The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-07-25

An order just signed by Judge Hanford.
OF the Federal court. permitting A. w.
Frater. as successor of Charles III. Baker,
receiver OF the Merchants National bank
OF this city. TO settle with David B. Dem
ton, a Judgment creditor Of the bank. BY
satisfaction Of the stock liability Of An
gss Macxintosh, IT'S former president,
marks the conclusion OF one os the hardest
fought legal cases IN the local courts and
one that. in variety Of proceedings. has
frequently been recorded in the Post-ln-
felligsacer columns during the past three
years.
The records OF the various suits show
that. shortly after the failure of the bank.
Macintosh presented claim TO Receiver
Baker for about $4,000 ON account of a
loan made by him TO the bank. more than
q year before, Of s2sool-face value OF Sid
ney Sewer Pipe Company bonds which had
been used as collateral by the bank In
New York and not returned 10 him.
The receiver Immediately rejected the
claim. the ground of objection apparently
being that the bonds were worthless Mack
intosh then assigned the claim 10 David
himself under a stock liability TO the bank
of $4,000. Denton brought suit on the
claim by serving the papers on the he, de- y,
ware. since deceased. but without making
Receiver Baker a party. A Judgment was
rendered by default in the state court for
After the rendering OF the judgment
nothing seems to have been done by either
party for several months. at the end or
which time Denton. through his attorney,
Federal court TO make the receiver accept
the Judgment, the latter resisting on the
ground that he had not been party to the
Judgment and was not bound by IL. This
case went against Denton in the lower
court but was appealed by him to the
United States circuit court OF appeals with
zass sFst1r ttuR VT
Baker soon appeared with a bin of his own
In the Federal court to set the judgment
aside. Some time afterward Baker applied
and allow defense, but this was denied by
Judge Benson. whose decision was affirmed
on appeal 10 the state Supreme court on the
ground that the application was too late.
In the Federal court. however. the judy
ment was set aside on the receivers bill
last mentioned, so II was Denton's turn TO
appeal This he did again to the circuit
court OF appeals and successfully that
court holding that the claim though orig
inaily worthless and properly rejected. had
become valid by the delays in attacking
IL when reduced to Judgment and by the
decision of the state supreme court II
was therefore adtudged In the opinion by
Circuit Judge Ross TO be valid claim
against the assets In the hands of the
receiver.
The conclusion Of nearly four years OF
litigation Is that Macintosh now secures
payment OF his $4,000 stock liability by
the s2s,ooo OF Sidney Sewer Pipe bonds
The receiver had previously taken juig-
ment against Macintosh on the stock fa-
biiity In California and Washington and
these judgments he cancels. The paners
disclose claim Of feae by Bausman. KEEL
leher a. Emery, OF 4.ooo. but by which
party this has been adjusted does not
appear.
The Merchants National closed It's door.
In May. 1886, being the only national bank
that ever failed In this city. For come
time before the failure II did declining
business but sprne years before it was in
excellent standing.