The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-12-14
THEO.I. Is THE PRIZE.
Rival Railroad Magnates Are
Striving For It.
WHAT THE FORECLOSURE MEANS
A Move By the Little Wizard On His
RfvaIs-Qnfck work On the Great
gorthern-Lake shore Work


on the company's property The dispatch
from San Francisco which announced the
fact said that complaint had been lied
By the Farmers Loan and Trust Company.
of New York. TO forrclose q Lrss nor.ga pc
Of 5000 GO. which has been in existence
since December, iss0. with q per cent. an
nual interest. Il went On 20 state that on
this mortgage only one payment Of inter
est Of $4,000 had been made. The con-
clusion of the dispatch was:
There are already four similar suits pending
against the Oregon Improvement Company,
Out the one in question i On the first mortgage,
and wiz probably swallow the assets IN toto
Colonel Haines said: The dispatch is
evidently wrong. In the Lrst place the
payment Of interest on that mortgage Of
$4,000 has been kept up right along
and the List default Of payment has been
for December this year. This default has
really been the cause Of the receivorship.
Ii Is nonsense 60 suppose that the Far
mers' Loan and Trust Company would let
the interest accrue for nine years.
''In the second place the holders of the
bonds secured by this mortgage are friends
Of the company. They were represented
by counsel and agreed 70 the appointment
of receiver. As | understand the matter,
they do not intend 10 ne hostile: but their
suit is preliminary action meant as
protection during the present adjustment
OF affairs. Should the mortgage be tore
closed, the effect would be very INJURIOUS
70 the company, which has very diversi-. ed
interests. The purpose of having re-
ceiver was 70 keep the property intact and
run the company for the bene..t of ell con-
Rr7~ + ~ 80.
tive OF fling the complaint was net hostile.
There IS another point in connection
with that mortgage Of 500, 900 and the
bond issue. An annual sinking fund of
some 5000 has already taken I'D about
$4,000 OF the amount. SC that the mort
gage now represents some $500 eco. as
was stated IN the circular issued by Presi-
dent Smith few days ago."
The bringing Of this suit has renewed q
discussion Of the exact difficulty with the
affairs Of the Oregon Improvement Com
pany, and the probable outcome Of the
action Of the receiver There seems 70 be
belief among weii-informed railroad men
that some one of the Big transconGinentaI
companies Is trying to get hold Of the
property for terminal purposes It Is an
indisputable fact that the company's real
estate at Seattle and elsewhere in
Washington, its existing or pro-
jected lines along the Sound TO
Anacortes. 10 Port Townsend and OIym-
pia, its coal mines, it's Sound and coast
wise steamship business, its valuable fran
chises and holdings on the Seattle water
front would make it an incidentally valu-
able adjunct to either the Union Paei..c.
the Great Northern or the. Northern Pa
ci..c. The possession of the Oregon I'M
proyement property would enormously
strengthen the position OF any one of these
transcontineutal roads, giving them con-
troll of a large coasfwise. eoaling and
Sound trade, not to mention the possible
ties for picking up the Asiatic traffic
Jay Gould would probably Ike the prop
erty. which would work in well with the
Union Pacil4c system. He already has
dipped his Lnger in the Pacilc Mail and
thus gotten taste Of salt water To add
coastwise line would help the railroad
and the mail line-to say nothing of the
Oregon improvement railway branches,
which stretch through this Sound country.
The Oregon Improvement property
would also round out the Great Northern
system in most artistic style, and enable it
to reach San Francisco, with an already
established and paying steamship line the
moment it struck the coast.
The same may be said of the Northern
Pacinc. It IS a fact that before the recent
squeeze In the stock market Wizards
North American Company held some
10000 shares of Oregon improvement in
the treasury, which would make
good starter for getting possession of the
rest. However, when the North American
stocks took such a tumble few DAYS ago.
the company unloaded on the market
pretty much everything on which money
could be realized, N order to save itself
from going 70 the wall. The 1906 shares
or Oregon improvement may have been
thrown overheard with the rest In that
case Willard may be reckoned out of the
race, and IN any case his securities were
hammered so badly that he may not now
be in q position TO conduct any such enter
prise as goobling up the Oregon Improve
ment Company.
so the chances are that if any transcon-
tinental line Is trying TO get possession of
the company either James J. Hill, of the
Great Northern, or Jay Gould Of the Union
Paci4.c Is the manipulation
TIE condition Of affairs which either of
these gentlemen has TO face is this: The
Oregon Improvement Company has 10
meet hrst this mortgage Of 81. 10000. Then
there Is 100000 in preferred stocks and
100000 IL common stock. The claims of
the mortgage are imperative. and the hold
ers OF that mortgage could sell the com
pany ont and compel payment Ia that
case the holders Of the other stock vonId
be left out IN the cold 70 gather m the
crumbs. Of course they would resist the
selling out TO the bitter end. ii order ~
save themselves.
The usual method in such a case is FIR
the Erst mortgage 10 meet the Junior rref5i-
tors. the fellows whose claims come second
and effect compromise There fs a receiver
and reorganization, IN which the inter.
esrS OF both are served as far as NAV 10
The preferred creditors are given = rev Is
sue Of bonds 70 secure them and those If
the preferred creditors who won't accent
such compromise are paid off IN fuIl ar
nearly 50 By the junior creditors. who do
not want the mortgage closed. but desire
that tue company may be kept running IN
order that they may realize something.
II Is quite likely that such reorvaniza-
ton as this may be awaiting the Oregon
Improvement. The man who wants ~
get hold Of the company would secure rho
Lrst mortgage bonds When he corea
down on the company with the threat az
foreclosure, the common stock Cirors ard
he buys II IN.
IL viii be remembered that. when the
receivership was applied for. the Inprove-
ment stock fell 70 IL. but las since gn-a
up 10 Is. From this steady rise II i evi-