Page:Oregon Historical Quarterly volume 25.djvu/305

 OREGON AND CALIFORNIA RAILROAD 267 Railroad Company to the effect that the railroad company in consideration of materials bought for the construction of the road, was to issue and deliver to A. J. Cook and Company seven hundred and seventy-five thousand dol- lars of first mortgage bonds. Elliott immediately went east to negotiate for railroad locomotives and machinery for the road and was able to dispose of about thirty-eight thousand dollars worth of the bonds at par value. But as we have seen, Elliott did not have the means to construct the road. It was necessary that he find the capital since he had the contract to build the road. At this juncture came Ben Holladay, concerning whom we spoke in relation to the gaining of the land grant. Holladay was a man of considerable means. He had made a considerable success in the stage line business, but now wished to enter into railway building. Accordingly on September 12, 1868, Holladay and Emmet, who was an attorney for the California and Oregon Railroad Com- pany, and Elliott entered into a contract and took by as- signment the A. J. Cook and A. J. Cook and Company contracts. By this agreement Elliott was not to advance any money for construction in fulfillment of the contracts, but as soon as the partnership should gain enough money to cover costs then Elliott was to be charged his share of the costs which would be six-fortieths. 42 Elliott was to be hired as general superintendent of the construction work and was to receive a salary of five hundred dollars a month. It may be considered peculiar by some to think that such a business man as Holladay should have been brought into the proposition, yet it must be remembered that El- liott had disposed of about thirty-eight thousand dollars worth of the bonds at par value and Holladay had no reason to believe that the rest could not be disposed of in m>P°m s 42 The interest of each of the partners was, Holladay, twenty-four fortieths; Emmet ten fortieths, and Elliott six fortieths.