Railroad Receivership Sparks Seattle Anxiety
A multi-thousand dollar suit against the Seattle, Lake Shore & Eastern railroad leaves business owners fearing insolvency.
The story, cleaned up
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Considerable excitement was created at Seattle upon the news that the Seattle, Lake Shore & Eastern railroad was in the hands of a receiver. Contractors Earle & McCloud, tired of broken promises regarding payment for services, brought suit against the road before Judge Hanford for a claim of $87,000. They alleged the company was insolvent and intended to defraud creditors. Judge Hanford appointed W. H. Ledgerwood, a former clerk, as receiver. However, President McDonald and counsel Judge Burke immediately appealed, posting a $50,000 bond, which led to the dissolution of the receivership. The case remains in court.
“Their affidavits state that the company is insolvent and that it is their intention to sell the property and defraud their creditors.”
Public anxiety over the solvency of major regional infrastructure projects remains a common civic anxiety in the Pacific Northwest, mirroring the precarious nature of early railroad expansion in Washington Territory.
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