The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-05-27
IN A RECEIVERS HANDS
A Suit Brought Against the
Butte Water Company.
CARROLL is APPOINTED
First Steps Toward the Reorganization
of the Concern Increase of Capt.
tai and Enlargement of the
Water Supply.

celVer, on the application of the Mas
sachusetts Loan and Trust company,
which has brought an action in the
United States court in Butte to fore
close mortgage upon which the
water company defaulted. Judge
Knowles at Missoula on Thursday ap-
pointed Eugene Carroll as receiver
Mr.. Carroll is the present superinten-
dent of the water company.
The foreclosure proceedings and the
appointment of the receiver are the
first steps toward a reorganization of
the company, an increase of. it's CAPT
tai and a great enlargement of the
water supply for Butte. According to
reports it is contemplated, by those in
terested in the reorganization of the
company, to bring water from the Big
Hole river into Butte and give this city
the best supply of the purest water
obtainable, and to that end work is al
ready being done for pumping sta
ton on the Big Hole, a short distance
below the dam and plant of the Mon
tana Power company.
The papers in the case, the title of
which is the Massachusetts Loan and
Trust company, complainant, VS..
Butte City Water company, defend
| ant" were filed in the United States
court on Wednesday, and John +.
Forbis, representing the trust company,
and William H. Dewitt for the water
company, on Wednesday night took
them to Mssoula and presented them
to Judge Knowles on Thursday.
The complaint alleges that on Aug.
l, 1891, the water company executed
hot,
terms promised to pay to the plaintiff,
as trustee, $1,000 on each bond on Aug.
l, 1921, with interest at per cent on
the LIST days of February and August
of each year. All of the 1000 bonds is
sued were from time to time issued and
delivered and are now outstanding in
the hands of holders and are held by
large number of persons who have be-
come owners thereof in good faith.
For the purpose of better securing the
payment of the bonds and interest, the
defendant conveyed all it's property to
the plaintiff in trust. By the terms of
the mortgage the defendant expressly
agreed that on the LIST of February, 1897,
and semi annually thereafter until the
maturity of the bonds, it would set
apart a sinking fund for the purpose of
| redemption of the bonds in the sum of
| $1,000, which sum it agreed to pay to
| the plaintiff and that the latter should
| from time to time, with the proceeds
| of the sinking fund, purchase bonds of
| the issue at a price not exceeding 10
per cent over and above the par value
| thereof and accrued interest. The in
| terest on the bonds became due and
payable on the LIST of February and the
| LIST of August in each year. and it was
provided that in case default should
| be made in the payment of the interest
on any of the bonds and continue for
a narjn6 nf of
should be made in any of the require
ments of the mortgage, it should be-
come the duty to declare the principal
of the bonds due and payable and to
| enter upon the property of the defend
| ant and conduct the business and be
empowered to sell the property and dis
| tribute the proceeds among the bond
holders. 1t is alleged that the company
has defaulted in the payment of the
| interest and has failed to provide a
sinking fund. Since Aug. l, 1897, the
| company has defaulted in the payment
of interest and has paid only half the
| amount of each coupon, giving prom
| issory note for the other half, which
method of payment has been accepted
| by only portion of the bondholders.
| 1t is further alleged that the property
of the company is inadequate for the
| payment of the bonds and interest and
| unless placed under the control of a
receiver II Will TO
| in value. The court is therefore asked
| to appoint temporary receiver and is
| sue an order to all parties interested to
| appear and show cause why one or
more receivers should not be appointed
| to take possession of the property dur
! ing the tendency of the suit. A pre-
| liminary injunction was also asked for
| to restrain the defendant and its agents
| from disposing of any of the property.
| An answer making general admission
| of the allegations in the bill of COM
| plant was filed at the same time by
| the water company. The attorneys for
| the latter are Perkins and Stone Of
| Boston and w. II. Dewitt of Butte.
Upon reading the allegations of the
bill Judge Knowles made the following
| order:
Upon reading and considering the
verified bill of complaint in this cause,
together with the answer of the de-
| PENDANT, Butte City Water company,
| and being fully advised in the prem
| ises, on motion of counsel for the COM
| plainant, the defendant appearing by
| it's counsel, w. H. Dewitt, 1t is or
| dered that Eugene Carroll be and he
| is hereby appointed temporary re-
ceiver of this court of all and singular
the property, assets, rights and fran
chises of the Butte City Water COM
| pany described in said bill of COM
! plant herein, and also of all property
| acquired by the said Butte City Water
company since the 5th day of August,
| 1891, wherever situated, including all
bitches, fumes, pipes, water and water
| rights real estate and personal prop
| erty and franchises of the said Butte
| City Water company, held or owned.
| possessed or controlled by the said
water company together with all the
| property in connection Herewith, and
| all moneys, chooses in actions, credits,
| leases held interests. operating con-
| tracts and other assets of every kind
| and all other property, real. personal
| and mixed, held or possessed by it: to
nave and TO hold the same as the of
| hcer of and under the orders and direc-
! tons of this court
The said receiver is hereby author
| lied and directed to take immediate
| possession of all and singular the prop
erty above described, wherever stu
ated or found, and to continue to oper-
ate the said water company and to
continue systematically and in the
same manner as at b1ISi-