Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1884-03-07
co.. DsTIONl OF TINE O9EC0N IN
PgOyENENu COMPANY.
rRradstrest's. Feb. Il.

TBradstreet's. Feb. 10
Regarding the affairs OF the oregon
Improvement Company our correspond
emit in Oregon writes unde! date OF ) an
uary 70. as follows;
1T having been given out tina: the
Oregon Improvement company WIZ de-
fer the payment Of the hsif-years divi
dend, j, becomes a matter of N rnenf
to know Just What the condition OF the
COMPANY IL. Although on the ground
the difficulties IN the way of arriving at
he truth are manifold. The inability
or un~iliinQness Of off :ials TO impart
. xact facts IL, under plain sailing COR
di,ions. incomprehensibie; while from a
fear and interest, those outside
the official circle are, IN many cases,
. ither very reticent or very much biased. |
he information have taken pains to |
CLEAN il from sources which, at any rate, |
ought to be "a reliable As any, aud are |
at any rate the most reliable ! coaid |
command. Without any other motive |
than to elicit the truth. il the result |
bears any color at all 1t Dnst be ascribed |
TO prevailing local opinion.
The Oregon improvement Company
is said 10 have originally started with
capital stock Of g co. 3d. issuing mort
gage bonds for an equal amount. Is
afterward bought ont the stock Of the
Pacific Coast steamship Company for
100000. The foundation of the CON-
PAWS property may be descl ibed-not
In a dsropatory sense--as a piece Of
patchwork. There are 50 many odd
turns and angles, that to understand
how they are fitted ID, 1t ~ better to give
al. 81 b.. Wnlnh they
we're picked up. About the end Of looO
there was in existence a narrow gage
railroad known AZ the Seattle q Waila
Walla Railroad. the majority stockhold
or In which WAS one James N. COlnan.
The road was only thirty miles long,
and cost about $Z2O,0O0. The city Of
Seattle had contributed about $1,000 OF
this: J. n. Coleman and friend sub
s;riDed f7J,uUU, anu xlOC,UO WAS
borrowed at II per cent, against per
csnt mortgage bonds for An agreed total
Of $2OOOO In other words, there be-
ing no usury Law in the Territory, II the
mortgage with interest WAS not lifted
= hen due il would double itself. These
bonds we're held by the Seattle Coal and
TRANSPORTATION Company people. who
were shippers of coal from their mines
at Newcastle, the extremity of the road.
They endesvored to get control OF the
road, which WAS the only connection be-
tween their mines and their ships.
Henry Willard tried, too. but neither
succeeded then. Willard at that time
tloated the Oregon Improvement Com
pany, and bought out the Seattle Coal
and Transportation Company for 3d.
10000. The property consisted of ex-
tensive coal fields and Appliances at
Newcastle, and twelve or fifteen sail
ing collier ships. The railroad bonds
being then under Wizards control. 1t lie
said he expected that, by the debt
doubling, the road would be secured, ss
it was known that Mr.. Coleman WAS
| unable to meet the mortgage. But
Coleman transferred his interest to u
capitalist of Portland. who advised
Willard that tho money was ready to
meet the railroad mortgage. Willard,
however, wanting the road, and not the
money, proposed purchase, and finally
closed for $1,000 or x35O,OOO in Octo-
Der or svember, lSSl-payinR and
buying up all the stockholders. 1t is
thought that Willard himself bought
this and turned it over to the Oregon
Improvement Company, but whether
/
the net value Of the mortgage bonds. or
the double face value, or how he 40
cured the same from the Seattle Coal 4
| Transportation Company, has not been
ascertained. 1t is claimed that il was
part of the original program of the
Improvement Company to replace the
sail,Rg ships by steamers. At any
rate this was done. Several large steam
Il I'll hni a. n nf kAn
to $!OO.OO0 each. 1t IL said that the old
ships we're sold, but what they realized
has not been learned. The prizes thus
far paid by the improvement Company
are thought to have been high, but even
then, with these purchases the rail.
road, coal mines aud ships they are be-
lieved to have an excellent prospect OF
making money. At the time of pur-
chase the railroad company was carry
ing at the rate Of 100000 to 10000 tons
of coal n year, and claimed they were
making 81 n ton net profit. 1t then COST
them less than ~ u ton to mine the
COAL, and they had, ~ we'll, the railroad
freight and collier profits to San Fran
cisco, where they got n ton for it.
Clearly. then, If they had only to pro-
vide ak per cent interest Oh 81 ,;O0.OO0.
they were doing we'll.
1.-The improvement Company next
began buying other mines III tue conn
try between Green river and the Cas-
cade mountains. They were mostly
undeveloped and included the assign
ment of miners rights and the filing OF
new claims. The railroad was newly
tracked aud refitted at great expense
Some time in 1880 the Improve
ment Company bought 10000
acres Of selected agricultural land
and 10000 OF timber in Palouse and
Whitman counties. w. H., from the
Northern Pacific Railroad Company nj
$26O per acre. An experimental farm
was then established At considerable
expense. and placed IL charge Of
General L. Il. rannatt. Ii Ia said that
he, not being a practical man. bOugh,
reapsrs at the same time as plows, and
soae wonder that he did not contract
for harvest hands ~ we'll. The farm
WAS a failure from tho start, aud has
been since discontinued. General Tan
natt's education in this matter Cast the
company $.'OO. Two timber fumes
were also purchased, one at Walla Waila
from 5. Blalock. who was practically
ruined by constructing il, and tho other
at Dayton, w. L. For the Walla Walla
tlume about $4,000 was paid, and for
that At Dayton 5000. with 5000 ex.
pended on this one for extensions. Tho
latter Was considered the better of the
two. General Iannatt also had charge
Of these.
lone purchase brought about another.
The Pacific Coast Steamship Company
tof which Goodall. Perkins Il Co., Of
San Francisco, were the majority stock
haldersD WAS running \ line of steamers
! from San Francisco to Seattle, north
ward, and To San Diego south. They
did nearly all the general carrying
trade. aud the Improvement Company's
coal steamers came hack from San
Francisco empty. To stihe this com
petition, including that to Portland,
became an object with the Improve
nent Company. which accomplished il
by buying the buik of the stock from
Goodali, Perkins 4 CO.. for, il Is said,
{2W0,0U. The assets, like the liabii-
tiles. we're assumed, aud ore Of the
assets WAS an unfinished narrow gage
railroad Of about thirty miles, through
farming country from Port harford.
Lower California. THIS WAS extended
TO siXty-five miles. with steel rails,
and has what Is considered a good
road bed. Ii Is said to be earn
! IN, Ash tksl ,,.r ,.tia NAT AunShav 49,