The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1875-01-15
LAWS OF THE STATE OF OREGON
Published by Authority.

AN ACT to provide for the Construction of the
willamette Valley and Coast Railroad. ~
WHEREAS, A corporation known as the VIII
lamette Valley and Coast Railroad Company
was duly Incorporated on the I'd day of July,
1874 and articles of Incorporation filed in the
office of the Secretary of State, in conformity
to law providing for the construction OF rail
road line from Corvallis, in Benton County,
Oregon, to tide water on Yaquina Bay, in said
county and
is of the utmost importance to the people of
the Willamette Valley, and will furnish them
with more direct and immediate access tothe
ocean therefore,
BE it Enacted By the Legislative Assembly Of the
State Of Oregon:
SECTION l. That there be and is hereby
granted to the willamette Valley and Coast
Railroad Company, or its assigns, all the tide
and marsh lands situated in said County OF
Benton, and also the right to take from the
lands of the State adjucent TO the line Of said
road, timber, stone, water and other material
necessary to the construction of said road
Provided, That the said Company shall, within
thirty days after the passage Of this Act, nle
with the Secretary of State their acceptance of
said grant and Of all the conditions herein
contained to be performed by said Company,
and that upon the filing Of said acceptance
aforesaid the Company shall have and become
invested with and in absolute title to said land
| aforesaid, as afterwards to be set apart and
designated, and shall, in consideration there
| for be bound by all the provisions of this Act
hereinafter contained and set out.
SEC. 2. And be it further enacted That said
| Company shall have the right " commence
the construction of said Railway at such points
| as they may deem proper, and that when the
| President of said Company shall notify the
Governor of the state of Oregon, and the Trus
tee for the bondholders herein named under
| oath that ten miles of said Railroad have been
completed, then the Governor of the State and
said trustee shall each appoint commission
/ to axamine the same, and If said commission
| ers shall report that ten miles OF said road
have been completed in a good substantial
manner, and are furnished with the rolling
stock and equipment OF a first class narrow
gauge railroad, then the Governor of the State
shah cause the lands herein granted to be sur
veyed, designated and set apart for the benefit
of said Company.
SEC. 8. And be 1t further enacted, That up
on the construction and approval Of the first
ten miles of said road, said Willamette Valley
and Coast Railroad Company Is hereby au-
| thorized to mortgage to the Secretary of state
| in trust for the use and benefit of any persons
or corporations, home or foreign, in this Act
called "the bondholders," who shall loan
monies to the said Willamette Valley and
Coast Railroad Company on the security of its
roadway and real and personal estate OF what
ever description by first mortgage bonds said
ten miles of completed road and all the fix
lures, rolling stock and all other property be-
longing thereto; said mortgage to attach to
each ten miles thereafter whenever and as
often as 1t shall be built, equipped and ap-
proved as herein provided, and shall be deem
ed to be a sufficient lien, to all intents and pur-
poses, upon the road.bed, rolling stock, and all
and personal property made to the credit Of
the Company In the name of the Secretary OF
state, as herein provided, or belonging or
which may belong to the Company In any
manner or way; said gifts and subsidies sub
ject to be disposed OF according to the condi-
| tlons of this Act Said mortgage shall be made
to the Secretary OF State In trust for the use
J aud benefit OF the bondholders, as herein pro-
vided, and duly recorded and shall be filed in
the Office OF the Secretary OF StHte, and shall
be deemed and taken to be good and edectual
IffNr ~ 1f ~ al
Company as therein expressed, to aid In favor
of the bondhOlders in securely for the monies
which may have been or be advanced bythemi
( anything in the laws Of the State to the CON
trary notwithstanding.
SEC 4. And be il further enacted, That it
shall not be lawful for said Railroad Company
to mortgage said Railroad in greater or lesser
, portions than ten miles mt any one time, nOl
= shall Il he lawful for said Company 10 issue
; any portion OF its first mortgage bonds 10 the
} Secretary Of State on behalf OF the hondhold
ers or to the bondholders themselves, OF their
Trustee or legal representative, or any other
person or persons, until said Railroad COmpa
strueted, and eluipp4 each and every ten
miles OF said Railroad In the manner men
: toned IN Section second.
SIC. s. And be II further enacten, That said
Railroad yompany shall be entitled, and are
hereby authorized, 10 Issue either 10 n Trustee
! to be named for the bondholders, or TO Tho
Secretary OF State, for and on their behalf
first mortgage bonds for each and every ten
l miles OF said Railroad II shall have so com
4 pleted, constructed aud equipped. but that on
ly TO the extent Of aud no more than three
fourths Of the actual cost price thereof as shall
be asceFtained by tho two Commissioners
named in Section second, alter they and eacl
OF them shall have personally examined the
snme and shall hayeailed With the Secretary
, OF state q Joint report Of their inspection
certifying 10 the completion, cost OF con.
siruciion and equipment OF each Of said ten
! SKc. g. And be Il further enacted, That foi
the purpose ot preventing traud OF nisappro
priation of said bonds, or the proceeds derived
n trOm the same, and 10 prevent the issuing o
said bonds BY the Company 70 grVater eNtenl
/ or for other purposes than those herein men
toned, no ilrs. mortgage bonds, issued hy said
4 Company shall be Legal or valid securities, un
less they and each ot them ore countersignel
Jointly by the Trustee, or other legal represen
tatlye authorized oy or TOR the bnndhoiuers
, and by the SECRETARY OF state.
SEC. =. And ho 30 further enacted, That al
, I glns or grants 81 ands. whether lruTa an,
state or from the United States or any county
corr Grafton or individuals or appropriation o.
, tesCst upon the bonds OF said Mllamette Val
ley and Coast Railroad Company, hereafter {,
: be given by She United States. or any SKATE
corporation, company or indlviGuais, oNcep
lands given or granted for right of way or De
! pot purposes, shall be made 70 the Secretary o
the stale 81 Oregon, as psoper custodian e th'
, same In trust only Tor the nse aud benefit o.
Z the bondholdgrs. as securities for the amount
. of monies due BY the Company 70 them, ant
upon sales being made of the lands or Othe
properly, whether personal or nal, all mon
les rccaivpd therefor shall b. peid into th'
state Treasury % the crtdlt Of the bonanolders
10 be drawn thercfrom only upon warrants du
~ " Coatiass3 Hsli Etst.