The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-05-12
FAILURE IN TACOMA.
FoR TWO HUNDRED THOUSAND.


1xe0enS = X Mcdonald, Of the SatDop
Railroad Company, Vas seen q his home
last evening 81 Posf-Ixrx1x:cExcxs
reposter a1d INTERCEPTED respecting the
reported fnaure of she Pacific Nil Con-
pany, of 1aoena. q which h h president
He said:
"IAs faels q ths case ars thsse: Ths
Pacific Mil Company vas formed ID NJ
summer q isss. Win G. =. Whits, Byron
harrow, G. =. Harrow. w. r. PYschara and
myseif ~ difecfors. l Was eIected psosi-
dent q the drst messing. The mil was
erected and y large on, is size befng 60xl0e
Ieee. The mill began saving u September,
and employs LIS men. and y one 81 the
best equipped mills on The Pacific coast
having . capacity Of 10.0c0 feet h ten
hours.
The failure II the company Is for about
10000. altbouGh the property / consider
- worth 34o0.000. The mill got iafo dim
Guilty about year ago through lack Of suf-
ncient capital TO carry on such large bus
ir:ess. and because OF the ovsr-prOduction
Of lumber. In December. lS5s. the
Satler hank. Of Ean Francisco,
secured nsortgaes on ths mil property
Tor STOOD. and soon after the Satscp Rail-
road Company secured second mortgage
on the realty for $4,000. The National
Bank Of Commerce has smother mortgage
on the realty for $4,000. On March Is,
1850. three chsttel mortgages against the
Pacific Mil Company were recorded in the
following order: satsop Railroad Com
pany. 81. 800: PArke & Lacy Machinery
mer0e. OF Tacoma, 5000. r. r. Smith
was appointed by the mortgages to dis
pose Of the lumber and property, and pay
each Of The mortgages as they appeared on
the file. That Is the fifaaclal state OF af-
fairs.
When Was In Tacoma last Thursday
President Wsde. OF the National Bank Of
Commerce. asked me il the Sassop Rail-
road Company had a. unsettled account
with ths mill company over and above
$45D0, wotsid agree to the bank garn-
isheeing the amount on our hands. l re-
fused my consent, Is couldn't tell how
the account stood. Since then ] presume
the bank has ma0e the complaint reported.
The SAtscp Railroad Company had turned
over u the National Bank Of Commerce,
after ITS mortgage on the realty for $4,000.
ctaef securities, In order to make the bank
fully secnr ID. 4 nov wishes to sccur. .
pro rata of The assets as turned in, instead
Of waiting until the oshe: mortgages are
satisfied In the regsl ar way. Mr.. Smith
has not turned overall the receipts To the
Satsop Railroad Company, but only IS go
or 81 000 on the mortgage.
THE railroad company viii tufn over
the unsettled amount before the chattel
mortgage vas given and apply Is much Of
the personal property as will Equidate
our claim, then the balance win 60 10 settle
the claim Of the next mortgage. do not
know just what the complaint Is the bank
makes. bat II il credited with instituting =
suit 70 secure paymsnt Of The chattel mort
gage. and another asking for . writ Of at
tschment for the personal effects Of the
mill company. shall return 10 Tacoma
tomorrow and ascertain what seton has
been taken. We win protect ourselves -
far AZ We can in law. and whatever loss il
Is the railroad company won't feel il much.
Judge Struvs has the foreclosure suit Ia
hand now. and Manager A. II. Anderson.
Of the Satsop railroad, is there looking after
matters.
II am president OF the Pacific Mil Com
pany, but have not been al the time SINCE
the company Was formed. G. +. White oc-
cupied that position until August. 1859,
when A. II. Anderson was elected TO the
position which he held until last January,
when / was reappointed. The failure Is Of
course serious one and We expect some
loss. but will protect ourselves ~ far - We
cam