A Receivership Sale Rewires Seattle's Street Railway

The reorganization agreement for the Rainier Power Railway Company has been signed by the holders of 261 of the first-mortgage bonds now outstanding. The agreement is conditioned that the street railway, mill and light plant be exposed to sale by the receiver under the petition to that effect filed in the United States circuit court December 24, 1894. In case the road is purchased by the bondholders, the agreement provides that the new corporation shall be called the Third Street Suburban Railway Company, with seven trustees, and have a capital stock of $100,000, divided into 1,000 shares of $100 each.

The details of the reorganization are placed in the hands of a committee of three of the bondholders—Angus Mackintosh, A. M. Brookes and Frederick Bailsman. In case of vacancy in the committee, Thomas Boyd, W. J. Grambe and W. Hammond Wright shall succeed to membership in the order named. The capital stock of the new company is to be subscribed by the committee in its representative capacity, and is to be paid for in full by a conveyance to the new company of the assets of the old.

The agreement provides that in case Mrs. L. T. Denny, John B. Denny, D. T. Denny and D. Thomas Denny, or the assignee of their claims, agree to the sale and reorganization, the committee shall transfer one share of stock to each of the seven trustees. The remainder of the stock shall be transferred to Angus Mackintosh as a stock trustee, to be held by him in trust for Louisa Denny. The stock trustee shall give receipts for the shares so deposited, and these receipts the committee shall distribute among the bondholders. During three years from the date of the receipts the stock trustee shall vote the number of shares mentioned in the receipt according to the directions of the holder of each, except that he cannot vote for a sale of any of the mill and light plant or for a lease of the street railway exceeding three years from the date of the receipts; nor shall the railway be sold or leased for a longer time than three years without the consent of all the trustees. The stock trustee is also required at the first annual meeting of the stockholders, and regularly thereafter, to elect such two of the new company's seven trustees as Louisa Denny shall nominate. After three years the trustee shall deliver to Louisa Denny the stock held in trust by him, in case the bonds are redeemed by the Dennys.

The Northwest General Electric Company, as assignee of a judgment in favor of A. P. Fuller against the Rainier Power & Railway Company and D. T. Denny for $11,098, rendered October 1, 1893, less realized by sale of bonds, also signs the agreement, by S. Z. Mitchell, manager of the Coast district. By a supplemental agreement, signed by all the parties, the Northwest General Electric Company waives all priority it might assert in respect to a judgment in favor of A. P. Fuller for $6,125.53, rendered September 27, 1893, and consents to a pro rata distribution as between the judgment and all other claims entitled to share in such distribution of any assets of the Rainier Power Railway Company. The supplemental agreement also provides that the electric company shall be entitled to the number of bonds of the new issue to which the face amount of the balance due on the $1,000 judgment entitles it.

The case is entitled A. P. Fuller vs. the Rainier Power Railway Company and the Union Trust Company, of New York, and the sale will take place at the King county courthouse door tomorrow, under the direction of Eben Smith, United States master in chancery. The terms are that the property shall be sold in one parcel as an entirety, for cash, to be paid at time of sale. The complainant or any of the parties in the case may become purchaser, and the master in chancery will accept up to their amount, $15,000 with interest, the receiver's certificates heretofore issued by him in lieu of cash, and in case sufficient is not bid to defray the receiver's certificates, the purchaser takes subject to the lien of the certificates.