The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-01-30
SQUEEZE ALLEGED.
Receiver Wanted for Seattle
Terminal & Elevator Co.
{ :. sHAusuT THE PLAINTIFF.
=. Alleges That He IL the Victim 81 .
Csssvsrsey-Pescs ~ Last Betwesa
the rssscensipentsi Lines.

1r6xe Langley for . receiver Of the Seattle
4srminai Railway & Elevator Company.
S which he il . considerable stockholder.
# p the ground that when the trustees
lueped the property of the corporation last
suring TO the Seattle Terminal RAILWAY
fwarehouse Company the tease was not
nsde in good faith, but was for the pur-
80 Of dsfrauding the creditors and stock
io,ders of the Seattle Terminal Railway Il
Ezeystor Company. He claims that al
shoueh be was one OF the trustees he was
efsen no notice of the special meeting
esilsd 10 consider the making of the lease.
md that the meeting was fherefors illegal
ma all m alters done at il void and Illegal.
ehanbus says that the object Of this al
jeed conspiracy 10 to force the Seattle
& Terminal Railway h Elevator Company
into insolvency so that the Seattle Ter
Einsl Railway A Warehouse Company
ear "ireeze ont" the former corporations
stockholders. including himself, and buy
n iis valuable property ut forced sale un-
dsr the foreclosure Of the trust deed secur-
4 Ing it, bonds. shaubut alleges that IL
rsceiver IL appointed and manages the val
nabie franchises and property of the Seat
lie Terminal Railway * Elevator Com
pAny il can ..easiiy pay OF all its obliga-
tions, including its bonded Indebtedness.
The petition will be heard by Judge Lang
isy on February 2
Shsabus alleges In his complaint that he
II the owner of 900 shares of Seattle Ter
minsi Railway A. Elevator Company stock,
Of which the whole amount issued Was
100000 in shares of 500 each, and that
b. also the owner of eight of its 81 900
bonds, of which go we're issued and Sc
cured By a trust deed Of all the corpora
tons property. besides being the holder
Of the corporations note for 81 900. upon
which he has brought suit in the superior
court. He claims that he has never been
paid any interest on the bonds. Having
thus shown the conrt his interest In the
slsvator company, Snaubui says further
that some time In 1892 John Thomas. of
Thomas 4 Co., bought up all the stock of
the corporation except that owned by Sha-
bat himself, and all the bonds except
shaubut's, and that, with an alleged dark
purpose in view. in March last organized
the Seattle Terminal Railway & Ware
house Company, of which he and Il. NJ.
Carr became incorporators.
Then. shaubut says, Thomas began doing
all In bis power to depreciaie the value of
the stock and bonds of the Older corpora
ton, with intend to dsfrand its creditors,
particularly shaubnt. To further his plans,
shaubut goes on 10 ailege, Thomas pro-
eeeded TO reorgsnize the board Of trustees
Of the cid corporation by electing as trus-
tees large number of those who were
Interested with him in the new corpora
ton and in downing the old one. The
new board is alleged TO have consisted of
Shaubut himself. &. (. Preston. w. r..
Bailey. T.. NJ. Carr. s. c. Calderhead, John
Thomas and a man named Dietrich, all of
whom, Shaubut alleges. were, with the ex-
eeption Of Calderhead and himself fnim-
teal to the corporation and desired its ruin.
A few days later, so shaubut's story goes, q
special meeting OF the new board was
called. to which he received no invitation
though entitled to one, and at this meet
ing IL was resolved 10 lease the corpora
tons whole property. franchises and oil,
60 the Seattle Terminal Railway a Ware
house Company for one year ut monthly
rental of $3.50. payable on the 10Th of
each month at the Peoples Savings bank
shaubut claims that this meeting was void
and Illegal, and that the lease was not
made Ia good faith; that no rent has ever
been paid on II. and that no arrangement
had ever been made with the bank for Its
payment
Since that time, Shaubut alleges. the
Seattle Terminal Railway & Warehouse
Company has taken entire charge and
control OF the property of the elevator
company, without giving any compensa-
ton, although doing large and profitable
business. while under its direction the
new board of trustees has refused abso-
lntely 10 take any care of the elevator
company's property interests or of the
rights of its creditors. including himself,
and has managed everything for the bene-
fl OF the warehouse company, in which
ell Of the trustees. with his own exception.
are interested. All of which, Shauhut
SAYS, has caused the stock he owns to de-
cline in value from par. at which IL stood
before the lease was made. until il prom
isss to become entirely valueless. He be-
leyes this /, being done To drive the ele-
yaioF company into insolvency, that when
the trust deed securing its SIS, 900 v orth of
bends Is forecIosed the security may be
bought ap by Thomas and his associates
81 lew figure
As grounds for the appointment Of re-
eeIser. he SAYS that the elevator company
It's bonded Indebtedness. aud indebtedness
81 all kinds bat that its trustees will do
nothing % revoke the lease or prosecute
any action against the warehouse company
Tor the relief OF its wrongs, because they
themselves are active agents and ahettors
o. the warehouse company in all OF its
acts. while Il is equally useless TO apply 10
the stockholders, for majority of the
stock is also voted and controlled by the
warehouse company. Further. that the
eooss 81 the elevator company are all
nader the control of the warehouse COM
ians. which will conceal its alleged wrong
aelngs before the trial of the suit unless a
sseeiver be placed In charge.
saaubat asks that the warehouse COM
faay be compelled 10 pay over 10 the ele-
sAoF company all profits alleged TO have
eeea derived from an infringement of bis
ssats and those of the other creditors:
Wn the lease may be cancelled and given
sh and an injunction against any further
assfisrenes by the warehouse company In
asssVasor eomPaRy's affairs granted.
: me UNION Pacific INJUNCTION.