The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1891-07-17

George 5. Coe, president of the American
Exchange National bank, New York.
r. S. Minturn, No. As William street.
r. G. Hazard. Peacedale, K. l.
Alexander Brown, Baltimore.
William M. Hoag, vice president, Cor
wallis. Or.
L. Egenton Hogg, president.
Also Wallis Nash, b. w. Wilson, Tkos.
Graham, Zephin Job, G. Farra, T. E.
Cauthorn, b. R. Job, E. A. Abbey and A.
Stackleman, all of Corvallis, Or.
THE ANSWERING GUN.
The Oregon Pacific railroad company has
a pleasant suite of rooms at No. 45 William
Street. Receiver and ex-president 7.
Edgenton Hogg was there yesterday morn
ing, but went away very early. Later in
the day Norman S. Bentley was found in
charge. He is treasurer, assistant secretary
and third vice-president. When asked
what he had to say to the proclamation of
the following carefully prepared statement:
We gre informed that Mr.. Joseph Whar-
ton and others, claiming to represent
81. OOO 600 of the SIS, 600, 900 of the bonds
of the Oregon Pacific Railroad Company
must include in their 81, 600, 900 large por-
tion Of the bonds held under pledge, on
which only percentage of their par value
has been advanced. The claim ofthese gem
tlemen, however, to represent that much is
a confession that they do not represent the
remaining $ll 900, 900, the greater portion
of which is held by actual purchasers. All
of the real holders of the bonds which
these gentlemen claim to represent have
been completely advised with in respect to
the entire financial position of the company,
and with respect to the issue and the reason
Co.. fho; ofk kha hop dc ,tcfo oifh fhor
in the hands of purchaser or pledge,
and said real holders have repeatedly and
continuously approved the action of the
company in respect to all of such issnes.
Respecting the failure to pay the advance
of Indebtedness on the lands, the amount
due was rendered and performance demand
ed from the claimants of said balance,
which performance they have been unable
to make thus far, and, therefore. such pay
ment was, by the circumstances rendered
impossible.
The failure of two of the gentlemen whose
names are signed to the paper, and of Mr..
John [. Blair, to whom they refer, to re-
spond to the request of his and their fellow
bondhol6ers for corporation Ill protecting
the interests of the company is and has been
a sufficient explanation for the company's
embarrassment. The insinuation contained
in the statement that the mortgage contain
ed limitation of the issue to $35, 900 per
mile of completed road is an attempt to mis-
lead the public all of the bondholders hav-
ing been fully advised of the rights and ac-
tion of the company from the first.
The quotation from the bond, by which
they attempt to sustain their insinuatlon,
is merely given in the bond as a measure Of
the entire amount of the mortgage, and not
of the right to issue bonds per mile, as all
purchasers of bonds were advised that the
heavy expenditures Of the company were
necessary at and before the commencement
of the work.
In respect to the publication of the names
of directors, Mr. John I. Blair gave abso-
lutte consent to his election as director
Mr. Osgood Welsh not only accepted the
office of director but as a specially appoint
ed director acted for term of years III the
place of the president, in his absence, III
countersigning the checks and vouchers of
the company, for him. Mr.. Alexander
Brown was elected as compliment on the
death OF his father, General George 5.
Brown, and never declined the office until,
partly in consequence of his own refusal to
cooperate with the great mass OF the bond
holders in protecting the property OF the
company, it mad become embarrassed.
1t is due to the great mass of holders of
some of the gentlemen who permitted their
names to be used in connection with this ad-
vertisement have very large interests IN
other companies, which interests mlght be
promoted by a sacratice of their interests In
the Oregon Pacific Railroad Company.
81 canuot add one word to that, said
Mr.. Bentley. He would not give the name
of any man mentioned i'll the last paragraph
as one of those who might desire to see the
Oregon Pacific wrecked.
AS TO THE TRUST COMPANY.
The reporter asked President r. G. Rails
ton, of the Farmers Loan and Trust Com
pany, why that company had issued Sl5,-
600, 600 worth of bonds of the Oregon Pa
citic Railroad Company to build l4O miles
of road while the bonds were limited to go, :
mile or So, 500, 900 in all.
Il must refer you to our counsel, Mr..
Herbert B. Turner" said President Rails
ton, with smile as placid and urbane as II
he had never heard of the hostile Wharton
and Blair faction. Mr.. Turner did not want
to say one word at first, but finally he die
, tated this statement:
.'The bond contains provision that the
bonds shall be issued not exceeding S2o,O0O
per mile; it does not say of completed road.
| The mortgage states that the bonds are to
equal to $25, 900 mile for all the full ex-
tent of projected road. Now, the mortg'
age contains provision that the trustees
| shall certify bonds and deliver them to the
railroad company on receiving Certain GER
tificates from the executive committee that
the bonds are needed for certain specified
purposes. The trust company, ON receiving
] such certificates, certified all the bonds
| from time to time aud delivered them to the
railroad company.
1.-The question is probably made as te
the right Of the railroad company to sci
bonds at the rate of more than $25, 600 pei
mile of finished road. l presume that the
railroad officials claim that the limit in the
bonds of $25, 200 mile did not mean COM
pleted road, because if it did then the pro-
visions of the mortgage as to issueing bonds
on these certificates would be meaningless
and that, reading the bond and mortgag,
together, the only construction that would
reconcile them both is that the bond means
$25, 900 mile for projected road.
s'Is it true that the Farmers Loan AM
Trust Company had a made tender of thei
certified check for the $500, 900 due on thu
lands?"
| ~ 4bo 1onJ. rap1iod ssthe truS