FootNote
The new kid on the block, FootNote is known for digitizing historical
documents... many of which are genealogical gems. With naturalizations,
city directories, war records, newspapers, town records, etc... this new
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While we know our northern friends may not feel it, in the South, Spring is
here. So we thought we'd share a few of our gardening sites appropriate
for this time of the year. Along with gardening, there's grilling, and getting
ready to diet so that you can fit back into that bathing suit this summer!
It was a memorable conflict, that
conducted by the first rival railroad
companies of Oregon; with matter in it for a
novelist. It would be rash to intimate that
Elliott with all his mythical capitalists
was an agent of Holladay all the time, the
general opinion being that he was at first
acting only for himself, or that the East
Side Company knew the extent of his
romances, which they used so well to their
advantage. It would on the other hand be
difficult to believe that Holladay, or the
original East Side Company, were actually
imposed upon by representations as to a firm
like A. J. Cook & Co., of immense wealth and
standing, when any business or banking
gazetteer would inform them as to the
'existence or non existence of such a firm;
particularly as Mr. Gaston was constantly
asserting in public that this company was
all a pretence. To sum up the results, the
West Side Company was able to prove its
statements as to the irregularities of its
opponent, and to come off with the original
name; also to get a land grant of their own,
and to make fair terms for the building of
the road. The East Side Company, beginning
almost without legal or legislative footing,
killed the opposition of their rivals in
court by so prolonging the cases as to make
them of no practical injury, but rather as
sort of a shield to themselves; and gained
State and Congressional Legislation that
gave them standing and secured for them the
original land grant. Both, however, were
swallowed up by the money king.
At this distance of time, it will be
impossible for the great mass of the people
of Oregon, coming to the State at a later
day, in any wise to comprehend the character
and extent of the struggle, the almost
insuperable difficulties to overcome, in
starting these two pioneer railroads. It is
easier for Portland to raise $1,000,000 now
for a railroad; than it was $10,000 in 1868.
After completing his road to Roseburg and
St. Joe at a cost of about $5,000, 000, and
incurring a debt in Germany of about twice
that sum, Holladay found himself unable to
pay interest on his bonds. The country was
new, the people were unused to travel by
rail. Earnings scarcely met expences, and a
remark made long before by a Salem gentleman
that the railroad would on its first trip
carry all the passengers, on its second all
the freight of the Willamette Valley, and,
on the third would have to pull up the track
behind it, seemed not so immeasurably far
from realization. Some of the interest as
due was met by draughts upon the capital
itself. Then the avails of the steamship
lines to San Francisco were turned in, but
even then there was a deficit. The road was
therefore claimed by the bond-holders and
the rights of Holladay were won.
Efforts for a road to the Atlantic States
began with Oregon as well as in the East. In
our State there were two who had their own
plans and routes in view, and there happened
to be two Surveyor-Generals of the State, W.
W. Chapman, who served under appointment of
Buchanan, and B. J. Pengra, who served under
Lincoln. Chapman was a Portlander, one of
the fathers of the place, and although a man
of wide sympathies, naturally desired the
transcontinental line to terminate at his
city. He had passed a life of almost
constant political activity in and about
legislative halls, having been the first
delegate of Iowa to Congress, and from his
knowledge of parliamentary tactics was most
admirably adapted to lay the foundation of a
road. He, of course, only aimed to determine
the lines, to secure necessary legislation
promised and then interest capitalists.
Without large means, he nevertheless applied
from his private means enough to make a
provisional running of the road, and to send
an agent to London to investigate financial
conditions. The route of his line he laid by
The Dalles, up the Columbia and Snake
Rivers, and to connect with the Union
Pacific at Salt Lake. About 1869 and '70 was
the period of his activity, although for a
long time before this he had cherished the
plan, and was making preparation. Before
Congress he was indefatigable in bringing
the claim of his road to notice, but met
with very hostile influences. One of them
was that of the Northern Pacific, which saw
no occasion for a road to the Pacific
Northwest other than their own. The contest
in Congress narrowed down to a fight between
him and them. In this emergency he was left
without assistance by even the delegates
from his own State, but proved amply able to
at least prevent the passage of a bill that
would have left Portland without a road.
This was the means authorizing the Northern
Pacific to construct their road via the
Valley of the Columbia to Puget Sound, the
conditions of which would have been
fulfilled by laying the rails on the north
side of the river, as was shown to have been
preferred by their map filed with the
Secretary. By his timely protest the bill
was defeated, and although unable to go
forward with his own plan the way was left
open for the O. R. & N. Co., without
hindrance from the Northern Pacific, or any
other party. The road, earnestly advocated
and agitated by Mr. Pengra, was what was
known as the Winnemucca line. It was to
extend from some point on the Central
Pacific in Nevada, preferably Winnemucca, to
Oregon, and down the Cascade Mountains, by
the passes of the Willamette, coming to
Eugene City, and thence via the West Side
road to Portland, and also to Astoria. From
this point on the Central Pacific it was no
farther to Portland than to San Francisco,
and the people of Nevada was very much in
favor of the plan, being fully seconded by
their Congressman Fitch. The road was
defeated, however, by an amendment made in
the Senate that instead of coming to Eugene
it unite with the Oregon & California in the
Rogue River Valley. By this change it was
effectually killed, as no company cared to
build a road which must be working to
Holladay's line, as this would be.
Henry Villard and the Northern Pacific
In July, 1874, Mr. Henry Villard made his
first visit to Oregon. He was vested with
full powers as agent for and to represent
the German bondholders. His purpose in
coming was to make a careful investigation
of the general condition of the roads then
built and equipped, and to inquire
thoroughly into the financial affairs of the
Oregon & California Railroad Company. Prior
to this Mr. Richard Koehler arrived in
Portland as a resident financial agent for
the German bondholders. Mr. Koehler reached
Portland July 25, 1874. He was installed as
agent for the syndicate, the members of
which obtained, by previous agreement with
Holladay, a supervisory right over the
management of the road in reference to
operation and construction matters and a
representative in the board of directors.
Holladay still remained in nominal control
of the roads as president; the active and
actual. management, however, was retained by
Villard under the powers and privileges
conferred by the bondholders. This condition
of affairs continued until April 18, 1876,
when Holladay retired altogether from the
management of the road. On the following
day, April 19, Mr. Villard assumed full
control. On the retirement of Holladay the
following were the officers of the company:
President, H: Villard; vice-president and
treasurer, R. Koehler; secretary, A. G.
Cunningham. At that time the bondholders
bought out Holladay's interest and became
the owners of all the stock. At the regular
elections following for several years there
were no changes in the officers until April,
1882, at which time A. G. Cunningham retired
as secretary and George H. Andrews was
elected in his place. Since that date Mr.
Andrews has held that position, and, like
his predecessor, has proved a most active
and efficient officer.
From Roseburg to Ashland
During the
time Villard represented the German
bondholders, 206 miles of the additional
road were constructed. This embraced the
distance between Roseburg and Ashland (145
miles); the west side road from St. Joe to
Corvallis (50 miles); and the short branch
line from Albany to Lebanon (11.5 miles). In
May, 1881 a reorganization of the affairs of
the company was effected by which the
original, or Ben Holladay stock, was wiped
out, and the old bonds were converted into
stocks, and a new mortgage made to provide
funds for the extension of the lines. Work
on the extension of the road beyond Roseburg
was commenced in December, 1881, under the
management of Villard, and operations
continued with but little interruption until
the completion of the road. On the .25th of
May, 1883, the road then constructed between
Portland and Roseburg was leased to the
Oregon & Transcontinental Company for a term
of 99 years; and, on the same date, a
contract was entered into between the Oregon
& Transcontinental Co. and the Oregon &
California Railroad Company for the
construction of the incompleted
portion-through to the California Line. The
Oregon & Transcontinental Company
constructed the road between Roseburg and a
point 100 miles south of Ashland, and had
let contracts for, and. partially completed
the Siskiyou tunnels. The Oregon &
Transcontinental Company after consummating
the lease, continued to operate the road
until June, 20th 1884. But upon the failure
of Mr. Villard, the lease and construction
contracts were canceled, and the road
surrendered to the Oregon & California
Railroad Company, and mutual releases
between the two companies executed. After
this, the Oregon & California Railroad
Company continued to operate its roads until
December, 1884, when, at the suit of
Lawrence Harrison, brought against the
corporation, Mr. R. Koehler, the former
vice-president and manager of the company,
was appointed receiver. The road has been
operated by him ever since his appointment
to the receiver-ship, which was made January
19th, 1885. The condition under which Mr.
Koehler was appointed was to assume entire
personal charge of the property, and to
manage and operate the roads under the
direction of the United States Court. This
trust Mr. Koehler has faithfully and
efficiently discharged, and the affairs of
the road have been managed with due regard
to every consideration of economy,
compatible with the demands of the public,
and the adequate facilities-for general
transportation.
May 5th, 1884, the road was completed to
Ashland, 145 miles south of Roseburg, and
340.8 miles from Portland, and the event was
the occasion for an enthusiastic celebration
and of general public congratulations. Work
beyond Ashland was discontinued in August,
1884. Between Roseburg and Grant's Pass the
natural difficulties of construction were
great as compared with most of the distance
previously traversed. These obstacles
rendered progress necessarily slow, and the
building very expensive. For the distance
mentioned, the route lay through a
mountainous region, necessitating sharp
curvatures, and for a length of about
thirty-five miles (between Glendale and
Grant's Pass) grades as heavy as 116 feet to
the mile had to be overcome. For the
remainder of the line between Rose-burg and
Grant's Pass, and also between Grant's Pass
and Ashland, the maximum grades do not
exceed 52 feet to the mile. Nine tunnels had
to be cut in constructing that portion of
the line, aggregating about 7,325 feet.
The Southern Pacific
The present
condition of the road is said to be
excellent which speaks well for the general
efficiency of the management.
Notwithstanding the period of financial
embarrassments through which the road has
passed, its condition has been gradually
improved. New bridges have been built
wherever and whenever the safety of the
public required; the bed improved, new ties
laid, and the road thoroughly ballasted. On
the main line between this city and Ashland,
only about 100 miles of iron rails remain,
steel rails of the most improved and durable
kind having been substituted. New steel
rails will be laid for the 100 miles just as
rapidly as the material can be procured.
Already during the past season about 85
miles of road have been ballasted. At
present the rolling stock of the company
consists of the following property : 43
locomotives, 26 passenger coaches, 14 mail
and express cars, 582 box, flat and stock
cars.
Early during the present year a meeting was
held in London, the result of which was the
transfer of the stock and control of the
corporation of the Oregon and California
Railroad to the Southern Pacific Company. At
that meeting an arrangement was entered..
into between the first mortgage bondholders
of the Oregon and California railroad
company, the stockholders of the same
corporation, duly authorized representatives
of the Pacific Improvement company, and also
of the Southern Pacific company. Under this
agreement the stockholders of the Oregon and
California company sold out to the Pacific
Improvement company of California. Very
briefly stated, the conditions of the sale
were as follows: The Oregon and California
railroad company's stockholders were to
receive for every two shares of preferred
stock delivered, one share of C . P. stock,
and for every four shares of common stock
surrendered and delivered, one share of
Central Pacific stock; also, a cash payment
of four shillings, sterling, for every share
of preferred stock, and three shillings for
every share. of common stock. The first
mortgage bonds of the Oregon and California
were to be exchanged for new five per cent.
bonds guaranteed by the Central Pacific at
the rate of 110 per cent. of new bonds. They
were also to pay four pounds sterling for
each $1,000 of the old bonds so exchanged.
According to the agreement entered into, the
amount of the new bonds to be issued and
$30,000 per mile of standard guage railroad
constructed or acquired, and $10,000 per
mile of narrow guage railroad constructed or
acquired. Under this mortgage there is not
to be issued more than $20,000,000 of bonds
in all. Under and in pursuance of this
agreement, the stock and bonds were
exchanged so thane _ corporate organization
of the Oregon and California railroad
company was transferred to the management.
This formal transfer took place during June,
1887. While the possession and ownership of
the stock and bonds of the old organization
has passed into the hands of the Southern
Pacific, still the custody of the property
belonging to the former-rolling stock, road,
depot, depot grounds, etc. remains in the
hands of Mr. Koehler, the receiver, and the
United States Circuit Court. Conjointly, the
receiver and the court manage all the
operations of the road the same as before
the formal transfer was effected. This
condition of affairs will continue until
some definite action has been determined
upon by the several parties to the
agreement. The , above is the present status
of the Oregon and California Railroad, but
what new phase affairs will assume depends
upon the future action of the corporation
into whose hands the control of the old
organization has passed. For that reason,
for the present the result remains entirely
in conjecture. As yet there has been no
annual transfer of the corporation's
property. Since the transfer the annual
election of the Oregon and California
railroad company has been held, when the
following officers were chosen: Leland
Stanford, president; C. P. Huntington,
vice-president; R. Koehler, second
vice-president; George H. Andrews, secretary
and treasurer; J. E. Gates, assistant
secretary.
