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 and asked for a subscription of twelve million more which was immediately forthcoming. Upon this subscription the Oregon and Transcontinental company was organized with a capital stock of fifty million dollars. Thirty million dollars worth of this stock was given to those who had subscribed to the twenty million dollar fund.

The Oregon and Transcontinental Company did gain control of the Northern Pacific and immediately pushed construction work for that company as rapidly as possible.

For the construction of the Oregon and California Railroad, the Oregon and Transcontinental Company were to receive $3,670,500, six per cent, first mortgage bonds, and $3,750,000 seven per cent, second mortgage bonds. The company had in October, 1880, obtained control of the Western Oregon Railroad, a road running from Albany to Lebanon. This combined with the company's own line and the Oregon Central West Side had boosted the mileage of the Oregon and California Railroad. It was estimated with the extensions the company would have five hundred and twelve miles of road in Oregon. The plan was to issue first mortgage bonds at six per cent to the extent of $20,000 per mile and second mortgage bonds at six per cent to the extent of $10,000 per mile. Considering the road five hundred and twelve miles, this would make the funded debt $15,360,000. Under the contract for construction, the Oregon and Transcontinental Company built the road to about a hundred miles north of Ashland.

At the same time the Oregon and California Company made this contract with the Oregon and Transcontinental Company, another one was made with this same company whereby the Transcontinental company leased the road for three years. The Transcontinental company was to pay all fixed charges and dividends at the rate of two and a half per cent. The Transcontinental company was granted an option for 999 years whereby they would pay