The Second Street Streetcar Line Goes to Foreclosure

The Seattle Consolidated Street Railway Company, operating the Second Street line and its branches, was yesterday sued in the United States circuit court in foreclosure proceedings instituted by the Illinois Trust and Savings Bank of Chicago, as trustee for outstanding bonds issued March 1, 1889. Of the 250 bonds, 200 have been issued; the remaining 50 are still in the bank's vaults as trustee.

Default in payment of coupons under the trust deed was made April 1, 1894, and the bank now asks that the mortgaged property—covering all the holdings of the company—be sold at an early date and without right of redemption, to satisfy the sum due on the bonds.

The Seattle Consolidated Street Railway Company is the successor of the Electric Railway and Power Company, which entered into possession and control of the streetcar lines and branches May 1, 1891. The issue of bonds sued upon was made to the original company. On April 1, 1891, the consolidated company negotiated a new issue of bonds with the Central Trust Company of New York, and delivered therefor a new mortgage of its property. For some time past the bondholders and creditors have been trying to reorganize the road, and if the effort is successful these proceedings will be dropped; if unsuccessful, the Illinois Trust and Savings Bank will push the matter to a determination in court. The mortgage held by the Central Trust Company is, it is claimed, secondary.

Also joined as defendants are Frank L. Waterman, E. Nichols, Annie Sears, Frank Sears, Pratt White, A. P. Fuller, F. T. Blunck, and other judgment creditors who claim an interest in the mortgaged property.