The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-08-08

An important Sec.sscG has recently been
rendered tn .ha case Of Lucy s. Hopkins
~. the Satsop Railroad Company ct al.
In TIE superior court o. Mason county.
In August fsss. the railroad company
rnade lis mortgage or deed OF .rus. 70 A.
II Anderson "a trustee for she purpose
o. securing bends issued ani 70 he .ssuea
by the company 70 the amount Of NsN9
per mile Of les road then or thereafter 10
be constructed. Mrs. Hopkins cacarne the
owner Of Eve OF these bonds and in iris
action sought TO foreciose the mortgage
THAI she might recover upon her bonds
The satsop Railway Company IN 1871 con-
reyed its property 20 the Washington
Southern Railway Company, the said
grantees assuming and agreeing to nay all
TIE indebtedness OF the Satsop Railway
Company. In May. 1894. the Bank Of Brit
tsA Columbia commenced an action against
the Washington Southern Railway Com
pany TO recover for money loaned in which
ere Isaac pobson was appointed receiver
Prior 10 this the Washington Southern
Railway Company had entered into a COR
tract with Henry Baich for the con-
structfor o. q cutoff about ave miles In
length, which was intended 10 lower the
grade and shorten the lire OF the railroad.
In the action brought by the Bank OF
British Columbia Dobson. as receiver. was
authorized 20 Issue receivers certificates
to the extent Of IS 900 for the purpose OF
dsfraying the expense IN the construction
or the said c1it-oH. and also for other pur-
posas. Mrs. HOPKINS was not made a
party to this action. and never had any
notice Of the tendency thereof The First
National bank and the National Bank Of
Commerce were the holders OF a portion
or the bonds of the sa me series as those
held BY Mrs. Hopkins They consented
10 the issue OF the receivers certificates,
and at the sale OF the property which was
ordered by the court. J. D. Lowman bid
the same In. In the interest Of said banks
and as part of the purchase price ten
dered a portion Of the bonds held by them
The purchaser and others interested then
undertook scheme Of Reorganization. to
which Mrs. Hopkins was not made
party. and when her action was brought,
defended the same upon the ground that
she had been cut of by the suit of the
Bank OF British Columbia and by this re-
organization agreement. and further de-
Tense was iuterposed that Mrs. Hopkins
was represented at The sale by Ralph. her
son. and she was thereby bound by what
ever he Gid in the premises
The court In passing upon the case
finds that Ralph Hopkins was not acting
as his mothers agent at all. The court
further says: II have no doubt but that
receiver may under orders OF the court
incur expenses that Will take precedence
their day in court before this can be
ono. Further that ali matters In rela-
don thereto may be presented at the
time OF the attempted fo. eclosure. and il
at that time 1t appears that what was
done was proper 1t will be allowed, but
that the court must look at 1t from all
the circumstances at the time IL was
brought 10 its attention. and not shut its
eyes 10 the fact of the result of the i'm
provement- IL the receiver does the work
without notice to interested parties, tie
court record is open TO inspection. and
the purchasers OF certificates must take
them with notice that a showing may
hereafter be made which win require a
change In their relation to parties with
out notice. The court further holds that
parties cannot be improved out of their
property. and that there Is no justice in
the improving of a persons property
without his knowledge or consent, and
then saying after the improvement is
made that the whole property Will not
more than pay for the improvements.
and that the party is benefited thereby.
The purchaser mast take. subject to a
showing. if any be made. that the parties
are no; SO benefited II they do not make
them parties to the suit, who should be
and ought in justice TO be heard
In this case the court further says that
Mrs. Hopkins appears to have been In
tentionally omitted for fear of such show
Ing as she might have made II she had
known of the action that was being taken.
Another branch OF the case. the court
saws. seems TO him ineQu:table and I'M
Just viz: That OF permitting ten OF the
old bonds to be paid in fan and nothing
paid on the others. McCutcheon & Gill;
en- conducted the case for Mrs. Hopkins.
The amount Of the recovery is about
$4,000