The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-02-07
THE BONDS NOT PAID.
Broken Mortgage Company
Sued by Seattle People.
GRIFFITH is MADE RECEIVER.
Seattle National Bank Building Com
pany Attaches Its Property-In-
junction in Kansas.

The affairs of the Western Farm Mort
gage Trust Company, against which at
tachments were procured in Denver. as
announced in yesterdays Posr-IsrELLI-
GENcER, were yesterday taken into court
in this city, as well as at Denver, Law
renee. Kan, and New York city.
The Seattle National Bank Building
Company brought suit against the mort
gage company to recover $43, 1865 alleged
to be due it. With the suit was also filed
bond tor ssi 900. under which attach
ments will Immediately be issued against
all of the property of the mortgage COM
pany in King and Skagit counties. This
property consists of number of Seattle
lots, several judgments and some acreage
near Anacortes valued at about SO, 900, al
together ample to cover the amount
claimed.
The suit was caused by the news of the
Denver attachments. The complaint filed
states that on May /, 1890, pursuant TO a
resolution adopted by the board of trus-
tees of the Seattle National Bank Build
ing Company. that body issued a series of
80 bonds at 81 coo each, and that these
bonds were turned over to the Western
Farm Mortgage Trust Company, which
agreed TO place them. Up to the present
time, the complaint alleges. only $685.
614.37 has been paid for these bonds, and
there is still due $40. 325 63.
The Seattle National Bank Building
Company is the company that erected the
handsome six-story building at the corner
of South Second street and Yesler avenue,
in which the Seattle National bank has its
offices. 1t is entirely separate in It's organ
ization from the bank, although some Of
its stockholders are the same.
George L. Carter, of the Seattle National
bank, said last night in reference TO the
mortgage company and its connection
with the bank building:
The Western Farm Mortgage Trust Company
about two years ago startea the building COM
pany. G. W. Z. Griffith was then president Of the
mortgage company, as well as OF the Seattle Ma
tional bank. About year ago he resigned from
the presidency of the mortgage company be-
cause the other officers were opposed to his
projects, and shortly afterward we began TO
have trouble in getting money to pay the bills
for construction OF the building. For the last
six months we have not received anything
az oil. The company agreed to place
the bonds and to remit as the money
was needed. The management succeeding Mr..
Griffith appeared to he opposed to our scheme,
and, by not sending Us payments as it had
agreed, placed us for time in IN awkwdrd po-
sition. The building, however, IS nearly all
paid for, and it cost less than 100000. Captain
Ballard was the active manager in the building
project and he made magnihcen. building at
the minimum of cost.
Speaking of the business methods of the
company, Mr.. Carter said
l know nothing about any undetermined
methods that the company practced. 1t did
regular mortgage business, just as other COM
panies do. When there was financial strin-
geucy and sales stopped, il, like other compa-
MES. Immediately notified its agents to quit
buying, but 1t is under obligations TO place the
bonds and mortgages it buys aud, IL it cannot
do so, it must carry them itself, which
might be difficult at times The Jarvis Conklin
company, in Il similar predieament last sum-
mer, increased its capital stock a million
dollars. and in that way got funds TO tide it
over. The mistake the Western Farm Mortgage
Trust Company made was in no; allying itself
with strong financial concerns in the East,
through which It could have secured help IN o
time OF depression
The Western Farm Mortgage Trust
Company has been the means of causing
the erection of many buildings in this
city, chief among which is the Seattle Ma
tional bank building. From $50 to 300
dwellings have been erected with money
loaned by it, and it holds mortgages on
several larger buildings. 1t has placed
farm mortgages amounting to about ST.
100000 in Western Washington, and its
former president, g. w. L. Griffith. re-
Gently wrote to friend in this city that
they were the best in the six or seven
states where it has done business
The principal stockholders in the mort
gage company were instrumental in or
ganizing the Seattle National bank, G. W.
+. Griffith having been its chief promoter
They were also the organizers of banks at
Anacortes, Aberdeen and other Western
Washington towns.