Page:Oregon Historical Quarterly volume 25.djvu/308

 270 JOHN TILSON GANOE '•« x ^m' m the State of Oregon in lots to suit purchasers at not less than Six Hundred dollars per Bond."* 5 Russell was able to make negotiations for the sale of the five hundred thousand dollars worth of bonds, but not at the rate of sixty per cent. The bonds, however, would not have brought enough to build the first twenty miles of road. Gaston felt under obligation to J. C. Ains- worth, one of the directors of the company and head of the Oregon Steam Navigation Company, for past advice and considered Ainsworth's business ability very highly and upon the recommendation of Ainsworth refused the offer of Edwin Russell. 46 On August 27, 1868, Gaston and Haines were author- ized to execute a contract with S. Coffin, a contractor, to build the trestle work on the first five miles of road 47 and at the same meeting of directors the proposal of Simeon G. Reed and Company to build the first one hundred and fifty miles of the road was accepted. Simeon G. Reed and Company was a company that had been organized for the purpose of constructing the road. Ainsworth, of the rail- road company, was also a member of the S. G. Reed and Company. Coffin was unable to fulfilll his contract, so the contract was rescinded 48 December 28, 1868. The aid of Portland provided that should the company complete five miles of road before December 31, 1868, Portland would counter- sign $100,000 worth of bonds which were to be sold at not less than eighty cents on the dollar and were to be used to buy material for the construction of the road. 49 Holladay, however, had been very active and had caused suits to be begun to prevent aid and in this he was suc- seccful. 50 Thus the failure of Coffin to fulfill his con- 46 Bonds were in thousand dollar denominations. 46 Bancroft, Vol. II, page 701. 47 O.&C.R.R. vs. U.S.Vol.IX,page4393. 49 Ordinance 468,O. C.R. R. vs. U.S., Vol. IX, page 4324. 50 Bancroft, Vol II, page 701.
 * .IHd, page 4398.