The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-07-28

upon and compiled with. and TIE cor
tracts we're executed ~ the COMMISSIONS
Of public lands ard approved by the gov
<rnor Thereafter. bonds were fled and
everything brought M 20 Gate.
On November j. 1924, The company dis
patched Mr.. senpie. vno IN the mean
aime had been sIecfed president OF the
company, vice Gov. Ferry. resigned, ID.
T. Durla, treasurer. and Julius r. Hale.
general counsel, 10 81. Louis. with ample
powers 70 negotiate WITH anzIciers. They
reached ST. Louis in due time. took ID
quarters az the Planters house. and laid
plans for carrying out ff5esr Instructions
Tire scheme az the company was 10 sell
the scrip issued by the state against the
lands filed IN, which bore interest at
Der cent per annsm, payable annually.
Ii was thought xhat the high rate OF In
fereet. coupled with what was claimed
20 be unidentified security. would make
.he scrip attractive. and that money
could be DRAINED 20 carry on the opera
lions for which the waterway company
rad peen organized. Upon the submission.
.f this scheme 30 Henry senple Ames.
Re formulated his objections thereto In
writing and 81 was acknowledged by tie
committee that another plan which ne
submitted was more IN accord With fhe
usual methods Of hnarciers than the
one proposed by the company, and so Ar.
Ameg' plan was Immediately adopted.
That was for the Seattle and Lake
washington Waterway Company to issue
per cent ten-year debenture bonds,
with interest payable seuai-annually. ana
secured by the scrip and oy the iran
chlses and other assets or the company
Mr. Ames pointed out that these bonds
possessed the element OF certainty In
amount ard fine of payment coupled
with undouhfed security, all ~ which
were required to be possessed by any
bond offered on the market At that time
Accordingly. STR. Ames was authorized
30 conduct negotiations on such basis.
euf he Immediately Organized a cam
paign which. In remarkably snort time,
ne carried 70 success. He chose the MISS
isslouI Valley Trust Company az the
financial agent to manage the finances for
the waterway company and the bond-
holders and he was able TO satisfy the
directory that the scheme or improve
rnenf at Seattle was worthy or attention.
The matter was investigated as thor
oughly az possible from such distance.
and the trust company being satisfied
with the showing made that Seattle was a
fayorable point for exploitation. pre-
lininary agreement was drawn up and
siEned. which depended for RATIFICATION
upoh the results of an Investigation that
was to be made by a committee TO visit
the Pacific Northwest at convenient
!
fn the prospectus Of the waterway COM
yany. being almost excessively conserva-
tive. II was not doubted by the commit
tee of the waterway company that the
report Of the committee OF the trust COM
yany to investigate those statements
would confirm them I'm every respect and
recommend the execution OF the binding
contracts.
Messrs semple. Duris and Hale then
returned to Seattle, and IL was expected
that the committee of st. Louis capital
lists would follow them in January. but
one source OF delay after another oc-
Cured and the committee did not reach
Juget sound until the early part OF Feo-
ruary They had with them Col. Flad.
one of the most distinguished engineers
OF the United States. and Judge Boyle.
one Of the leading lawyers of the Miss
issIppi valley as advisors, and the COM
4sttee, being composed Of able business
men, bankers and brokers, made
thorough examination into the condition
of affairs In the Northwest, including
Seattle Tacoma and Portland. Upon
their return 10 St Louis they made "A re-
port which was favorable in every re-
snect on the general aspect Of the case.
but noinfed ont certain defects in the
law. the contracts and the existing gen
eral conditions. which they suggested
should be remedied before any further
proceedings we're had.
II took considerable time for the water
way company 10 comply with the require
ments OF the trust company's committee,
and required the expenditure OF consid
cradle amounts of ready cash, which
was very hard 10 obtain. but eventually
all the obstacles were removed and the
contracts were executed on the part OF
both companies thus placing the Seattle
and Lake Washington Waterway Compa-
ny upon firm basis financially and en-
aiding Ii 20 sta.e with certainty that n
had the ability to execute It's scheme as
proposed whieh included the excavation
OF The east and west waterways, the
canal waterway and the canal through
the hills TO Lake Washington, and the
flling In by the usesof the material ex-
eavated of a large area Of the tide flats.
The cost Of lock construction ana other
necessary expenses not being charEeabie
20 the embankment on the flats, and the
st. Louis capitalists making the canal to
Lake Washington sine qua non. sub
sidy equal TO those expenses was asked
for by the company, and furnished by
tie Seattle people hereafter.
The St. Louis capitalists considered
taas the beginning of work on Lake
Washington canal. In pursuance OF a
s'heme which every one would consider
20 give assurance OF Its completion within
reasonable time. would give such pres
axe 10 tElS CITY anu NnNAu promise IL
sueh advantage that every one would at
once concede that the question Of whore
the great commercial city OF the North
west was 20 he was settled In favor OF
the city on Elliott bay. This hey con-
sidered would assure 20 Seattle such
phenomenal growth and such phenomenal
prosperity that II would be sought as a
field for investment by the holders OF idle
capital in different parts Of The world.
and that the lands made by The opera
tious ~ the dredging and excavating
through the hills would he or many times
the value OF the cost OF their improve
ment
The creiit az carrying on the negotla-
,ions by which this successful financial
result was reached Is due 20 Henry Sem
pie Amcs. who devoted himself aSsiiu-
o1siy 20 the task. and has shown IN the
different steps hat have been taken that
he possesses The skill both Of a diplomat
and \ nnancicr. Not taking into con-
yiieration a period Of lack OF confidence
and commercial depression, no other
scheme 81 the century has heen financed
a.; such sliRht expenditure OF time and
money ard this transaction viii TAX.
rank as one OF tho most brilliant fnan-
cial achievements OF the century.
PASSING THE GTpSInV