Page:Oregon Historical Quarterly vol. 7.pdf/129

Rh urging Congress to transfer to his company the unused land grant of the Northern Pacific Railroad from» the mouth of the Snake River to Portland. Chapman did a vast amount of work on this proposition, getting rights of way and accumulating facts showing the value, resources, and importance of the route, and may be justly considered the pioneer of the road subsequently built on the route. The want of financial support and the infirmities of age compelled Chapman to abandon the enterprise, but not until the time was auspicious for Henry Villard to take it up in 1879.

Mr. Villard visited Oregon first in 1874, again in 1876, and again in 1878. He was greatly impressed and pleased with the country from the first visit, and had made arrangements to bring his family and settle permanently in Portland. He had from the first been deeply interested in developing the country and had made careful investigation of its resources, and of the tributary regions; so much so that on his visit in 1878 he inquired of Capt. J. C. Ainsworth, president of the Oregon Steam Navigation Company, whether his stockholders would be willing to dispose of that company's property. To this proposal Ainsworth replied by handing Villard an inventory and appraisal of the company's boats and portage railways on the Columbia River, aggregating $3,320,000, with an offer to sell the entire property at $5,000,000. The property probably had never cost more than half the appraisal, but as it was paying twelve per cent dividend on $5,000,000, Villard thought he made a good bargain when he induced the Ainsworth stockholders to give him an option to purchase their property at $4,000,000, one half cash and the balance in bonds and stocks in a new company to be organized. For this option for six months Villard paid Ainsworth $100,000 in cash, and then immediately returned to New York to finance the deal and carry out the