The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-03-09

The Lake Shore Road Wins Its
Case In Court.
TEMPORARY isJuNcTIon DENIED
Saa Hous4n's Applications Argued Hsfsrs
Sndgs Isehtenbesg Yesterday
a Prompt Decision.

a. case of Byron Van Hoalsn vs. tbs Sc
nefje. Lake Shore Il Eastern railway afsa
~ BeEftIe II Eastern Construction tofs-
Dauy vas called for trial by his hoaer-
The only wifaess sworn vas ex-Pressaens
J. Il Mcdonald. lie was examined for tbs
plaintiff by W. II. CaikErss. he testified
that he was the head OF the railroad curs-
Deny MP TO February Is, $50. At thls
point Judge Licntcaberg suggested that a.
The witness had been called to support GER
tain allegations made by psasntta. astsaasils
IN support had letter be read. Judge al
kins replied he was simply acting 70 sxps-
dite matters and had gone oat OF the regular
mode Of procedure for that reason
The examination of Mcdonald was then
suspended. " bile Judge Burke. for the de-
4<udanf com pany. proceeded TO read the
alfdayits which the company expected
would make out It's case The most Inn
portsnt OF these was the affidavit sworn 20
By A. &. Danham. general treasurer ard
managing trustee OF the seattle. Lake
More x Eastern Railroad CoDt-
rnny, who dsposes that the state
n1Ant made by the other side that
the company ii insoiyena. IL false. neither
u II true rs alleged. thai the floating Ia
debteiueHs Of the company amounts 70
upwards OF &fp0.01. bat that on the con.
trary Il does not exceed $500. that the
larger portion OF this floating debt IL not
set due; that tho company has Large ard
valuable terminals 10 this city, said tar
sninaIa hcing valued al more than 2Us GO,
mud being almost equal in value 10 the total
bonded Indebtedness Of The company that
single piece OF property which the com.
pany owns in seattle would. u sold. net
enough money TO pay the whole OF the
cofnpany's floating debt and stu leave il
excellent terminal facilities and last. that
the Assets OF the company exceed IL iIab.li-
ties By over - COOS 90. Referring 90 the
charge that the Seattle 4 Eastern Ionstrnc-
fion Company controls the stock Of the
railway company. the affidavit alleges that
~ matter Of fact. the construction com
pany does not OWN over one Giftieth OF such
capital stock. and that the aasd stock IL
very largely distributed being heid in
small blocks by great number of
people. Further. that the Northern
division of the railroad 10 the British
Columbian boundary line. is now under
construction by the construction company.
10 be completed not later than September
1. 1870: that the completion OF this Northern
division will he OF inraicaahle advantage to
the Seattle. Lake shore & Eastern railway.
q we'll as 10 the whole state OF Washington
that when this branch is completed the
seattle, Lake Shore q Eastern Railway
Company will i,e one of the most valuable
systems west of the Rocky mountains:
that the earnings OF the company are
steadily increasing, and that noiwltistand-
ing losses sustained by the great tire of
last year. its gross earnings from July 10
December. issa. amounted 10 SITS. $50. itH
net earnings being $s2,72o. making more
than enough To pay all OF its fixed charges
- we'll rs the interest on its bonds. The
AFFIDAVIT further states that the present
year Will show n large increase In the above
fgures The affidavit denies that the COM
pany was compelled 10 borrow money for
the purpose OF paying interes.on its bonds:
that on january 1. 1880. The company had,
ON the contrary, . surplus oil ST. All Ola
hand.
A separate affidavit by the same gentle
man states that the construction OF the
railway company was not commenced un-
I'll 1851. although the company was organ-
lied la 1856; that la 1886. the Puget Sound
Construction Company was organized With
capital stock of sSsOu00, contract being
entered into between the railroad aud the
construction company for the building OF
forty miles OF road from the city of Seattle
10 the town OF Gilman, King county. Ky
the terms OF that contract the construction
company was 20 receive u CERTAIN number
Of tho railway eompany's iirst mortgage
bands as payment for the building OF the
SAID forty miles of road. That the balance OF
the road was u be built st the satlie terms.
that ON August 10. lSs6. the Puget Sound
Company Withdrew from its contract. lis
place being taken By the Seattle Conssruc-
ton Company. taking mortgage Of saa,-
90 per mile apon all the railway company
property. as security that the latter cor.
roraiion woaid faltiil is contract. that on
March II. iss6. the railway COM
rany entered into contract with
the construction company 30 build
thirty miles of road from via Snoz,ualm!s
pass 10 Eastern Washington. that. because
The taildlng of the road was 50 difficult
and expensive. only ssn miles were AZ
that time built The railway and cnnxtrt.
ton companies saws that The building Of
che remaining twenty miles would he ua.
profitable, that work on this section was
q a
eilso having repeatedly stated this road
cosid not be built. that the construction
company is NOW building said remaining
thirty nsiies under a contract OF So Oh ia
bonds and sla.'se IN stock per mile. that
this thirty miles contains rivers aad bridges
which requires the extra cost THIS See
ton Of road ts Ia be completed October
$50, paytneat 10 be rendered the constrsic.
sion company 81 THE completion % eael,
ten miles h0ilt that the Seattle. Lake shore
a Eastern Railway il capitalized tss less
Ter mile than Is the Northefn Pacific RAN
road Company. TIE AFFIDAVIT denies thar
the construction company controls the rail-.
ROAD company. or thai n, IL Gilman ho.la
n majority az the stock. or controls sh,,
company that said Gilman only oNas 81
shares of the eompaay's stock
out OF the total sales sAaFes
that the board ~ directors subsequently,
approved the contract between the railway
sad construction companies; thas tbs
,,lainsin only owns ekeyeh az the railway
sonpanvss honds; that these eleven bonds
we're originally isSned 20 the pas.et Soans
CONSTRUCTION Company gAst they eaasr
into ,ss,sses don 81 f4ssnslH Saiy Ia the lass
twenty DAYS. he having aeqatrea ghem 81
the express purpose al harrassasE sAe ass.
PENDANT corporations. shsk be l. in ccl,
h,sseH with the Snsthego Rasss.c nz..rcas.
Company or SIS agents los the purpose 81
or.yentlsse the Further construction aG Ehs
seattle. Lake Shore G Essssrn Railway
Company. ard wrecklas said company Ia
the hope ~ preventing oaEnpSssGloa wssla
the aid Northern Pscsssc ESAEssaAd Com.
.mue. tf.xs fsaaiufiH Is ssss a 4l5aH Il saf,