Page:Oregon Historical Quarterly vol. 3.djvu/328

318 a capital stock of $7,250,000, and the state law required that one half of this capital should be subscribed before the election of a board of directors, yet in violation of this law the east side company had been organized by a subscription of $100 each by six men, and then the six men present passing a resolution authorizing the so-called chairman of the meeting to subscribe $7,000,000 to the capital stock of the company in the name of the company; or, in other words, authorizing a man to lift himself over a fence by the straps of his boots. These facts becoming known, Gaston lost no time in applying to the circuit court of Marion County for leave to test the legality of the east side company. This was refused by the presiding judge on the ground that no damages had been shown by the Oregon Central Company from the alleged unlawful usurpation of its name; and so another tack must be tried. The opportunity came a few months later when the east side company sought to condemn the right of way for its railroad through a farmer's land in Clackamas bottom. Here the Oregon Central Company inspired the farmer to refuse the right of way and deny the legal corporate existence of the east side company; and upon this issue a trial was demanded, but the east siders were too wary to submit their organization to such legal test, and immediately withdrew their suit of condemnation, relocated their line, and avoided the farmer's land by a more circuitous route.

Foiled again, the Oregon Central resolved to get into a court where there could be no dodging, and assigning one of its first mortgage bonds to James B. Newby, of California, Newby commenced a suit in the United States district court of Oregon, to enjoin the east side company from using the name "Oregon Central Railroad Company," on the ground that such use was an injury to the value of his bond. Here was found a judge who