The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-10-26
HIS LIFETIME NOTES.
Gamma Poncin Tells How Yes
Ter Did Business.
DEBTS TO &c PAID AFTER DEATH
The Famous $50 900 Note Case Brinrs
Cat Interesting Pofnts Of Rfe-
neer Business.

~-2sesV a4AEt "a 10 Se cue On = renew IA tsotFs
has brought ont the history of number
Of transactions. and given an Insight into
the business methods OF the late pioneer.
Recently number OF interrogstories we're
prepared by the attorneys for the admins
traitor Of the estate and forwarded TO Mr..
Poncin. In bis aniwers he says the notes
In the case were drawn by the
late Col. Haines in payment Of certain
claims of Poncln's and their existence
vas closely guarded as = secret. because
Mr. fssler's property .as heavily involved
and he desired 10 be free from worry dur
lag his lifetime His design. Mr.. Ponein
says, was 10 charge the estate with the
debt. and when the last note was drawn
1t vas accompanied by sn agreement that
IL was not to pass out of Poncin's hands
during the lifetime of Mr.. Iesler. Mr..
Poncin says:
'Mr. fesler was heavily involved and
was being pressed by numerous creditors.
He did no. want TO be personally annoyed
by the claim or to have 10 personally ar
range for its payment; and be further
objected to increasing his known iiabili-
ties. He seemed willing TO settle these
matters referred 10 only on basis that
they would would give him no personal
annoyance, but he expressed a willingness
TO settle them In such way that his es-
tate would have TO care for them AZ bis
death. | afterwards made several unsuc-
cessful attempts to get security for this
Indebtedness or 10 get it put in a different
shape, but Mr., Yesler tenaciously insisted
on the original arrangement being carried
out The above are the only reasons
urged By Mr.. YesIer. but other reasons
may have operated on his mind"
YEsLEE BOUGHT HIS own NOTES.
The transactions between Yesier and
Poncin date back 10 March 2. 1855, when
a note for tf3. Ito Vas signed by Yesler in
Porcin's presence in this city. This note
was renewed for $40. 400. 80 March 2. 1859.
and again December 2, ls90. at which time
. change was made. correcting the rate OF
interest from per cent. per annum 20 l
per cent. per month. The arrangement
with Mr.. Yesler was that Poncin should
keep the old notes when renewal notes
we're given. as evidence OF the transaction
A note was also made December . 1885.
for 81. Ito, representing money loaned and
a balance due from Yesler TO Poncin for
interest on loans and as the profits on
transactions by way of discount in which
they were mutually interested. Yesler.
Poncin says, would represent that he could
buy up some note of his for less than the face
value, and would agree to divide the diff
ference between the amount claimed and
the face value. He would usually return
the principal, but rarely the interest and
the profits, and these kept accommodating,
as the transactions were numerous, vary
ing in amount from 800 to g, 600. and ex-
tended over a number of years. The only
payment made on the 81, 10 note was
$1,000. June 2, 1854
TO ESTABLISH HIGH VALUE.
The answers here go into the history of
the business relations Of Yesler and Pom
Gin. The testimony reads:
I'm July, 1854, entered into an agree
ment with Mr.. Yesler 10 purchase the
ground on which the Poncin block was
afterwards constructed, and which IS now
covered by the Washington building. The
consideration was TO be $50. 900, payable in
five years, at 10 per cent, and | agreed to
erect brick building three stories high on
Front street and four stories in the rear.
having frontage of fifty feet by depth
OF ninety feet. | began negotiations when
there was considerable activity in real es-
tate. and the price fixed by Mr. Yesler of
500 per front foot was the highest price
then paid for any similar property. with
the possible exception OF the adjoining
tract Mr. Iesier At that time was in
debted to l.. NJ. Starr for q large amount
of money. secured by mortgages covering
the property / proposed 10 purchase.
Mr. Yesler was DESTROYS OF completing the
trade During the negotiations l visited
Oakland, aud saw Mr.. Starr, who partially
agreed in the event of my purchase that
he would release the ground and take
mortgage himself for soc crediting
Ye.ler for 8 like amount II | could induce
Yeslcr to take a second mortgage for
$4,000. When l returned to Seattle real
estate values were growing less. and in
view of changing conditions / offered
less sum than originally. which Mr.. Iesler
declined, because he wished to establish
$500 per front foot value on his Front
street property. At the sans time he
suggested that | work out some plan 90
cover this point even If he had TO provide
for the payment back 10 me of some of the
purchase price as a rebate.
NOTES FOR HIS LIFETIME
In order to do this, Mr.. Poncin and
Colonel Haines made proposition
whereby Ponein was 10 receive q rebate of
1900, payable in ten years and secured by
n blanket mortgage on Yesier's property.
This was accepted. after modification in
that a note Was given instead OF the mort
gage. payable as the Others. AZ the death
of Mr.. Yesler, aud not 10 ba insisted on as
a personabie liability and not transferable
during bis lifetime. IL bore per cent
month. and from time To time was TO 10
renewed, With accumulated interest The
transaction was practically closed Ia July,
1854. Mr.. Poncin continues;
AT this time | had another trade on
vita Mr. Yesier, negotiating for portion
of tue property nov covered by the Bailey
baIdlng. and in this trade hoped TO De
allowed the 5000 rebate and other
/. e..A. l. 49,
the note Of March =. is>a. These negotia-
lions we're declared of n February. lssG
| then dem snded note cove ing the re-
bate and the s4.iiU due on balance Of
account: and 5000 waieh Ar. Ieser
agreed TO agiow me for nay expenses and
services IN negotiating with Capt Starr
These three items made the totAl 81
the note of March 2. lsSa / made several
Atsen pts TO close the transaction, but fall
ing 70 do So / finally secured al uncon6i-
ttonal note for SIX months, dated March >
isS5 for SIa 100. That note IN terms did rot
represent she transaction between Is, as
gay note Was 10 ee payable at the death Of
Mr.. Iesisr; and Mr., Haines prepared for
ne the form for such note, which / sub
seauentiy Csed when sending Up Tor q re-
newal from los Angeles.
an regard To the s. abo item above re-
fsrred 10. which NAs a part OF tue SAID
cash. a payment Of about $40 xas - be
made 10 Mr. Macintosh for a party wall
between bis property and tAe tract / was
about 70 purchase. Ar. 1exler suggested
that that amount could be carried along
hx note signed By rs and payzhls out Of
nv rents from the building, so as not TO
sFaha-rass ne. and that he would indorss
tae note IL / would let hlGa have s2.ooa /
re aAe ibis further lean - consideration Of
xettiag Mr.. lss4sr 10 agree 10 ALLOW the
s., go rebate. and 20 aAi0w ne S2oo1 for
snv services IN connection WltA the starr