created intense feeling, is $8,500 for his, the receiver's, salary, $2,001 24 for expenses before his appointment, which includes attorneys' tees. and $6,356 82 for various expenses since his appointment His report requests the Court to allow him two and a half per cent of the amount collected by bim, less the $8,500 already received, which, in addition, would not him the sum of $38,863 72. Is was stated that this report was only for one year. viz., from the date of assuming the duties August 19, 1874, to August 19, 1875, and that the depositors knew nothing of what had been done since. except an announcement in the newspapers that one dividend had been paid. The chairman stated that Mr. DeWolt had withdrawn his request of two and a half per cent on the collections, and was ready to take what the Court allowed him. A committee of three was appointed to appear before the Master in Chancery, and employ counsel if necessary, 10 object to the report. A motion was made disapproving of the paying of $8,500 as a year's salary, and the indignation was such that 16 was unanimously passed, amid no little excitement It was also moved that the meeting disapprove of the proceedings instituted by the receiver against the house of A. & W. Sprague instead of accepting the interest on the notes made between the then trustees of the bank and Zachariah Chaffee, trustees under the Sprague mortgage, and walch amounted to $84,000. Before this motion was put there was considerable discussion, and it was finally agreed to refer the mal. ter to the. committee of three above referred to, with a request to examine and report at a future meet. ing and advise the depositors what course to pursue. In his report the receiver states, in referring to this matter, that alter due consideration, and with the advice of the best legal talent in the State. he deemed is for the best interest of the depositors not to recog. nize the arrangement made, whereby the notes came into possession of the bank, and the Indebtedness was attempted to be extended three years. Hence he entered the suit which is now pending on the original notes due to the bank from that firm. Among the depositors were several ladies, who were loud in denouncing the alleged extravagance in settling up the affairs of the bank.