THE Q UARTERLY

OF T11E Historical Society

VOLUME V1I

MARCH 1906--DECEMBER 1906

EDITED BY

FREDERIC GEORGE YOUNG

J. R. WHITNEY, STATE PRINTER

SALEM, OREGON

I m l rD WM. H. WINTER.

Ley were soon scattered over ended to cultivate the soil, THE QUARTERLY I prepared for the coining ployment at the Falls, and of the ccupation or object in view, h the country, taking hold Oregon Historical Society. red, or suited their inclina- to do, and there was in the VOLUME VII.] JUNE, 1906. [NUMBER 2 e real necessaries of life. r a time, with being per- THE GENESIS OF THE OREGON RAIL- lentiful subsistence. And i WAY SYSTEM.

;reatly exposed, during the By JOSEPH GASTON. with excellent health. t upon the country. The It is not intended in this first paper to present a com- inesome, and to fear that it plete history of the railroad development of the State, but r distant wilds of Western rather to outline the events which, following each other in Property was of doubtful a natural and evolutionary way have in spite of the opposi- !ipations were fading away. tion and mismanagement of men in control, resulted in a te Indians, of the approach railroad system which is entitled to the name of " The Ore- ople; but the reports were gon System." And if it may appear to some readers that wn heralds; for, not until small details are treated of in the beginning of the great Iof our coming. Instantly work, yet that possibly may be excused as being quite as 11ents went rapidly on, and interesting to the student of history as the much larger were again excited. We events of a later day. And although this system, now age of about one hundred 'I apparently divided by the line of the great river of the on both sides of the River West, the work of many opposing interests and diverse Xlaughlin, Chief Factor of I minds is yet forced by the decrees of nature to work Iest of the Mountains, and towards one general end and purpose, and so promoting ie West, by H. Burns, and the vast interest of commence and transportation, that the welfare of the teeming millions that are to fill up the great will be.benefited thereby.

The first steps to build a railroad in the State of Oregon, followed up by connected and continuous efforts and or- ganization, were taken at Jacksonville in Jackson County in October, 1863. Sporadic meetings had been held and

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106 JOSEPH GASTON. GENESIS ORD corporations formed prior to that time in several places in in May a in the Willamette Valley proposing to build railways, but ber. Before reaching J nothing had resulted but talk not worth recording. That a letter to the writer of the first substantial effort to develop the State by railroad sonville, requesting hin transportation should have taken form at a small interior aid in paying the expe town three hundred miles from a reliable seaport is quite he performed. Upon i remarkable, but not unreasonable. Jacksonville was the Belding disagreed as to a county seat and trade center of the beautiful 'Rogue River of the line of survey thr Valley which has been more benefited by railroad trans' ing that under their agr, portation than any other community between the Colum- and Mr. Elliot as stout bia River and San Francisco Bay. Steamboats could run i' I party and the original p up the Sacramento River one hundred and fifty miles entitled to such control. from Sail Francisco; and other boats could get up the fatal to the ambition of one hundred and twenty-five miles from their party of twelve n the ship landing to Eugene, and teams, pack trains, and months and there was r stage lines could serve a limited trade and population in subsist the men and tear all the region on the north and south route between these and their proposed raili river-boat termini. But limited to these pioneer trans- left the party in possesE portation facilities the trade and population of all this turned south to Califorr region must forever stand still. There are in what is proceeded to his home ir known as "The Rogue River Valley," of which Jackson- nection of both gentlem ville, Ashland, Talent, Medford, and Gold Hill are trading The subscriptions in i points, about a million and a quarter acres of fine agri- railroad (not considerin cultural, timber, mineral and grazing lands, and of which and the first money exi in 1863 not more than one tenth had been taken up by of such road, followed actual settlers. The pioneer farmers saw the necessity work until the road was and the immense benefits to be gained from a railroad the following named pe which should pass through their valley from to D. E. Stearns, G. Naylor San Francisco, and resolved, although poor in purse, to Hargadine, E. Emery, make the best effort they could to secure such a road. gate, John Murphy, J. In the spring of 1863 S. G. Elliott, of California, had I! - Enoch Walker, Wagner arranged with George A. Belding, a civil engineer, of W. Beeson, J. G. Van Portland, Oregon, to make an instrumental survey for a Rogers, John Watson, E line of railroad from Marysville to Portland, on their Wright, Frederick Heb joint account. They commenced their work at Marysville Joseph A. Crain, J. T. G

p. i STON. GENESIS OREGON RAILWAY SYSTEM. 107 hat time in several places in California in May and reached Jacksonville in Octo- sing to build railways, but ber. Before reaching Jacksonville they had sent forward lot worth recording. That a letter to the writer of this paper,. then residing at Jack- velop the State by railroad sonville, requesting him to canvass Jackson County for ,n form at a small interior aid in paying the expenses of their survey, which work a reliable seaport is quite he performed. Upon reaching Jacksonville, Elliot and ble. Jacksonville was the Belding disagreed as to which of them should have control the beautiful Rogue River of the line of survey through Oregon; Mr. Belding claim- enefited by railroad trans' ing that under their agreement he should select the route, Lunity between the Colum- and Mr. Elliot as stoutly claiming that as chief of the ,iy. Steamboats could run * party and the original proposer of the undertaking he was hundred and fifty miles entitled to such control. But the question which proved er boats could get up the fatal to the ambition of both gentlemen was the fact that and twenty-five miles from their party of twelve men had received no pay for six Id teams, pack trains, and months and there was nothing in the treasury to further i trade and population in subsist the men and teams. The whole party was stranded south route between these and their proposed railroad venture wrecked. Mr. Elliot 3d to these pioneer trans- left the party in possession of all its equipment and re- nd population of all this turned south to California, and Mr. Belding also left and ill. There are in what is proceeded to his home in Portland, and this ended the con- alley," of which Jackson- nection of both gentlemen with this preliminary survey. and Gold Hill are trading The subscriptions in aid of this first work on an Oregon Luarter acres of fine agri- railroad (not considering mere portages on the Columbia), razing lands, and of which and the first money expended in the actual construction ith had been taken up by of such road, followed up by connected and continuous armers saw the necessity work until the road was in operation, were contributed by be gained from a railroad the following named persons: C. Boxiery, John Robison, ir valley from Portland to D. E. Stearns, G. Naylor, John Holton, M. Michelson, R. B. though poor in purse, to Hargadine, E. Emery, Lindsay Applegate, 0. C. Apple- to secure such a road. gate, John Murphy, J. C. Tolman, P. Dunn, H. F. Baren, Elliott, of California, had Enoch Walker, Wagner & McCall, B. F. Myer, W. C. Myer, ling, a civil engineer, of W. Beeson, J. G. Van Dyke, John S. Herrin, Amos E. instrumental survey for a Rogers, John Watson, Emerson E. Gore, M. Riggs, William lle to Portland, on their Wright, Frederick Heber, S. B. Vandike, John Coleman, )d their work at Marysville Joseph A. Crain, J. T. Glenn, Wm. Hesse, W. K. Ish, H. A.

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GENESIS OREG( 108 JOSEPH GASTON. structed through the W Breitbarth, McLaughlin & Klippel, W. H. S. Hyde, John River valleys, the proce( E. Ross, Aaron Chambers, Mike Handly, Granville Sears, public lands granted to Or R. S. Belknap, U. S. Hayden, John Neuber, H. Ammer- This bill was referred to man, Beall & Brother, Wm. H. Herriman, Haskell Amy, rations, which reported a Alexander French, Albert Bellinger, James Thornton, mending the passage of a Woodford Reames, E. K. Anderson, D. P. Anderson, the dollar on all the tax Joshua Patterson, D. P. Brittain. J. V. Ammerman, Ply- apply the proceeds of sue male & Bros., and Joseph Gaston, all residents of Jackson terest on the constructioi County. the proposed road. The Upon consultation with the above subscribers to this I utilized. fund the writer of this paper was appointed agent to col- I A III Immediately following lect and disburse the money subscribed by these men in :1 prepared a report of his subsisting the surveying party until May, 1864, and to I of the line, which, togeth( procure further subscriptions along the proposed line to of Oregon (the first ever continue the survey north to the City of Portland, and tary of the company, was to organize a company and apply to Congress for a grant ing of the session in De of land in aid of the construction of a railroad from the the winter of 1863-4 Hot Columbia River to San Francisco, passing through the had introduced in the H( Willamette, Umpqua, and Rogue River valleys; and in California and Oregon RM pursuance of this authority this original subscription of ing a railroad from the C money in aid of such railroad was collected, the surveying fornia, through the Sacrf party subsisted in Jacksonville until May, 1864, when it northern boundary of th( again took up the line of survey where Elliot and Belding company as the Oregon 1 had abandoned it, and under the supervision of Col. A. C. Portland, Oregon, throug Barry it was extended to Portland, which point was Rogue River valleys to a reached on October 1, 1864. To carry on the business nia road at or near the S part of the undertaking and present the proposition to 4 the work going forward Congress a company was organized under the name of prise Mr. Cole addressed " The California and Columbia River Railroad Company," tary of the Oregon comp, and of which J. Gaston was made secretary, and A. C. Barry, chief engineer. The results of this J. GASTON, Esq., survey were SiB: I have just received a then (October, 1864,) laid before the Oregon legislature, I sent you a copy of my Bill be Company is organized it had then in session, and a bill, prepared by the secretary of passes. the company, was introduced in the Senate (S. B. No. 14), I will consult with Mr. Mce Your obt. servant which provided for granting to a railroad to be con- At f

GENESIS OREGON RAILWAY SYSTEM. 109 ASTON. structed through the Willamette, Umpqua, and Rogue ppel, W. H. S. Hyde, John River valleys, the proceeds of the half-million acres of :e Handly, Granville Sears, public lands granted to Oregon for internal improvements. John Neuber, H. Ammer- This bill was referred to the Senate Committee on Corpo- . Herriman, Haskell Amy, rations, which reported the proposition back by recom- fllinger, James Thornton, mending the passage of an act to levy a tax of one mill on iderson, D. P. Anderson, the dollar on all the taxable property in the State, and Win, J. V. Ammerman, Ply- apply the proceeds of such tax to the payment of the in- ,on, all residents of Jackson terest on the construction bonds of a company to build the proposed road. The bill became a law, but was never above subscribers to this utilized. vas appointed agent to col- Immediately following the legislature Colonel Barry ubscribed by these men in prepared a report of his survey, with maps and profiles y until May, 1864, and to of the line, which, together with a report on the Resources along the proposed line to of Oregon (the first ever made), prepared by the secre- the City of Portland, and tary of the company, was laid before Congress at the open- ply to Congress for a grant ing of the session in December, 1864. Prior to this in ion of a railroad from the the winter of 1863-4 Hon. C. Cole, M. C., from California, ,isco, passing through the had introduced in the House a bill granting lands to the gue River valleys; and in California and Oregon Railroad Company to aid in build- Lis original subscription of ing a railroad from the Central Pacific Railroad in Cali- was collected, the surveying fornia, through the Sacramento and Shasta valleys to the e until May, 1864, when it northern boundary of the State of California, and to such ,y where Elliot and Belding company as the Oregon legislature should designate from the supervision of Col. A. C. Portland, Oregon, through the Willamette, Umpqua, and ortland, which point was Rogue River valleys to a connection with the said Califor- To carry on the business nia road at or near the State line. On being apprised of present the proposition to the work going forward in Oregon in aid of this enter- anized under the name of prise Mr. Cole addressed the following letter to the Secre- River Railroad Company," tary of the Oregon company: made secretary, and A. C. " WASHINGTON, Oct. 16, '64. J. GASTON, Esq., esults of this survey were SIR: I have just received a letter from you of June 30th. I think )re the Oregon legislature, I sent you a copy of my Bill before the adjournment. If your Oregon Company is organized it had better be named in the Bill before it epared by the secretary of passes. in the Senate (S. B. No. 14), I will consult with Mr. McBride. Your obt. servant, C. COLE." , to a railroad to be con- 110 JOSEPH GASTON. GENESIS OR

Mr. McBride referred to was the Oregon member of line was one of the ma Congress. The name of the then Oregon company was connection with Oreg never inserted in the bill, which passed Congress and be- unanimous as to the bei came a law on July 25, 1866, and granted twenty alternate veyor General of Oregc sections of public land per mile of the railroad which has man and the successfL been constructed thereunder from Portland to the Califor- Military Wagon Road nia line. Eugene to the southea: 10 I have been thus particular to trace the original con- a large following of w, nected and successive steps in projecting and carrying out tively advocating a lin a great public work, to show that the Jackson County with the Central Pac people were entitled to the credit of giving it birth, and Route," which should to show how the wisdom of the original location of the Eugene City, thence s line was vindicated by the actual construction of the road. Willamette River and In seeking the best line for a railway between two distant Diamond Peak, and t points, all other inducements being equal, the line of on to Winnemucca on location, like all other forward movements of human State of Nevada. An effort, will proceed along the line of the least resistance. much political influen Two facts determined the location of this Oregon and Cal- command he might I ifornia railroad. First, the line of least resistance. The through the Uinpqua E physical features of the region to be developed offered a the land grant to the series of beautiful valleys, rich in all the resources to sup- TE port a railroad, and so located as to form nearly the We pass now from t shortest line between the termini of the road, and through to the administration which it could be constructed centrally through the great- lature met in Septem est length of these valleys, and at the lowest cost, and granted the lands in v! serving the majority of population and interests. Second, abandon the original here on this line had settled the population of the two ,. . moted the , States, and made the then existing development of their paper prepared articlE resources, and upon which the road must rely for its sup- gon Central Railroad port. ters of which shoul It was not the only available, or the only line proposed, articles were signed b as many persons might now think. The line of the first for Oregon in 1870), transcontinental road had been projected to San Francisco twenty-two years Uni when the first steps to secure this Oregon and California Shattuck (for thirty1 line were taken, and connection with the transcontinental "I

ASTON . GENESIS OREGON RAILWAY SYSTEM. ill is the Oregon member of line was one of the moving factors to induce action for a hen Oregon company was connection with Oregon. But the Oregonians were not h passed Congress and be- unanimous as to the best route: Mr. B. J. Pengra, the Sur- id granted twenty alternate veyor General of Oregon, and a very able and enterprising e of the railroad which has man and the successful promoter of the Oregon Central om Portland to the Califor- Military Wagon Road, with a land grant running from Eugene to the southeast corner of the State, together with It I to trace the original con- a large following of wealthy and influential men, was ac- )rojecting and carrying out tively advocating a line for an Oregon railroad connection that the Jackson County with the Central Pacific road, called the "Humboldt lit of giving it birth, and Route," which should run from the City of Portland to Le original location of the Eugene City, thence southeast by the middle fork of the il construction of the road. Willaiiette River and over the Cascade Mountains, near ailway between two distant Diamond Peak, and thence by Klamath marsh and lake being equal, the line of on to Winnemucca on the Central Pacific Railroad in the rd movements of human State of Nevada. And had Pengra been supported by as ne of the least resistance. much political influence as southern Oregon was able to on of this Oregon and Cal- command he might possibly have defeated the location e of least resistance. The through the Umpqua and Rogue River valleys and secured to be developed offered a the land grant to the line of his wagon road. in all the resources to sup- THE LAND GRANT. d as to form nearly the ii of the road, and through We pass now from the history of the location of the line entrally through the great- to the administration of the land grant. The Oregon legis- id at the lowest cost, and lature met in September, 1866, six weeks after Congress on and interests. Second, granted the lands in aid of the road. It was decided to lie population of the two abandon the original organization which had so far pro- ing development of their moted the enterprise, and accordingly the writer of this road must rely for its sup- paper prepared articles for the incorporation of " The Ore- gon Central Railroad Company," the office and headquar- or the only line proposed, ters of which should be at Portland, Oregon. These ink. The line of the first articles were signed by J. S. Smith (member of Congress projected to San Francisco for Oregon in 1870), I. R. Moores, John H. Mitchell (for his Oregon and California twenty-two years United States for Oregon), E. D. with the transcontinental Shattuck (for thirty years justice of the supreme and cir-

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112 JOSEPH GASTON. GENESIS ORE( cuit courts of Oregon), Col. John McCraken, Jesse Apple- of the Willamette River, gate, S. Ellsworth, F. A. Chenoweth, Joel Palmer, E. R. Portland to Corvallis.

Geary, M. M. Melvin, Thomas H. Cox, B. F. Brown, W. S. THE AD Ladd (founder of Ladd & Tilton), H. W. Corbett (United About this time appef States senator). S. G. Reed (founder of the Reed Industrial referred to above. Mr. ] School), J. C. Ainsworth (founder of The Oregon Steam and was a man of great e Navigation Company), C. H. Lewis (founder of Allen & civil engineer or const Lewis), R. R. Thompson, and Joseph Gaston, the author troubled with any sert of this paper. These articles were filed according to law business. lie had a lar and the association of these persons became a private cor- this Oregon railroad, an( poration to administer the land grant on October 6, 1866. and others of Salem. These articles were laid before both houses of the Oregon the company already in, legislature, then in session, and on October 10th, upon to organize a new comp the motion of Hon. E. D. Foudray, representative from of attorney to S. G. Ellic Jackson County, Joint Resolution No. 13, designating said to build a railroad to i corporation to receive the said land grant, was passed. company should issue t And in December following fourteen of the incorporators stock to certain Califor of said company appointed Joseph Gaston " Secretary of matter, and then these the Board of Incorporators," and authorized him to open to the Oregonians getti the stock books of the company and solicit subscriptions dollars of the unasses to its capital stock. In pursuance of this authority in organizing the cornpan April, 1867, he opened stock books and took subscriptions this scheme and offer( to the capital stock, the subscribers to the " Barry Survey " to have their subscriptions credited on stock subscriptions, and some unassessabl the papers of the origi and providing that whichever side of the Willamette but offered to submit tl Valley should make the greatest subscription to the capital stock would secure the location of the railroad. Persons the Oregon Central Co on the east side of the Willamette River, notably, I. R. 4r Elliot could usetheir oi Moores and others, at Salem, opposed this proposition But upon submitting t because it recognized the " Barry Survey"; and in conse- rators supporting Gasl quence the people of the east side of the Willamette Valley Accordingly, Elliot an made no subscriptions to the stock of the company, while 1867, incorporated the the people of the west side made large subscriptions, and of Salem, the incorpol thereby secured the location of the road on the west side Moores, George L. Woo of incorporation of th I ASTON . GENESIS OREGON RAILWAY SYSTEM. 113 )hn McCraken, Jesse Apple- of the Willamette River, where it is now constructed from noweth, Joel Palmer, E. R. Portland to Corvallis. H. Cox, B. F. Brown, W. S. THE on), H. W. Corbett (United ADVENT OF ELLIOT. inder of the Reed Industrial About this time appeared Mr. S. G. Elliot of Callifornia, ider of The Oregon Steam referred to above. Mr. Elliot had been a county surveyor, Lewis (founder of Allen & and was a man of great energy and ambition, but was not a Joseph Gaston, the author civil engineer or constructor of railroads, and was not were filed according to law troubled with any scruples about plans or methods of rsons became a private cor- business. He bad a large scheme for the construction of I grant on October 6,1866. this Oregon railroad, and at once laid it before I. R. Moores both houses of the Oregon and others of Salem. His scheme was to get control of ad on October 10th, upon the company already incorporated, an d, in default of that, :dray, representative from to organize a new company which should execute a power on No. 13, designating said of attorney to S. G. Elliot authorizing him to let a contract d land grant, was passed. to build a railroad to the California line, aiwi that such urteen of the incorporators company should issue two million dollars of unassessable j seph Gaston " Secretary of stock to certain Californians for their good will in the nd authorized him to open matter, and then these Californians would transfer back I y and solicit to the Oregonians getting up subscriptions I this company one million aance of this authority in dollars of the unassessable stock for their services in )oks and took subscriptions organizing the company. Gaston was invited to go into ers to the " Barry Survey " this scheme and offered an office in such new company ited on stock subscriptions, and some unassessable stock if he would throw away r side of the Willamette the papers of the original company. This lie declined, subscription to the capital but offered to submit their scheme to the incorporators of of the railroad. Persons the Oregon Central Company and if they approved, Mr. lette River, notably, I. R. 9 Elliot could usetheir organization to advance his scheme. opposed this proposition But upon submitting the Elliot scheme to the incorpo- ry Survey "; and in conse- rators supporting Gaston, every one of them opposed it. le of the Willamette Valley 0 Accordingly, Elliot and his Salem friends, on April 22, 145,1 ock of the company, while T 1867, incorporated the Company e large subscriptions, and of Salem, the incorporators being S. A. Clarke, John H. the road on the west side Moores, George L. Woods, and I. R. Moores. The articles of incorporation of this company provided for a capital

"at 114 JOSEPH GASTON. GENESIS OREGU

stock of $7,250,000, to which six persons subscribed each HOLLADAY, AND TH $100, and thereupon elected George L. Woods chairman of Holladay appeared in ( the stockholders' meeting, and then at such meeting passed the meeting of the legis a resolution authorizing the chairman to subscribe $7,000,- took energetic steps to attt 000 to the stock of the company, as follows: "Oregon first named above to its Central Railroad Company by George L. Woods, Chair- Holladay pushed the woi man, 70,000 shares-$7,000,000." Upon this fictitious I * side grade, subsidized new subscription the company was organized by electing a and sing his praises, bou board of directors and George L. Woods (then Governor to do his bidding, and tr of Oregon) as president, and S. A. Clarke, secretary. And the rights of all who dai upon this organization the Salem company located its road the ensuing session of upon the east side of the Willamette River, secured some Salem as the host of a I -local donations, some aid from James B. Stevens, pro- free "meats and drinks' prietor of the then East Portland townsite, and induced equipped with all the el' Bernard Goldsmith, of Portland, to advance $20,000 on Joined with and a part ol the bonds of the company, and commenced the work of and organized band of lo1 constructing their road. I am thus particular in setting gon legislature. And so out these facts to show how the railroad was located on battle they waged, that o the east side of the Willamette Valley. ture passed a joint resolu Mr. Elliot's financiering, however, did not carry the previous legislature was enterprise very far. The $2,000,000 of seven per cent nation of the company tc unassessable stock in the company was issued to A. J. to be made, and that Th Cook & Co. (fictitious name for Elliot) under an agree- pany of Salem be designt ment that $1,000,000 of it should be given to the directors was done in the face of of the Salem company, and this stock for the directors presented to the legislate was deposited in the safe of E. N. Cook and lay there for the first named compan, two years and until the company ceased to exist. But land grant in the Departi that stock brought no aid or comfort to the coinpany or the act and within the t its directors. Gold smith's money was all spent, the laborers had been accepted by th on the grade were clamoring for back pay, and Elliot's the time had passed by l scheme was on the verge of collapse when in very desper- file another acceptance o ationi the whole scheme, with all its hopes, assets, and great outrage was probably ne expectations, was turned over to . and was accomplished ih I

GASTON. GENESIS OREGON RAILWAY SYSTEM. 115 six persons subscribed each reorge L. Woods chairman of HOLLADAY, AND THE LAND GRANT CONTEST. I then at such meeting passed Holladay appeared in Oregon about six weeks before airman to subscribe $7,000,- the meeting of the legislature in September, 1868, and pany, as follows: "Oregon took energetic steps to attack the rights of the corporation )y George L. Woods, Chair- first named above to its land grant. With ready cash 000." Upon this fictitious Holladay pushed the work of construction on the east as organized by electing a side grade, subsidized newspapers to advocate his cause e L. Woods (then Governor and sing his praises, bought up politicians on all sides 3. A. Clarke, secretary. And to do his bidding, and treated with imperious contempt 3mn company located its road the rights of all who dared to question his career. At amette River, secured some the ensuing session of the legislature he appeared at 1m James B. Stevens, pro- Salem as the host of a large establishment, dispensing ,land townsite, and induced free "mneats and drinks" to all comers, and otherwise nd, to advance $20,000 on equipped with all the elements of vice and dissipation. Id commenced the work of Joined with and a part of this force, was the first hired al thus particular in setting and organized band of lobbyists in the history of the Ore- ,he railroad was located on -0r gon legislature. And so energetic and successful was the Valley. battle they waged, that on October 20, 1868, the legisla- owever, did not carry the ture passed a joint resolution declaring that the act of the 00,000 of seven per cent previous legislature was made in mistake, that the desig- npany was issued to A. J. nation of the company to receive the land grant was still )r Elliot) under an agree- to be made, and that The Oregon Central Railroad Coin- ld be given to the directors pany of Salem be designated to receive such grant. This his stock for the directors was done in the face of all the facts stated above, fully N. Cook and lay there for presented to the legislature, and of the further facts that many ceased to exist. But the first named company had filed its acceptance of the omfort to the company or land grant in the Department of the Interior according to y was all spent, the laborers the act and within the time provided, which acceptance for back pay, and Elliot's had been accepted by the Secretary of the Interior, and apse when in very desper- the time had passed by within which any company could its hopes, assets, and great file another acceptance of the grant. Such a high-handed ) Ben Holladay. outrage was probably never enacted before in any State, and was accomplished in Oregon only, as Holladay after-

h_ I I I - - I _- I--- I - _-1 _--- 116 JOSEPH GASTON. GENESIS OREGO wards admitted to the author of this paper at a cost to as to its right to its corp( him of $35,000. held that one corporation Thus securing this act of the legislature in his favor, of a prior organized cortn Holladay continued to push the work of construction on blow to the Salem coy the grade, and sent agents to Washington to get an act p. 609.) In this crisis of through Congress enabling his Salem company to file its turned the whole matter 4 acceptance of the land grant act. Congress finally, on 4 . Evarts, who was Secretai April 16, 1869, passed an act extending the time for filing After manv months of st acceptance of the land grant act and providing that which- franchise to exercise cor ever of the two companies should first complete and put the State and could be q in operation twenty miles of railroad from Portland south- not having been so quest ward into the Willamette Valley should be entitled to file liberty to transfer any a such acceptance of grant. Holladay continued to push wvas assuming to own. A construction work with all his available means until in concession from the Fedei December, 1868, he had in a very cheap and imperfect could be disputed only 1 manner completed and put in operation, with one engine been so questioned the fr and a car or two, twenty miles of railroad, and was thereby be also assigned and trar recognized as entitled to the land grant. and that the next step fo But notwithstanding this hard earned success Holladay organize a new Oregon ( was now face to face with a state of facts that would have rights, property, and fra paralyzed a less reckless and unscrupulous operator. It and have the Salem com had become everywhere understood and admitted that the this opinion Holladay pE Salem Oregon Central Railroad Company was not a cor- ately thereafter (1870) i poration and had no legal existence, and for that reason Oregon and California I could not appropriate the right of way in any case where the assets of the Salem the landholder refused it, or enforce any other right thus clearing up the wr of a corporation. The Supreme Court of Oregon after- tion, and burying as b wards decided that the Salem cqmpany was not a cor- disgraced the lives and poration, but a mere nullity and fraud, that it had no more men in Oregon thf legal rights and could not take the land grant, and that of the State, Holladay E the act of the legislature of 1868 could not heal its defects. million dollars of bonds (See the case of Elliot v. Holladay et al., p. 91, Vol. 8 of to be constructed. App] Oregon Reports.) And besides this the west side company of road, these bonds we had finally forced the Salem company to stand trial before dred and fifty miles, or Justice M. P. Deady, of the United States District Court But by Holladay's recks GASTON. GENESIS OREGON RAILWAY SYSTEM. 117 or of this paper at a cost to as to its right to its corporate name, and the court had 1he legislature in his favor, held that one corporation could not take and use the name the work of construction on of a prior organized company. This of itself was a death o Washington to get an act blow to the Salem company. (See Deady's Reports, Lis Salem company to file its p. 609.) In this crisis of his Oregon venture Holladay t act. Congress finally, on turned the whole matter over to the great lawyer, \V. M. extending the time for filing 0 Evarts, who was Secretary of State to President Hayes. ct and providing that which- After many months of study Mr. Evarts decided that the ould first complete and put franchise to exercise corporate rights was a grant from iilroad from Portland south- the State and could be questioned only by the State, and ley should be entitled to file not having been so questioned the Salem company was at lolladay continued to push liberty to transfer any and all rights and franchises it is available means until in was assuming to own. And that as the land grant was a very cheap and imperfect concession from the Federal Government the right thereto operation, with one engine could be disputed only by the grantor, and not having of railroad, and was thereby been so questioned the franchise to take such grant could and grant. be also assigned A and transferred by the Salem cornpany; trd earned success Holladay and that the next step for Mr. Holladay was to lawfully ate of facts that would have organize a new Oregon corporation to take over all the unscrupulous operator. It rights, property, and franchises of the Salem company, stood and admitted that the and have the Salem company make such transfer. For A Coinpany was not a cor- this opinion Holladay paid Evarts $25,000; and immedi- stence, and for that reason ately thereafter (1870) incorporated and organized The t of way in any case where Oregon and California Railroad Company, to which all enforce any other right the assets of the Salem company were conveyed. 'After me Court of Oregon after- thus clearing up the wreckage of the fictitious corpora- t company was not a cor- tion, and burying as best he could the scandals which ind fraud, that it had no disgraced the lives and ruined the political fortunes of Xthe land grant, and that more men in Oregon than all other events in the history 8 could not heal its defects. of the State, Holladay sold in Germany ten and a half iday et al., p. 91, Vol. 8 of million dollars of bonds upon the land grant and the road this the west side company to be constructed. Applied at the rate of $30,000 per mile npany to stand trial before of road, these bonds were estimated to build three hun- iited States District Court dred and fifty miles, or practically to the California line. But by Holladay's reckless, if not dishonest management,

MMMMWAW NNNWNEENN

118 JOSEPH GASTON. GENEsis OREGO: not more than fifty-seven cents on the dollar of the bonds government vouchers for I ever went into the construction of the road ; so that by dered, under the agreeme the time the track had reached Roseburg from Portland with their creditors Holli the proceeds of the bonds were exhausted, and Roseburg $600,000. Holladay toolk remained the southern terminus of the road for ten years. money, and when request Then a reorganization took place, the holders of the bonds firm he repudiated not on surrendering their securities for preferred stock, an( ad- all knowledge of the tram vancing more money on a new mortgage to extend the act of the failing debtor h road to Ashland in Jackson County. Here the track stood only Russell, Majors & Wt still for seven years; and another reorganization took but their creditors had be place, the old bondholders refunding their second issue of 4 . and their deceiver, Ben H bonds in new bonds bearing a still lower rate of interest, day came to the Pacific C and the Southern Pacific Company advancing the capital Oregon and got into the ( to finally connect Oregon and California with the present of splendid physique, finE existing road, in the year 1887, making nineteen years manage the average burr from the time construction work commenced until the untiring, unconscionable, road reached the California line. Holladay, proving titute of fixed principles wholly incapable of managing the property, was forced decency. out of its control by the bondholders in 1876, and Mr. THE WE Henry Villard put in control; and under Villard, as im- Returning now to the C mediate and responsible manager of the property, a young it in 1869 robbed of the man from Germany (Richard Koehler) of whom we shall entitled to, but not wholl have more to say further along. citizens of Portland, Wast Ben Ilolladay was born and raised near Blue Licks, ties stood loyally by the i Kentucky. Emigrating to Missouri in 1856 he became a financial aid to the extei hanger-on to the army at Fort Leavenworth, and drifted first twenty miles of its r into various camp-follower speculations for several years scale the weight of their I until in 1860 when the civil war broke out he was opera- no man should represent ting a buckboard mail and stage line from St. Joseph, Mo., not labor to secure anoth to Salt Lake City. About this time the great army trans- road. With this support portation firma of Russell, Majors & Waddle fell into finan- '70 at Washington City am cial trouble and in order to tide over their affairs and of twenty sections of lanm force a cheap settlement with their creditors, as related tion of a railroad from I to the author of this paper by Mr. Russell himself, the branch from the line at F firm delivered to Holladay, as their friend, $600,000 of STON. GENESIS OREGON RAILWAY SYSTEM. 119 on the dollar of the bonds government vouchers for transportation the firm had ren- of the road ; so that by dered, under the agreement that when they had settled Roseburg from Portland with their creditors Holladay should return to theni the exhausted, and Roseburg $600,000. Holladay took the vouchers, collected the s of the road for ten years. money, and when requested to return it to the confiding i,the holders of the bonds firm he repudiated not only the agreement to do so, but r preferred stock, and ad- all knowledge of the transaction. As it was an unlawful mortgage to extend the act of the failing debtor he could not recover, and so, not ity. Here the track stood I. I only Russell, Majors & Waddle lost the vast sum of money ther reorganization took but their creditors had been beaten by both the debtors ding their second issue of and their deceiver, Ben Holladay. On this plunder Holla- bill lower rate of interest, day came to the Pacific Coast, bought the line of ships to any I advancing the capital Oregon and got into the Oregon railroad. He was a man alifornia with the present of splendid physique, fine address, and knew well how to , making nineteen years manage the average human nature. He was energetic, ok commenced until the i untiring, unconscionable, unscrupulous, and wholly des- ine. Holladay, proving titute of fixed principles of honesty, morality, or common the property, was forced decency. ~olders in 1876, and Mr. THE WEST SIDE ROAD. ad under Villard, as im- Returning rof the property, a young now to the Oregon Central Company we find it in 1869 robbed )ehler) of whom we shall :I of the land grant which it was justly entitled to, but not wholly driven out of the field. The citizens of Portland, Washington, raised near Blue Licks, Yamhill, and Polk coun- ties stood loyally by the old company, )uri in 1856 he became a and not only gave financial aid to the extent eavenworth, and drifted of grading and bridging the first twenty Slations for several years miles of its roadbed, but also threw into the scale the weight of their political broke out he was opera- influence, declaring that no man should represent Oregon ine from St. Joseph, Mo., in Congress who would not labor to secure another me the great army trans- grant of land in aid of their road. With this support & Waddle fell into finan- I spent the winter of 1869 and '70 at Washington City and e over their affairs and secured from Congress a grant of twenty weir creditors, as related sections of land per mile in aid of the construc- tion of a railroad Kr. Russell himself, the from Portland to McMinnville, with a branch heir friend, $600,000 of from the line at Forest Grove through the Nehalem 120 JOSEPH GASTON. GENESIS OF

Valley to Astoria. This was not what was desired, but it promptly withdrew fri was the best that could be secured at that time. And in the whole scheme to go the partition of Oregon local interests then seeking recog- the Klamnath lake re nition at Washington City, it was agreed by the Oregon mucca (Oregon Bran delegation in Congress that at the next session of Con- emasculated southeas gress this grant should be extended from McMinnville to and Astoria would hav

Eugene. And upon this basis it was further agreed that t . railroad more than tl Mr. B. J. Pengra, of Eugene, then also at Washington, and have been the junctio representing the proposed railroad from Winnemucca to the Midas touch of I Eugene (incorporated as "Oregon Branch Pacific Rail- southeastern Oregon I road,") should also have a grant of lands for his companv. prosperous and populk This scheme carried out would give a continuous ]and equal to anything on t grant from the Central Pacific Railroad in Nevada, to have had a population Eugene, and Portland and Astoria. And upon this foun- portunity which Hun] dation, C. P. Huntington, then in the zenith of his power his attention to Arizoi as a railroad financier and constructor, agreed to furnish deserts of the South t the capital and build the railroad from W11innemucca to the reward of Oregon Eugene, Portland and Astoria, giving Oregon a more aging blow to the groi direct connection to the East than bv the California route. suffered; for it not on This scheme was defeated by Ben Holladay, then also at road and its conseque Washington, who within ten days after Congress passed political career of its the Oregon Central grant to McMinnville, induced Senator beyond all question tl. Williams to amend the Pengra bill by providing that the orator and profound 1. Winnemucca road should connect with the Holladay line sent to the United Sta at a point in the Rogue River Valley. This provision of his eminent abilitih would of course prevent all connection with the McMinn- Upon this land grai and upon one million ville line, and give Holladay control of all roads from the I Rogue River Valley to Portland. Holladay was quick to English capitalists ad' see that the Pengra bill would bring to Oregon a giant in road from Portland t energy and ability who would dwarf his own pretensions still for ten years at tl and soon drive hiin from the field, and with a selfishness same capitalists were and vanity which knew no limits, he demanded the sac- further capital to exte rifice of the interests of the State and the ruin of the man deserted) to McMiniiv who was willing to befriend him. Upon this change minus. In the work being made in the Winnemucca bill Mr. Huntington citizens of Portland co: GASTON . GENESIS OREGON RAILWAY SYSTEM. 121 not what was desired, but it promptly withdrew from his offer to finance the road, and cured at that time. And in the whole scheme to get another road into Oregon through interests then seeking recog- the Klamath lake region failed. Had not the Winne- t was agreed by the Oregon mucca (Oregon Branch Pacific) proposition been thus at the next session of Con- emasculated southeastern Oregon, the Nehalem Valley, tended from McMinnville to and Astoria would have had practically a transcontinental railroad more than thirty years ago, and Eugene would is it was further agreed that I . then also at Washington, and have been the junction of two great lines. But for this ilroad from Winnemucca to the Midas touch of Huntington would have made the )regon Branch Pacific Rail- southeastern Oregon plains and the Nehalemn wilderness tnt of lands for his company. I I prosperous and populous with a commerce and population )uld give a continuous land equal to anything on the Pacific Coast, and Astoria would ific Railroad in Nevada, to have had a population of 50,000. Driven from this op- storia. And upon this foun- portunity which Huntington himself sought, he turned mn in the zenith of his power his attention to Arizona and Mexico, and gave to the arid Instructor, agreed to furnish deserts of the South the wealth which should have been ilroad from Winnemucca to the reward of Oregon enterprise. It was the most dam- ria, giving Oregon a more aging blow to the growth of the State which Oregon ever than bv the California route. suffered ; for it not only deprived the State of a great rail- Ben Holladay, then also at road and its consequent development, but it wrecked the days after Congress passed political career of its greatest man-the man who was tcMinnville, induced Senator beyond all question the greatest statesman, most brilliant ra bill by providing that the orator and profound lawyer which the Pacific Coast ever nnect with the Holladay line sent to the United Stated States-and deprived the State ver Valley. This provision of his eminent abilities. onnection with the McMina- Upon this land grant to the Oregon Central Company, control of all roads from the and upon one million dollars construction bonds thereon, nd. Holladay was quick to English capitalists advanced a million dollars to build the d bring to Oregon a giant in road from Portland to the Yamhill River, where it stood 1 dwarf his own pretensions still for ten years at the Holladay town of St. Joe. The field, and with a selfishness same capitalists were induced by Mr. Villard to advance mits, he demanded the sac- further capital to extend the road from St. Joe (long since tate and the ruin of the man deserted) to McMinnville and Corvallis, the present ter- d him. Upon this change minus. In the work of building this west side road the nucca bill Mr. Huntington citizens of Portland contributed in cash and lands $150,000, P 7",_

122 JOSEPH GASTON. GENESIS 01

the people of Washington County $25,000, and the people urging Congress to t of Yanihill County about $20,000. land grant of the N THE WORK OF VILLARD. mouth of the Snake I The coining of Henry Villard to Oregon in 1874 was the vast amount of work fact of largest importance to the development of the North- way and accumulatin west. Mr. Villard had been by his friends in Germany and importance of th( placed in charge of their interests in the Kansas Pacific : 6 the pioneer of the ro Railroad, and had proved so faithful and capable in The want of financia' managing his trust that when similar investments in compelled Chapinan Oregon had been jeopardized by Ben Holladay be was until the time was au sent here to make a report and right all wrongs. On his up in 1879. first visit to Oregon I accompanied him on a trip through- Mr. Villard visited out the Willamette Valley and discovered that he had and again in 1878. F thoughts, if not plans, for a field of action far beyond the with the country fro confines of the State. Quickly getting under his full con- rangemnents to bring trol the existing Oregon roads, he went straight at the Portland. He had f work of his vast plan of an Oregon railroad system having in developing the cov a transcontinental power and influence. And as one step gation of its resource rapidly followed another in the unfolding of his scheme, much so that on him it was seen that Henry Villard was not an ordinary rail- J. C. Ainsworth, presi. road promoter, but a veritable empire builder. His genius Company, whether li dispose for grand plans of developing great States was fully of that com equaled by his ability to raise the means to successfully Ainsworth replied b: carrv them into effect. appraisal of the coml Upon the completion of the to the Columbia River, M Salt Lake, that interest had sent surveying parties to look to sell the entire prc out a route for the extension of their road to Oregon. 11 I probably had never c That exploration, made in the year 1868, was known as as it was paying twel "the Hudnutt survey." An Oregon man, Col. W. W. Chap- Villard thought he in man, one of the founders of the City of Portland, took up the Ainsworth stockh i I and exploited the idea of a "Portland, Dalles & Salt Lake chase their property Railroad," on the route proposed by Hudnutt. Colonel balance in bonds al Chapman worked upon this scheme fronm 1870 to 1876, organized. For this attending the sessions of Congress in each year and vainly Ainsworth $100,000 turned to New York l ASTON . GENESIS OREGON RAILWAY SYSTEM. 1,23 nty $25,000, and the people urging Congress to transfer to his company the unused )00. land grant of the Northern Pacific Railroad fromn the VILLA RD. mouth of the Snake River to Portland. Chapman did a I to Oregon in 1874 was the vast amount of work on this proposition, getting rights of development of the North- way and accumulating facts showing the value, resources, )y his friends in Germany and importance of the route, and may be justly considered the pioneer rests in the Kansas Pacific of the road subsequently built on the route. faithful and capable in The want of financial support and the infirmities of age en similar investments in compelled Chapmnan to abandon the enterprise, but not until the time was auspicious by Ben Holladay he was for Henry Villard to take it right all wrongs. On his up in 1879. iied him on a trip through- Mr. Villard visited Oregon first in 1874, again in 1876, discovered that be had and again in 1878. He was greatly impressed and pleased with the country Id of action far beyond the from the first visit, and had made ar- getting under his full con- rangements to bring his family and settle permanently in s, he went straight at the Portland. He had from the first been deeply interested con railroad system having in developing the country and had made careful investi- nfiluence. And as one step gation of its resources, and of the tributary regions; so much so that on his visit in 1878 3unfolding of his scheme, he inquired of Capt. was not an ordinary rail- J. C. Ainsworth, president of the Oregon Steam Navigation Company, mpire builder. His genius whether his stockholders would be willing to ig great States was fully dispose of that company's property. To this proposal Ainsworth replied the means to successfully by handing Villard an inventory and appraisal of the company's boats and portage railways on Union Pacific Railroad to the Columbia River, aggregating $3,320,000, with an offer to sell the entire property at $5,000,000. Lt surveying parties to look The property of their road to Oregon. probably had never cost more than half the appraisal, but year 1868. was known as as it was paying twelve per cent dividend on $5,000,000, gon man, Col. W. W. Chap- Villard thought he made a good bargain when he induced the Ainsworth eCity of Portland, took up stockholders to give him an option to pur- chase their *rtland, Dalles & Salt Lake property at $4,000,000, one half cash and the sed by Hudnutt. Colonel balance in bonds and stocks in a new company to be Theme from 1870 to 1876, organized. For this option for six months Villard paid Ainsworth $100,000 in cash, and then immediately ess in each year and vainly re- turned to New York to finance the deal and carry out the

I -- . -1- - - - - . V I Ii 124 JOSEPH GASTON. I1 GENESIS OR first move in his great scheme of concentrating the trade piecemeal mortgages a of all the region west of the Rocky Mountains and north from Portland to Taco of California at Portland, Oregon. He presented the prop- division of the road ] osition first to Jay Gould and other large stockholders in Missouri, and some wc the Union Pacific Railroad, with a view to constructing a lumbia towards Spoka branch of the Union Pacific from Salt Lake to Portland the hands of a more ei onthe Chapman route. After considering this for months foresee that his grar the Gould party declined to go into the scheme, and Villard might be crippled, an, at once organized the Oregon Railway & Navigation Coin- the great venture of h: pany, raised the money to take up the Ainsworth option, amount of money nece: and immediately commenced the construction of the road in the Northern Pacifi eastwardly from Portland. To this bold movement of (May 15, 1881,) to hi Villard, wholly unexpected by the Union Pacific people, temporary loan of $8, they promptly replied by organizing the Oregon Short "and no questions to I Line Company, to build a road from the Union Pacific in due time he would line to the Columbia River, and at once commenced con- trusted to him with su struction. Vi]lard had thrown down a challenge for pos- Such a proposition was session of the Short Line route, it had been promptly It was appalling, auda, accepted, and now the race was on as to see which of these was promptly given h parties should win the game. It was the first great test the historic "blind po( of Henry Villard's ability as a financier. He was opposed Railroad, never attemp by Gould, Morgan, and some of the ablest and wealthiest With this $8,000,0( capitalists in the world, and yet his talents and energy interest in the Northe were such that he pushed his road eastwardly with such and was elected presid force and rapidity as to meet his rivals at Huntington, started an army of me near the eastern boundary of the State, and effectually Hallett, of Washingt( hold his chosen field of enterprise. construction on the w I # But brilliant in conception and rapid in construction chief engineer, and th as had been the great road to control the Columbia River and vigor that an ol Valley, Mr. Villard had in his fertile brain a still greater the entire army of th scheme of finance and development to astonish the rail- struction of a militari road world. The Northern Pacific Railway, with the was the supreme test largest bounty of public lands ever granted in aid of the strength. He was at I construction of any road, had been making but a snail's Pacific, the Oregon Ru pace in spanning the continent with money raised on Steam Navigation Co. i

GA STON . GENESIS OREGON RAILWAY SYSTEM. 125 te of concentrating the trade piecemeal mortgages at high rates of interest. The line Rocky Mountains and north from Portland to Tacoma had been built, and the eastern gon. He presented the prop- division of the road pushed west to the crossing of the I other large stockholders in Missouri, and some work done on a section from the Co- vith a view to constructing a lumbia towards Spokane. The outlook was ominous. In from Salt Lake to Portland the hands of a more energetic management Villard could considering this for months . foresee , that his grand scheme of an Oregon system pinto the scheme, and Villard might be crippled, and so, maturing his plans he made Railway & Navigation Com- the great venture of his career. Quietly ascertaining the ke up the Ainsworth option, amount of money necessary to secure a controlling interest the construction of the road in the Northern Pacific Company he addressed a circular To this bold movement of (May 15, 1881,) to his financial friends asking for the )y the Union Pacific people, temporary loan of $8,000,000 for a purpose not named, ganizing the Oregon Short "and no questions to be asked," assuring his friends that oad from the Union Pacific in due time he would account to them for the money in- mnd at once commenced con- trusted to him with such profits as would be satisfactory. ,n down a challenge for pos- Such a proposition was unheard of in the world of finance. oute, it had been promptly It was appalling, audacious. But nevertheless the money is on as to see which of these was promptly given him. And this was the formation of It was the first great test the historic "blind pool" to control the Northern Pacific Lfinancier. He was opposed Railroad, never attempted before and never repeated since. of the ablest and wealthiest With this $8,000,000 Villard purchased a controlling yet his talents and energy interest in the Northern Pacific, got control in June, 1881, s road eastwardly with such and was elected president in September. He immediately At his rivals at Huntington, started an army of men to complete the great work. J. L. )f the State, and effectually Hallett, of Washington County, was superintendent of prise. construction on the west end, Hans Thielsen of Portland, i and rapid in construction chief engineer, and the work was pushed with such force control the Columbia River and vigor that an observer might have supposed that s fertile brain a still greater the entire army of the United States was pushing con- opment to astonish the rail- struction of a militarv work in time of a great war. It Pacific Railway, with the was the supreme test of Villard's mental and physical .s ever granted in aid of the strength. He was at that time president of the Northern I been making but a snail's Pacific, the Oregon Railway & Navigation Co., the Oregon nent with money raised on Steam Navigation Co., and the Oregon & California Co.,

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126 JOSEPH GASTON. GaEN ESIS OR and was raising the money for and pushing construction saw in the distance all work on all these lines. But he proved his matchless trade and population ability by successfully carrying out these great enter- Rocky Mountains froi prises, and on September 8, 1883, completing the North- lumbia, and all the tr ern Pacific across the continent and connecting its steel the same lines pourir bands with those of the Oregon Railway & Navigation down easy grades thr Company at the long since abandoned town of Ainsworth great city to be built on the north side of Snake River just above its confluence and Columbia; and n with the Columbia. And thus was planned and formed ing with each other tc what I have named "The Oregon Railroad System." How great Pacific and the s long Villard was considering this idea I have no means Henry Villard was I of stating. He doubtless mentioned it to others, but the influential family in first time I heard of it was at the dinner table of the late many. In the revoluti Senator Nesmith, at his farm on the La Creole in Polk and the presiding judg, County in 1874, while I was accompanying Villard on a lard was at school at t trip of observation through the Willamette Valley. The in his cap and refus( grand conception was his in origin and execution; and offense he was suspen although hampered by doubters and opposed by powerful youthful disloyalty by enemies he triumphed over all obstacles and made its Subsequently pardone success the most enduring monument of his faime as one studies at the Univer of the most forceful characters and honorable men of his United States in 1855 day and generation. The people of Oregon have but ville, Ill., for a year, ti slightly comprehended and do yet but little appreciate a war correspondent i the great work he wrought for the State. Hle planned his influential people, att work upon "the lines of the least resistance"; he worked genial maniners, made in harmony with the laws of nature and upon plans laid back to Germany on a down by the great architect of our planet; and his record at Frankfort, who afte and his work is invincible. And now, after spending their interests in inveE years of effort and millions of money to reverse the plans the highway to his gr of Villard and carry the trade of the "Inland Empire" engaging and genial l over the Cascades to Puget Sound the great capitalists of selfishness or avaricioi the Northern Pacific and Great Northern roads are forced mail was more consid to admit the correctness of Villard's plans and expend sistance to those who ten million dollars to rectify the blunder of opposing work he had made us them. It was the keen foresight of Henry Villard that his purse was open wi LSTON . GENESIS OREGON RAILWAY SYSTEM. 127 and pushing construction saw in the distance all the local wealth and productions, he proved his matchless trade and population of the empire lying west of the ig out these great enter- Rocky Mountains from the California line to British Co- 33, completing the North- lumbia, and all the transcontinental commerce between t and connecting its steel the same lines pouring its tribute for all time to come on Railway & Navigation down easy grades through the Columbia gateway to a idoned town of Ainsworth great city to be built at the junction of the Willamette Or just above its confluence and Columbia; and now, not one road but four are vie- was planned and formed ing with each other to utilize this water-level pass to the l Railroad System." How great Pacific and the still greater Orient. ,is idea I have no means * Henry Villard was born in 1835 of an honorable and ;ioned it to others, but the influential family in Speyer, kingdom of Bavaria, Ger- te dinner table of the late many. In the revolution of 1849 his father was a loyalist, )n the La Creole in Polk and the presiding judge of an important court. Young Vil- companying Villard on a lard was at school at the Gymnasium, wore a red feather Willamette Valley. The in his cap and refused to pray for the king. For this igin and execution; and offense he was suspended and managed to get out of his and opposed by powerful youthful disloyalty by going to a school over in France. 1 obstacles and made its Subsequently pardoned, he returned and completed his urnent of his fanie as one studies at the University of Munich. He came to the and honorable men of his United States in 1853, tarried with relatives near Belle- ple of Oregon have but ville, Ill., for a year, then drifted into journalism, became yet but little appreciate a war correspondent in the civil war, made friends with lie State. He planned his influential people, attracted attention by his ability and At resistance"; he worked genial manners, made some money in speculations, went ture and upon plans laid back to Germany on a visit and made the financial friends ir planet; and his record at Frankfort, who afterwards employed him to look after \nd now, after spending their interests in investments in) America, and put him on 0one1e to reverse the plans the highway to his great success. He was a nan of most of the "Inland Empire" engaging and genial manners, with nothing of the hard id the great capitalists of selfishness or avaricious grasp of the typical rich man. No Northern roads are forced man was more considerate or generous in praise and as- lard's plans and expend sistance to those who worked with or under him or whose the blunder of opposing work he had made use of. In the days of his prosperity [it of Henry Villard that his purse was open wide to all works of charity and benev- 128 JOSEPH GASTON. GENESIS 01 olence, chief of which in Oregon was $50,000 to the State miles south. This, to( University for an irreducible fund at least $400 of the in- & N. system. terest from which to be used annually in the purchase of Of independent ro books for the University library. He gave a like sum to lines to this Oregon sye house the orphan children at Portland. No act of little- Valley road, built by ness, meanness, oppression, injustice, or dishonor ever from Baker City to the stained the escutcheon of his noble career; and he sleeps west towards Burns, n well on the banks of the Hudson. track. This road was

BRANCH ROADS. ties have within the pt road running up the: This paper might properly end here were it not that Hood River, and caller others have done good work in building branch lines to 4 p important independen complete the grand scheme planned by Villard ; and which running from Jackso it seems the facts of history require to be recorded in this proposed to extend to I connection. The principal of these was the narrow gauge the largest tract of sug system projected by the writer of this paper in 1878 to This enterprise was s more completely develop the Willamette Valley. In that of Medford, and Wm. year he built the first forty miles of three feet gauge rail- important independer road in the State, from Dayton to Sheridan in the Yam- sively, The Willamett hill Valley, with a branch to Dallas in Polk County. In cific," and The Corval] 1880 this road was sold to capitalists in Dundee, Scotland, Yaquina, on the bay oi who, through their agent in Oregon, Wm. Reid, of Port- and Albany to Idanht land, extended the lines on the west side of the Willamette road has had a cheel River to Airlie in Polk County, and to Dundee, Yamhill by public spirited citi7 County, with an east side of the river branch from Dundee who first and last put a crossing the river at Ray's Landing, thence to Woodburn, into its construction.: Silverton, Scio, and on to Coburg in Lane County. Mr. Hogg, a promoter of g Villard leased this system (about 200 miles) in 1880; and a. who reorganized the Mr. Reid on his own capital subsequently extended the issued $15,000,000 in line from I)undee to Portland via Newberg; and the whole one hundred and fort road thus built was soon after incorporated in the standard died, leaving his bank gauge system of the Willamette Valley. I . its present owner, A. Another important branch is the Columbia Southern, been such a "misfit" tl traversing Sherman County and built by Mr. Lytle and energy of Huntingtom others from Biggs on the Columbia to Shaniko, seventy Harriman have been GA STON . GENESIS OREGON RAILWAY SYSTEM. 129 non was $50,000 to the State miles south. This, too, has been incorporated in the 0. R. fund at least $400 of the in- & N. system. annually in the purchase of Of independent roads, which are also in effect feeder try. He gave a like sum to lines to this Oregon system, may be mentioned the Sumpter Portland. No act of little- Valley road, built by Messrs. Eccles and Nibley of Utah, injustice, or dishonor ever from Baker City to the mining town of Sumpter and south- noble career; and he sleeps west towards Burns, now aggregating nearly fifty miles of son. . , track. This road was organized in 1890. The same par- ROADS. ties have within the past year built eighteen miles of a new road running up the Hood River Valley v end here were it not that from the town of Hood River, and called n building branch lines to The Mt. Hood Railroad. Another important independent line is the Rogue anne(l bvVillard ; and which River Valley road running from Jacksonville quire to be recorded in this to Medford, and from there proposed to extend to Crater these was the narrow gauge Lake, and on this line develop the largest tract of sugar pine er of this paper in 1878 to timber in the United States. This enterprise was started in 1891 Willamette Valley. In that by Mr. E. J. DeHart of Medford, and Wm. Honeyman of iles of three feet gauge rail- Portland. Another important ind ependent n to Sheridan in the Yam- line is what has been called succes- sively, The Willamette Dallas in Polk County. In Valley & Coast, "The Oregon Pa- cific," and The Corvallis & Eastern talists in Dundee, Scotland, Railroad, running from Yaquina, on the bay of that name, eastwardly Dregon, Wm. Reid, of Port- via Corvallis and west side of the Willamette Albany to Idanha in the Cascade Mountains. This road has ,y, and to Dundee, Yamhill had a checkered career. Commenced in 1880 by public river branch from Dundee spirited citizens of Corvallis and Benton County, who first and last put about iding, thence to Woodburn, $100,000 of hard cash and labor into its construction. surg in Lane County. Mr. It was turned over to one T. Egenton Hogg, a promoter of great promise ut 200 miles) in 1880; and and little performance, who reorganized the scheme subsequently extended the into its second name and issued $15,000,000 'ia Newberg; and the whole in bonds and $18,000,000 in stock on one hundred and forty miles icorporated in the standard of road and then failed and died, leaving e Valley. his bankrupt road to be sold for $100,000 to its present owner, A. B. Hammond. is the Columbia Southern, It has from the first been such a "misfit" that neither the genius id built by Mr. Lytle and of Villard, the energy of urnbia to Shaniko, seventy Huntington, nor the comprehensive mind of Harriman have been able to assign to it a practical and

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130 JOSEPH GASTON. GENESIS ORE profitable place in the Oregon system. It is now doing a economy in all departn large business in hauling lumber and must sooner or later finally make the roads find a useful and necessary purpose in the development valuable property to its of the country. patience, trials, and ab THE WORE OF MR. KOEHLER. been but little undersl Besides these independent lines the work of develop- work of as much value able work of projecting ment by branches, feeders, and extensions of the main I system, has been going on steadily for years, as population E. and business would justify. Many such additions have A brief notice of the been added to the lines east of the Cascades, as well as in Harriman seems necel the Willamette Valley, showing the purpose to cover the comes into the railroad whole territory of the Columbia River water shed with a which he now controls network of branch line roads. The most notable of this "The Oregon System" work is that carried out by Mr. Richard Koehler, who has been mentioned in coi held the reins as general manager of the Oregon & Cali- His work so far has bee fornia road for thirty-two years. Under his management already constructed. I over four hundred miles of track have been added to the spares no expense. TL railroad mileage in the Willamette Valley and Southern Union Pacific straight, Oregon. And in addition to this the roads under his Lake, and saving fifty-t supervision have been entirely rebuilt with new steel rails, mountain grades, is a new bridges, expensive embankment fills, reduction of inent. By straightenir grades and straightening of track. In this work Mr. making his roads able 1 Koehler has disbursed for his employers many millions did and for one half th of dollars, and in every way more than doubled the value just as great a gain to t of the property under his care, not only to its owners but new lines; although hi also to the farmers and business men along the line. the money to fully dev Such a long term of service as this in one position of such V f with new branch roads power and responsibility shows with what fidelity Richard been determined by car Koehler has discharged his responsible duties to his cli- this, he is engaging in a ents and the people. Taking hold of the property when which have so long ig it had been practically wrecked by Holladay, and when it System " of the Columb paid nothing to its owners, he has been compelled to dis- plete utilization of that charge the onerous and thankless duties of watching every is vitally interested in detail of operation, service, expenditure, construction, and ! for if he succeeds in f. G ASTON . GENESIS OREGON RAILWAY SYSTEM. 131 n system. It is now doing a econormy in all departments for all these long years, and iber and must sooner or later finally make the roads a self-sustaining, profit earning, purpose in the development valuable property to its owners and to the country. The patience, trials, and ability to accomplish this end has MR. KOEHLER. been but little understood and recognized, although a lines the work of develop- work of as much value to the country as the more notice- ind extensions of the main able work of projecting new lines. adily for years, as population E. H. HARRIMAN. Many such additions have A brief notice of the Napoleonic figure of Edward H. A the Cascades, as well as in Harriman seems necessary in closing this paper. He ng the purpose to cover the comes into the railroad battlefield after all the great lines bia River water shed with a which he now controls had been located and constructed. ,. The most notable of this " The Oregon System" was here before his name had ever [r. Richard Koehler, who has been mentioned in connection with any of these lines. iager of the Oregon & Cali- His work so far has been to improve and perfect the lines rs. Under his management already constructed. In this he stops at no trifles and rack have been added to the spares no expense. The stupendous job of running the inette Valley and Southern Union Pacific straight across the north arm of Great Salt to this the roads under his Lake, and saving fifty-three miles of track and dangerous v rebuilt with new steel rails, mountain grades, is a sample of his policy of improve- xankment fills, reduction of ment. By straightening lines and reducing grades he is track. In this work Mr. making his roads able to do twice the work they formerly is employers many millions did and for one half the cost of transportation. This is nore than doubled the value just as great a gain to the country as the construction of -e, not only to its owners but new lines; although he has now planned and provided siness men along the line. the money to fully develop the whole of Eastern Oregon s this in one position of such J I with new branch roads as soon as the best routes have vs with what fidelity Richard been determined by careful surveys. And now, as I write 'esponsibleduties to his cli- this, he is engaging in a titanic struggle - with the powers hold of the property when which have so long ignored the value of "The Oregon ed by Holladay, and when it System " of the Columbia,- for the preservation and com- e has been compelled to dis- plete utilization of that system. In this contest, Oregon less duties of watching every is vitally interested in the success of E. H. Harriman; :penditure, construction, and for if he succeeds in forcing his terms on the managers T

132 JOSEPH GASTON. of the Great Northern and Northern Pacific systems, he will compel every road coming west over the Rocky Moun- tains between California and British Columbia to come THE OREGG down through the Columbia River gateway, and contribute their millions to develop commerce on the Columbia and keep that mighty river open from Portland to the Pacific THE QUARTERLY f Ocean. Gaston's story of thi tually claims for bii that passed Congress of the railroad to Ca .* announcing that he: directors of the coml land grant. My attention was f H. S. Lyman's accou eulogy of Gaston as ful railroad enterpris Villard. I also find quotes as authority a early railroad buildii S. A. Clarke still si papers for the compa 1866, and was secret, until it passed under ganized it to suit exi He had bought the E do to run a daily nev clear idea of the rai] will try to tell the stc the Oregon Central I ganization. I had been absent by steamer, via Pana S. G. Elliot, who ha the California and 4