The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-05-21

The plans ~ the Reorganization com
raitsee O. the Oregon Improvement Com
pany for the Improvement OF the COM
I pany's property including the standard
king OF the Columbia & Puget Sound
Railroad. received a temporary setback
/ In the Federal court yesterday when the
hearing on the petition Of Receiver smith
for the expenditure OK slo..e was post
I pos.ed by Judge Hansord The matter
was 10 be heard yesterday. but when the
hour arrived counsel representing the
Farmers Loan & Trust Company. the
trustee under the mortgage. appeared IN
court and asked that he hearing be de-
ferred so as TO afford the attorneys rep
resenting the company and a minority in
ferest In the bonds opportunity 10 nie
objections.
Judge Hartford granted the delay. and
the matter went over. ". w Cotton.
the Portland attorney, who represents the
company. arrived here last night. and. il
is understood. viii file objections 10 the
proposed expenditure of the money today
IL Is understood that in taking the stand OF
opposition 10 the plans for the Improve
ment OF the property the company Is act
ing in concert with II not for. minority
OF the bondhclders represented by the
Amey committee. Associated with the
Amey committee is what Is known as the
dent OF the company.
It Is believed that the delay 10 Receiver
Smiths plans Is only temporary and Is
made To enable all the interests In the
property TO be heard in the matter. Be
sides the projected broadening OF tie
road plans for the Improvement OF the
property contemplate expending a large
amount OF money in the. West. in which
Seattle will derive a large benefit. I'm
tel IL 81
nature Oh the water front are part of the
plans of the bondholGers.
To the policy OF Improvement, as out
lined by Receiver Smith in the Post-ln-
telligeneer. the old company and COM
mittee which represents less than NTH
OF the first mortgage bonds and less than
one-half of the eonsnis. have always OBJ
jected. These parties have been opposed
10 the expenditure of money for the bene-
fit OF the property. for reasons not given.
So far their objections have merely been
that the expenditure was unnecessary.
On the other hand. the majority of the
hondhoiders. represented by the commit
tee OF which ]. A. Waterbury is chair
man, has approved of the plans for the
improvement of the property. and has
consented thereto. There appears TO he
no doubt that the plans OF the reorganlza-
ton committee will ultimately be carried
out.
Attorney Cotton who will make the fight
In the Federal court tomorrow against the
proposed standardizing of the road was
seen at the Rainier-Grand last night by a
representative of the Post-Inteliigencer.
Mr. Cotton in the course of short CONVEX
sation, did not make clear the line of action
which he will follow as the representative
of the Amey committee of bondhoiders
However the impression gained was that
Mr.. Cotton has something up his sleeve, -
SO to speak. and will make ii known when
the proper time comes. Evidently. the
holders of the junior securities are inter-
ested In the contest which will be formally
begun In the Federal court tomorrow an
which may Yet involve the whole plan of
reorganization. IL is stated on behalf of
those opposed to Receiver Smiths petition
that expenditures aggregating $500 600 are
contemplated for the immediate future
This expenditure Is to be provided for by
the issuance of receivers certificates. OBJ
viously. these will have TO be taken care of
when the reorga nization Ia completed. and
IL IS to their issuance that objection is
made by the minority represented by the
Amey committee.
In some respects the situation resembles
the fight between the various interests in
the Northern Pacific when that company
was undergoing the process OF reorganiza-
ton last summer. Developments will be
awaited with interest as Seattle is deeply
interested in the plans of the reorganiza-
ton committee. The Waterbury commit
tees position has been strongly fortified by
the purchase OF large blocks of first mort
gage bonds. In whatever way the contro-
versy ends. the future operations OF the
company will be affected and possibly the
control of the property for time will be
involved