The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-11-09
The Savings Union Has the
First PiCkings.
THE OUTLOOK FOR PURCHASERS.
Final Chapter in Queer Series of
Land Transactions Beginning
in Boom Times.

Savings Union, the plaintiff, and on the
motion of William Cannon of the law firm
of Clement, Cannon, Kline & Stradley,
representing over 200 defendants. the
Superior Court of Tehama County gave
Judgment yesterday for the bank for
$4,000 principal, several years interest,".
costs and attorneys fees. and thus ended
the famous legal muddle known as the
ElmOre Colony Tract case.
However, there is a hope for the pur-
chasers, who claim they were duped. how
ever small it may be, for the Judge signed
a decree which instructed the Sheriff In
disposing of the 1900 acres Of land mort
gagged to the San Francisco Savings Union
to first dispose of the unsold portion, as
reat deal of it bad been sold to purchasers
ignorant of the banks deed of trust.
The decree further recites that if after.
selling the uusold portion of the land
mortgaged the Judgment be not satisfied.
then the Sheriff is TO sell the lands which
have been sold by the San Francisco Land
Association to the purchasers in the in
verse order of their sale. The decree also
declares tn at the court recognizes and pro-
tects the rights of the conieSting purchas-
ers who have no deeds. who hold merely
contracts as purchasers in good faith to
the extent to which they paid for the lands,
the same as if they bad deeds therefore.
The Moore mortgage to Downing is set
aside, cancelled and annulled.
The purchasers should. and probably
will, get some value for their money.
Those who contested will. The others
who would not fight but expected to bene-
fit by the course of the others Will recover
nothing, however.
What became known as the Elmore
Colony Tract project had its birth In the
year of booms and boOmlets, 1887. when
all sorts, kinds and conditions OF land
deals were on aud the real estate shark
wandered through the land roaring like
lion seeking whom he could devOur.
The San Francisco Land Association. a
corporation, put forth fearfully and won
derfully con structed advertisements ad-
ylsing ''those Who wished 10 become rich to
buy lot in the Elmore Colony Tract at
81 down and 81 week until paid for;
title clear and guaranteed"
As a result over 800 spectators. with
visions of a beautiful hillside ranch with
running water aud their own vine and fig
tree. bought and paid for deed or a con-
tract of purchase for an ElmOre Colony
Tract lot only to find their title clouded
and they parties defendant to a law suit
brought by the San Francisco Savings
Union.
Some of the purchasers took it philoso-
phically and didn't "squeel." They con-
matter. About 200, however, joined forces.
and retained law firm and now they get
their draw down.
The first surprise for the purchasers at
81 down and 81 week until the fve-acre
lot was paid for was to learn that the San
Francisco Savings Union had on April.
1887, loaned o. E. Moore $4,000, and had
taken a deed of trust as security for the
payment thereof, and that on April g. 1890.
the note became due. That part of the
land described in the deed of trust an
swered the descriptions of their contracts
or deeds called for and was liable for the
debt thereon. Those Of them who wanted
what they had bargained for consulted
law firm, and the LAWYER on investigation,
| found nice mess OF fish which smelled
strongly OF fraud. The lawyers state in
their answer and cross-complaint that
they found that o. E. Moore, subsequent
TO making the trust deed 10 secure the
| $40, GOO borrowed from the Savings Union
on October z, 1887, conveyed One-third
| interest to one L. Ii. Downing, and on
NOvamb Der Z, 1887. conveyed an additional
one-sixth interest to Mr.. Downing, so
they became equal tenants in common.
Then the California Land Association
entered into contract with Moore and
| Downing to sell their land in five-acre
tracts at SO an acre. and Moore and Down
| ing entered into 100000 bond that upon
| the final payment they would give a clear
| and undisputed title. The land company
carried out its part of the agreement and
| sold good many acres-anG buyers, CIV
| ing written agreement that it would see
| they received good and clear title with
| their deeds. On August 9, 1889. Downing
recOnveyed his half interest to Moore. not
excepting what had been sold by the Cal
| if0rnia Land Association, but not decided,
| and Moore executed to Downing a mort
| gage upon the entire Gilmore Colony Tract
TO secure a note for $500. including the
| property sold. Then the land association,
| by contract, attempted to release Down
| ing from all liability on the 100000 bond.
After this number of the buyers paid
their ustallments and took a deed from
Moore, but some did not. and they alleged
the reason for not doing so was that they
were prevented from paying the balance
by the acts of the land association. The off.
GERS of which then and there abScOnded
and abandoned the corporation and left
no one in charge of its affairs to receive
the money and complete the contracts"
They then learned for the first time that
the land which they had agreed and con-
tracted to purchase from the corporation
was subject to the deed Of trust of the
Savings Union, as well as the Moore
Downing mortgage. None OF the money
paid by the purchasers was applied toward
satisfying any of the various liens on tine
land. The San Fran cisco Loan Associa-
ton and Moore became insolvent and
Downing claimed to be released from
liability on the bond given by him and
Moore, and the purchasers having bought
a pig in poke were IN an uncertain state
of mind az to what TO do. Two hundred
out OF the 800 went into a court of equity
as intervenors, the result of which was the
issue obtained yesterday AS there is
abundant land 10 satisfy and more than
satisfy the banks judgment there is hope
for the purchaser. and Elmore Colony Tract
may yet bloom like the rose and yield an
income TO the plucked pigeons.
The attorneys for the contesting pur-
chasers have also perfected an arrangement
with the bank whereby they can pay off to
the bank the exact amount their respective
pieces are liable for, and without further
cost or trouble redeem and thus clear their
title.