Los Angeles herald., 1890-11-26
The Oregon Improvement
COmpany's Position.
The Application for a Receiver
Granted.
A Receivership Necessary to Protect
the C0mpany's Credit.
A Weakness in Stocks in Wall Street-A
Financial Crisis in the Argen-
tine Republic.
Associated Press Dispatches.

PORTLAND, Ore, Nov. 25.-In the
United States circuit court this morn
ing. Elijah Smith and Prosper Smith,
of New York, through their attorneys,
made application for the appointment OF
a receiver for the Oregon Improvement
company, in order to secure the credit OF
the company under the present financial
situation.
A decree was granted, appointing Jo-
sepb Simon, OF this city, receiver, with
bonds fixed at 100000.
The application shows that all the
properties of the Oregon Improvement
company are subject to liens. The first
lien, or what is known as the first mort
gage of the company, was made to the
Farmers Loan and Trust company, as
trustee, December l, 1880; the second,
known as the consolidated mortgage of
the Oregon Improvement company, was
made to the Farmers Loan and Trust
company, November l, 1889.
The first mortgage was made to secure
the issue of $4,000, 900 first mortgage
bonds, payable December l, 1910, with
interest at + per cent. All of the first
mortgage bonds are now outstanding,
except about 100000, that have been re-
tired and cancelled by the operation OF
the sinking fund provided for in the
mortgage. The interest on the outstand-
ing first mortgage bonds, being per
cent. on about $4,500,000, will be due
the 1st of December, next.
The consolidated mortgage was made
and executed November L, 1885, to Sc
cure the issue of Sic, 900, 900, payable in
1889, with interest at 5 per cent. Con-
solidated mortgage bonds to the amount
of $500, 900 are now outstanding.
Loans to the amount of $4,000, Sc
cured by individuals and corporations,
will mature in a few DAYS. Many of
these loans are held in New York city.
Owing to the condition of the money
market, it is impossible to renew the
loans.
For the past year the company has
been engaged in the purchase and devel-
opment of railroad lines in Washington,
causing large outlay of money. The
liabilities of the company are about
$2,OO0,OOO.
j. G. Haines, general attorney of the
Oregon improvement company, said
this afternoon: "The object OF the
company, so far as it has gone, is simply
to preserve the integrity of the present
system, and keep it together. We want
to prevent the company's property from
being broken into fragments and sold
under attachment for its hoated indebt-
edness. Ii it is broken up, the sales
thereof would be ruinous to, not only
the stock holders, but to the
creditors as well. If the company
is not disintegrated, it can pay
off every dollar of its Indebtedness,
which will not exceed $1,000, 900, while
the company's property is worth at least
$10,000,000. The situation now is that
the court has charge of the company by
virtue of its officer, and accordingly no
attachments can be levied against it un-
less the court grants the creditor per-
mission to bring suit"
Receiver Simon will file his bond and
assume control OF the company's affairs
at once.
New YORK, Nov. 25.-The Evening
Post quotes Treasurer Smith, of the
Oregon Improvement company, as say
ing he expected to be able soon to issue
an address in explanation of the whole
situation to the stockholders. In the
meantime he would say the company is
in a prosperous condition, and has earned
and paid per cent. on the capital stock.
The receivership will be in the interest
of the company, and the bondholders
will be fully protected. One of the di-
rectors is quoted as saying there is no
question of the solvency of the company.