Page:Oregon Historical Quarterly vol. 3.djvu/331

Rh they had so far progressed as to foreshadow its overthrow. Joseph Gaston, the president of a rival corporation of the same name, known as the Oregon Central Railroad Company (west side) had issued circulars and sent them to bankers and brokers in the East, setting forth, in language more forcible than elegant, that "the corporation was a humbug, and its bonds were worthless." It was known that the company was hopelessly insolvent.

Such was the organization and end of the company Mr. Fenton seems to believe was the "Oregon Central Railroad Company.' It never was a corporation, and is entitled to no place in the history of the state as such. It may be inquired how that company finally secured the land grant if it had no legal standing or existence? The answer is, that after Elliot and his Oregon associates were practically beaten in the courts and before the people, and in a state of hopeless collapse, they made a hasty antemortem disposition of their effects to Ben Holladay, noticed by Professor Robertson. Holladay was everything that Professor Robertson paints him, and a great deal more and worse. Possessed of large wealth for that time, he came to Oregon to take up the east side wreckage and make something of it. He distributed his money with a lavish hand, subsidized newspapers, hired lawyers, and purchased politicians right and left; and at the next ensuing session of the legislative assembly organized a hostelry at Salem, keeping "open house" to all comers, and so successfully plied susceptible members of the legislature that he was able with his money judiciously distributed to secure from the legislature the passage of a resolution declaring that "The Oregon Central Railroad Company" had never been designated to receive the lands granted by Congress; that such designation was yet to be made, and that "The Oregon Central Railroad Company of Salem" be designated to receive the grant. This action of the legislature, as Holladay afterward informed the writer hereof, cost him $35,000. This was the first