The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-05

with the clerk Of the court. and FLED ny
official bond in slao.eso. with IL = asnFg,
y. II. Iatimsrs = @. 6rzNes aA1 u
Beckus as sureties-
There wifi he no change in the manage
r1euf or personnel Of the Office Of the
company The policy viii ~ onserFa
tive one, taking care 81 the properly ana
nursing n aino ggbsH the general nusi-
PES revival comes which Hiii naturally
a~aisf fn its development.
WHY was II. Mr. Smith. that the COM
pany was unable 70 ray interest
THE cause Is the gradual depression
~ business in the past two Years, ~nieh
has caused a constant and continual
shrinkaze Of the resources OF the COM
pauv. Ia addition 10 this there has been
very strong competition in both the
coal trade and steamship traffic for over
a wear Those are the reasons why the
interest was defaulted.'
Receiver Smith. accompanied by z 6
Hughes representing the Farmers Loan
and Trust Company. left b. special train
for Portland late last evening. presun-
ably 70 appear before Judge Gilbert this
morning and ask 10 have the appoint
raent extended so as 10 cover the prop
critics OF the company IN Oregon
The .. r. 90. ard >eattle's First Railroad
The Oregon Improvement Company was
organized by Henry Willard 10 own and
operate a variety OF properties on the Pa
ciac coast. Of which ne and his associates
had come into possession in the course OF
the projection and destruction Of the
Northern Pacific railroad. Its original cap
ital stock vas s.. go o0a. and its preferred
stock IL 1927 500. The first mortgage bonds
were for x5.ooo.eso, and about 81 $4,000 OF
these have been retired. OF the si5.0o0.ooo
consolidated mortgage bonds. S6,iss,0v0
have been sold.
The company has done a great deal for
the development OF the Pacific Northwest
rs the establishment Of steamship lines
and the opening and operation OF the
Franklin and Newcastle coal mines.
The Columbia & Puget Sound railroad,
one OF It's first and best paying properties,
has a peculiar interest for Seattle, as II
IL the first road ever built out OF this city.
and the first few miles Of roadbed were
graded BY the Seattle people as the begin
ming Of the Seattle IL Walla Walia rail-
read. The road was projected IN 1873 10
secure an outlet to the East as soon as 1t
was decided that Tacoma should he the
Pacific coast terminal for the Northern
Pacific. II was first built to the Renton
and Talbot coal mines. In 1876 the work
was taken up by J. NJ. Colman, who COM
pleted the first fifteen miles In the course
OF the next ten years. In $50 II was SOLD
20 the Oregon Improvement Company, and
in 1853 an extension 10 the Green River
coal mine was undertaken, in considera-
ton of a subsidy of $4,000 from the peo-
pie Of Seattle. II was at this time that
the road was extended 10 the Franklin
mines and its name changed TO the Column
bia & Puget Sound railway. A few years
ago a branch was built from Maple Valley
10 a fire clay mine and stone quarry owned
by a. II. Sherwood.
The Founder of AnacortcS.
In the spring OF 1890. when the real es-
tate market was particularly active on the
Sound, the oregon Improvement Company
bought a large tract of land on the north
end of Fidalgo island and plated II into
the town of Anacortes, which had already
existed in name for several years The
Seattle &c Northern railroad was
built during that summer from Anacor-
ties. and was projected to extend up the
Skagit river and across the Cascade
mountains. to connect with the Great
Northern, which at that time began its
extension to the Coast. The company also
bought the old Olympia & Tenino railroad,
extended 10 10 the water front at Olym-
pia. and projected an extension 10 Port
Townsend along Hood canal large sub
sidy was raised at Port Townsend, and
the construction of the road was begun
from that city southwark. Before IL was
completed to Quilcene. on Hood canal, the
Barring failure. in the fall OF 1890 prevent
ed the sale of a new issue OF bonds and
caused the suspension Of construction.
seattle Made Headquarters.
In November of that year the company
found itself so deeply embarrassed that II
was put in the hands of a receiver, 10
which position Joseph Simon, Of Portland.
was appointed. Within three months the
company had paid off It's pressing obiiga-
tions and again took charge OF it's prop
erty. with a new set OF officials. w. II.
Starhuck was president In succession 10
Elijah Smith. c. J. Smith was appointed
general manager on the Sound. and the
operating headquarters were removed
from Portland to Seattle Since that time
the company has succeeded in paying it's
way and has declared one dividend. but
succession OF misfortunes TO its mines has
caused serious loss. y fire and eX-
plosion i'm the Franklin mine re-
suited in the asphyXiation of thirty
seven persons, the Newcastle mine
was visited by an explosion in which sew
eral lives were lost. and FIRE a few
months ago gained such Roadway that IL
was necessary TO abandon the old work
ings and make a new opening 20 the vein
ia the town OF Newcastle. All these acCl-
dents have. for the time being involved
large expense and seriously impaired the
earning power Of the company, and 10
them its present inability 20 meet its pres
emf interest payments is largely due.
The recent contest for control of the
company between W II. Starbuck who
has been president since the last receiver
ship, and Elijah Smith, which resulted In
the victory OF the latter. is fresh in the
minds ~ the public. IL is understood that
the reccivership was FASTENED by desire
for reorganization GA the part Of the new
mana cement
II acts 50 that none Of It's strength is lost