The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-02-28
lFER THEIR MONEY.
n-.a;tnrs Of Seattle Ceal and
Iron Company.
..swr CHARGES OF FRAUD.
-<~sn Are Beaten In Their At
..unt 20 secure Payment for
eervices TO VI. v. stewart
..xf CHARGES OF FRAUD.

-. s,si6s workings % the Seattle Coal
49, Company we're brought TO fsgh.
s.~t.v. frosr the STANDPOINT Of several
1870 Of the concern. n Judge Lang
=. .sssrt. The claims are those OF DIX
s.sosser, Haas & Co. for s1ss-5s for dry
-. Boston National bank. $1,000. loan:
ks~.h~cber Bros. & Co.. A-54zza gro
- a. gchwahachsr Harrwars Com
- hardware. sslIe1. al but The loan
= "a Boston National hank being SUP
! - szrsssf,esa 10 the oornpany's store az
| go Fred BanzmAn Appeared and ar
- for the claim of Dftienhoefer, Haas
"a. r. G. stru9wfck represented the
s..nx hank. ami James Il. Howe appear
q ~ schwaha1her Bros Mr.. Move was
: ~ middle Of his argument when court
~d3surred The case VIII BE- continued shas
nsrssrg
gscA Of the claimants flied q petition
"a the court. "a which they hold that
ss~lr elalsns are preferred ciaima IL viii
9 remembered that thu Coal and Iron
1~xpany went Into Tire hands OF Q re
,r1v<r tuss about two years ago. Notwifh-
rnent.Ex this status of Affairs. II is al
tei BY the petitioners that tho Man
tsstkn Trust Company. the trustee of the
knrssosd~rs has never asked for a decree
esBeush II can DO % AT any time It de-
erz In other words the petitioners are
sst<sTortng 10 show that the company
+ srytrg TO practice fraud on them John
4 Aasn II che legal representative OF the
trvrt company and the receiver
"a Petitions. which ara alike, alIegs that
= Decsmber /. 1857, the Seattle Coal and
ben C1opany executed 10 thas Manhattan
frst Company. of New York, as trustee,
mortgage des-d 10 secure an issue OF first
ewfgsze bonds In the sum OF 81 900 eo0. Of
ass each. and payable on December j.
81 each bearing interes. at the rate OF
per cent Per annuu and payable semi
ssBszily: that II was attempted TO convey
3 me trustee all the personal property.
zas, etsutes. scales. etc. burt did not at
trpf TO convey the accounts. 1t wss also
erosaief ia the mortgage that sinking
nsd should be 80; aside as a special fund
3 ne hands OF the trustee. X was also
srossisd that ~ the Coal and Iron Com
al should commit default for six months.
xsher tn payment OF interest or setting
epAft the amounts due the sinking fund.
a. sondhelders. through the trust COM
pens as trustee. should have the right 90
hsax foreclosure. or 10 make entry on the
prrises called the property Of the Coal
ess Iron Company. and remove the same
fom the custody and possession Of the
esrpany.
TIE bonds were purchased. after ff7e ex-
sratson Of the mortgage by Morton s. Pey-
Cor Thomas Stokes. ard other New York
0z and AZ tho time a quantity Of the
eo<k proportionad to the amount Of bonds
. purchased was donated by the oorpor-
aaea 20 each purchaser OF bonds. John II.
Bryant was appointed president Of the cor
esration and was also agent for the bond
kslssrs OF the mines and store at fssaauah.
ne petitioners alless that since the sx-
2u,ion OF the mortgage and tho sale OF
~. - 80 has A..a IF al
ssf that II has been well known 20 the
cxn<fs to be vaiueless. but ths holders OF
De stock. being also the holders Of the
kcnds. have. since the execution OF mort
saxe. kept up and maintained n show or
psetenss Of the organization OF the COM
3sny for their interests and purposes a.
hondholders. and have operated and con-
<clled fins nains~s for their own purpose
ard profit. through ]. VI. Bryant. agent. I'M
Ger the gulse OF the sham and bogus COR
torsiion organization known as the Seat
g. Coal and Iron Company.
The petitioners further allege that the
Goal and Iron Company did not pay 60
ske trustee. or any one else. any part OF
sle an.1vnts due its sinking fund for 1899
C. 1853. or any part OF its interest due De-
senber /. 1883 ard has been In default
Hereunder That Notwithstanding this tho
Mines were being operated and doing a
tsg business In mining. shipping and sell
Ag coal 20 railroads.
The petitioners claim that the company
ssoame indebted To them during the latter
part Of 1885 and early part Of lse& to thu
amounts mentioned above, thu goods &C.
eared going into the company's store At
ssaanah and being sold to the lahorers
tsi employees OF the company. who were
cpersting the mines. X was the custom
u The company 90 sell goods and deduct
ne amount from the iahorers' salaries.
They farther aliaEe that the bondhoiders
d1 not bring any foreclosure suit upon
fae mortgage until February ~. 1854, and
that N that SUIT the Seattle Coal and Iron
Casnpany Immediately appeared and stimuli
hneonsly with the application made IN the
tals consented % receiversh'p. and this
APPLICATION was supported by an affidavit
f-en he eonpaEy's president, alleging that
tAs company was In danger Of suits from
ease q whom II owed debts.
On fesxuary - 1894. the Manhattan
Trust Company. ~ tho request Of the bond
fplaegs and according 20 the previous
tfeeneni. made between 81 AMI Agent
ssTyan', nled It's complaint seeking to fore
s'aseNitS mortgage FOR the benefit OF the
Ns1iholeers. and asked that ]. IT. Rry-
Al y appointed yeceieer. which was done
% February =. he taking into his pos
sssicn All Of the property. including SEA
80 y solvent accounts Since his appoint
rsst IRE receiver has conducted the bus
fess 81 tile company. The trust cognpa
az TIE petitioners ailegc. has never moved
~ aay aafaui, IN the casa. although Il
eoust have secured 81 at any time.
X s slao alleged by the petitioners that
'se rseever has repeatedly assured ths
fesiuoaavs tfsat their claims would be paid
al fsas The sult brought ny the trust
coHpaay was IA friendly suit between the