The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-05-22
10 CONTEST THE SALE
Creditors Of the Lake Shore
Road File Objections
NOTHING m ssoHr FOR THEM.
. Clsfm for Xors Than Two NM
Sons-An Appeal PreAabss.
NOTHING IN s'oHr Foa rHEaa.

me recent s4le Of the sss<fs Of she Sat-
H Lake Shore < Eastern Railway 10 tn
representatives Of the Union Trust Com
eeny viii not be permitted 20 90 unchai-
kaged 10 conarmafion. II - more than
nkeiy that the matter may be carried to
ne circuit court Of appeals. and poss,-
NJ 70 the supreme court OF the United
Mnfes. with the report u Hoo Ehen
18th. United States master In cnancsry,
suepectine the sale. there have been flss1
= the Federal court objections TO con-
fsustion. made by Andysw =. nuristgh.
= receiver Of the Northern Pacife, and
eGbers- There are six principal grounds Of
ehtscfion, as foilows.
First--That the Lake Shore rad = In
dsttsd TO the Northern Pacine in the sum
81 more than 81. H1e1o. which claim 10
sow duo and entitled 10 preferences: that
~ debt V for supplies furnished In tho
necesxary operation Of the Lake shore
rsod. IN order that II cosSd be preserved
- % entirety and kept for the benszlt a
he complainant
eecond-Thas the receivers os the Lake
MORO are indebted to James wooding. sd-
ntnissratos Of the estate Of Charles n.
wooding. deceased. In the sum Of sas.oaa,
aceoedlng 10 . claim duly fled In court.
1hird-That the road v indebted to STRAIT.
IN. Lewis . Gilman IN the reasonable
IN Of 5000
yourth--That other petitioners have
dnts1s outstanding and unpaid.
Hfth-That the demand BY al tbs cssdi-
tsrs has been properly made but No part
q ths sums due has been paid.
eixfh-That the complainant has assum-
= b soreciose In mostsase. and has ash ~
= purchase all the assets Of the road.
having nothing for the payment or 80
urity Of the debts: and the complainant
- A. -.
IL sale and tbs ownership In Tee. to the
exclusion Of this claims.
II Is claimed further that the bill Of COM
saint does not stats facts sun1cient 70
give the court jurisdiction Of the persons
u the defendants or Of the property: that
there IL no equity In the bill. and that II
states no facts sufiicieut TO give the court
erisdiction OF the subject matter: that
tAsre 10 no fact shown In the bill that the
complainant has . right to maintain his
Dsit or that the alleged securities are sss-
able. for the blu does not show that the
eonditions OF the mortgage have been COM
Diled with: that there u nothing In the bill
10 show that tie court has power To make
aay decree OF foreclosure. that the mort
gAse r. In no wise In comp,iancs with tho
law Of the state Of Washington. and ought
not 20 vest title which shouid supersefs
the rights Of bona fide claimants. and for
the reason that any confirmation OF sale
under such mortgage would vest such
rights and take precedence against the
bona hde claimants. contrary 10 the spirit
~ the constitution and laws OF the state;
and finally. that the property. which IL
easily worth sla.0p 00p. was bought by the
nortgasee itself. for the small and made
euats sum Of but 8. 600 60. that Il appears
from tha masters report that the sum so
secured cannot provide for the claims OF
any creditors. especially the preferred
creditors. and the claims OF the petition
srs. and because certain property. purely
eseregable. as In snohomish county, was
Dot rendered separately, but the same sold
With the railroad properties a. an entirety,
greatly 20 the damage Of . complete price.
The exceptions noted above 20 to points
raised and discussed before the court on
Saturday last. prior to the sale The
objections are signed by O. ". Piles ana
James Hamilton Lewis. solicitors for tho
creditors and petitioners; stratton. Lewis
3 Gilman. OF counsel for Andrew v. Bur-
leigh; Frederick Bausman. OF counsel for
etrstton. Lewis q Gilman.
Mr.. Smiths report OF the sale II ono
OF the most volumlnous documents pro-
pared by him during his long services as
master In chaneory. II sets out the fact
Of the sale OF the assets for 81 ,0oc 600 to
the committee Of bondhoiders. consisting
o. Morton s. Peyton. O. A. Armour. Y.
-. tAttHtaif H. Gftilt1t MI OF new
York. and states that q certificate Of pur-
chase has been issued to the purchasers.
The master has deposited with the clerk
OF the court the proceeds OF the SALE
amounting to siei.sis. and the remainder
u the purchase price will be Endorsed on
ths bonds under the terms and provisions
u the decree. Tho report also embraces
copies OF the schedules attached TO tho
masters prior report. which were re-
erred TO IN the decree.
The railroad company and other parties
Interested have ten days from wednes-
asy In which 10 file their exceptions. II
10 exceptions had been filed. the report
would have stood for confirmation on the
next rule day. which will fail on Monday.
June l. but now the report stands for con-
hrmation ten days after the filing OF the
exceptions II Is thought that the defend
ant company Is quite apt TO avail itself OF
the fuli ten days In which 10 N. It's ex-
csptenS. and should this be done tho
hearing under the rule viii not he held
Until ten days after such exceptions have
neen nleS. As the case now stands tho
tearfug vtn Ia half lama