New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-26
IN THE RECEIVERS HANDS.
A SURPRISE IN OREGON IMPROVEMENT.
APPOINTED on THE APPLICATION OF ELIJAH
AND PROSPER w. sMITH-CAUSE OF THE

APPOINTED on THE APPLICATION OF ELIJAH
AND PROSPER w. sMITH-cAUsE OF THE
coMPANY's TROUBLES.
Portland Ore Nov. c5.-In the United States DIS
trict Court today decree entered appoihuhs
Joseph Simon receiver of the oregon Improvement ''
many. His bonds were fixed at 100000.
j. c. Haines, of Seattle. general attorney Vi WV
Oregon Improvement Company, was seen I'll 'i,s wy
last night When shown dispatch s'a''hs V,. O.,
application would be made for receiver "o SUN
know nothing whatever about the matter ~ Az. '
know the company is solvent, ana It's p'oP''"
SlO,O 900" o.r.r
was made nv Elijah Smith and Prosper W. smith, Oh
New York, through their attorneys. INC ~ , 90
provement Company was orgsilNeu u''u a.
Oregon The application set forth 'ha'' ~ ''ue. .
secure the credit Of the company uhuer "'0 p' '
financial situation il was necessary tha1 ieoe'o,
.'''a - nnnoirtea The application shows that all
=, Tho pronert1es of the Oregon improvement COMPANY
orc subiect 70 liens The first Den or what i hho"i
as the first mortgage Of the company Is "a' " ~"
Farmers, Loan and Trust Company as "u''e0' O
D.cember l. 1850, and the second, whal Is hio"n :.
IN. consolidated mortgage OF the Oregon Improvement
~" -, ,ho Farmers, Loan and Trust Company, as
trustee and dated November l. 1857. Inc nIs' NV
$500 WIS made 70 secure the issue OF $3,OOo,ooo hrsV
mortgage bonds payable December j, l9lo' VIII -.
,erest AZ 6 per cent, payable In DecemDer' An Va w
e.. ,or,gare bonds are outstanding except aoo"'
s,oo 600 that have retired ard cancelled ps '.0
oneratop of the sinking fund provided for III 'he ho
care Interest on the outstanding first mor,s"so
80. ,,s,rg per cent on about "a, 100000, Will Do
due On December 1 next. The consolidated mor'oaee
r,s made and executed November /, 1887 10 seeVe
tho issue of $4,000 OOO payable in 1889, WIN i'e
a, s per cent, payable in April and octooer' ~
Application shows that the company owns inc ~.
lowing properties Real estate, 252s acres oo"i Niiu
n
lands in the States of oregon and MashhSi,o state
brif interest in the Throssel Creek water Tncisco
Of Washington two BLOCKS OF ian Sarf nropery coal
bunkers ETC.. at Oakland, CAL Portland au prNperty
ts SU Town steamships which are leased to the paCc
coast steamship Company 1900 shfT Shc Coast Rail
sup T Cnmnany Which owns and operates narrS TOW
gauge raOad Port Hartford TO Los deht Of the
as!au9 Coast az Railroad Company being sl5.o GOO
40 GOO shares of the Columbia and PuseC So i mines
road COMPANY, mSni three niles with branch twenty
three miles long known the CEDAR hTea ation
10000 shares Of the se%'S holds I a. security for ad
vances the entire issue of the chpitu In nI thc en-
ss fs ssn sne Of csa sc" Of a9d
southern Railroad Compahsi ana Vasy Railroad Com
nanv The following persons and corporations aro
made defendants The Farmers Loan anu snnnd Rail
many 81 New York: Columbia and fuect oo,Iu 60,
pany. seattle and northern Railroad Compa any rT.
MA and Chchalis Valley Railroad 49, ,uoro, I'm,
j. C. ialnes. general atlorney OF t, .Eg aThe
iert of the company far it has gone. IS S'p5
to preserve the Integrity Of the Pesc NATE Of Wash
ngion cannot be operated without railroads 1wh nsi
by the company, nor can roads % W Drevent the
companys property from being broken c n,1 r 10
mems and sold under attachment for ihe nOa'hs ~
dehtedness II IL was so broken UP The rates lne'to
Wn,G he ru,nous not only 90 the stockholders bul
10 the creditors as well II We Gun ny aver we
g 9hS .a r ,pnhs IN meeting al obligations. The
resources OF the company arc aounoant 70 n.es
mer had continued we would now be on sola Dot
rom. If the company Is not disnteeI'i'ea ~ Udi
pay OF every seven TS1ai po dollars while me
ponv's property is worth at least ten million dotaIs
nauT nv virtue OF its Office and accordingly, no
Attachment can be levied against 1t unless inc court
sr nsnS 20 the condition Of the market it was
impossible to renew losn% For } ' nHrrs st end dee
yeIopment Of railroad line in Ws:hirgton causing
large outlay Of money The liabilities OF te
are ergsSe 10 T amount s45l4 900, OF principal pc
;ng sJusl "a .eunt TO the entire amount s ,,
ar n Loan and trust Company as trustee con,
sodated mortgage bonds to the amount Of s 20 100
600 secHTed from individuals and corporations, VII
mature in few days Many Of these loans Are ncn
IN New York City. The application further sets ioit
that the Oregon Improvement Company, conccvlnc -
duty TO De TO protect its property and TO ea te a
&c trrst fund security. first OF Its Creators aHo
then for its stockholders determined TO appeal 70 tne
court for receiver, thereby preventing me ~,
Of their transportation system and the scacTle O "
assets by numerous suits which would Inevitably loo"
unless this step was taken
Seattle, Wash, Nov. 25.-The reorganization OF t'e
Oregon Improvement Company has been conpeted'
Resident Manager Mcneil has issued circular an
nouncng a number of changes in the heaos Oh 'ne uo
partments. ,-,o.
Mr. Mcneil showed genuine surprise when inioFnien
OF tho recevership. lie simply SAID - uoh' hi' Mo
ANYTHING about 1t and have nothing 10 say doo'' It,
From another well-informed quarter 1t was lea'nei
.ha. the trouble dates back 10 the close OF MI
management OF the company. Whom ne ioit .'0 'o
many there WAS 1oating debt OF several mulolis' ''
existence OF which could not be explained ms uco
has never been cleared oil. When the hrst ioi'sar
ON the property Issued BONDS were HUI i'
ately sold but were hypothecated to raise money ".'
the company on the verge OF deidui''ns "a 90"
meut OF the money and going mo the lahus vi " IL
oaivsr The second mortgage for Si3,00o'oOo wa
given last spring and bonds Wer: issued ,ne oHerl
10 be used in building the Por' IoWnsen9 tro Seat
spa Northern Railroad from Anacee 70 aWli1En
and the building Of the olympia anT 0heha The las
road which runs from olympia to Icllo: rosnn,
named road was 20 form part OF ts I3rt ,nd =
Southern, which 1t was PROPOSED 70 n enG Lnt wcr
hvpothecated in the way Is thc mr. "a ", bo I'm
loans are falling due and arc nlGeri1 reimbursement
,ase 81 ar" thought to DO due the building Of ID
railroads named for promotion OF cW e1penses
and without fopes Of earning operating oNP''
TO EXPLAIN THEIR DEFAULT IN lNlEhE'
OFFICERS OF. THE OREGON IMPROVEMENT %"
pANY WILL SEND a CIRCULAR LETILh
TO STOCKHOLDERS.
ocncers n, the Oregon Improvement Company Wei
reluctant % talk about the anars oi ''o T i
.'ns.or.sav A dispatch from Portland, Ore' Sd
that in the United states Court YESTERDAY JOSEF l
simon had been made receiver Of the company, %lu
bonds Of 100000 The reasons ior ''o u''" W.
in interest which will be made on Decenloer -
he explained I'm circular letter W "'o '00 ,