The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-01-26
Other Creditors Of the s. G. & l.
Go. to Have Claims Paid.
JUDGE W. H. MooRe's DECISION
decree Of Foreclosure In Case Of
fhe Manhattan Trust Company
Against the seattle Coal and Iron
Company Set Aside by Superior
Gourt-Ctnfms AxgreEatfng &s5,-
900 VIII Now Have to BE Paid.

York. after HRnJrG the C.nrE Ef"a3Nofs
OF the Seattle Coal and Iron Company in
the courts for three years. was finally
turned down yesterday. as far as tie su-
perior court is concerned. by Judge VIII
lam H. Moore. vino handed down de-
clsion decidedly IN favor OF the other cred
stors. The fight tina. the trust company
has been making since the Seattle Coal
and Iron Company went into the hands of
q receiver was to have its mslIion-doilar
mortgage, covering the property OF the
company. declared a first lien and pre-
ferred TO the claims Of the other creditors
The mortgage was given to the trust COM
pany to secure the holders OF one thousand
81 900 bonds.
When the coal company defsulted in the
payment OF interest and bonds the trust
company began foreclosure proceedings.
and on December - iss. the superior court
signed decree of foreclosure. Ii was 20
have this decree set aside that other cred
itors OF the coal company. representing
claims to the amount OF about So. GO, came
into court AS told In the Post-Inteiligen-
Ger yesterday, the case came UP before
-aDost cit TIC obJttktci VI SaFoS AiSN-
iiors. They claimed. among other things
tina, the identity of the stockholders and
boiidholdars was the same, and that the
manner in which the trust company had
proceeded ia the foreclosure case a
fraud on the general creditors In that il
shut out their claims. II WAS further their
contention that all general creditors who
y,n+ IN, A. xxsfsh heir
claims for the purpose Of establishing
them as preferred should. as a matter OF
fact. receive the same recognition as five
OF the creditors who went before the higher
court and established themselves as pre-
eerred creditors.
Following the supreme Court.
The testimony In the case was heard by
Judge Moore before he went East and the
arguments were commenced last Monday.
Harold Preston spoke in behalf of the
creditors. Yesterday +. c. Hughes and
John II. Alien made the principal argu-
menss in behalf of the trust company as
trustees The closing argument in behalf
~ the creditors was made by Judge STRAIT
ton.
Judge Moore handed down his decision
as soon as the argument ended although it
had been generally supposed that he would
take The case under adviscment. Judge
Moore stated that he understood that the
case would be appealed whichever way he
decided 1t. and that he had made the opin-
ion and decree as definite as possible. so
that There might be no chance of the case
rehearing. He said he desired that the
matter be definitely settled when taken
before the supreme court on the appeal
frsm his decision. The opinion he handed
down Is based. IL r. said. upon the supreme
courts decision of June T. 1897, which held
that the i've creditors who appealed from
the superior courts decision in favor Of
tAe trust company held claims which were
to be settled before the trust eempany.s
claims. These creditors were Schwabacher
Bros. & co. Schwabacher Hardware Com
pany Boston National hank. pltteuhoeffer.
Hoss < 90. and Murphy, Grant & Co.
Judge Moores decision Is against tbs. Man
haitian Trust Company in every particular.
while The other creditors are placed in the
same class as the i've WHO went before The
supreme court.
The Courts Remarks
Judge Moore in deciding the well-known
case said:
This IS clearly 4 case in Insolvency a
proceeding In rem. In such a proceeding
decision of the status OF a narfv ar n
shins al one time - decision for all time
througheut The proceeding. This Is sub
stanfsauy decided IN The case of Thopan-
son ". Huron Lumber COMPANY In an
Washington. Every party here has claimed
an esteppel OF every kird against every
other party ] am 81 the opinion that the
decision OF tbc supreme court fra this cas-
upon the appeal Of the five petitioners be-