The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-25
cREDITORS TAKE 1T.
4Eird Street Electric Line Goes
Into New Hands.
oompanY TO sE REoReAnIzED.
.-s.tsY Power q Railway Companyss
rxorerty TO Bs sold to Creditors,
wso VIII Fan e Eeneerortn.

rs first reorganization % any OF the
s~<~ass railways or other railroad cor-
.~vzfsons watch the hard Tins IN the
xsrshzest threw lato the hands 81 re-
S..sssrs f,as been effected in the case Of
=. galnser Fower Il Railway Company.
Fssnxn az fhe Third street lire. The
~~xr4usenf was disclosed 70 the United
rs<sss court yesterday when q petition
- re setscr's "a e of the entire proper
- "a presented TO the court b. a large
..z.s,er o. sasiau4eng creditors, among
~aos, wsre the Boston National bank.
u.rchants' National &anls. Seattle
rarsware CO. Northwest General Egec-
-. q. Thomas Boyd ard Others, whose
<kssrss aggregate over $3.50 The
xasfoual Bank II Providence. the Iarg-
- creditor. VAS also petitioner. both
a. acroanguf Judgments and on account
n receivers certificates 10 the amount
n sts .ego held By IL.
Suggestions were made Some time ago
- he court itself that the road should
/. taken out Of the hands OF the re-
saiger and managed by the creditors
rha creditors acted on the suggestions,
a. vas shown yesterday by the remarks
~ Frederick Bausman. who appeared
sr the principal Interests and who pre-
rassa the petition for The courts IN
s9<ctson-
ne reorganization agreement Is an
exeeedngiy long and complicated docu-
NEST and the first OF the kind drawn in
the afy In It the signers agree 70 ac-
sssrs ne property al a sale by bidding
usfoa certain amount II necessary in
she discretion OF a committee which is
composed OF Angus Macintosh OF the
Merchants National bank. A n
Errokes Of the Boston National bank,
sng Frsierick Bsusman. attorney.
Large powers are given the committee
sor the requirement OF the property.
ard for conducting the bidding on be-
half cf the bondhaiders. The new COM
pany Is 60 acquire the railway. the
Western mil company and the electric
plant. This new company IS 10 issue
stock and bonds and to conduct and
gerage the road. etc.
One Of the conditions is that the stock
OF the read Ii to be held for three years
under control OF the bondhosders and at
tn end Of that time is TO be delivered
b Loulsa Denny.
An elaborate scheme Is set forth with
much teehnicaIity and detail az to how
this stock shall in the interim be SO held
by the present creditors as 10 be abso-
lu;ely In their control. Angus Maekin-
tesh Is selected as trustee TO hold the
stock in trust for louisa Denny during
the three years, and IL Is to be under the
criers OF the new bondholders, who are
70 he the present creditors OF the old
company. AZ bondho.ders OF the pres
ent company contribute $50 on every
bond 10 the expenses Of reorga ugzatfon.
ard any surplus after expenses are paid
IN % be turned over TO the new ns4a-
pany. There Is also 10 be turned over
20 the new company all sums due 10 thu.
present creditors OF the old company
ffVsn the receivers.
An order Of the court has been drawn
~ as 10 provide that all sums realized
al the sale shall rirs- be dIsbursed for
the fedenption Of receivers certificates
ard any surplus be distributed pro rata
or the old c0mpany's bonds.
a receivers agreement has been sign
e<i by a ma JorFy 81 all the bondhoiaerx
OF the old company and provision is
made In various paragraphs for a settle
nient 81 all disputed matters among the.
eondholders themselves. the committee
being empowered 10 adjust them in GER
tain terms and conditions carefully de-
'seied in the agreement. The approval
Of the Dennys Is endorsed on the agree
men.
The Rainier Power & Railway Com
panF was placed in the hands OF the re-
seiver IN june. 1899. since svhlch time its
sAaifs have been before the court In A
great variety Of litigation. II has pre-
SEATED probably the most complicated
sNaatson Of any street railway company
IN this city.
me conditions of the agreement are
'aat the sale Is 70 be FOR the entire prop
cry aud without redemption.