The Streetcar Empire That Ran Out of Track: Griffith's Realty Collapse

An order was filed yesterday discharging H. T. Griffith from the position of receiver of the Griffith Realty and Banking Company. At the same time the creditors of the corporation agreed on the appointment of J. B. Furth, E. W. Ward and W. J. Grambs as trustees, with full power to manage and dispose of the property so transferred in order to pay the debts of the corporation as its affairs are wound up.

The bill of sale includes all the stocks and bonds, bills receivable and personal property, together with furniture of the Griffith house, at the corner of Pine and Second streets, and office buildings on grounds at Fremont, as well as the furniture, desks and fittings of the bank office of the company. Six real estate contracts, on which a total of $5,200 was due, were among the securities for which a bill of sale was given. It also included a note given by D. T. Denny & Sons on the Consolidated Street Railway Company to the amount of a note of the Blaine Electric Light & Power Company for $1,000; an open account with the Seattle Consolidated Railway Company of $1,000, and bonds of the city of Blaine to the face value of $1,000.

An approximate value of about $360,000 is placed on the real estate and securities turned over to the board of trustees, while the liabilities of the Griffith Realty and Banking Company are supposed to be about $125,000.

Much of the property of the corporation is heavily encumbered. The creditors, as well as Mr. Griffith, have fully agreed that it would be the best course to turn over the property to the trustees, who will settle up the affairs of the corporation in a more satisfactory manner than could be done otherwise. It is said there is an understanding that the trustees will appoint Mr. Hannon, who was receiver, secretary and acting manager.

Mr. Griffith, who is now in Guatemala in the interests of the Sound lumber trade, has been a prominent figure in street railway circles in this city and Tacoma for the past six years. He was manager of the old horse car lines on Second and Front streets before the fire, and was mainly instrumental in building the electric lines comprising what is now the Seattle Consolidated Street Railway Company. At the time the horse car lines were changed into electric roads, Mr. Griffith built the Cedar street branch and also the extensions to Fremont and Green Lake. In March, 1893, he sold his share of the stock in the Consolidated road to D. T. Denny & Sons for $130,000, taking personal notes and collateral in the shape of second mortgage bonds. The failure of the Dennys to meet the notes as they came due and the general stringency of the money market caused Mr. Griffith to give mortgages on his real estate holdings, and finally resulted in the appointment of a receiver.

Besides the real estate, for which deeds to the trustees were filed for record Saturday, other property in Whatcom, Clallam, Jefferson and Island counties has also been turned over to the board.