A Prideful Property Shuffle Among Seattle's McNaught Brothers

The public records some time since showed that the McNaughts, Joseph and James, had transferred all their property in Seattle, except their homesteads, to Governor Ferry for a consideration of something like $130,000, and a day or two afterward Governor Ferry mortgaged the property for $30,000. This was a private matter, but it caused so much comment and speculation that it became a matter of public interest. A reporter learned that the brothers, either through stock speculation or other causes, had overdrawn their deposits in the Seattle banks to the amount of something like $30,000, and when their paper became due they were compelled to meet it. The brothers were perfectly solvent, holding property between them worth probably $110,000; but Joseph had recently built and furnished a fine house and James had one under way which, when completed and furnished, would cost in the neighborhood of $75,000. Their ready cash was exhausted, and instead of borrowing money on their realty, as they could easily have done, their foolish pride prompted them to make a big play. Their idea was to make a deed to Governor Ferry of their property and let him give the mortgage, so that it would look as though the McNaughts had made a large sale and held a mortgage for a portion of the purchase price. After the property was transferred, Governor Ferry applied to Balfour, Guthrie & Co. of San Francisco for a loan of $30,000. A member of that firm had the property appraised and found its real value to be about $75,000. This was considered ample security, and the money was forthcoming on the signing of a note by the McNaught brothers together with a mortgage on the property transferred to Governor Ferry. So the object was accomplished. The banks got their money, and everything was serene.