The Eugene City guard. (Eugene City, Or.) 1870-1899, December 31, 1881, Image 1

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WHOLE NO. 742.
$2.50 per year IN ADVAKCE
Zbt &u$tnt Cltt) Guard.
PublisJiers and Proprietors.
OFFICE-On the Kant side of WllUmettc Seventh and Eighth Street.
Advertisement Inserted a follows :
..iim 1ft linM nr 1mm in InMrttnn It3
each ubsequent insertion L Cash required In
Tim advertiser will be charged at the fol
One nr three month $6 00
" mix month i 8 00
" eue year U 00
Traiul.nt notice In local column, zu cent per
. . t
Ine lor eaca uuwrwuu.
Advertising bill will be rendered quarterly.
All ob work Blunt be Mil) FOR OM DELIVER!.
ii ii II
jBr Hour. -Prom I a. m. to I p. m. Sundays
Km :0 v :w p. . .
:l - i -u mm thaMUth IMMni ffOlDaT north
I a. m. Arrive from the north and leave, roinf
tvith at l:SS . . r Biumlaw. rranKiin ana iong
Tam eloM at In., on WednMilay. For Crmwfufdf
(illa.'Camp CrMk and Brawn.vlll. at I P.M.
icrival of trmtaa, Letter, should be l.ft t th. otHo.
....., before 'ArtpAER90K P.M.
. A V J a
EnaKKS uoona no , a. . ! . .
Voata Ant and third VYeinesdays In each
Jmmv. HrMntn Bdtt Loon" No. 8 I. O.
f tO. Tt. Meets every Tuesday evening.
tiSrW WtMAWniLA KmaMPimtT No. 6,
eet en the Id and 4th Wdnes4ay. in each month.
Ebuem Lodob, No. 15, A. O. U. W.-
Meeu at Maaonlc Hall the econd and fourth w
Physician, Surgeon and Accoucheur.
(Formerly of Yamhill CouDty.)
.RESIDENCE-Upstairs, over Chan. Horn'
gunsmith ibop.
idence when not professionally engaged.
Otfic at the
POST OFFICE DRUG STORE. on Eighth street, opposite Presby
terian Church.
Clocks, Wacnes, Chains, Jewelry, Etc.
Repairing Promptly Executed.
C3TAII Work Warrs.nted.jP3
Ellsworth Co.' brick Willamette street
la Dorris' Brick Building.
Groceries IJ Provisions,
Will keep on hand general aasortment of
Groceries, Provisiou, Cured Meat,
Tobacco, Clitar, Candies,
Candle, Soaps, Notion.
Green and Dried I rnits,
Wood and Willow Ware.
, Crockery, Etc
l . mil -
i iiueine wm De conuucieu
Which mean that
low Prices are Established.
Cadt delimed vlthont charge to Bnyei
yt which w win pyTt''Si5hu.,?l?tet
pric LYNCH & FAdh..
House Furnishing Goods Generally
Wells Driven Promptly
Satisfaction Guaranteed.
Willamette Ntrett,
Eugene City. Oregon.
TCe ymirown towa.Tnn. aaJ outfit J
QOOira. XAinmZ Hw.Tr4Co,PurtUivl,Me
Mil II
I. B.
Gives notice that
of Goods at reduced prices for
Call and Examine
his Stock.
Eugene City
Hide & Pur Depot
For the present
T. G. HENDRICKS. I am now
buying all the
offered at the best
Cash. I hone to see
and customers before selling their
New Departure ! !
I SCHOOL HULnfcS. whose inierem are
.(end their profit at home. Take notice that-
A V.
Will sell good for CASH at greatly reduced prices, as low a. any other CASH STORE.
Bit Print lb and 18 yard II 00
Best Brown and Bleached Muslin, 7, 8, 9, and
10 ct.
Cbrk and Brook spool eotton 75 ct per Dot
plain and Milled Flrnnel. 25, 35: 4S and 50
Water Proo , .cetU
ffi TITIU. Chirt 7!S rta and II,
eioe iibji.w"-i
And all Other Coods
AUo the Celebrated
Vnne hetter lor sirenifiu, mum, aim uu. ....... j ,
ta- To my old Custumen, who have stoMl by
. i u... ;l ti.n
iTm " ? : " "" :" '"r .:
all sui, a 9liers. m. iuji niuu v u.j
he offers his stock
I can be found at
market price, in
allmy old friends
uihi,uiui,ii uniiAjr..-), uiua aim
your unereni. i uvihimicuut inoveu muv
Fine Cheviot Shirt. 50, 75 ct and L
New Auortment Dreh Good((No Trash) 15,
20 and 25 ct.
Men' Underwear, Shirt and Drawer, 50 ct
Men' Oversbirta, 75 ct. and fL
Men' OveralU, 50, C5, 75 cU and IL
Embrniderio and Edgin at Fabniou Low
at Proportionate Rates.
(jr 31-A.vJxaXiN Jli I
me so I mg, I will enntin:i ti sell on name
.. ih tn o,il ( AMI mrrhuM. I will mva
. i vv. petek'
The) true Hlitory of the O. A V.
Railroad, Ilea Ilolladaj the
Ilenefartor," Kte.
Hall op Marion County )
Anti-Monopoly Lkaoi k,
Salem, Dec. 10, 1881. )
To the officers- and member of the
Murion County Anti-Monopoly
League :
We, your committee appointed to
prepare an answer to the criticism of
the Daily Oregonian of the 8th, upon
the ndilrewes isauni by this Lpague at
its meeting of Doc. 3d, beg leave to
submit the following:
We are pleased to see that the Ore
gonian admits that managers of rail
roads often make the roads earn divi
dends on inflated or "watered" stock,
to the injury and oppresHion of the peo
pie; but think it can be shown that the
editor of that paper has not gone far
enough in his admission, as the evil is
one of great magnitude. Principally
within the last ten years there has been
a debt created, in excess of the actual
cost of railroads in the United States,
amounting to upwards of $400,000,000
in excess of the national debt, and
which the people will lie expected to
pay, in the shape of freights and fares.
The national debt in the year 1880 was
$2,120,419,370 63. The fictitious
debt on railroads is $2,555,646,997.
This debt is in excess of the actual cost
of the roads. The represented cost is
$4,897,401,976, or upwards of $52,000
per mile, while the actual cost would
be less than $25,000 per mile. We
make here an approximate estimate, in
detail, of what would be an excessive
average cost per mile; iron costs loss
than $G,000; right of way, say 1,000,'
cross ties, $1,000; track laying, $500;
ballasting, l,000;rolling stock, $3,000;
shops and stations, $1,000; grading,
high estimate, 24,000 cubic yards,
$6,000; rock work, $3,000; bridging
aud trestle work, $2,000; engineering;
and oflice expenses, $500; making a
total of $25,000 per mile, and for the
93,671 miles of railroad in tlio U. S.
$2,341,775. Thus the represented
cost gives an excess oyer actual cost of
2,555,646,997, as above stated, or more
than $50 on every man, woman and
child in the United States. This is
the work of these managers for about
ten years, and if permitted to continue
for a few years longer, the debt will be
piled up to its tens of billions. As
another indication of the cost of our
railroads, we extract from a letter of
General Hewson the proportion to
build 800 miles of the Canada Pacific,
for a bonus of $5,000 each and 3840
acres of land per mile. Again we find
that a company presided over by Sena
tor Fred Smith "has offered to build
the Sault branch a road 220 miles
long, and through a much rougher
country than the plains section for a
subsidy of $4,000 and 4,000 acres of
land per mile," Valuing the land at
two dollars an acre, the road would
cost under either of these propositions
about $12,000 per mile." Under all
tests that can be applied to the cost of
railroads. $25,000 per mile is exceed
ingly high.
As to the Oregonian's next criticism,
that "the authors of this address do
not act with perfect fairness, when
they make the gross mismanagement
under which the road from Portland to
Roseburg was built a basis of attack
upon its present status." In answer to
this we submit a brief statement of the
unvarnished facts connecting the old
management of the road with the new.
Early in the year 1870 there was
formed a syndicate consisting of Ben
Holladay, M. S. Latham and Wm.
Rulofson, Americans, with Julius May
and It, and S. Sulzbach, of Frankfort,
Germany. Under the agreement Ben
Holladay was to organize what has be
come the 0. k C. Railroad Company,
and issue bonds as president of said
company, at the rate of $30,000 per
mile for 365 miles, making $10,950,
000. The Sulzbacbs were to take these
bonds and pay to Holladay account
60 cents on the dollar. The were
also to pay Latham and Rulofson 4
per cent in addition, Holladay agree,
ing in a private contract with Latham
to give him 7 J per cent of his 60, leav
ing only 52 J per cent that Holladay was
to receive. The SuUWhs advanced
money to enablo Holladay to carry out
ths arrangements of organizing tin new
company. Holladay completed a hun
dred miles of railroad, extending from
Portland to Harrisburg, the SulzWhs
having only sold up to this time, about
$3,500,000 of the bonds, leaving
$7,450,000 unsold. At this point Hoi
laday being a mere figure-head for
deeper and more astute schemes, be
came alarmed at the danger that sur
rounded the swindle, and threatened to
stop the woik, to prevent which one
DeLackio was sent to Oregon to urge
Holladay to proceed with the construo-
cion of the road, which 'he finally coin
pluted to Rosoburg, expending less than
three million dollars. At this time,
the bonds having all been sold by the
Sulzbachs, the work was stopped leav
ing upwards of $6,000,000 of money in
the hands of these parties, which should
have been applied to extending the
road to the State line. Upon the de
fault of interest on these bonds, the
holders thereof called meetings in Ger
many and sent an agent to Oregon to
investigate. The Sulzbachs, apprehon
dinn trouble, secured the services of
Henry Villard, who being an educated
German residing at Washington and oth
er places as a newspaer correspondent,
they sent him to Oregon, where he re
mained as the guest of Mr. Holladay
for two or three days only. Returning
to Germany he made speeches at meet
ings of the bondholders, denouncing
Ben Holladay as a very bad man, and
said other things which caused the
bonds to depreciate to 13 cents on the
dollar. They were then bought by the
Sulzbachs at figures varying from 13
to 18 cents. At this tim there waa in
the hands of the syndicate upward of
60 per cent of the money belonging to
bttweon 4,000 and 5,00 "poor Ger
mans," who had purchased these bonds
at or near par at the solicitation of the
Sulzbachs. Besides this 40 per cent
M. S. Latham and some other members
of the syndicate were financially situa
ted so that 25 per cent more could have
recovered of them had Mr. Villard
made a correct statement at the bond
holders meeting of the financial condi
tion, of which he was well informed
at that time. Villard, as the agent of
the Sulzbachs, next appeared in Ore
gon and took Holladay 's place as Pres
ident of the O. !c C. 11 11, paying him
$550,000 for property that was ac
quired with money belonging to the
original bondholders, and which should
have been taken under the law and
without paying anything therefor.
Throe hundred thousand-dollari of the
amount paid Holladay in bonds of the
Oregon Central railroad Company
bearing 7 per cent interest, making
$21,000 per year, which is being paid
from the earnings of the O. it C. Rail
road. We Hubtnit as a proposi
tion of law, to be answered by the
lawyers of the State, that Holladay
was an embezzler of all the- money that
came into his hands over and above the
amount expended in the construction of
the road, and amounting to between
$2,000,000 and $3,000,000; and quote
in this connection section 557 of the
Criminal Code of Oregon: "If any of
ficer, agent, clerk, employee or servant
of a private person or incorporation,
shall embezzle or fraudulently convert
to his own use, or shall take or secrete
with intent to embezzle or fraudulently
convert to his own use any money,
property or thing of another, which
may be the subject of larceny, and
which shall have come into his possess
ion or be under the control by virtue
of such employment, such officer, agent,
clerk, employee or servant shall be
deemed guilty of larceny, and upon con.
viction thereof shall be punished accor
dingly." If Mr. Holladay became an
embezzler under the above section, it
will be seen by section 749, as follows,
that Villard it equally liable a an ac
cessory: "AH persona who, after the
commission of any felony conceal or
aid the oflendor, with knowledge that
he ha committed a felony, and with
intent that he may avoid or escape from
arrest, trial, conviction or punishment
are accessoriea" We think we have
shown by the foregoing that the "prea-
ent status" of the road has no ad van
tag over the "gross missmanagement''
under which it was built At all events
it is possible that, if tho Oregonian
will exert its powerful influence, mak
ing use of tho knowledge which its
editor should have acquired as former
editor of Holladay 'a organ, the Bullr
tin, the people will have the satisfac
tion of seeing the question settled by
the agency of the law. Another fact
to be noted is that the original em
ployees of the old "gross mismanage
ment" are still at their posts.
We quoto from the Oregonian: "The
road bos been in operation about teiv
years, and, during that time they have
not realized four per cent per annum oit
tho actual cost of the road, and are not
realizing it now.' Ten
per cent of the actual cost of the road
would be a splendid income, an income
which the section from Portland to
Roseburg is notlikely to earn within the
present generation." In relation to
the aWe statement of the Oregonian
we will refer the editor to a deposition
of Mr. Henry Villard, on file in tho
U. S. Circuit Court at Portland, in
whioh he states that the net earnings
of the O. 4 G. railroad for the first year
he was connected with it, waa $193,
000. This was the year in which the
bridge over the Clackamas river t
which cost upwards of $30,000, waa
built. Now if we take tho $21,000
paid Ben Holladay each year with the
cost of the bridge, we have upwards
of $244,000; which, on the actual cost
of the road, would be nine per cent.
Aud as regards the present year, tho
road is earning nearer twenty-five per
cont on its actual cost than ten per
cent The road must be netting, at
the present tinw, nearly $3,000 a day.
We wish here to inquire of the Oregon
ian how it happens that the road 'in
Western Oregon, which accommodates
about 100,000 inhabitants, is not earn
ing one-eight as much as the Columbia
river line, which accommodates about
one-half that number. These state
ments concerning the meagre earnings
of this road remind us of tho course
pursued by the Bulletin, when it was
defending Holladay againBt the dam
aging exposures of the more honest
portion of the press, by holding him
up as a benefactor who had brought
millions of dollars into the State, and"
insisting that such exposures were
against public policy, and an injury to
tho people of the State. It will be re-'
membered that one causo of decrease'
of traffio for the year 1879-80 when Uier
nt earnings of the road were reported)
at $83,000, was the failure of tho'
wheat crop by rust This, in connec
tion with Mr. Villard's putting down
rates of transportation by boats from
all points along the Willamette River
to one dollar per ton, when h was at
tempting to get control of the O. k Cv
R. R, by circumventing his original
employers, tended to largely diminish)
the earnings of tho road for the year;
Still, the gross earnings of the- compa
ny since 1876, as shown by Poors
Railroad Manual, have averaged from
$5u3,000 to $750,000 per year, 50 per
cent of which should be net earning
Again, if it be true that this road will
not earn 10 per cent on it actual cost
within the present generation, perhaps
the Oregonian 'will tell us how Villard
is going to pay sevon per cent interest
on his $10,950,000 of preferred stock,
and $140,000 a year rental of the muv
row gauge, which certainly cannot
earn one-quarter as much as the 0. Si
C. R. 1L
In regard to the comparison of rates,
the conclusion is not that the O. & C.
road should carry at rates in force on
the Eastern roads named, but that the
difforenco in favor of this road, being
from six to twelve greater is out of all
reasonable jroportioia
We notice, also, a revised edition of
comments in the same paper of the
9th inst under the head of "Oregon
Railrt;ada" As to the "extraordinary"
nature of the statement found in the
address issued by this-League, that the
facilities of the Columbia River route
were sufficient to do the business of
that route. We would ast:, if they
were not sufficient, by whom, and in
what manner was tlte business of that
route donet And, again, we auk Che
quest ion, if the O. S. X, Co.'s line
of transportation on the Columbia
River "could no longer do the busi-
Continued on luhth Fa;e.
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