The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-05-04
BAILEY'S TACOMA CAREER.


TACOMA. May s-"col." William
i Bailey; arrested IN New York for alleged
who could succeed within three years in
issuing two sets Of bonds on an eieven-mi.e
suburban railroad purchased for $4,000.
receivers sale and - expected TO bring
about $1,000. which IS the approxi,n ale
value Of its 500 tons OF forty-ponnd steel
rails a $50 per ton. II Is expected these
rails viii be taken up for junk. thus end
ing the great railroad scheme which Bailey
mas been trying to finance since 1892. This
railroad extends from the south end of
Tacoma to Lake park on Spanaway lake.
1t was bull, during booms days by the
Lake Park Land. Railway & Improvement
Company 10 boom their towns!,e at Lake
Park and enable the company 10 sell lots
therA
In $50. presiden. G. l.. Curtis. OF this
company. went TO New York 70 raise
money. He there met Promoter Bailey.
who offered to furnish all the money want
ed. Bailey got Curtis and his associates
no ssdsTan ane S COMPANY masins Bailey
| Bailey put 30aD. GO mortgage on the
road. issuing bonds and stock which were
p.edSssd In various -, Ways for money. waieh
consem plated improvements. prior
mortgage existed for 900 10 the Wash
ing1on National bank. which was fore
closed in 1894 by the receiver Of the bank
named. thus shutting cut holders of the
bonds mentioned. While the foreclosure
proceeding, We're pending Bailey made ar
rangements with Comptroller OF the Cur
rency Eckies 10 purchase the banks judg-
ment for s.o1. paying $50 thereon. This
money was secured by pledging 2 large
portion OF the first bond issue. The re-
mainder Of The purchase money not
paid and the road was sold under the
hanks judgment. Rni.ey securing II in De-
cenbar. 1N. for $sohA.
He reorganIzei the company again es
the Tacoma and Columbia River railway
and filed mortgage under which he was
Exat
cover the old road s2saoso 10 build the Ia
coma terminals ard so per mile for new
lines. Bailey announced that he would ex-
tend the road at once through rich tim
her and coal helf. thence crossing the cas-
cade mountains "a The Dailes on the CO.
iumh.a RIVER. }s5 miles from Tacoma. 4
half million dollars Gf this bond issue were
delivered Ia bailey in 1SG His financial
troubles had then only commenced These
bonds were hawked about New York and
sold AZ various prices far below par value.
Paul Morton. Of 90 Wall street. and r IL
Garnan. brokers. were made respectively
vice president and treasurer OF the com
pany. Bailey claimed later that these men
hypo;hecated bonds I'm New York and
Boston, sending him only small portion
~ the proceeds. In April and May, ls9s.
Morton and Garman srdeavored 20 have
Railey resign. stating that IN that event
they could float the bonds successfully.
Rsiley went TO New York where he un-
earthed an alleged conspiracy In oust him
and secure control Of the road. BY that
control ~ a majority - hts bonds though
ne spent long time afferwar5 cafsavor
nE ~ do Morton ana Bailey were
asked 30 resign from, The directorate sev-
.rul prominent Tacosnans succeeded them.
NV the time local creditors were becoming
anxious and gstttouef the superior court
Tor the srpciutrnent az n receiver. Bailey
kent promising that BE e9on would nave
plenty ~ money IN the treasury. en- the
strength K whtch the appointment e a
receiver was deferred for whole year.
T-xss IA
faultesf stsi last monsh Stuart Rice was
appointed receiver ~ Judge HSuforS. -
the Federal eaur'- on petition q me Con"
tsrr-tst Tfasf Company. @f New Work.
trustee under The rsa-sgaga. ON vaFiaus
bnna Issues $erss ring Hike si1ssss xss
rassess ny BAILEY sn4 others connected ~tta
ms. Pre- ts~t t4f sh3s about Sfso vas spent
or fhe roas3hst end tbs same sum es
hr4sx.a Resides shis four niles - road
ss4t were graded and half mile 81 Tew track
Laid Tire roas "a not well located. having
h,ees, Nsgssf where sAe largest subsidies xsre
ose~e<. Its grades are heavy. The claims
outstanding comprises s.. no far back taxes
since isss eni claims sor material. sap
pies ara labor amounting 10 S.s" iss
er,a<s receipts f0y the last six years ha*e
AYERS gea about 81 Per &ay-
fagisv ssacz,ess3ed year ago n securing
a sruchsse s@r extensive terminal facilities
m Tacoma tide aasS Tass franchise -
considered wovta halt a 1aills0n dollars ess;
viii Ssson sxg@rn fnr r1N-eoroFGztSe Win
!ss terms, Azaeag nfa4rs In sass1s EaiieT
&Faks eaf1ssN - s. r. = t~t't ~ - -. -
n wan invested ssSts. Fu&icr. Bower
tor 4 NesSnmore together Ntth ether Saw
ynrs ard nsesfe Island s7rr we're hreuESs
,syt Nefe a. various times sns@-es sc
fsy~>aerty In an sfsf5Ass, AsS$rso claims
rhas fszkV <Fsc@ sold Asr1 Is wotS s0r fsks
claiming SIS rsaker wsS perfectly good
NAer ATSSxrerF came - collect t.7s maker
nf the nate declared s1si Bsl&sy krew s1w
xssse 10 ~ worthless an4 Aass pryssss sci
is AatAcw 10 divide Ire pfsscs.ss4s alta hsrss
BAILEY claimed Aer& 80 ia - SstsSt ser
sN-,Nrs& railroads IN M.ss9Zsx7. Arkansas.
Texas, Georgia ART f~.nytaA. Ssgsssss
sports have zeAcasss here ;hGs . trail -
aeAtx mas sefs behind Wherever BE cssr-