The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1893-12-29

gestion of its receiver, whe it is believed mad
such suggestion at the request of the pur
chasers. That the terms of sale prescribed
that any person desiring to bid should frs
deposit in cash or its equivalent in certified
checks satisfactory to the sheriff and tn,
court, and that the nature of the endorse
ment made on the back Of the check Offered
| in payment did not comply with the con
ditions as prescribed by the order Of sale.
In his argument Judge Finn stated tha
to secure time the bondholders. through
! their attorneys, had agreed that whatever
! amount the experts reported the property tc
| be worth they stood ready to bid, and that
attorneys for receivers certificates had stood
side by side by these bondholders' attorneys
and ask ed for the recent sale to be made, and
now come and bid only 5000, 900, although
the experts sent out to examine into the con-
| dition and value of the properties had re-
ported them to be worth So, 100000.
w. Ii. Burns and all the other creditors
OF the receivership whose names and amounts
are set out in the schedule to the petition filed
on the 9TH of Novembe by their attorney,
Wallis Nash; objected to said pretended sale
and after reviewing the matter through to
date represented to the court that the paper
offered by the purchasers in payment of said
property did not comply with the terms and
conditions of the decree under which the
properties were sold. That such paper was
neither cash nor its equivalent in checks or
drafts, The copy Of said paper is as follows:
Portland, Or, Dec. 15, 1898.
Ladd q Tilton, bankers, pay to Charles E.
Hughes and Tabius M. Clarke or order two
hundred thousand dollars.
Charles E. Hughes,
Fabius NJ Clarke.
Across the face of which paper is written,
Good ifproperly endorsed, Ladd s. Tilton."
The following endorsement appears on the
back thereof: "Pay to David A. Osburn,
sheriff c ot Ranton oouDtv OrarOp in avapt of
sale and due confirmation thereof to J. J.
Beldon, Henry Martin, F. K. Pendleton, S.
l.. Hollingsworth, Joseph Wharton and
james A. Blair, of the property Of the Ore
gon Pacific Railroad company and William
cite Valley and Coast Railroad company on
US. Charles E. Hughes, Fabius M. Clarke"
That the handing of said paper to the sheriff
was the only pretended payment of the de-
posit as required by the order of sale.
He also alleges much the same matter as is
set up in the objections of the defendants
and AYERS on information and belief that the
said Blair, Wharton and Pendleton have
been engaged ever since the purchase Of the
properties of the defendant corporations on
behalf of the bondholders at the sale made
under the decree of this court in Decent Der.
1891, in deep laid, continuous and persis-
ent effort to obstruct and prevent the compile
tlon ofthe purchase made at such sale on be-
half of all the bondholders without exception
and the carrying out of the reorganization
then provided for, and in an effort to acquire
as individuals this property, which is of
value utterly dlsprOportlonate to the amount
bid. That the petitioner is creditor of the re-
ceivership under the orders and sanction of
the court for labor and supplies used and OBJ
tained by the receivers Of the court in the
operation, protection and repairs ofthe prop
critics OF the defendant corporations in the
charge and under the control of the court
Owing to the large amount ofsuch indebted
ness appearing in the reports of the referee
appointed by the court and also shown on
the books of the receiver, petitioner and those
whom he represents would not receive cents
on the dollar on their claims if this so-called
purchase be confirmed and they and their
families will in many instances be reduced to
penury and want. That the order under
which the sale was made was imperative in
that it was made in chamb bers and not i'll open
court, and was made without notice to and in
the absence OF necessary parties in interest.
After reading the petitien Mr.. Nash spoke at
considerable length in opposition to the con-
Ormation of said pretended sale and among
other things stated that this fall an agreement
had been effected among all the bondholders
to purchase in the property at the sale made
on Decem Der 15, but after the reorganization
plan had been about consummated these peo-
pie whom Messrs. Clark and Hughes repre-
seu1 reporteu InaI Iuey ldu eHecIeu plaH
to buy the property in themselves as indi-
viduals.
At this point Mr.. Nash, addressing the
audience and membe of the bar as well as
the court, began pathetic plea for the life
of the road. He told the story Of its ex-
istence and how from its inception he had
watched its growth, that he had helped to
turn the first shovel of earth when people
were enthusiastic over its possibilities; that
he had been with it through prosperity and
adversely, realized its possibilities and de-
MED the assertion of Judge Bronaugh "That
it either began at a snow bank in the Cascade
mountains or ended at a mud puddle on the
Pacific ocean," There was future for the
road and he asked that the court might do
nothing that would tend to injure its pros
poets. AS he progressed the applause from
the audience indicated that they were in
sympathy with these remarks.
EPrToME NasH's SPEECH.
After reading the objections he had file on
behalf of material men and labor creditors he
commented on them shortly. Then he said
that this matter was one largely in the dis
cretion of the court sitting as court of
equity to do substantial justice to all inter-
ested. He refuted the statement of the pur-
chasers that il their pitiful purchase was re-
jected there were No other capitalists to be
found besides John I. Blair and Joseph
w marion To Duy tnlS road, II they saw they
were to be defeated in this shameful plot to
buy the road fora song. He referred to the
worse plight of the road in 1885 e, when the
labor and material claims were far greater
than now, and the property as a whole was in
a far worse condition. That thenlColonel
Hogg had rescued il, and in time he had paid
every cent due with interest. The fight
made on the colonel by the Blair Wharton
people was then referred to. the speaker
dwelling on the way in which the aid of the
courts and their officers had been enlisted to
prohibit the completion Of the Job purchase
on behalf of the bondholders when the money
was here to complete the purchase and go on
to build the road. That this same fight had
qeen resumed three times, when there was
probability that the Job purchase could be
ca .ried out. That Receiver Hadley had
been the willing agent Of these men, espec-
tally through the attorneys, Messrs. Fay and
Gest, the attorneys of the Blair Wharton
committee, whom he had appointed to act
as his attorneys as receiver, and had kept in
constant employment. He then spoke Of the
origin of the road, its early efforts, its gradual
building, its effects on the prices of every ar
ticle Of the produce of Western Oregon and
Of the supply to its inhabitants Of the neces-
saries of life. That the road had already
saved tn the neOn1e of DRAGON ffa r m oro fhan