The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-31

Noas IN 10 settle these claims He
cio not consider the claims q the 2e,f-
TONERS preferred clasnas or ones astho-sx-
sak MN 10 give them preference to generzi
creditors Of the cornpauy
Ine receiver says that he has no knowl-
edge as TO whether the mines and prop
erty were not Developed or operated prior
I 10 December /. 1857, and admits thai the
Doh7s were execuiui and delivered for de-
E veioping and operating the property. hut
- unable 10 state to what extent prior 10
me close Of lsss. He admits that the ceaa-
pAny On December l. lss7. executed 10 the
Manhattan Trust Company. of New York.
As trustee. a mortgage deed to secure an
issue on H.oS0e bonds. and admits that
the deed conveyed all The real estate then
or thereafter TO be acquired By the cor
poration, and also admits tina; II attempt
! ed to convey TO the receiver. as trustee all
| of the property belonging to the Seattle
Coal and Iron Company. denies mat the
mortgage did not convey the accounts of
she mortzagor other than those mentioned
! IN the petition. but AYERS that the same
/ conveyed all Of the property OF the coal
and iron company.
The receiver admits that iarss portion
Of the bonds were sold by the coal and iron
company between the date Of the execution
OF the mortgage ard November ~. lss2. bat
fl what amount is unable to state. He ad-
rnits that he was president OF the corpor-
alton and acting for IL November %
isan. but denies that he was agent rep
resenting the bondholders, or that he was
operating the mines otherwise than
president of the company. He denies that
he was acting for the company or benefit
OF the bondholders otherwise than as his
administration president of the COM
pany was for the benefit of all the bond
holders Of the company. He denies that
the stock OF the company has been. since
the execution Of the mortgage sale OF
xfE fsff taftt fhar hat IA
well known to the owners. He denies that
the owners and holders Of the stock are In
all instances the owners OF the bonds OF
the company, but alleges that In a great
many Instances the stock Is held and own
Ell By persons who are not owners of the
bonds OF the company. He denies that
the holders OF the stock have maintained
but mere show of the corporate organ
ixation Of the stock for the interest of rhs
tondholders and denies that the organ
ization has been kept mp otherwise than
in good faith.
He denies the allegations made In para
graph 10. but In answer 10 paragraph IA
ne admits that the bondholders received
interest agsregating 5000. and that some
where between November 80. iSge and FEB
ruary, 1884. improvements to the mines
were made 10 the amount OF sleo-veo. but de-
MES that these improvements were paid
from the current earnings of the mine
Answering paragraph Is, the receiver
admits that about January, 1894, commit
leo OF the bondholders was organized.
krown as the bondhoiders' committee. but
denies that the COMMITTEES was formed
otherwise than for the purpose OF protect
ing the security OF the boncholders under
the mortgage.
The receiver then goes on to tell OF his
appointment as president OF the company,
and also as receiver by the superior court.
and denies that in both capacities he acted
H. - 81 ar14y
now Is in any capacity exercising
the direction of the mines or min
ing property save and except as receiver
of the court. He denies that the applica-
ton for the appointment OF a receiver was
supported by the affidavit Of the con-
pany's president. but admits that on Feb
! ruary ~. fSst. the Manhattan Trust Com
pany. OF New York. at the request OF GER
tain bOntfhoiders Of the company. sought
10 forecIoss ITS mortgage for the beEent
OF the bondhoiaers and that IL was the
wish OF the said hondhoiders to have John
H. Bryant appointed receiver OF the prop
erty. which was done on February q. 1891.
/ he taking possession Of all the real and
| personal property. hnt denies that he took
/ &Ai coo or any other amount OF accounts
1 not embraced in the mortgage He ad-
/ nits that he has paid tho petitioners moth
ing on account OF their claims. and that
he has not recognized them as preferred
| claims out OF the current earnings OF the
| mine or the proceeds Of the sale OF mort
/ gagged property superior 10 the claims or
the bondholders He has not questioned
! sha validity OF the claims. nor chat the
petitioners are general creditors of the
rarnnanv and states that he has allowed
the claims and fled them with the court,
/ 20 be dealt with as the court shall direct
/ him to- He admits that according to his
/ Judgment the property Of the company Is
not sufficient security for the payment Of
I'D. 80 = n nd 4.
petitioners and further admits that the
claims OF the petitioners are subject to
! the superior Hen VI the mortgage sought
60 he foreclosed in vlis action.
Receiver Bryant alleges that he was
stranger to the organization OF the Seattle
Coal and Iron Company. and that he had
no knowIedae OF the affairs ~ the corpor-
alton until the year iSSa when he was en-
rloyasi 20 make a general examination for
Interested persons. On February u, 1879.
he was elected president OF the corporation
and continued In the office until tcbruhfy
- lsss when he resigned. During THIS time
a erst and second vice president and other
officers we're also chosen. AMI while he had
supervision Of the more general business al
fairs Of the corpora ti0n. the details and
local management I'm Washington we're left
in charge % the vice presidents and other
officers on the ground. and therefore he
was ignorant ~ the details q The business
affairs in this state. and was also ignorant
Of the claims OF the petitioners. further
than that he may have had a general
knowledge OF the fact Of the Indebtedness
Rv reason ~ the general financial deQres-
sion prevailing throughout the country.
and particularly owing % the arrangement
and depression Of financial Affairs IN wash
inrton and to the local management Of the
Seattle Coal and Iron Company. the same
heca mo involved TO such an extent that II
failed TO nay the interest upon It's bonded
Indebtedness and was 81 arrears 10 its
sinking fund after June T. Uses and was
tnaebfaa TO its laharsrs employees ART 9th
ers r'pon learning these facts tho bond
holders formed n hondholders' committee.
and, being about to apply 10 the court for
the appointment Of receiver. requested
Drvsnt 10 act as such. He thareUpon r.
signed AS president and was appointed ~
ce{ver At ;he time 81 his appointment he
gann3 the comnauy was indebted 10
It's miners and iaborcrs FOR services fer
several months preceding his appointment
ss receiver and the afa-rs 81 the corpora
zion involved IN great financial and ntisi-
ness enhancement The Ahcrcrs owing
to the extreme general labor and Industrial
aepre-,siof. were in distress. and sss-h being
the case. the court made its orders -
whs-ll reference - made. directing me ~
cssVsr 20 continue the operation of the cor
fssrat{an. ard after paving ;h~ current ex-
pensas. 10 apply any proceeds iirSt - The
naVrn.nt u the laboTers ana employees
wht.h. the receiver saws. ne has beer doing
Ia order TO enable him 10 carry oH the b5si-
mess = has been necessary for him 70 keep
:, r~pair the tools machinery. etc. con
ft.s>sed with the mine. ara tnst after pay
ina, these expenses aui ether charges sr-
,it.ntal 20 the or@-r alton Of the properties