Page:Oregon Historical Quarterly vol. 3.djvu/330

320 by the company, of its own stock, by a subscription, as follows: "Oregon Central Railroad Company, by George L. Woods, chairman, seventy thousand shares seven million dollars."

Farther along the decision recites the facts, that in addition to the above, the directors of this Salem company issued $2,000,000 unassessable preferred stock, bearing interest at seven per cent per annum, and delivered the same to A. J. Cook & Company under a private understanding that Cook & Company was to give back to these directors $1,000,000 of this preferred stock, to be used by them in procuring legislation in Oregon. On page 91 of the decision the court says:

Farther along, on page 93 of the decision, in speaking of the value of the bonds issued by this company, the court says:

Goldsmith and others had tried in vain to negotiate these bonds and found it impossible to sell them at any price. The evidence shows that they were worth nothing in the money markets of the country. Suits had been commenced in the United States circuit court and the circuit courts of this state against the Oregon and California Railroad Company to test the legality of its existence as a corporation, and