Creditors Circle a Seattle Hotel as an Heir Fights a Forced Sale

The executor of the estate of Harmon has filed a petition of creditors for a [sale] of real estate, saying that the rental is sufficient to pay the insurance, interest on a mortgage and current expenses of administration, but not sufficient to pay the creditors. Under the will, the administrator has power to mortgage the estate in order to raise money, and he has been endeavoring to pay the creditors in that way. Up to the present time he has been unable to collect a judgment against the Benton estate, though he has taken diligent steps to do so. The judgment, he is informed, is the only claim against the Benton estate, valued at $[amount unclear], and as the administrator of that estate has been ordered to sell property and pay the claim, the probabilities are that in six weeks the full amount of the judgment can be collected in cash.

The executor states that if time be given him to collect the judgment, he can in the meantime raise nearly enough in addition by a mortgage [to pay] all the claims against the Harmon estate, and therefore he does not think a forced sale necessary or advisable. Since June 2, 1894, he has managed the estate to the best of his ability, but has received no compensation whatever, and notwithstanding he is a beneficiary under the will he has as yet received no part of his bequest. Personally it would be for his best interest to have the estate sold at once, but it would not be best for all the parties. He believes the estate is worth at least $[amount unclear] over and above all claims and debts, but that if it were sold under forced sale the entire property would be sacrificed.

There was also filed the return of Annie L. Schlumpf to the order to show cause, praying that the court order the judgment against the Benton estate to be assigned to some person to be named by the court for the benefit of all the creditors. Mrs. Schlumpf and her sister, Charlotte Fischer, are the residuary legatees and devisees by the will, which provides that they shall share the estate equally, with the exception of $1,000 in [bequests], and that there is devised to the former as her sole property a lot on [street name unclear]. The estate is appraised at $12[0],000, which is said to be less than its real cash value. The only encumbrance is a mortgage for $13,000 upon the lots and building at the corner of Commercial and Main streets, known as the New England hotel. The mortgage has two years to run, and the hotel property alone is valued at $15,000. The rental value in good times is $1,000 per month, and the rent would shortly pay all the debts, exclusive of the mortgage, which amounts to less than $7,000. The value of the estate over all incumbrances exceeds $[amount unclear], and by reason of the location of all property its prospective value is very [high].

Mrs. Schlumpf says that for the past twenty days she has been endeavoring out of her own resources to raise money to pay off the incumbrance, and is willing, with her sister, who is now absent from the state, to join the executor in any instrument necessary to satisfy the claims. The property cannot be sold except at an enormous sacrifice, and she believes a portion of the creditors are instigating the petition for the purpose of destroying the estate and obtaining valuable property at a sacrifice. She asks that the petition be continued sixty days. The court allowed the executor two months in which to settle the claims.