Page:The History of Oregon Bancroft 1888.djvu/721

 from the big bend of Humboldt River to Klamath Lake, and thence through the Rogue, Umpqua, and Willamette valleys to the Columbia river. ''Or. Laws, 1868, 124–5; U. S. Sen. Misc. Doc.'', 14, 41st cong. 3d sess.; ''Or. Laws'', 1870, 179–82, 194.

Anticipating its success, Gaston ventured to believe that he could secure, as it was needed, an extension of his grant, which should enable him to complete the line from Winnemucca on the Humboldt to the Columbia. This also was the agreement between B. J. Pengra, who represented the Winnemucca scheme, Gaston, and the senators. But Holladay, who was in Washington, fearing that Pengra would bring the resources of the Central Pacific into Oregon to overpower him, demanded of Williams that Pengra s bill should be amended so as to compel the Winnemucca company to form a junction with the Oregon and California at some point in southern Oregon. The amendment had the effect to drive the Central Pacific capitalists away from the Winnemucca enterprise, and the Philadelphia capitalists away from the Oregon Central, leaving it, as before, merely a local line from Portland to McMinnville. Thus Holladay became master of the situation, to build up or to destroy the railroad interests of Oregon. He had, through Latham of California, sold his railroad bonds in Germany, and had for the time being plenty of funds with which to hold this position. In order to embarrass still further the Oregon Central, he bought in the outstanding indebtedness, and threatened the concern with the bankruptcy court and consequent annihilation. To avert this disastrous termination of a noble undertaking, Gaston was compelled to consent to sell out to his enemy, upon his agreement to assume all the obligations of the road, and complete it as designed by him.

Having now obtained full control, and being more ardent than prudent in his pursuit of business and pleasure alike, Holladay pushed his two roads forward rapidly, the Oregon and California being completed to Albany in 1871, to Eugene in 1872, and to Roseburg in 1873. The Oregon Central was opened to Cornelius in 1871, and to St Joe in 1872. These roads, although still merely local, had a great influence in developing the country, inducing immigration, and promoting the export of wheat from Willamette direct to the markets of Europe.

But the lack of prudence, before referred to, and reckless extravagance in private expenditures, shortened a career which promised to be useful as it was conspicuous; and when the Oregon and California road had reached Roseburg, the German bondholders began to perceive some difficulty about the payment of the interest, which difficulty increased until 1876, when, after an examination of the condition of the road, it was taken out of Holladay's hands, and placed under the management of Henry Villard, whose brief career ended in financial failure.

Joseph Gaston, a descendant of the Huguenots of North Carolina, was born in Belmont county, Ohio. His father dying, Joseph worked on a farm until 16 years of age, when he set up in life for himself, having but a common-school education, and taking hold of any employment which offered until by study he had prepared himself to practice law in the supreme court of Ohio. His grand-uncle, William Gaston, was chief justice of the supreme court of North Carolina, and for many years member of congress from that state, as also founder of the town of Gaston, N. C. His cousin, William Gaston, of Boston, was elected governor of Massachusetts in 1874, being the only democratic governor of that state within 50 years. Joseph Gaston came to Jackson county, Oregon, in 1862, but on becoming involved in railroad projects, removed to Salem, and afterward to Portland. Although handling large sums of money and property, he was not benefited by it. When Holladay took the Oregon Central off his hands, he accepted a position as freight and passenger agent on that road, which he held until 1875, when he retired to his farm at Gaston, in Washington county, where he remained until 1878, when he built and put in operation the narrow-gauge railroad from Dayton to Sheridan, with a branch to Dallas. This enterprise was managed solely by himself, with the support of the farmers of