New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-09
OREGON PACIFIC'S BONDS.
A REORGANIZATION QUARREL.
REVOLT OF BoxDHoLDERs AGAINST THE PRES

REVOLT OF BoNDHoLDERS AGAINST THE PRES
ENr ACKNOWLEDGEMENTS AND DENIALs
The long standing controversy between the man.
agement Of the Oregon Pacific Railroad and some Of
the investors in the enterprise appears to be approach
lug the stage where legal proceedings necessary to
determine the merits The company is now in the
hands of receiver. and its ization is of i'm
portance to persons who have put up their money.
yesterday circular was advertised by Joseph Whar-
ton, s. s. Sands, James A. Blair Alexander Brown and
Dllwyn Parrish as committee to take charge of the
reorganization, inviting support from bondholders
The circular declares that the ncumbranoe of about
SoOOOOO on the eompanys land grant has not been
PAID as was provided for by the mortgage OF october
l. 1880, and that only 140 miles OF road have been
completed. while the entire amount OF $4,000, 900
bonds provided for the construction Of the entire road
have been Issued, whereas the issue of bonds wac
limited to $25,UOo mile. John l. Blair, Osgood
Welsh and Alexander Brown declare that their
have been published as directors without authority
and according TO the circular they are in sympathy
With the movement to prevent the present manage
ment from having control OF the reorganization The
Directing bondhoders assert that they hold 900
Of the bonds. 1t Is said unofcally in their behalf
that the Issue OF about 81 900 bonds out of the
Sl5oOoOoo is Illegal, and 1t Is threatened that suits
will be begun against the management.
The Oregon Pacific was projected from Yaquina,
Ore to the eastern boundary Of the State about GOO
miles. The default In the interest on the bonds oc
CURED on october l. 1890. T. Egerton HOgg. the
president, was made receiver II rumOred at
time that the Chicago and Northwestern desired the
road as part Of scheme to reach the Pacific Coast.
This theory was revived yesterday explanation
Of the revolt against HIS management.
Norman S. Bentley, vice president of the Oregon
Pacific yesterday denied the chdrges of wrongdOing,
and made statement Of which this IS the synopsis
The bondhOlders who claim to represent 100000
bonds must include large portion Of the bonds held
under pledge which only percentage Of their par
vaue has been advanced The remaining 81 100000
bonds are held by actual purchasers and the issues of
the whole amount Of bonds have been approved from
time to time by the real holders Of the bonds. Respect
Ing the failure to pay balance Of Indebtedness the
bonds, the amount due rendered and performance
demanded from the claimants Of the balance, which
performance they have been unable to make thus far,
and therefore such payment was rendered impossible
Johr l. Blair gave his consent to his election as
director OsgoOd Welsh not only accepted the Office
Of director but specially appointed director acted
for term of years the place of the president IN his
absence In countersignng checks and vouchers. Alex
andpr Brown was elected a compliment when his
father George S. Brown, died and he never refused
the Office until the company became embarrassed"