Page:Oregon Historical Quarterly vol. 7.pdf/120

114 stock of $7,250,000, to which six persons subscribed each $100, and thereupon elected George L. Woods chairman of the stockholders' meeting, and then at such meeting passed a resolution authorizing the chairman to subscribe $7,000,000 to the stock of the company, as follows: "Oregon Central Railroad Company by George L. Woods, Chairman, 70,000 shares—$7,000,000." Upon this fictitious subscription the company was organized by electing a board of directors and George L. Woods (then Governor of Oregon) as president, and S. A. Clarke, secretary. And upon this organization the Salem company located its road upon the east side of the Willamette River, secured some local donations, some aid from James B. Stevens, proprietor of the then East Portland townsite, and induced Bernard Goldsmith, of Portland, to advance $20,000 on the bonds of the company, and commenced the work of constructing their road. I am thus particular in setting out these facts to show how the railroad was located on the east side of the Willamette Valley.

Mr. Elliot's financiering, however, did not carry the enterprise very far. The $2,000,000 of seven per cent unassessable stock in the company was issued to A. J. Cook & Co. (fictitious name for Elliot) under an agreement that $1,000,000 of it should be given to the directors of the Salem company, and this stock for the directors was deposited in the safe of E. N. Cook and lay there for two years and until the company ceased to exist. But that stock brought no aid or comfort to the company or its directors. Goldsmith's money was all spent, the laborers on the grade were clamoring for back pay, and Elliot's scheme was on the verge of collapse when in very desperation the whole scheme, with all its hopes, assets, and great expectations, was turned over to Ben Holladay.