The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-01-12
City Obtains Release of Spring
Hill Water Go. Judgment.
ln,cATIon is COMPROMISED.
atnekholdeys Arrange fer Payment
lpal Water system-Jac0b Fwrsh
Advances Money tn the Mortgage
Very Awkward Situation.
me city Q, Seattle just rs.szs - richer

me city o. Seattle - Just Ess ~ - richer
ty reason OF an ORDER signed by Judge
Moore Of the superior court yes
ferfzy IN TIE case Of the city
ssssnSt the Spring Hi water COMPANY
A. the result OF the order all sas lit-sa-
ton into which the city was nlgnga1 iaz
fwo years ago ny Ire failure u ths wI+sr
company - pay on 20 o,a mortgage upon
The plant sold 10 the city tn 1881. Is DISMISS
a ard the city now owns Gs water system
free Of all eneumbrance.
The settlement 81 tna litigation was
trouga, about principally through negofsa-
Tors between the holders % the norfgag.
and the bonds IL secured ard JaeoI Furtn,
peeEdent 81 the Puget Sound National
Bank ard one Of the stockholders Of the
Spring HiH Water Company. from whom
the city wss attempting 10 enforce pay
nsnt os the mortgage 1t VIII re remefn-
bss~d tina. in the fen Of 1886 the startling
discovery was made by the city
tn. tie bonds Ct the long de-
funct water company had never
been pad and that the bonsfhGders
would look TO the city for payment. mas
much a. the debt was secured by mortgage
evon the city's water plant, formerly the
property OF tae water company A few
weeks later the bonds fell due and fay-
nseaf vas formally demanded of IN. city
and refused. A foreclosure ailit was at once
water company. the city az owner OF the
niSrtxaged property being also made n par
~ defendant IL the case
To The foreclosure suit the city had no
iagai defense. i'g rediess being by suit
against the water company and It's stock
holders for failure 10 convey a clear tile
70 the property sold the city. Neyerthe-
-. Attorney John X. Brown. then cor
pcssfion counsel. appeared lis the forsrlos-
IRE Sllt for the cstt ard succeeded in de-
laying final judgment against The city
urtI a month ngo when decree was Al
hE signed b. Judge Jacobs I'm the superior
so1rt establishing the Zen af the mortgage
AGssFkt the city's property for SIS. 32s Is and
a6jndging Il 10 be sold by the sheriff to
sat.sfy the claim.
IN order to gain further time Mr.. Brown.
VINO continued after hs term Of offlce ex-
ured TO look after the city's Interests in
the case. gave notice Of an appeal To the
GpreEne court. In the meantime however
January. 1897, he had Instituted a suit
81 the city against the water company for
TIE appointment or receiver 10 collect
Tie asssfs Of the water company for the
payment Of the ety's claim. II had Also
developed that the reason the bond had nor
ksen redeemed WAS thai the money which
should have been held free for that purpos.
h$d been invested In a mortgage upon tho
Northern hotel property. which wss not
Immediately convertible into cash
Luckily II happened that the sfockhoid-
srs Of the company. among whom were the
First National Bank Of Seattle Schwa-
haeher Sros.. the estate OF Bailey Gatxert
r. c. Holler anu = W. Heller OF San
Francisco. John fearv and Jacob Furth,
were all financially responsible and were
furthermore s;lii indebted - the company
upon unpaid stock subscriptions 70 30 per
cent OF III capt. IA stock OF so coo Iron
these unpaid stock suhecrintiors p =
Trcmpef. whom the superior court appoint
I'd receiver OF the water company brought
sut. One suit. that .axatnss John Leary.
had been reduced 20 Judgment and twelve
others were sun pending when all were
dismissed Yesterday according 10 Judge
xoore'a order. and In pursuance az the
Nrth.
attorney Brown believes that enough
would have heen collected by The receiver
nom the stockholders ~ pay the Judgment
agairst the city. but nevertheless was high
b pleased when the receivers attorney
The attorney for the hon9hoiiers and Mr.
Fur.h informed him that an asrremen,
had been reached whereby all suits would
he dismissed and the city relieved of the
Judgment of foreclosure,
Just what arrangements were made be-
tween Mr. FNlrth and the other scoekhol3-
era OF the water company il not known fur
Tier than that Mr. Furth says the money
due tho hondholderv was advanced and tAr
from Tire other stockholders an security an
assenmont Of their several interests In th,.
Northern hotel mortgage.
II is probable that the stockholders re-
g1raet themselves defsnseiexs against the
suits brought by the receiver ard arranged
FOR the compromlse - the whole litigation
In order 10 avoid costs,
Judge Moore in his order disrnlss,fg the
receivershlp suit provides that Receiver
Temper shah receive 81. ss1 f5r his services
HI attorney. G. S. Preston, IL awarded
Geo