The Mason County journal. [volume] (Shelton, W.T.) 1886-1927, 1890-05-16
The Pacific Mill.

President J. r. Mcdonald, of the
Satsop Railroad Company, was seen
at his home last evening by u Post
Intelligencer reporter and interrogated
respecting the reported failure of the
Pacific Mill Company, of Tacoma, Of
which he is president. He said;
"The facts of the case are these ::
The Pacific Mill Company was formed
in the summer of 1888, with C. F.
White, Byron Barlow, G. T. Barlow,
w. P. Prichard andmyself as directors.
[ was elected president at the first
meeting. The mill was erected and is
large one, lis size being 60x40S teet.
The mill began saving in September,
and employs IT'S men, and is one of
the best equipped mills on the Pa
cifc coast, having capacity of 20O,-
600 feet in ten hours.
"The failure of the company is tor
about 100000, although the property
consider worth 100000. The mill
got into difficulty about year ago
through the lack of sufficient capital
to carry on such large business, and
because of the Over-productiOn of
lumber. In DECEMBER, 1888, the Saith
er bank, of San Francisco, secured
mortgage on the mill property for $751;
coo, and soon after the Satsop Railroad
Company secured a second mortgage
on the realty for $4,000. The Ma
tional Bank of Commerce has another
mortgage on the realty for $4,000.
On March %, 1889, three chattel
mortgages against the Pacific Mill
Company were recorded in the follow
ing order: Satsop Railroad Company,
Sill 400; Parke & Lacey Machinery
Company, $13 1000; National Bank of
Commerce, OF Tacoma, $4,000 r.
F. Smith was appointed by the mort
cages to dispose of the lumber and
property, and pay each of the mort
cages as they appeared on the file.
That is the financial state of affairs.
"When I was in Tacoma last Thurs
day President Wade, of the National
Bank of Commerce, asked me if the
Satsop Railroad Company had an I'M
settled account with the mill company
over and above 81 800, would l agree to
the bank garnisheeing the amount on
our hands. l refused my consent, as
| couldn't tell how the account stood.
Since then [ presume the bank has
made the complaint reported. The
Satsop Railroad Company had turned
over to the National Bank of Com
merce, after its mortgage on the reality
for $4,000, other securities, in order
to make the bank fully secured. 1t
now wishes to secure pro rata of the
assets as turned in, instead of waiting
until the other mortgages are satisfied
in the regular way. Mr.. Smith has
not turned over all the receipts to the
Satsop Railroad Company, but only
S. 900 or 81 900 on the mortgage.
The railroad company Will turn
over the unsettled amount before the
chattel mortgage was given and apply
as much of the personal property as
will liquidate our claim, then the
balance will so to settle the claim of
the next mortgage. L do not know
just what the complaint is the bank
makes, but it is credited as institut
iiiS u SUN w oOCutO pa NAiSht VI VIZ
chattel mortgage, and another asking
for a writ of attachment for the per-
sonal effects of the mill company. |
shall return to Tacoma tomorrow and
ascertain what action has been taken.
We will protect ourselves AS far as we
can in law, and whatever loss it is the
railroad company won't feel it much.
Judge Strive has the foreclosure suit
in hand now, and Manager A. III. An
derson, of the Satsop railroad, is there
looking after matters.
81 am president of the Pacific Mill
Company, but have not been all the
time since the company was formed
G. +. White occupied that position un-
til August, 1889, when A. H. Ander
son Was elected to the position which
he held until last January, when |
Was re-appointed. The failure is OF
course a serious one and We expect
some loss, but will protect ourselves
as far as we can.-Post-Intelli
Messrs. Carl and Gamble are ready to
contract for the clearing and grading of
| lots, or the slashing and burning of acre
| property in good shape, and can be found
al the Commercial Hotel.
Two dressmakers are permanently es-
tablished at Mrs. Eaton's millinery store