Page:Oregon Historical Quarterly volume 16.djvu/259

THE YAQUINA RAILROAD 239

Now began four years of tribulation for the Oregon Pacific, strife for factions of bondholders and loss for employes and other creditors of the receivership, the whole culminating in foreclosure sale for $100,000, December 22, 1894, of which sum $66,000 was used to pay taxes and court fees and $34.000 remained to meet claims that had been scaled down from more than $1,000,000 to $341,971 labor and material, attorneys and various receivers' certificates. Needless to say the $15,- 000,000 bonds proved wholly worthless. Most of the indebtedness of the receivership was a total loss. The "preferred" claims selected for pro rata payment out of the $34,000 included $138,013.43 for labor; $39,525.17 with 8 per cent interest from April 10, 1893, which sum was advanced to pay labor by A. S. Heidlebach, J. H. Halstead, John I. Blair and Joseph Wharton at a critical period; $16,674.19 for insurance; $68,632.99 for material and miscellaneous items. This apportionment, filed by the referee Feb. 1, 1896, was approved by the State Circuit Court, Fullerton Judge, March 18, 1896. (Report in Oregonian, Feb. 24, 1896.)

In the four-year receivership period (1890-94) the sheriff sold the railroad three times; for $1,000,000, Jan. 20, 1892, to Zephin Job, representing bondholders; for $200,000, Dec. 15, 1893, to representatives of bondholders ; and for $100,000, Dec. 22, 1894, to A. B. Hammond and E. L. Bonner. The first sale failed, through delinquency of the bidders ; the second was set aside by the Court, which held the bid price $200,000 inadequate. The sheriff made five other attempts to sell the property in 1892-94.

Quarrels broke out early in the foreclosure proceedings, between factions of bondholders. Decree of foreclosure and order of sale were entered in the State Court April 27, 1891, and sale was finally set for Jan. 20, 1892. Priority of pay- ment from proceeds of the sale was the issue of contention. Finally after conferences of the bondholders in New York,