The herald., 1895-07-23
THE OREGON PACIFIC SOLD
A Bid of Eleven Millions COnsid=
cred Adequate
ROAD WILL BE EXTENDED
Connection With Idaho and Wyoming to
Be Made
A Bad Storm in New Mexico Causes the
Santa Fe to Lose Several
Bridges
Associated Press Special Wire,

ASSOCldteu fress cpeCldl WlEe.
SALEM, Ore.. July 22.-The supreme
court today affirmed the decision of the
lower court IN the case of the Farmers
Loan and Trust company of New York as
trustees, against the Oregon Pacific Rail-
way company. The Oregon Pacific road,
lao miles in length. together with all the
rolling stock, franchises. ETC.. was sold at
public auction to A. B. Hammond of
Missoula, Montana, for $l0p. 900 to satisfy
tho claims of creditors, which amounted
to many times this sum.
The sale was confirmed by the state cir
cult court. An appeal was taken and the
ion OF the lower court.
The road and its equipment represent an
outlay of about $1l, ,000 The bonded
indie 5tedness of the road was about SIS, :
0oG. 900. The objection to the confirma-
ton of the sale urged by the Oregon
Paciric was the inadequacy of the bid.
The court says: Tho most important
contention is that the property and fran
chses offered for sale were or the value OF
$1,000 90; the rails. rolling stock and
scellaneous property alone, not includ-
ing the land or buildings, were worth
$3.50, 900, and that the bid of $780,. 00C is so
grossly inadequate as to shock the con-
science and raise the inference of unfair
ness. fraud. mistake or surprise"
The court says the case of Marlett vs..
Warwick, ls N. j. E.. settles the ques-
tion that mere Inadequacy of price, where
the parties stand on an equal footing and
there are no confidential relations be-.
tween them, is not of itself sufficienr
to set aside sale unless the inadequacy
is so gross as to prove fraud or to shock
al T,x Ia
case at the bar it is not claimed that the
parties did not stand on an equal footing;
that there were any confidential relations
existing between them. or that there is
any proof of fraud and hence the made
quaCy sufficient to set aside the sale must
be so gross as to shock the conscience.
We have examined the transcript before
us in vain to find any evidence of the
value Of the said property and franchises.
There was no evidence before the trial
court of the value. and it would be ex
tremely difficult for us to conclude that
the price was inadequate until we have
some evidence on which conclusion can
be based. 1t was admitted IN argum ent
that an Indebtedness of more than
81 900, ,000 had been incurred by the re-
ceiver since his appointment, October %,
1890. and viewed in the light of busI-
ness venture. and not considering the
amount to be expended for betterment of
total loss OF more than $4,000 per month.
does not it must be conceded, present
an inviting field to capitalists, while the
amount bid for the property may be
grossly inadequate, we cannot say that it
is so, in the absence of any evidence of
its value, and considering that no sum
IN excess of that has been offered by
any one. The remedy remaining was to
sell the property for what it would bring.
Mr.. Hammond states that he will ex-
tend the road eastward and make a trans
continental connection in Idaho or
Wyoming.
DENVER. Colo, July ga special to
the News from Pueblo says:
Reports from Whitewater, N. NJ, are to
the effect that a greater portion of the
business section OF the latter place was
destroyed by food last night, but so far
as can be learned at the headquarters of
the Atchison, Topeka and Santa Fe in
this city, where the information is OBJ
tanned, no lives were lost. All telegraph
wires at Silver City are down, and all the
news is obtained from couriers arriving
at Whitewater. The Summer house, the
largest hotel at Silver City. and num-
ber of business blocks have collapsed.
The railroad authorities report the storm
the worst ever known in that section. Tne
Santa Fe railroad has lost several bridges
on its Silver City branch and is badly
washed out. First reports we're that sew
eral lives, even as high as thirty five, had
been lost, but later couriers, while con-
frming the reports of damage throughout
the section, say that there has been so far
as learned no loss of life.