The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-10-20
An Important Anaeortes suit Decided.

MOUNT VERNON Oct. 13.-ISpecial. THE
case OF Stacey e. Collins VS.. Joseph +. Nc
Naught ct al, which has occupied five
days in Judge McBride's court, has been
concluded. The decision was technically
IN favor of the plaintiffs, but the equities
decided were in the main satisfactory TO
both sides. At the close OF the case the
plaintiffs gave notice that they would file
supplemental bill. in which the Fidalgo
Land Company would be made defendants
and having it bound by the same decree.
The suit involved something like STA. 900
worth of property IN Anacortes. In Feb
ruary, 1890 the Mcknight Syndicate was
formed TO buy seven-eighteenths inter-
est in L05i acres on Fidalgo island close to
Anacortes. John Collins held the legal
title to this seven-eighteenths interest, and
he held an equitable right to one-half and
NJ. Y. b. Stacey the other half. This
seven-eighteenths interest amounted to
396 acres of land. The other eleven-eigh-
teenths belonged to other parties and does
not figure In the case at al. The price of
the land was $3.50. $50, which was agreed on
between Mcknight. representing the syn
dictate. and Collins & Stacey. The sum of
sol, 500 was paid in cash as the first pay
ment and the balance was to be paid in
three equal installments of six, nine and
twelve months respectively from the date
of the deed-February 10, 1890. The deed
was made by Collins with the assent of
Stacey. A dozen or so Seattle and other
capitalists composed the Mcknight Syndi-
cate. To secure the unpaid balance Nc
Naught executed two declarations of trust
and gave one to Collins and one to Stacey,
-eciting that he held the land in trust and
that he had power to sell, the proceeds of
the sale 70 apply on subsequent payments.
The deed to Mcknight was absolute on
its face and was recorded. The declara-
tons of trust were not acknowledged nor
recorded. The second payment was made
from proceeds of the sale of lots and about
5000 was left over TO apply on the third
payment. When the third payment fell
due in November, 1850. the syndicate was
unable to meet il, and in lieu the men,
bers of the syndicate gave their personal
notes, due in ninety days and in six
months to Collins & Stacey. IN amounts
proportionate to their several interests.
These notes were not taken rs absolute
payment. but were held by Stacey It Col
Inns subject to receipts which might be
realized from the sale of lots. On Feb
came due. and also the fourth payment,
both OF which went be default. In May.
the same year. the six-month notes also
went unpaid. On June Is. 1891, the suit
which has just terminated was begun.
Stacey 4 Collins sought TO enforce their
claim on the land and also TO secure judg-
ment on the notes, and in addition per-
sonal judgment for $4,000 against Nc
NaRght and to make Mcknight account
for proceeds of property sold. In the
meantime the syndicate members had or
ganized the Fidalgo Land Company and
In May. 1881. just forty minutes after the
complaint and lis pendens in the suit was
hled, the deed was put on record convey
ing ali the property to the new land COM
pany. The defense claimed that Collins
consented to the arrangement and agreed
to take stock in the new company in lieu
OF the land and 10 cancel the notes. Judge
Mcbride found that neither Stacey nor
Collins had consented to the new COM
pany, and consequently the deed to the
company vas nuiiity. and also decided
that the plaintiffs should have personal
Judgment against the makers Of the notes
for whatever deficiency there might be
after applying The proceeds of the sale Of
The land an payment thereof.