The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1891-07-17
THE OREGON PACIFIC R. R
A Little Light on the Affairs of this
Company.

A Little Light on the Affairs of this
| Company.
The following article published in Thurs
days Oregonian will throw some light on
the affairs of the Oregon Pacific Railroad
Company and will be of interest to the many
readers of the GAZETTE.
The New York Herald says that war has
been declared among the bondholders OF the
| Oregon Pacific railroad, and asks where are
the bondholders of the $ll. 1000, 900? The
first gun was fired, says the Herald, when
Bondholders Joseph Wharton, Samuel s.
Sands, John l. Blair, Alexander Brown and
Dillwyn Parrish printed an advertisement
calling upon all other men who held the COM
pany's bonds to join them in an effort to
| oust Receiver and ex-president L. Egenton
| Hogg and his associates from control of the
| enterprise. The advertisers claim that
SIS, 200, 900 worth of bonds have been eaten
up in the p1 1ocess of building and equipping
less than one fourth of the railroad whose
total length shall be 600 miles and whose
total cost was estimated not to exceed $l5,.
100000. Receiver Hogg and his partners
declare that the $l5, 600, 900 worth of bonds
already issued under their administration
| HAS Uctu l0R1ClUldGely uSSu III OuiietihS ohS
| road. Both sides have settled down for a
long siege. Whoever wins will have control
of a railroad that runs through rich coun-
try and has no parallel road to fight. The
territory it serves and is to develop Is almost
as large as the states of New York and
Pennsylvania together, full of minerals and
including vast belt of splendid farming
country. The road begins at Yaquina. a
town on Yaquina bay which is upon the
Pacific ocean. Thence it runs eastward over
the Cascade mountains at an altltute OF
3400 feet. At present the eastern terminus
of the road is the new city Coe, named after
President George S. Coe, of the American
| Exchange National bank. Coe is l4O miles
from Yaquina. The 46O miles of road still
to be built between Coe, Or. and Boise City,
just across the state line will be easily ac-
complished it is said. In the meantime, war
is raging between the bondholders, and the
question as to what became of the Sl5, OOO,
600, promises to lead to many interesting
| revelations.
The Oregon Pacific railroad company was
organized in 1880 with capital stock at the
rate of $50, 900 mile. Colonel l.. Egenton
Hogg has been, from the beginning, one OF
the prime movers i'll the enterprise. lie
was largely instrumental in obtaining the
land grant $50, 900 acres on which the $l5,-
600, 900 worth of bonds has been issued.
This grant was originally owned by the
Willamette Valley and Cascade Mountain
Wagon Road Company, who gave to the
Willamette Valley SJ Coast Railroad Com
pany the right to become owner OF the
lands on payment of $600.000, This pay
ment has never been made, although a-ten.
der has been made The Oregon Pacific
Railroad Company owns more than seven
eights of the capital stock of the VILLAIN
| " pailroa1 CnnnnanV
The hundred and forty miles OF railroad
now in operation was built by the Pacific
Construction Company, it is understood.
| WHO TIE 'KIcKERs" ARE.
| Joseph Wharton is one of the wealthiest
financiers in Philadelphia. Samuel 5.
Sands & Co., brokers, of No. 10 Wall
street. James l. Blair is closely related to
and represents John j. Blair, of Blairstown,
N. j., whose wealth is said to be as great
as Jaw Gould's. Alexander Brown is the
head of the firm of Alexander Brown 4
Sons, bankers, of Baltimore. This Is the
parent house of Brown Brothers 4 Co., oil
New York, and Brown, Shipley Co.. OF
| London. Dillwyn Parrish is of the firm OF
Parrish Pe,.dleton, counsel to the bond.
holders who published yesterdays adver-
tisement. In it they say they represent
holders of 1000. 600 worth of Oregon Pa
cifc bonds They call upon other bond
holders to join them i'll a reorganization
scheme, which shall GUST Colonel L. Egen.
ton Hogg and his friends from control. 1t
is fact that on October l, 1880, the Oregon
Pacific Railroad Company gave mortgage
| to the Farmers Loan and Trust Company
to secure the payment of $4,000, 000 worth
of bonds the proceeds of which were to be
used in building and equipping the road.
The bonds were for $1,000 each, bearing in
terest at per cent. and ''limiGed in issue ta
S25, 900 per mile of said railroad" Default
was made on coupons due October l last
and President T. Egenton Hogg was ap
pointed receiver.
WAR TO THE KNIFE.
In Yesterdays advertisement the protest
ing bondholders say:
By the fourth article of the mortgage of
October L, 1880, the railroad company bounc
itself to apply the net proceeds arising iron
the sale of the bonds in the first place tx
the liquidation and discharge of the en-
cumbrance, amounting to about $500, 600
upon the land grant, and the same article
further provided that the proceeds of the
first issue, to the extent of 50, ESQ. OOt
principal, should be appliedin the
first place to the satisfaction of thu
said incumbrance on the land gran
and the construction and equipmen
of the first I30 miles of road, and the bond
which is set out in full in the mortgage
further declares that the issue of bonds i
sIimited in issue to $25, 600 per mile of thu
said railroad" In fact, the encumbranc
on the land grant has not yet been paid ane
only 40 miles of road have been completed
while the entire Sl5,0O0,0 900 of bonds hav
been issued and are outstanding in tn
hands of purchasers and pledges.
In view of these facts the holders, unitin
in this agreement, do not think it wise t
leave the reorganization i'll the hands of tn
old management, as contemplated by tn
plan eminating from the officers of the com
pany, for which signatures are now bein
asked.
) MIR. John l. Blair and Mr.. Osgood Welsh
whose pames, like that of MIR. Alexande
Brown, have been published as directors
either despite their protest or without thel
knowledge or authority. authorize US to sa
that they unite in this movement.
, THE DIRECTORS.
Here is the full list IF the directors OF tn
road. according to POor's manual: