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118 not more than fifty-seven cents on the dollar of the bonds ever went into the construction of the road; so that by the time the track had reached Roseburg from Portland the proceeds of the bonds were exhausted, and Roseburg remained the southern terminus of the road for ten years. Then a reorganization took place, the holders of the bonds surrendering their securities for preferred stock, and advancing more money on a new mortgage to extend the road to Ashland in Jackson County. Here the track stood still for seven years; and another reorganization took place, the old bondholders refunding their second issue of bonds in new bonds bearing a still lower rate of interest, and the Southern Pacific Company advancing the capital to finally connect Oregon and California with the present existing road, in the year 1887, making nineteen years from the time construction work commenced until the road reached the California line. Holladay, proving wholly incapable of managing the property, was forced out of its control by the bondholders in 1876, and Mr. Henry Villard put in control; and under Villard, as immediate and responsible manager of the property, a young man from Germany (Richard Koehler) of Whom we shall have more to say further along.

Ben Holladay was born and raised near Blue Licks, Kentucky. Emigrating to Missouri in 1856 he became a hanger-on to the army at Fort Leavenworth, and drifted into various camp-follower speculations for several years until in 1860 when the civil war broke out he was operating a buckboard mail and stage line from St. Joseph, Mo., to Salt Lake City. About this time the great army transportation firm of Russell, Majors & Waddle fell into financial trouble and in order to tide over their affairs and force a cheap settlement with their creditors, as related to the author of this paper by Mr. Russell himself, the firm delivered to Holladay, as their friend, $600,000 of