They Paid for Everett Lots and Found a Hidden Blanket Mortgage

In the case of James P. Oberteuffer vs. the Land and River Improvement Company of Everett to recover about $1,000 paid by him and others, who have assigned their claims to him on account of property purchased in Everett from the defendant, affidavits on behalf of the plaintiff in answer to those in support of a motion to open default and judgment were served yesterday. The affidavits alleged that verbal stipulations for delay had been entered into, and that R. C. Elliott and G. M. Nelson, trustee and president of the company, had been absent much of the time since the beginning of the suit. These are the reasons given for not putting in a defense. The plaintiff's affidavits set forth that the company agreed to settle until it was in a position to avoid further suits of a similar character, when it denied the authority of certain agents who had been acting for it, refused to settle and applied to the court for leave to answer after the expiration of the legal term.

The complaint alleged that the Land and River Improvement Company on April 7, 1890, agreed with Oberteuffer and his assignees, Mrs. Mary C. Hill, A. W. Coleman and Charles G. Scott, to sell them certain lots in Everett at $500 a lot on payment of one-third cash and balance in two annual installments, and to give a deed on receiving the last installment. The installments for 1893 were not paid, but no steps were taken by the company to forfeit the contracts. In September, 1893, the company placed the contracts in the hands of George H. Robinson for collection, and he turned them over to Pratt & Riddle. In the cases of Oberteuffer and Coleman, it is alleged Pratt & Riddle offered on behalf of the company to give a deed on payment of back installments and interest, and to take a mortgage for the installments not yet due. The plaintiff alleges that he accepted this offer and tendered the required amounts, but that the company was unable to give a deed because the property in question was covered by a blanket mortgage executed before the contracts were made by Jesse B. Hawley and wife to Charles McDonald to secure $15,000, and that the land was subsequently sold by Hawley to the company subject to this mortgage, and by it to various purchasers under contracts making no mention of the mortgage. As soon afterwards as any officer of the company could be found in the state, R. C. Elliott, a trustee, was served and suit commenced. In the meantime the mortgagee began foreclosure proceedings, and the company, it is alleged, agreed to settle the claims as soon as matters could be arranged with the mortgagee. In the cases of Scott and Mrs. Hill, the third installment was due at the time the tender of payment was made, but the company was unable to furnish deeds on account of the pre-existing mortgage.