The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-07-04
THE DENNY COMPANY.
Financial Project to Liquidate
a Large Estate.
OVER TWO MILLIONS INVOLVED.
Gorporation Formed TO Take IN All
ereditors-EngIish Syndicate 20
Take Debensure honda


state auditor yesterday Of articles Of incor-
poratIon of the Denny Investmen, Com
pany, of Seattle. The objects of the incor-
poration are to succeed to the investments
and settle and adjust all ciaimss against
the estate and property of D. T. benny and
Louisa Denny. TO protect aud improve
their real estate and reorganize and con-
solidats their street railway lines.
The incorporation has been brought
about By the cooperation OF creditors and
Mr.. and Mrs Denny and sons. A reorgan-
ization plan was prepared By committee
consisting of g. +. Gund, A M. Brookes,
X K Spencer. Maurice McMicken, George
Hyde Preston. Fred Bausman, W. J.
Grambs. Jacob Fursh. \. II. Lstimer. A.
Z. Mitien and l.. III. Griffith, assisted by
the Dennys, who have labored incessantIy
TO bring the deal to q successful termina-
ton.
AS soon as the incorporation is COM
plete IL Is definitely settled that an English
and Scotch syndicate will take up the de-
oenture bonds to the amount of =, $4,000
~ low rate OF interest
The claims against the estate, including
eli underlying debts Of the street railways
amount TO 3, he, 600. of which over 81 ,400.-
| 100 Is owned and held in this city and the
payment of which, under the reorganixa-
ton plan adopted. will materially iacili-
tate liquidation of very much more general
Indebtedness in this city.
The capital stock of the corporation is
y. 800 600, divided into Is. COO shares, and
the first board of trustees will be ID. I.
Denny. j. b. Denny. N. ii. Latimer,
Jacob Furth. A. NJ. Brookes. L. III. Griffith,
q. III. Preston, W. J. Grambs and Maurice
McMicken
The history of Mr.. Denny's financial
troubles is set out at length in the pros
pectus OF the Denny Investment Company,
which was furnished 10 the English sub
scrioers of the company's bonds. After
relating the early settlement of the
Dennys, and their active participation
In almost every new local enterprise, and
the causes which led to D. T. Dennv's
financial embarrassment, 1t goes on to say:
by agreement with the creditors, it has
been proposed that the corporation should
Immediately acquire by purchase the re-
naming and unsold tracts OF land in the
Home addition. consisting of l68 lots,
- lots IN ID. T. Denny's Park addition. 2
lots IN MERGERS addition, 269 lots in Denny
Thurman addition. 30 lots In ID. r. Denny's
FIRST addition. lots In ID. II. Denny's
Second addition III lots in ID. +. Denny's
Sixth addition, IL lots in MERGERS Water
Front addition. lots in Bell It Denny's
Third addition, lots In the plan of
North Seattle. 80 lots in Greene's adj
dition, acre property in Denny uhr-
man addition, MERGERS Eden addition,
i02 lots in ID. T. Denny's Home
addition, IS acres in section 20 IS lots
North Seattle replat, 81 lots plan of North
Seattle, 16 lots D. I. Denny's water front,
Mountain View addition to Port Towns
end, ID. I. Dennys Second addition TO
Port Townsend, 90 lots; 81 lots in ID. T..
Denny's Second addition to Port Towns
end. Eisenueis' addition to Port Towns
end, Is lots in Mountain View Second adj
ditIon TO Port Townsend. Commercial Ma
tionai bank stock. Washington Improve
ment Company's stock, Union Trunk
Line Company's stock, Seattle, Lake
Shore 81 Eastern stock. Marine Savings
bank stock. Seattle Consolidated Street
railway stock and bonds, Rainier Power &
Railway stock and bonds, cable systems
stock and bonds. For the purpose of ad-
justing the various claims and en-
aiding the creditors TO enter equit-
ably into the carrying out of the
organization, the properties were re-
ferred TO a committee of ten representative
citizens, consisting of Jacob Furth. presi-
dent Puget Sound National bank; n. III.
Latimsr. manager Dexter Horton Il Co.
(bankersl: r. r. Spencer, cashier WASH
cashier Boston National bank: Maurice
McMicken, of the law nrm of Strive,
Allen, Hughes a McMicken; George +.
Gund. capitalist; George Hyde Preston.
member of Preston & Aibertson Claw
frm): Fred Bausman member of the law
firm OF Bausman, kelleher & Emery; A.
L. Mitten, county treasurer, whose duties
il should be to have the respective securi-
ties appraised and adjusted, which has
been done with satisfactory results. This
committee has provided for the funding of
all claims against the properties and Sc
curities. as well as all underlying bonds
and Indebtedness, by the issue of a scrip
Indebtedness which in amount equals
81, LIS. 900.
..For the purpose of funding this scrip,
providing for the consolidation and inn
provenent of railway properties and other
purposes for the benefit of the investment
corporation il has been resolved By the
stockholders of the Denny Investment
Company TO issue a debenture loan of
s., $50 600 par value. and 10 secure the
same by blanket mortgage and hypotne-
cation OF the real estate. personal property
and securities. stocks and bonds of this
company, with the Central Trust Com
pany, of New YORK, as trustee.
The proceeds of these bonds to be used
by the corporation in funding its scrip in
debtedness; provided, however. that the
creditors should provide for and set aside,
in the hands of the Seattle Guarantee
Company. a trust and guarantee fund
of s500,o00 which may be by said
guarantee company invested in bank
certificates. approved securities and loans,
always reseryfng sufficient cash
fund 10 guarantee the prompt payment Of
interest ON bonds, taxes and other charges
against the property, should there be any
default 10 same by the Denny creditors.
The investment company purposes TO pnr-
chase aud own all underlying Indebtedness
of whatever kind or description nov out
standing against any Of the property in
which IL may he interested. so that IL
have a first and paramount lien Ia fee
simple, as security for the outstanding
bonds. ratahly share and share alike. In
acquiring control of the Rainier Power &
Railway ComraDy's properties Tn which
corporation the investment company be-
comes interes;ed). il acquires their
fun issue OF $4,000 per cent
twenty year bonds. acquiring in adj
dition q majority of all issues Of
stock It acquires lighting plant and
franchise of great value. and which may
be largely improved aud extended. and
viii prodace large earnings. Is also ac-
auires q lzrge lumber manufacturing es-
Enlistment, one Of the most complete on
Puget sound. capable of earning 5000
Ter month net it IS calculated tEat the
OUTPUT OF this property can be contracted
Tor through the inlaence OF the inauen-
tai boudholders IL further acquires wIth
this corporation nine and ons-aalf miles
OF street railway system, known as the
Third street line, extending from the city
hail through = thickiy populated section
OF the city by say of the east shore Of
Lake Union, the suburbs Of Brooklyn and
Iatona. past the state university %