The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1891-10-30
filE eilEtIos PACIFIC.

As this isa leading topic Of converse
tion We give the following from the New
York Sun Of Oct. f6, aud IL, at least,
gives one version Of the matter:
Receiver 7. Edgerton Hogg and his
fellow managers of the Oregon Pacific
railroad arc between two pretty hot fires,
and IL now seems to be o question Of
only few days before they will turn
over the road, which they bonded for
$50, 900 mile, TO practical railroad men.
There was meeting OF bondholders yes
terday, called by President Ralston OF
the Farmers Loan 4 Trust company the
trustees OF the mortgage. II lasted all
tho afternoon and fiery words were the
rule rather than tho exception. A re-
porter OF the Sun dropped into the
meeting and heard tho invective roll of
from the lips Of several Of the speakers,
az II their wrath was intended for some
one present.
"There had been meeting OF bond
holders In the spring, and rcorganiza-
tion committee was appointed, but moth.
ing was accomplished. Another reorgan-
ization committee with many OF the
same members was appointed yesterday,
as follows: Alexander Brown, OF Balli-
more, Joseph Wharton, George B Nc
Kim, and Linlcy Smith, OF Philadelphia,
Roland Hazard, George 8 Cos, and James
A Blair, OF New York. Mr. Coe 10 chair
man.
"The committee met after tho meet
Ing, and decided 10 bring another case In
the Oregon court 10 oust Hogg from the
recelvership, with q proposition that II
IL ID done, and II responsible man IL ap'
pointed In his place, the bondholderi
will agree TO pay the employees claim o.
ti00, 600 for work; or, rather the bond
holders will take sp the receivers GER
tifcates, which tho men were paid with
but which are not legal tender In Oregon
az X Pendleton, the attorney Of tn,
bondholders, made statement, giyini
an Idea Of how the management had ruf
through with the money which IL real
lied on the tlh, ,000, 900 Of first mortgage
bonds that Lad been issued on the Ia
miles Of completed road, or over $4,000
mile.
"Mr Pendleton stated that 81 ,00U, ,00'
cash was realized on the total issue, an,
that according to Hogg's admission
$2, 900 900 of this had gone 10 pay inter
est on the bonds. The receiver had pai'
out another 81 ,5G0 900 in commissions
interest, and for carrying the foatin
debt, and $5,cO0,000 OF the bonds hal
been put out ms collateral for the iloatin
debt. The receiver had admitted lha
he had sold 1900, 900 worth OF receiver
certificates, and he had paid himsel
(Hogg) $3.50, 900 more OF certificates 10
money advanced on steamboats,.
"But after taking out all these item
there remains over 1900 900 Of cash I
bc accounted for, Mr. Pendleton ca
plained. lie said that Hogg told hir
that II had been put into the road. II "
this would be bonding the 140 miles {
road at t50, 600 mile. The mortgag
contract allowed only s25, 600 a mil'
The Sun reporter gathered from I'll
meeting that the bondholders did NJ
believe half Of that amount was spent O
the road. Then what has become
it7' was asked. How much propcFt
did Hogg have before he took hold (
the Oregon Pacific3' asked one.
This point was discussed for q Ion
time by the committee, and many III
pleasant things were mentioned. III
there WAS no doabt about the generi
feeling.
"The bondholders say that when the
were induced 10 invest they understood
that the bonds would be issued only {
fast as the construction Of the roa
progressed. The project sas 10 bull
road 600 miles long. from Yaquir
bay, Oregon, TO Boise City, Idaho, bt
after eight years only l40 miles has
been completed from Yaquina City
Coe, Or. The 600 miles would have ~
mitted Of &16, 600 900 at t25, 600 n mill
but the i40 miles called for only IS, 800
900. The bondholders interprat IL
mortgage 10 mean that the bonds sha
be issued only for road under constru
tion, but Hogg Gays that IL means col
templated road
There seems 10 be no doubt, at an
rate. that the bondholders were ignoraf
until last fall af what cargo OF bono
Hogg was issuing. They had receive
their interest, and that was all the
cared for al the time. Hogg's appoin
ment as receiver last fall was clever b
Of work, and II was done 30 quietly thf
most OF the bondholders didn't kno
what was up until too late. Some
his friends who were bondholders ser
In request TO the trust company for IL
appointment Of Hogg. and the whol
thing was carried through In day."