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

ferred rights to the proceeds of the prop
erty when sold. That they had sprun,
this plot only nine days before the sale
when it was too late to make any othe
combinations. That Colonel Hogg and hi
friends had refused utterly to join in or t.
be parties to this robbery. That the cour
might possibly hesitate to make the or
der refusing this sale if no possibility o
the continued operation Of the road wer,
open, but that the proposition of the EN-
ployes to go on with the operation fo
six months, if need be, without plungine
the court deeper into debt, taking the
i earnings Of the property for pro rata dis
| tribution among themselves, under re
ceiver satisfactory to them, offered a solu
tion of all the courts perplexities on this
account. That he joined earnestly in the
| petition for the rejection of this bid, and
the sending the bidders back to New York
with the clear knowledge that their plot
had utterly and forever failed.
j. K. Weatherford, representing about
confirmation Of the sale be made unless
| the payment Of labor and material claims
| now held 'by bona fde purchasers were
! provided for. Mr.. Hughes then arose to
| address the court. 1t was hoped that he
would would show some ;:plsain' speedy and ade,
| not, and as he began his remarks it was
evident to those present that he had little
hopes OF success in securing confirmation
of the sale. He welcomed the opportu-
| nifty to come before the court and explain
the position OF the purchasers whom he
had the honor Of representing. In speak
ing of the history or rather muddIe of
ested in the recent purchase had sunk
$40 ,OOO, 900 in Oregon and thought they
had interests in tthe property as we'll as
the laborers whom he really felt sorry for.
1t was true that his clients had great
deal Of money, but less than when the
Oregon Pacific scheme was first broached
to them. He was frank to admit that the
former sale had been confirmed by the
court but mere matter o. S975.000 needed
to be paid before it could be consummated.
That the court found itself operating a
railroad that would not pay operating ex-
penses; it was bad business and he felt
sorry for the court and thought he should
been more controversy to the square inch
over this property than any he had ever
known of. He was here in June last and
found that no good results could be at
tanned unless a plan of reorganization
could be effected among all the bondhold-
ers and SO reported the situation on re-
turning to New York. He also found a
cumulated to $1,2O0,00O, which might be
considered a small sum in Corvallis, but
in New York it was vast deal of money
and that men who had sunk $l0,O00,OO0 in
the road did not consider it worth even
$1,000 900 and $500, 900 was every cent that
and his colleague, Mr.. Clarke, left New
York to attend the sale the entire amount
had not been raised and was subsequently
telegraphed to Ladd & Tilton at Port
land. He further stated if the bid made
was in the eyes of the court insufficient,
and he failed to confirm the sale they
could offer no more than the amount bid
estimation even an equal amount could
never again be had for the properties,
that his clients, the committee Of purchas-
ers, had made their last effort and would
now write off the loss for good.
Attorney Clark stated that this matter was
purely a business proposition with men in
New York. They looked upon it just as
had already sunk S1O,O0O,OOO in it and did
not consider its present value over. $500
900. = fMany.Fof them when approached on
the subject Of the Oregon Pacific would not
even talk upon the subject, and in raising
the amount bid, every muscle had been
strained. When the court came to con-
slider the, various. interests involved it,must
be remem bered that his people had put
$10,00O,O00 into the concern, while the
laborers and material men represented only
about $500, 900. The road had been oper-
ated at loss from the first, that no one
was interested in this purchase who had
not contributed to the fund and he and
Mr.. Hughes were prepared to make aft,
davits to the truth Of such statement and
also that there was no combine fixed up
to defraud anyone. Judge Bronaugh
stated that w. T. Muir had been here and
looked over the road at the instance OF
parties able to bid and who intended to do
so, with view to completing the road but
found it in such condition that they gave
up the idea.
Judge Bryson, one of the attorneys for
the plaintiffs, who up to this time had
taken no part in the argument, stated that
it had been his intention to refrain from
making any remarks, but he was just in
receipt of telegram from the Farmers
Loan and trust Co. to the effect that they
were Of the opinion that no further sum
than $500, 900 could be raised, and believed
that the court had better accept the propo
si1on and in his opinion the proceedings
were sufficiently regular to warrant a bid
and the confirmation of the sale.
1t was true that the execution was irreg-
ular in that it was not ordered out by the
plaintiffs but that they would make no OBJ
lection to the confirmation on this ground.
Holders of receivers certificates were
represented by Attorney Snow. The court
had evidently not been staggered by the re-
marks Of counsel for he proceeded immedi
ately to render his decision and said in part
''That taking into consideration the earning
capacity of the road he considered $500, 600
all the property was worth, but the Iaborers
were the parties most interested in the prop
erty and they had asked that the ssle be set
aside and ordered that the sale made by
David A. Osburn on December 18th of the
property and franchises of the defendant
corporations to Chas. E: Hughes and Fabins
M. Clarke be set aside and the motion for
said purchasers for the confirmation of such
sale be disallowed and the sheriff is hereby
ordered to return the certified check of
5000, 600 deposited by said purchasers at said
sale, to said purchasers.
HADLEY's REMOVAL.
Wednesday morning the court room was
again jammed to it's utmost capacity by cred.
itors and others interested in the removal of
Receiver Hadley. H. III. Hewitt as attorney
for the employees, filed motion asking the
court to accept the resignation which had
already been filed and at the same time
presented petition asking that F. L. Mil.
ler be appointed to fill the vacancy. Wal.