Page:The History of Oregon Bancroft 1888.djvu/720

 were successful, thus cutting off the aid expected in this quarter. At the same time the quarrel was being prosecuted in the national capital, the newly elected senator, Corbett, befriending the original company, and George H. Williams, whose term was about to expire, giving his aid to Holladay. See correspondence in Sen. Rept, 3, 1869, 41st cong. 1st sess.

An appeal was made to the secretary of the Interior, whose decision was, that according to the evidence before him neither company had a legal right to the land grant in Oregon, which had lapsed through the failure of any properly organized and authorized company to file acceptance, and could only be revived by further legislation. This decision was in consonance with Williams views, who had a bill already prepared extending the time for filing assent so as to allow any railroad company heretofore designated by the legislature of Oregon to file its assent in the department of the interior within one year from the date of the passage of the act; provided, that the rights already acquired under the original act were not to be impaired by the amendment, nor more than one company be entitled to a grant of land. ''Cong. Globe'', 1869, app. 51, 41st cong. 1st sess. This legislation placed the companies upon an equal footing, and left the question of legality to be decided in the Oregon courts, while it prevented the state of Oregon from losing the franchise should either company complete twenty miles of road which should be accepted by commissioners appointed by the president of the United States. The act of April 10, 1869, does not mention any extension of time for the completion of the first twenty miles, but by implication it might be extended beyond the year allowed for filing assent.

While the east-side company was thus successful in carrying out its endeavor to dislodge the older organization, suit was brought in the United States district court, Deady, justice, to enjoin the usurper from using the name of the original company, Deady deciding that although no actual dam age followed, as the defence attempted to show, no subsequently organized corporation could lawfully use the name of another corporation. This put an end to the east-side Oregon Central company, which took steps to transfer its rights, property, and franchises to a new corporation, styled the Oregon and California Railroad Company. The action of congress in practically deciding in favor of the Holladay interest caused S. G. Reed & Co. to abandon the construction contract, from which this firm withdrew in May 1869, leaving the whole hopeless undertaking in the hands of Gaston. Without resources, and in debt, he resolved to persevere. In the treasury of Washington county were several thousand dollars, paid in as interest on the bonds pledged. He applied for this money, which the county officers allowed him to use in grading the road-bed during the summer of 1869 as far as the town of Hillsboro. This done, he resolved to go to Washington, and before leaving Oregon made a tour of the west-side counties, reminding the people of the injustice they had suffered at the hands of the courts and legislature, and urging them to unite in electing men who would give them redress.

Gaston reached the national capital in December 1869, Holladay having completed in that month twenty miles of the Oregon and California road, and become entitled to the grant of land which Gaston had been the means of securing to the builder of the first railroad. His business at the capital was to obtain a new grant for the Oregon Central, and in this he was successful, being warmly supported by Corbett and Williams, the latter, however, refusing to let the road be extended farther than McMinnville, lest it should interfere with the designs of Holladay, but consenting to a branch road to Astoria, with the accompanying land grant. A bill to this effect became a law May 1, 1870. ''Cong. Globe'', 1869–70., app. 644–5. While the bill was pending, Gaston negotiated a contract in Philadelphia for the construction of 150 miles of railroad, which would carry the line to the neighborhood of Eugene City, to which point another bill then before congress proposed to give a grant of land. The Oregon legislature passed a joint resolution, instructing their senators in Washington to give their support to the construction of a railroad from Salt Lake to the Columbia River, Portland, and Puget Sound; and to a railroad