Bondholders Seize Control of the Lake Shore Road
A New York trust company secures the appointment of a co-receiver for the Seattle, Lake Shore and Eastern Railway, signaling an imminent move toward foreclosure.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
The Union Trust Company of New York, trustee for the bondholders of the Seattle, Lake Shore and Eastern railroad, obtained from Judge Hanford the appointment of John H. Bryant as co-receiver with Thomas R. Brown. The complaint alleges that the railroad defaulted on interest payments due August 1, 1893. The move is a preliminary step toward foreclosure. Brown, who has managed the road during the receivership, was praised by bondholders, though Bryant was brought in specifically to oversee finances. The road's future remains uncertain as it earns little more than operating expenses, and Northern Pacific, which guaranteed the interest, lacks the funds to intervene.
“If the road is not sold under foreclosure it is likely to be reorganized by the bondholders: in fact foreclosure would be only a preliminary to reorganization.”
This reflects the volatile era of 19th-century railroad speculation in the Pacific Northwest. Today's light rail expansions and infrastructure projects still deal with the legacy of these original rail corridors, many of which (like the Burke-Gilman Trail) have transformed from corporate assets into public space.
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