The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-11-25
UNABLE TO PAY DEBTS.
Receiver to Take the Oregon
Improvement Company.
He WILL BE APPOINTED TODAY.
Affairs Of the Corporation Have Been
in Bad Shape = Long Time.
ne WILL BE APPOINTED TODAY.
construstion Of the Port Townsend
Southern and Seattle = Northern--
Manager aIcNeill and Attorney Haines
Refuse to Give Information.

NEW YORK, Nov Alt Is stated today, and
not denied at the company's ONCE that the
oregon Improvement Company win tomorrow
apply to have Joseph Simon appointed receiver.
The appointment will be made in p rtlsnd II
ls also stated, and not denied by the ,reasurer,
that the interest due December viii not be
PAID The company's trouble II said to be due
70 the fact that losns were called and the COM
pany was unable to pay them.
A APosrlSIELLIGENcER report,r called on Mr..
d ". McNeiii, resident manager of the Oregon
improvement Company, ct his residence, and
toid him the purport of the above telegram.
ne looked the personidcation Of surprise a. his
eyes opened wide and stared right in front Of
MIN. He would not give any information as 70
the CAUSE of the failure, aud saying, II don't
Know anything about it and have nothing to
say on the subject" walked away. intimating
that he conld not be induced to talk any mora
From another well-informed quarter it was
learned that the trouble dates hack to the closs
o. Viliards management of tha company. when
ne ieff the company there was floating debt 81
several millions, the existence Of which could not
De explained. This debt has never been cleared
on When the first mortgage ON the property
was issued The bonds were not Immediately sold.
Dus were hypothecated 20 raise money, and the
company came very near defaulting in the pay
ment OF the money and going into the hauos Of
was given last spring, and bonds were
issued. the proceeds to be expended In
bsiiding the Port Townsend Southern railroad
from Port Townsend along the west shore OF
Hoods csnal 10 Olympia, the Seattle 4 North
cru railroad from Anacortes up the Skagit river
70 Hamilton, and buying the Olympia Che
haiis Va ley road. which runs from Olympia to
Tenino. The last-named road was 10 form part
OF the Port Townsend South ern. which 1t WAS
proposed to finally extend to Portland. These.
bonds were never sold, but were hypothecated
in the same way 40 the first issue These loans
are now falling due and are understood to b
the cause of the trouble.
The Seattle 4 Northern railroad has been
built TO within three miles of Hamilton, on the.
skasit river, where extensive coal mines are BE-
Ing developed BY the Cumberland Coal Com.
pany. TiackIaying has been stopped at that
point for no ADJ aren't reason except to prevent
Hamilton coal from being brought to the mar
ket ana competing with the Oregon Improyo-
ment companyia cual The Port Townsend
Southern road 10 In operation from PORT Towns
end to Hooker's lake. ,wsnty miles distant and
Is under construction to ouiicene, twenty miles
farther OF, on Hoods canal. road has been
built from Olympia along the snore q
Budd's inlet TO deep water, foar miles
distant, and wharves have been built at thai
point for sea-going yessela. This 10 the Olympia
end OF the Port Townsend Southern read.
Right.of-way as been secured from this point
10 Union City, at the head Of Hoods canal, aud
the whole line located, the total distance from
Olympia 70 Port Townsend being los nnilea
While the sections through which these enads
run are rich in various resources. they are only
slightly developed and could not be expected to
afford business enough to pay expenses for
several yesra Large bonuses were given the
company by the citizens of Port Townsend and
Olympia, bat would b soon swallowed up. 9
the construction Of railroads through . heavily
timber cou TRY, such - this, 10 much greater
than In any other section.
The Oregon Improvement Company owns and
operates coal mines ct Franklin and New Castle.
in Washington. and at Coos Bay, Ore. which
are extremely profitable. The coal is brought
from Franklin and New Castle TO seattle by the
Coiumba q Puget Sound narrow gusge road
owned by the company, and 10 loaded from
large bunkers, also owned by the company, into
vessels here. Most of the steamers ON the
Sound and running to Portland, San Francisco
and Alaska. coal at these bunkers, and larae
shipments are made to the San Francisco mar.
ket Occasional cargoes go TO Honolulu. The
Coos Bay mine also ships to San Francisco.
The company owns large wharves in Seattle
which are used by the Pacific Coast Steamship
Company, the Union Pacific and many other
Sound steamers. and it owns the steamer East.
ern Oregon, which runs on the Sound.
The Oregon Improvement Company's troubles
are undoubtedly due 10 the bu lding OF the rain.
roads named for tho promotion of townsite
schemes, and without hope of earning operating
expeus0s