Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1897-11-19

principal one would refuse to do so.
Seeing matters thus blocked, l went
to Judge Allen, and obtained from
him the assurance that he would ac.
cept the composition if Mr.. Chambers
and the other indorsers would waive
their right to be released by virtue OF
said rule OF law, but that they might
make any other defence to his claim,
and he should be free to accept 50
per cent. from the company like the
other creditors and then sue them for
! the remaining SO per cent. By this
arrangement the indorsers would lose
none Of their legal rights, or defences,
which they then had, and the claim
against them would be reduced one
half, from $4,000 to $4,000. More
over, the plan if carried out, would
clear off all the floating debts, and re-
lease them from their endorsements,
would save to them half their stock,
and would pay half OF some claims
they had against the company.
Mr.. Chambers positively rejected
this solution of the difficulty. Messrs.
Phillips, Gaby and 8. z. Mitchell, as
they informed me afterwards, urged
him to accept it, but in vain. He
thus threw away the last chance Of
saving the company, too avaricious
to make the necessary sacrifice, and
expecting to force me to raise the ad-
ditional money to pay Judge Allen,
thinking that would not sacrifice my
stock In, and claims against, the COM
pany by foreclosure. But the wreck
he had made of it, and his rejection
of the only means left OF saving the
concern, left no alternative. And he
has been fighting the claim of $4,000
ever since, and with what result let the
judgments against him show.
In sober truth, Mr.. Chambers and
the former managers of the company
received nothing but benefits from
me, and owe me gratitude which they
have repaid by vilification. I furn-
ished them $12O, 900 in cash in 1892,
when they were over 100000 in debt
and saved them from bankruptcy. 1t
was no act or word of mine that
caused them to run thus deeply in
debt, recklessly borrowing from the
bank of which they were trusted di-
rectors, the failure of which at last re-
suited from such borrowing, and from
every one they could get to trust them,
and squandering the money so foolish
ly that the plant which Mr.. Chambers
now says can be duplicated for $780,
600 stands on their books as costing
$340,O00. l sold their city warrants
when they could not find purchaser,
and saved their credit with the trust
company representing the bondhold-
ers. paid the bill for the plan for
the improvement of the Deschutes
water power out Of my own pocket, al
though Mr.. Chambers and Frost agreed
that the company should pay it,
which agreement they repudiated and
broke. loaned them 81 100 to help
pay the bonded interest. l suggested
the only practicable plan for saving
the company, contributed half my
stock, scaled one claim and threw of
another, found way to carry out the
plan, and stood ready to put it through
until the senseless course of Mr..
Chambers frustrated it.
When he left no alternative, I put a
stop to his quitting the company, and
protected the rights OF the bondhold.
ers, who held the first lien ON the
plant. This is his grievance; this, and
my refusal to raise more money on his
own terms.
Mr.. Chambers valuation of the plant
at $4,000 in his letter is less than
half OF what he swore it was worth in
his testimony in the foreclosure suit
Is his word any better than his oath?
He says that you can spend $4,000
on the improvement of the water
power, and still have but little more
power than you have now. This wild
assertion in face of the plan and esti
mates of Mr.. Freeman, the hydraulic
engineer who made thorough study
of the power, and of the opinions o
Mr.. Goode, General Manager OF th'
great Oregon City water power, of thu
Stillwell and Bearse company, which
put in the water power plant, of al
those who have anything to do will
the power, or know anything about it
and of his own experience as manage
of the company, when every summer
the power was increased by raising th'
dam few feet, shows the animus ant
the recklessness of his statements.
So too his comparison of his man
agement of the company and that un
der the receivership. The outcom
of his management during two and
half fat years, when the income wa
between $500 and $2.SOO a montl
was the utter ruin OF his company
, $500 of floating debt, Il great def
cheney judgment rendered against il
the exposure of his attempts to stri
the plant and defraud the first mort
| gagees and himself ousted from
the management.
During the three lean years OF tn
Receivership, when the income wa
only some $1,000 a month, the carr
n