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VOL. XXX,
COKVALLIS, BENTON COUNTY, OREGON. FRIDAY, DECEMBER 29,J 1893.
NO. 46.
7?
We Will Discontinue Our
Until after the
Call and See our Handsome Line of
Holiday Goods.
STOCK'S CASH STORED
fec. 3j. 9n? Insurance gent,
3roinEir
I am now prepared to furnish the citizens of Corvallis and vicinity
with policies in THE BEST INSURANCE COMPANIES on the Mar
ket, such as the
ROYAL, of Liverpool, SPRINGFIELD FIRE and MARINE,
Springfield, Mass., and CONTINENTAL, New York.
Call and learn particulars. I will furnish transportation to all points
east via the Union Pacific System. Office first door west of Stock's Store.
THE SPOONS.
Miss Snell, of the college, has a class of
young ladies pursuing a course in household
economy, several members of which are
said to be also engaged in the pursuit of
husbandry. Judging from the assiduous
attentions paid them by soma of tbe male
students, they are to be congratulated on the
success attained thus far.
At the Presbyterian Christmas tree exer
cises last Saturday evening several of those
"spoonily" inclined young gentlemen were
the recipients of a most useful and necessary
article of household furniture in the way of
a large tin soup spoon. Perhaps some of
the deserving ones were forgotten but the
following named fellows have been so con
spicuous and untiring in their devotions
that it was impossible to forget them.
Their names are Bob Ray, John Fulton, Joe
Smith, A. S. Additon, P. Nash and George
Washington Paul.
"We are the people, we are the stuff,
We eat soup and we never get enough."
THREE WERE GUILTY.
The result of the great smuggling case
that occupied the attention of the United
States district court for eleven days, was
that C. J. Mulkey, William Dunbar and P.
J. Bannon were guilty. No argument be
ing reached by the jury as to James Lotau
and Seid B ick, while all the other defend
ants were acquitted. The charge was con
spiracy to unlawfully land Chinese-laborers.
The jury were ort for twenty hours.
Alderson, is the name of a' boy living
about five miles from Corvallis in Linn
county, who mistook himself for a goose
one day this week and emptied the contents
of a gun barrel up his sleeve, taking a fin
ger with it. The remainder of his hand
was also somewhat the worse for the possi
ble mistake of identity.
OPEN-AIR CONCERT.
The Marine band will render the follow
ing cm cert in front of the Occidental hotel
next Sunday at 2:30 o'clock:
1 March Pre. Cleveland's Wedding liarch. .-..Boyer
2 Overture Fantastique .' Dal bey
3 Medle) Overture Black Brigade Beyer
4 Schottische Bright and Bewitching Round
Medley Overture Echoes of the Diy Rosenfeld
March -Washington Post Suusa
The above program comprises somo of
the latest and best publications by standard
authors that have ever been played in
public in Corvallis.
BEWARE OF OINTMENTS ToR CA
TARRH THAT CONTAIN
MERCURY,
as mercury will surely destroy the sense of
smell and completely derange the whole
system when entering it through the mucous
surfaces. Such articles should never be used
except on precriptions from reputable phys
icians, as the damage they will do is tenfold
to the good you can possibly derive from
them. Hall's Catarrh Cure manufactured
by F. J. Cheney & Co., Toledo, O., contains
no mercury, and is taken internally, acting
directly upon the blood and mucous surfaces
of the system. In buying Hall's Catarrh
Cure be sure you get the genuine. It is
taken internally, ana made in Toledo, Ohio,
by F. J. Cheney & Co. Testimonials free.
xaTSold by Druggists, price 75c. per bottle.
The students who returned to their homes
last Friday for the Christmas "holidays are
as follows: H. Bodine and Mr. Steele went
to Albany; Messrs. Myers, Emmett and
Welch to Salem. Frank Holman returned
to his borne at Wells; E. J. Kitson to Port
land; Messrs. Parker, Leland, Blevans,
Sneider, Andrews, Zimmerman, O. .Taylor
and W. W. Looney, and Misses Mary Men
delhalL Leavit, Thornbury and Cooley also
left
The success of Chamberlain's Cough Reme
dy in effecting a speedy care of colds, croup
and whooping cough has brought it into great
demand. Messrs. Pontius & Son, of Cameron
Ohio, say that it has gained a reputation sec
ond to none in that vicinity. Jas. M. Queen,
of Johnston, W. Va., says it is the tost he
ever used. B. F. Jones, druggist, Winona,
Miss., says: "Chamberlain's Cough Remedy
is perfectly reliable. I have always warranted
it and it never failed to give the most per
fect satisfaction." Fifty -cent bottles for
ale by Graham & Wells.
public.
THE CHURCHES.
At the Christian church next Sunday at
11 a. m. the theme will be, "Charity," and
at 7:30 p. m., Christ or the World, Which?"
On Saturday, January 6th at 7:30 p. m. the
pastor will give a lecture for the Y. P. S.
C. E. on the subject, "The Present Age and
its Requirements."
Services at the Presbyterian church next
Sabbath appropriate to the last Sabbath of
the year. Sunday school at 10 a. m., and
Endeavor societies at the usual hour. A
welcome to all.
One week from next Sabbath, January 6,
there will be communion service and recep
tion of members at the Presbyterian church.
This will also begin the services of the
world's week of prayer which will continue
for several days and to which all are cordi
ally invited.
Services at the Congregational church on
Sunday at 11a. m. and 7:30 p. m. Morn
ing subject. "The Crown of the Year;"
evening subject, "A New Year Eve's Solil
oquy." At the evening service a selection
from Jean Paul Richter appropriate to the
occasion will be read as a prelude to the
sermon. Sunday school at 10 a. m. Y. P.
S. C. E. at 6:30 p. m.
MASONIC INSTALLATION.
Corvallis lodge, Ferguson chapter, and St.
Mary's O. E. S. held joint installation at
their hall in Fisher's brick on Wednesday
night. The invitations were limited to the
families of the members and members of
the other Masonic organizations in the city.
After the exercises concluded an excellent
lunch was served by the ladies of the O. E.
S. Mr. Z. H. Davis and Fred Yates, robed
in what was supposed to be their official
garments, were being installed king and
sun bo respectively. Either they were both
color blind, or else the installing officer, Mr.
T. Graham, skipped a cog in the ritual, for
when he came to install the king, he found
him arrayed iu a garment of scarlet instead
of purple.
Lincoln' county is but ten months old and
isjnow $15,000 in debt. Many of her tax
payers are probably of the opinion that
county division is not what it was cracked
up to be when the matter was pending in
the legislature a year ago. The mainten
ance of a connty organization is quite an
.expensive luxury and those who can afford
to indulge in such expensive ones during
these hard times aie indeed fortunate.
With the resignation- of Prof. Dumont
Lotz, as station chemist, the college has lost
a chemist who had few if any equals on the
coast and in this line has gained an enviable
reputation. He leaves today for Mexico his
future residence, where he has interests in a
coffee plantation and mines. We wish him
success. ,
A lamp exploding in Rev. Geo. F. Plum
mer's house almost caused a conflagration.
But for the heorism and presence of mind of
two young ladies, who waded iota the
flames without auy hesitancy, serious con
sequences would have ensued.
Fred Nelson is spending the. balance of
the holidays with his parents in McMinn
ville. PERSONAL. H. H. can net come to the place as
requested oa Sunday. Call at posfrffiue for letter
directed to your signature of last.
Highest of all in Leavening Power. Latest U. S. Gov't Report
a
-
1 1 . xTLyy
LOCAL NOTES.
Everything in the jewelry line at Vogle's.
All men's suits at eost at Miller's cioth
iug store.
Ladies, buy your men's holiday goods at
Nolan's. Best stock in town.
Ladies, buy your men's holiday goods at
Nolan's. Best stock in town.
AU men's suits and overcoats at cost at
Miller's clothing store.
Ladies, buy your men's holiday goods at
Nolan s.
Ladies, buy your men's holiday goods at
Nolan a. Beat'stock in town.-;
First-class cedar shingles, $2. 15 per M at
F. J. Oberer s River front planing mill.
John'J. Daly returned to', Portland last
Thursday.
-Dr. Carter, of Elk City.'spent Tuesday 'in
Corvallis.
The publicJschoolsTof this" city ..will .re
sume their labors on Tuesday next.
MisiAdda Davenport i is spending the
week, at the Martin home near Monroe.
Father Bennett.'is improving under the
treatment of Dr. Altman.
The Christmasjdisplays of our meat mar
kets was unusually attractive.-'
Hoop's pills cure constipation by restor
ing the peristalic actiop of v'the alimentary
caual.
Now is the time to have your picture
taken. Special reductions for the holidays
at Underwood's gallery.
Mr. Bert Westbrook and Miss Mirt Mil
ler, of Albany, were among the maskers at
the ball Monday night.
Wheeler & Langley will pay the highest
market price for hides of all kinds. Call on
them when you have any for sale.
Another flour chest to be given away at
Wheeler & Langley's. Buy a package of
Midland coffee and get a chance.
.We anticipate a change iu business Jan
uary 1, '94. All men's suits and overcoats
strictly at cost for cash only at Miller's
clothing store.
B. F. Jones, county clerk of Lincoln
county, spent Tuesday and Wednesday of
this week iu Corvallis.
A boy weighing 10 pounds was born this
week to the wite of Clyde Beach. The
father will be about in a few days.
Principal S. I. Pratt of the Corvallis pub
lie schools, is enjoying his Christmas va
cation with relatives in Portland.
Nelson Brothers, of the Occidental shav
ing parlors, are doin? lirst-class work and
their trade is thereby increasing every day.
Baths in connection with the shop.
After a forced retirement of ten days,
caused by a cut in - the neck of Charles
Wheeler, Ed Scott is renewing his acquaiu
quaintances. President and Mrs. J. M. Bloss went to
Portland Tuesday to remain the remainder
of the week, in attendance on the meeting
of the state teachers' association. v
Miss Erma Lawrence, of Oregon City, is
spending the holidays with her "bachelor"
friends Misses Ora Spangler and Anna
Samuels.
C. D. Thompson, farmer at the college,
has harvested his crop of whiskers. A lim
ited number of cuttings will be furnished
on application.
D. It. Vaughn, who recently resigned as
freight and passenger agent ot the Webfoot
route, in San Francisco, is spending the hol
days with his family iu Corvallis.
- The Albany Telescope has an eye single
to the supposed imperfections of the present
Oregon Pacific management and devotes
most of. its valuable space to diatribes in
that direction.
E. R. Bryson returned Saturday from
Eugene where he has been attending the
University and has been spending the week
visiting his parents and numerous friends.
Mr. Sibly, a member of the law firm of
Daly, Sibly Jt Ekin, of Dallas, was in town
this week looking after legal business in
which his firm is interested.
Two toes were almost severed from the
foot of Charles Wheeeler a few days ago by
the careless use of an ax in his own hands.
As a result he is now perambulating on
crutches.
Do not put off taking a medicine. Nu
merous little ailments, if neglected, will
soon break up the system. Take Hood's
Sarsaparilla now,- to expell disease, give
strength and appetite.
Athenian hair tonic will cure that itch
ing and keep the scalp clear of daudruf.
Try a bottle and if not. perfectly satisfac
tory, money cheerfully refunded. 50c,
75c. and $1.00 bottles. Nelson Bros, sole
agents, Occidental 'shaving parlors.
'The best in the world." This is what
W. D. Woodring, of Bordley, Ky., says
of Chamberlain's Cough Remedy. He
spoke from personal experience in the use
of it, himself and family having just been
cured of bad coughs and colds by it. For
sale by Graham & Wells, druggists.
Last Saturday Mrs. R. M. Davisson de
parted for Chicot California, where she in
tends spending the winter with relatives.
Ralph accompanied her as far as Eugeue,
where they took Christmas dinner with Mr.
and Mrs. W. S. Gilbert.
E. Parker and wife- arrived in Corvallis
this week from Ohio. Should the climate
prove agreeable to Mrs. Parker's
health,' they will probably remain. The
lady is a sister of J. N. Brauderberry. of
this city.
Sid Moore jr. is again in town, taking in
the unwary. Should he again be brought
before the police court on a charge of va
grancy it is hoped the presence in' his be
half of two unpaid attorneys, will not deter
tbe court from proceeding with the case.
Dr. M. A. Nelms and wife are spending
the holidays in Corvallis the guests of the
lady's parents, Mr. and Mrs. F. M. Johnson.
Dr. Nelms is a recent graduate of the Sau
Francisco Medical College and intends
locating in Walla Walla, where he will
form a partnership with his ancle, who has
a large practice.
'
THE END NOT YET.
Mass
Meeting of Oregon
cine Employes.
Pa-
RECENT SALE NOT CONFIRMED.
NO CHANGE TO BE MADE IN
THE RECEIVERSHIP AT
PRESENT.
Mass meetings of Oregon Pacific creditors
for the purpose of devising ways and means
for the payment of their claims have not
been (infrequent occurrences iu the history
of the company. The one held at Albany
on Sunday last however, seems to have been
the largest and most enthusiastic meeting
vet held. So many were in attendance that
the Albany Engine Co.'s hall proved
t&adcquate to. .bold the throng, and au ad
journment was had tothe opera house The
ineetiiig was called to order by Chairman
Barns. He stated (hat they were not en
gaged in a personal fight and wisely
cautioned the men against any hasty action.
Their only object was to get their money
and that little or nothing would be gaiued
by resorting to violence and all should work
in harmony.
Charles Miller, of Yaquina, was elected
secretary of the meeting. Mr. C. C. Hogue
was then introduced and read the report
that he had already made to their executive
committee.
At this time the chairman appointed a
committee of three to wait upon Mr. Had
ley and ask him to be present. On making
his appearance he was called to the stage
and addressed the meeting for over an hour.
During his remarks the situation was
thoroughly reviewed and considerable time
taken in defense of his administration of the
company's affairs and to the criticism of Mr.
Hogue s report.
In concluding his remarks he said that
hia conscience was not made of rubber, and
was candid enough to ' admit that he had
stretched it to its limit. During the first
three months of his receivership he had been
led into believing, from letters received by
him from Mr. Biair, that if a proper show
ing of the earning capacity of the road
were made, it would be purchased and ex
tended eastward; but from the begiuuing
he had been deceived and was now thor
oughly sick and tired of it. He bad during
his administration worked for the best in
terests of the employes and at this time
would not desert a sinking ship. His res
ignation was in the hands of the court, . but
if the employes wished him to continue the
management of the business, he would do
so.
At this point Mr. Hadley was asked if
Mr. Hogue's report was true. He replied
that he could not say but what it was true,
just and impartial.
The chairman of the committee then came
forward and made a few remarks. '
J. H. Wilson, as minister plenipotentiary
and envoy extraordinary, from the pur
chasers, Messrs. Clark - and Hughes then
asked permission to address the meeting,
which request was granted. - After speaking
a few minutes he read- a resolution which
was to the effect that if the money bid for
the property was applied to the payment of
laborers and material men and it would dis
charge their claims in full, they should
wish the recent sale confirmed. Mr. Wil
son asked that the resolution be adopted
but none of the audience saw fit to comply
with his request. The chairman announced
that the selection of some person to be rec
ommended to the court as their choice for
receiver, would be in order, and the names
O. G. Hopkins, auditor under the present
management, Con. Sullivan, roadmaster,
and i. J. Miller, were mentioned. Mr.
Vaughn objected to the manner of voting
and suggested that the meet equitable way
ot making tneir choice would be for each
man to vote the amount of his claim. A
motiou to this effect was voted down. On
motion, it was agreed that the person re
ceiving the greatest number of votes would
be their choice. The number of votes cast
was 113, of which Miller received 83. Sul
livan 14. Hopkins 14 and blank 2. A mo
tion was then made to make the selection
unanimous, Mr. Vaughn alone voting no.
A vote of thanks was tendered Mr. Hadley
for the free use of trains and for his inter
est in their welfare.
TO SET ASIDE THE SALE.
Five hundred men. mostly laborers and
supply creditors of the Oregon Pacific Rail
road Co., were crowded into the circuit court
room Monday afternoon to listen to argu
ments of counsel on one of the most im
portant matters yet before the court.
whether or not the sale made on the 15th inst.
should be confirmed or set aside.
Judge Bronaugh, on behalf of himself and
other holders of receiver's certificates, began
the argument in which he objected tothe
confirmation, showing to the court many log
ical reasons ior sucn opinion ana closed by
stating that his prophecies all along through
these years of litigation had proven only too
true.
H. H. Hewitt of Albany, representing the
laborers, followed, and asked that the .sale
be set aside on the ground of inadequacy of
price, combined with the discrepancy be
tween the bid made January 20. 1892 and the
one now under consideration. Irregularities
in the proceedings leading up to the sale in
that the real property should be sold at the
court bouse door, in tbe county in which
such property is located and that all personal
Sroperty should be in view of intending bid
ers, were urged as being sufficient grounds
ior setting tne saie aside.
No one appeared for the Oregon Pacific
Railway Co. owners of the properties under
the Job purchase.
Judge Flinn, on behalf of the defendants.
the Oregon Pacific Railway Co. and the Wil
lamette Valley and Coast Railway Co., also
objected k; the sale. - These objections were
verified by Zepbin Job as secretary of both
corporations and alleged that the purchas
ers 3. J. Belden, Henry Martin, F. V. Pen
dleton, H.. Hollonworth, Joseph Wharton
and James A- Blair, had entered into a con
spiracy in New York last November among
mem selves ana otners unxnown, ior tne pur
pose of defrauding the creditors and other
time holders and accrediting them with hay
ing circulated a report, in New York and
elsewhere, for the purpose of keeninaranv
other persons from bidding at the sals, to the
effect mat tney ana tne bondholders had en-
tered into an agreement to purchase the prop-Khe. road had cost, in. direct sayings and in
erties and had raised a million and a quarter direct rise of the values of real estate, the at-
dollars therefor, which would be sufficient to
pay all the outstanding debts accrued during
the receivership. That afterwards about the
time the said purchasers left New York to at
tend said sale, they seceded from such agree
ment and announced that they would pur
chase the road themselves, and in order to
keep others from bidding, they made ar
rangements with certain holders of receiv
er's certiucaies, wno were nooie to . oppose
their scheme tothe effect that they would
protect such certificates if the holders would
not interfere at the sale. That the property
was worth $3,000,000 as per report of experts
sent out by the bondholders including four of
the purchasers, Wharton, Blair, Pendleton
and Hollingsworth. That the proceedings
were irregular in that tbe execution was not
ordered out by the plaintiff nor defendants,
but was ordered out by the court at the sug
gestion of its receiver, whe it is believed made
such suggestion at the request of the pur
chasers. That the terms of sale prescribed
that any person desiring to bid should first
deposit in cash or its equivalent in certified
checks satisfactory to the sheriff and the
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 Flinn stated that
to secure time the bondholders, through
their attorneys, had agreed that whatever
amount the experts reported the oropertv to
De wonn tney stood reaay to Did, ana that
attorneys for receiver's 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 $5200,000, although
tne experts sent out to examine into the con
anion ana value or tne properties had re
ported them to be worth 83,000,000.
W. H. Burns and all the other creditors
of the receivership whose names and amounts
are set out in the schedule to the petition filed
on tne 7th oi jNovember Dy their attornev,
WaKsNasli; objected to said pretended sale
and after reviewing the matter through to
date represented to the court that the naimr
offered by the purchasers in payment of said
property did not comply with the terms and
conditions or the decree under which the
properties were sold. That sueh paper was
neither cash nor its equivalent in checks or
drafts, me copy or said paper is as follows:
Portland, Or., Dec. 16, 1893.
Ladd & Tilton, bankers, pay to Charles E.
Hughes arid Tabius M, Clarke or order two
hundred thousand dollars.
Charles E. Hughes,
Fabius M Clarke.
Across the face of which paper is written,
'Good if properly endorsed, Ladd& Tilton."
The following endorsement appears on the
back thereof: "Pay to David A. Osburn,
sheriff ot Benton county, Oreeon. in event of
sale and due confirmation thereof to J. J.
Beldon, Henry Martin, F. K. Pendleton, S.
L. Hollinesworth. Joseph Wharton and
James A. Blair, of the property of the Ore
gon Pacific Railroad company and Willam
ette Valley and Coast Railroad company on
foreclosure proceedings without recourse to
usl Charles E. Hughes. Fabius M. Clarke."
That the handing of said paper to the sheriff
was the only pretended payment ot the de
posit as required by the order of sale.
lie also alleges much the same matter as is
set up in tho objections of the defendants
and avers on information and belief that the
said Blair, Wharton and Pendleton have
been engaged ever since the purchase of the
i . .I. j A i . . ....
properties oi tne ueienuant corporations on
behalf of the bondholders at the sale made
under the decree of this court in December,
1891. in a deep laid, continuous and nersis-
ent effort to obstruct and prevent the comple
tion oi tne purcnase maae at sucn sale on De
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 a
vaiiie utterly disproportionate to tne amount
bid. That the petitioner is a creditor of the re
ceivership under the orders and sanction of
the court for labor and supplies used and ob
tained by the receivers of the court in the
operation, protection and repairs of the prop
erties of the defendant corporations in the
charge and under the control of the court
Owing to the large amount of such 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 5 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 inoperative in
that it was made in chambers and not in 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 December 15, but after the reorganization
plan had been about consummated these peo
ple whom Messrs. Clark and Hughes repre
sent reported that they had effected a plan
to buy the property in themselves as indi
viduals. At this point Mr. Nash, addressing the
audience and members of the bar as well as
the court, begun a 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
adversity, realized its possibilities and de
nied 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 a future for the
road and he asked that the court might do
nothing that would tend to injure its pros
pects. As he progressed the applause from
the audience indicated that they were in
sympathy with these remarks.
BP1TOMB OF 11 a. NaSll'S SPEECH.
After reading the objections he had file d 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 a court of
equity to do substantial justice to all inter
ested. He refuted the statement of the pur
chasers that if their pitiful purchase was re
jected there were n other capitalists to be
louna oesioes ionn i. ciair ana Joseph
Wharton to buy this road, if they saw they
were to be defeated in th is shameful plot to
buy the road for a song. He referred to the
worse plight of the road in 1885-6, when the
labor and material claims were far greater
than now, and the property as a whole was in
a tar worse condition. That thenlColonel
Hogg had rescued it, 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 a
probability that the Job purchase could be
ea.ried out. That Receiver Hadley had '
been the willing agent of these men, espec- 1
ially 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 pf the produce of Western Oregon and
of the supply to its inhabitants of the neces
saries of lite. That the road had already
saved to the nennln nf Orptrnn Ifur mnra ritin
traction of population and the development
of tbe country. That now it was a life car
rying artery of social life. He painted the
condition of the country if this road were tied
up with the return to wagons and pack
horses, and the stoppage of all improvement.
Then be drew the plot of the Blair-Wharton
people, to depreciate and then to wreck the
road in order to buy it for their own, and the
way in which divers weak-kneed men were
J J ! a i f a 1
Ldrawn or driven to join the plan now devel-
oped in the sale the court was asked to con
firm to-day. That they had tefused to join
in any plan which did .not embrace the pur
chase of the road for themselves at the lowest
pricewith 'the consequent shutting out of
all the creditors of the court, - employes,
material men. holders of transferred claims,
certificate holders, eyen those who held by
direct order of the court, the first pre
ferred rights to the proceeds of the prop
erty when sold. That they had sprung
tms plot only nine days before the sale,
when it was too late to make any other
combinations. That Colonel Hogg and his
friends had refused utterly to join in or to
be parties to this robbery. That the court
might possibly hesitate to make the or
der refusing this sale if no possibility of
the continued operation or the road were
open, but that the proposition of the em
ployes to" go on with the operation for
six months, if need be, without plunging
the court deeper into deot, taking the
earnings of the property for pro rata dis
tribution among themselves, under a re
ceiver satisfactory ,to them, offered a solu
tion of all the court's 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
$40,000 of supply claims, asked that no
confirmation of . the sale be . made .unless
the payment of labor and material claims
now held by bona fide purchasers were
provided for. Mr. Hughes then arose to
address the court. It was hoped that he
would show some Iplain, speedy; and ade
quate way out of the difficulty, but did
not, and as he began his remarks it was
evident to those present that he had little
hopes of success in securing a confirmation
of the . sale. He welcomed the opportu
nity to come before the court and explain
the position ot the purchasers whom he
had the honor of representing. In speak
ing of the history or rather muddle of
the concern ho said that the parties inter
ested in the recent purchase had sunk
810,000,000 in Oregon and thought they
had 'interests in jthe property as well as
the laborers whom he really felt sorry for.
It was true that his clients had a great
aeal or money, Dut 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 a mere matter of $975,000 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
confirm the sale. He said that there has
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
tained unless a plan ot ' reorganization
could be effected, among all the bondhold
ers and so reported the situation on re
turning to New York. He also found a
little matter of court expenses that had ac
cumulated to $1,200,000, which might be
considered a small sum in Corvallis, but
in New York it was a vast deal of money
and that men whp had sunk 810,000,000 in
the road aid not consider it worth even
81,000,000 and $200,000 was every cent that
could be raised. In tact, at the time, lie
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, lie further stated if the bid made
was in the eyes of the court insufficient,
and he failed to confirm tbe sale they
could offer no more than the amount bid
and would return to New York. In his
estimationleven an equal amount could
never again be had tor 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, ihey looked upon it just as
any sensible business man would. They
had already sunk $10,000,000 in it and did
not .consider its present value over$200
000.jS''ManyTrof 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-
siderthe",variouslinterests involved it,must
be remembered that his people had put
$10,000,000 into the concern, while the
laborers and materialmen represented only
about $000,000. The road had been oper
ated at a loss from the first, that no one
was interested in this purchase who had
not contributed to the fund and he and
Mr. Hushes were prepared to make affi
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. Muirhad been here and
looked over the road at the instance ot
parties able to bid and who intended to do
so, with a view to completing the road but
found it in such a 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 a telegram from &the Farmer's
Loau and Trust Co, to the effect that they
were' of tiie opinion that no further sum
than $'200,000 could be raised, and believed
that the court had better accept the propo
sition and in his opinion the proceeuings
were sufficiently regular to warrant a bid
and the confirmation of the sale.
It was true that the execution was irreg
ular in that it was not ordered out by the
plaintiffs but that they would make no ob
jection to the confirmation on this ground.
Holders of receivers certificates were
represented by Attorney Snow. The court
had evidently not been staggered by tne re
marks of. counsel for he proceeded immedi'
ately to render his decision and said in part
"lhat taking into consideration the earning
capacity of the road he considered $200,000
all the property was worth, but the laborers
were the parties most interested in the prop
erty and they had asked that the sfle be set
aside and ordered that tbe sale made by
David A. Osburn on December 15th of the
property and franchises bf 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
$200,000 deposited by said purchasers at said
sale, to said purchasers.
haslet's removal.
Wednesday morning the court room was
again jammed to its utmost capacity by cred
itors aud others interested in the removal ot
Receiver Hadley. H. H. Hewitt as attorney
for the employes, tiled a motion asking the
court to accept the resignation which had
already been filed and at the same time
presented a petition asking that r . La. Mil
ler be appointed to fill the vacancy. Wal-
lis Nash as attorney for W. H. Burns and
others asked tor Mr. Hadley s removal on
the grounds set out iu their petition tben on.
file, to the effect that he had allowed Sup't
Mulcahy $300 per month as salary aud $150
per month as expenses and his att'y., C. H.
Gest $2,306 tor expenses; that he had been
speculating1 in ' 1000 cords of wood pur
chased at the front, which be shipped to
market over the road to Sau Francisco,
where it was sold for S6 a cord, making a charge
of A ner cord for transportation, and in such
speculation he had abused his power. Mr. Had
ley was also cnargea wun naving uniawiuxiy :
laid two miles of track at the east end of the
road. The receiver then addressed the court in
explanation of the charges made against him,
and stated that at the time of his appointment
he found Mr. Mulcahy serving the company in
the capacity of superintendent at a salary of $250
per month, and C C Hogue as traffic manager
also drawing S250 per month. He concluded that
Mr. Hogue's services could be dispensed with by
transferring his duties to the superintendent,
which he did bv fixine the latter's salarv at Kion
per month, thereby making a monthly saving to
the company of $200. . In the payment of certain
of the general office employes, a reduction of
8225 per month was shown from the payrolls un
der his management. The shipment sf woodjto
San Francisco was for the purpose of increasing
the earnings and in the interest of the employes. '
rlnitn4 that f(iiritir tha
covering a period of 26 months, Col. Hogg
had paid about $90,000 ; to attorneys, and linden
the present administration of 10 months, about
87,000 had been expended for attorneys' fees.
In speaking of the track built by the present re
ceiver, Mr. Hadley said a mountain resort known
as Idahna Park had been established with a view
to increasing the passenger earnings of the road
and in so doing it had been found necessary to
extend the road several hundred feet, and the
rails used for this purpose had been taken from
along the line of the; road. He was followed by
Attorney General Chamberlain, representing sev
eral thousand dollars in supply claims, who said
that Hadlcy's management was much better
than the former one; that the Hogg manage-'
ment was erosslv extravagant in the navment of
attorneys' fees and objected to the appointment
01 Miller or any one else, with the understanding
that the road was to be operated by the employes -and
the earnings applied to the payment of sal- '
aries, regardless of the claims of supply credi
tors. In his opinion, the receiver, whoever he "
might be,, should make a mouCitv statement -
showiiig iirdetail the- amount of indebtedness in
curred during the previoustmonlh and' ile the
same with the coait. ..'That the claims he-rcp,'
resented were just as equitable as any other and
should not be discriminated against. W. S. Mc
Fadden, representingseveral thousand of claims.
asicea mat nocnange De made. He believed thai
the men had been inveigled into thisj
menus oi me tiogg iaciion. an
surpnseaj 10 seejiar. J4asntner)
nan 01 uie la do ring men, som
only a year ago clamoring J
management.. 10 wnicn
closely allied for man
also representing
cnange snouiu tne
sale of the pros
material ciamy
along the line
nation to
had. He s
made, - the
beled in SaJ
unless the 1
road migli
Bryson sti
Trust ConJ
aud shouif
.present rl
ment, anJ
report of 1
regularly !
sible. Tin
be fixed al
bor shoula
fund avail;!
such claims
orty. AU
employ cq
Oregon aul
ship in Sal
era were a
ceeds aheat
supplies. Htl
pomtment oil
come for a ch;i
letter from tM
holders to the I
he would be retar
Northun suggestel
first, at what time 1
ered for sale, and sea
inaugurated to secuf
sale. Decision in the
the following morning.
JUDGE FULLERT'
About ten o'clock
hearing the conclusion
an equity case, Judge
il - , i t i -
tne jreLruu jraomo xv. xw uuaiueas,
ursc SBuit ior tiiHikt) orysuu, buo uiainuns
attorney. He naked Judge Bryson whether
in his opinion, an order of re-sale should be
made now. Judge Bryson said; "No, not
until full notice has been given to the par
ties interested." Judge Fullerton said that
his opinion was that a re-sale should not be
had till May and that he would make the
necessary order when he held his adjourned ,
term of court iu February and he desired
Judge Bryson to give tbe necessary notices.
Judge Fullerton proceeded to give judgment
on the motions and petitions for a new re
ceiver submitted to him yesterday, and
then gave judgment as follows:
I feel that I want, in this case, to do for
the best interests of all concerned, especi
ally of the creditors of the road for labor
and materials, but I am free to confess that
I do not know what is for the best. I have
sought advice from parties believed to be
competent and disinterested, but after talk-
.;i-l. ttiam 1 taai that T rlnn't 1nniU
what to do. The present receiver, Mr. Had
ley, took charge tome time iu March or
April. On the assurance of a change i& re
ceivership at that time certain bondholders
in tlio vasb promised W UUUbllUUW A OUIII ui
$40,000 towards the debts of. a receiver
ship. Shortly afterwards that debt was
paid. This court was not consulted by the
receiver or ins attorney us bu.iba uisiajuu
tion, which was done by them, as I said,
without consulting me. My own judgment
is that that distribution was not ritrlit. 1
think the creditors for materials should
have received their fair share. I am satis
fied that the road has, for many months,
been running behind, iu fact, that it never .
has paid its running expenses. I think Mr.
Hadley's management has not been econom
ical and that he has paid his attorney, es
pecially, far too much, bnt the question of
. .1 : .. . hU'I,.,;. U .1 .i u f ..- tha Hat.
interests of all?"' I have been asked to ap
point Mr. Frank Miller receiver,, in Mr.
Hadley's place. I say nothing against Mr.
Miller I believe him to be a competent
and trustworthy man but there is another -consideration.
I desire and shall order that .
full and complete accounts of the receiver
ship be at once tiled and Judge Bryson will -include
that direction in his order, which he
will draw up. There is but a month until
Februaay 1st, when I shall hold the ad
journed term of court here and by that
time I shall expect the full and complete
account spoken of to be filed. My own
judgment is that no one can carry on this
road to a profit and that it should stop,
but there are too many interests involved,
of the men employed, and also of the resi- .
dents, both at the western end and along
the line in Marion county, and the prop
erty would' be too much deteriorated by
being tied np for this cause to be congid
ered except in a last resort. The court wil'
therefore, allow the matter to stand over -until
the first of February, at which time, '
after full consideration aud a complete
presentation of all the facts. I shall take '
some definite action.
The following bulletin was sent out to
the employes of the road Thursday by Re -ceiverE.
W. Hadley:
EMPLOYES' BOTXETIK. if ,
To AU. Employes and Material Mew
The court having decided to continue the
operation of this property nntil such time as -.,
it can again be offered for sale it becomes
the duty of all of us to calmly consider the
situation, and each one be prepared to do
all that lies within his power to protect the
common property which is the security, and .
the only security, which any of ns have for ; ;
ultimate payment of the sums now due you. '
Wecan expect no aid from withont-the prop
perty must earn its own bread. It then be
comes our duty tbe duty of self -protection .
to combine our efforts to make such sao- ;
rifices that the property will, if possible.
earn its own living. To this end tbe re
ceiver asks the hearty co-operation ot every
employe of every man to-whom this prop--erty
owes a dollar. He feels that he will
meet witn tne nearty support oi every em
ploye in making such changes and red no- '
tions of force as may be necessary, in onr
present cramped condition, so try and bring
its operating expenses within its earnings. ,
E. W. Hadley, Receiver.
7
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