The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-03-14
IT IS SATISFACTORY
Thomas Couch and ]. +. FOrbis Re-
ceivers for the Butte & Boston.
THEY'RE IN POSSESSION NOW
Claims of the Bondholders VIII Be
Satisfied First-The Company
No Doubt VIII Be Independ-
emily Reorganized.

Judge Knowles appointment o
Thomas Couch and John +. Forbis a
receivers for the Butte & Boston Min
ing company seems to give good salts
faction to the various interests and tn
different creditors of the company. Thu
appointments, which were not unex
pected, were made at Missoula or
Thursday. at the instance of the Mas
sachusetts Loan & Trust company
trustees for the bondholders, and also
on request of the Globe National bank
OF Boston, an unsecured creditor of the
company to the amount of $4,000. John
+. Forbis. who is attorney for the Butte
& Boston, and Moses Weinman, an at
torney representing Guggenheimer, Un-
termeyer & Marshall. a firm of Wall
street solicitors for the Massachusetts
Loan & Trust company. and an attor-
ney representing the Globe National
bank, were In Missoula and presented
TO Judge Knowles the application for
the appointment of receivers, and the
different interests agreed on Messrs.
Couch and Forbis as representing the
mining and legal departments.
The receivers went into possession of
the entire property and assets of the
company yesterday. in the interest Of
both bondholders and unsecured credi-
~
bondholders' claims will, of course,
have to be satisfied first, after which
the unsecured creditors will be taken
care Of. The amount of mortgage bonds
outstanding, with about 5000, 900 in &C
crued interest, aggregate about 81, 700,-
000 One million dollars in bonds were
issued on Sept. 6, 1888, the whole issue
becoming due on Sept. /. 1898. the in
terest being payable semi-annually on
the LIST of March and the LIST of Septem-
Der of each year. The bonds contain a
provision that IL the interest Is in de-
fault for six months, the whole bond is
sue becomes due. The period of default
expired on the LIST day of the present
month. The second issue of bonds was
made Sept. 20, 1892, and was for $780,
600. but 81. o00, 900 OF it was deposited for
the purpose of retiring the old issue of
first mortgage bonds. The remainder
OF the new issue was intended to be
used for the payment of the floating
debt, for acquiring adjacent property
and to build additions to the plant.
The interest is also payable semi-annu-
ally. Both mortgages covered the same
but subsequent to the execu-
ton of the mortgages the company ac-
quired lot of valuable mining prop
erty, including the Blue Jay, Tramway,
Snohomish, Wild Bill and a portion of
the Baltic. which are not included in
the mortgage. but are covered by the
attachment levied a few days ago in
the suit brought in the name of Edward
G. Perkins for assigned claims aggre-
eating $365,000 On the five mining
claims mentioned the attachment will
take precedence and will be sufficient to
cover the claims, although the attach
ment was also levied on the mortgaged |
property.
1t is believed that the appointment Of
receivers will preclude any further at
tachments, though there is still an un-
secured floating indebtedness amount |
ng to 100000 or more.
The property affected by the mort |
cages is as follows: The Gray Rock. |
Josephine. Sister. Midnight. La Plata, |
Free-for-All, Lone Tree, Gabrielle, Chi |
ago. Delmonte, Buenos Ayres. Allie |
Brown, Wappelo. Alexander. Silver
Bow, Missoula, Flag, Belle of Butte.
Transit. Annie and Ida, Atlantic
Crotch and Baltic lode claims: several
olacers. a number of town lots. numer-
JUS water rights. the Silver Bow mill
Ind other improvements.
The appointment of the receivers is
IN interlocutory order auxiliary to the
lotion by the Massachusetts Loan &
trust company for the bondholders to
oreclose the mortgages upon which the
'onds were issued. The receivers were
appointed to act Jointly and are in fact
me appointment. The eastern credit
'rs and bondholders thought ii to the
'est interests of all to get the property
n the hands of receivers so as TO expe-
lite winding up of the affairs of the
ompany and get their money out of
l. III each creditor Were compelled TO
maintain a separate action the expense
would be enormous and the complica-
ions interminable. The Perkins at
achments We're levied only on the real
state of the company and no personal
property was attached as IL was not !
he desire of the creditors to close the
FORKS or in any way interfere with the
perations of the property II such a
hing might be desired. IL has been
etermined. however. that the prop
rty viii not be worked for some time. |
kept 10 make developments for the
imposes or several suits now pending
D the courts, the receivers having
cen given that authority by the order
ppointing them. The receivers are
Ulcers OF the court and are under a
5000 bond each. and are at all times
ubJect to the order OF the court in
elation TO all matters pertaining to the ,
management and disposition OF all ,
roperty and assets of the company.
A prominent member of the Butte e.
oston company stated to a Standard
eporter yesterday that the appoint
tent OF the receivers would greatly
lcilitate a settlement of the company's
nancial troubles and hasten a reor- :
anization Of the company. but that a
organization would be improbable
ntil the property is either sold under
he attachment or sold under the
IOrtgage foreclosure. After a sale un- '
er either proceedings the Butte q s
oston would have. under the terms ;
the mortgage. six months in which q
redeem the property. and IL sold un- |
n the attachment the company would a
ave one year. under the new codes ..
make the redemption. The period OF =
demption was extended by the new !
'des from six months TO one year. but !.
Ich extension would not apply TO
ortgage executed prior to the date on !.
hich the codes went into effect. The :
irchaser Of the property could not !.
quire title until after the expiration :
the periods named :
II was stated yesterday that the >
mpany would undoubtedly be reor- ;,