St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-11-26
TO SUSTAIN VALUES.
This the Reason for the Ap-
pointment Of Joseph
Simon
Receiver Of the Vast Property
Of the Oregon Improve
hlent Company.
Jay Gould Declares That He
Is Not Squeezing Mr..
Wanamaker.
Charles Francis Adams Grace
fully Throws Up the Union
Pacific Sponge.

United States district court to-day a
decree was entered appointing Joseph
Simon receiver of the Oregon Improve
ment company. His bonds were fixed
at 100000. The application for the ap-
pointment of receiver was made by
Elijah Smith and Prosper w. Smith, of
New York, through their attorneys.
The Oregon Improvement company was
organized under the law of Oregon.
The applications set forth that, in order
to secure the credit of the company
under the present financial situation. it
was necessary that receiver should be
appointed. The application shows that
all OF the properties of the Oregon I'm
provement company are subject to
liens. The first lien, or what is
known as the first mortgage of
the company is made to the Farmers
Loan and Trust company, as trustees,
and dated Dec. L, 1880; and the second.
what is known as the consolidated mort
gage of the Oregon improvement COM
pany, is made to the Farmers Loan and
Trust company, as trustees, and dated
Nov. ], 1889. The first mortgage was
made to secure the issue of $4,000, 600
first mortgage bonds, payable Dec. l,
1910, with interest at 6 per cent, pay
able in December and June. All of the
first mortgage bonds are now outstand-
ing, except about S5O0.OO0 that have
been retired and cancelled by the opera
n I'M ftrn 1nA fnr
the mortgage. Interest on the out
standing first mortgage bonds, being
per cent on about S4. 100000. will be due
Oh the 1St of December next. The cOnSoli-
dated mortgage was made and executed
Nov. l, 1889, to secure the issue of S15,-
000,000, payable in 1889, with interest at
3 per cent, payable in April and Octo-
Der. Owing to condition of the money
market it was impossible to renew
loans. For the past year the company
has been engaged in the purchase and
development of railroad lines in WASH
ington, causing large outlay OF money.
The liabilities of the company are about
S2.000.000. Bonds secured by consoli-
dated mortgage to the amount of S4,514.
0U0 of principal, being equal In amount
to the entire amount outstanding of first
mortgages, are now in the possession of
the Farmers Loan and Trust company as
trustee. Consolidated mortgage bonds to
the amount of $500, 900 are now out
standing: loans to the amount of 81, ,75O,-
600, secured from individuals and cor
poratiOns. will mature in a few days.
Many of these loans are held in New
York City. The application further
sets forth that the Oregon Improve
ment company, cOnceiving its duty to
be to protect its property and to treat
the same as a trust fund for security,
first for its creditors and then for its
Stockholders, determined to appeal to
the court for a receiver, thereby pre-
venting the destruction of is trans
pOrtatiOn system and the scattering of
its assets by numerous suits when
would inevitably follow unless this step
were taken.
The application shows that the COM
pany owns the following properties:
Real estate-2,52S acres of coal land in
WashlngtOn; 5000 acres agricultural
and timber lands in the states of Oregon
and Washington: One-half interest in
the ThrOssel creek water ditch, state of
Washington: two blocks of land i'm San
Francisco; leased premises, consisting
of wharf property, coal bunkers, etc,
at Oakland. Cal, Portland, Or, and AS
tOria. Or; 430 town lots in PRESCOTT,
Wash. Personal prOperty-Thirteen
steamships. which are leased to the Pa
cific Coast Steamship company; $4,000
shares Pacific Steamship company; 49,
704 shares Pacific Coast Railway com
pany, which owns and operates a
narrow gauge railroad from Poit Har-
ford to Los Olives, Cal, a distance
of Seventy-Six miles, bonded debt of
the Pacific Coast Railroad company is
81, ,310,0 600; 10000 shares of Columbia &
Puget Sound Railroad company from
Seattle to Newcastle coal mines, WASH
ington. twenty-three miles, with
branch twenty-three miles in length
known as the Cedar River Extension;
1900 shares Seattle Coal and Trans
portatiUn company. The company holds
as security for advances the entire is
sue of the capital stock of the Seattle
81 Northern Railway company. also the
entire issue of capital stock of the Port
TOwneend 81 Southern Railroad cOmpa-
ny, S335.000 in par value of Olympia &
Chehaiis VALLEY Railroad company. The
following persons and corporations are
made defendants: The Farmers Loan
& Trust Company of New York; CO.
lumbia & Puget Sound Railroad COM
pany; Seattle Coal and Transportation
company: Seattle tS Northern Railroad
company; Port Townsend Southern
Railroad company, and the Olympia &
Cheh alis Valley Railroad company.
J. C. Haines,
general attorney of the Oregon I'M
provement company, said this after
noon: THE object of the company, so
far as 1t has gone, is simply to preserve
the integrity of the present system and
keep it together. Coal mines in the
state of Washington cannot be operated
without railroads owned by the COM
pany, nor can roads be operated unless
trains are kept. running. We want to
prevent the company's property from
being broken into fragments and sold
under attachment for the fioated in
debtedness. If it was so broken up the |
rates thereof would be ruinous not only |
to the stockholders but to the creditors |
as well. If we can keep busi- |
ness going till the present finan- |
cial stringency is over, we |
will have no trouble in meeting all |
obligations. The resources of the COM
pany are abundant to meet all its liza |
bilities. and if the money market of last |
summer had continued we would now |
be on solid bottom. If the company is |
not disintegrated, it can pay off every |
dollar of it's indebtedness, which will not |
exceed 1000, 900, while the company's |
property is worth at least sl0,0OO,000
The situation now is that the court has |
charge Of the company by virtue of its |
office, and accordingly no attachments |
can be levied against it, unless the
court grants the creditors permission to
bring suit. Receiver Simon Will file his |