The Anacortes Land Syndicate's Unraveling

The case of Stacey Collins vs. Joseph F. McNaught et al., which has occupied five days in Judge McBride's court, has been concluded. The decision was technically in favor of the plaintiffs, but the equities decided were in the main satisfactory to both sides. The suit involved something like $114,000 worth of property in Anacortes. In February 1890, the McNaught Syndicate was formed to buy an interest in 1,051 acres on Fidalgo Island. The deed to McNaught was absolute on its face and was recorded. The declarations of trust were not acknowledged nor recorded. When the third payment fell due in November 1890, the syndicate was unable to meet it, and in lieu, the members of the syndicate gave their personal notes to Collins and Stacey. On February 19, 1891, the ninety-day notes became due and went to default. On June 16, 1891, the suit which has just terminated was begun. Stacey and Collins sought to enforce their claim on the land and also to secure judgment on the notes, and in addition personal judgment for $114,000 against McNaught. In the meantime, the syndicate members had organized the Fidalgo Land Company and, just forty minutes after the complaint was filed, the deed was put on record conveying all the property to the new land company. Judge McBride found that neither Stacey nor Collins had consented to the new company, and consequently the deed to the company was a nullity.