Beach, until the railroad passed into the hands of a receiver, George Revette.
Joseph Gaston, well known railroad promoter, attended the two meetings at Amity, and subscribed to one-half of the 2000 shares. He was authorized to canvass the farmers so as to enlist them to make pledges. The pledges were payable in three instalments, at specified stages of construction, were to be refunded by the railroad in three payments, namely, November 1, 1880, November 1 1881, November 1 1882, and were to be evidenced by "freight orders or script," that is, the railroad was to redeem the pledges by rendering an equivalent value of railroad service. This "freight script" was later held chargeable to the railroad by the supreme court of Oregon, and $61,000 was refunded.
The heaviest financing was performed by the creditor that supplied the rails, the Pacific Rolling Mill Company, of California. It accepted three mortgages as follows:
Rails for 20 miles, mortgage executed November 5, 1848
Rails for 12 miles to Dallas, executed December 4, 1878
Mortgage executed May 7, 1879
As the railroad company was unable to make the payments due under the mortgage in 1878, the rolling mill company began suit to recover January 23, 1879, and had the receiver, Revette, appointed, who conducted the management more than a year, or until April 17, 1880.
By arrangement with the Scotch buyers of the railroad, headed by William Reid, the rolling mill company was satisfied. The railroad was conveyed June 2, 1879, to a company representing the new investors, the Willamette Valley Railroad Company, and the old company was dissolved.
- See Powell vs. Dayton, Sheridan and Grand Ronde Railroad Company, 16 Oregon 34.
- Joseph Gaston's Centennial History of Oregon says that farmers pledged $5,000 and citizens of Dallas put up $17,000 additional for the branch to that town. See Vol. I., p. 533. See also Branson et al vs. Oregonian Railway Company, Limited, 10 Oregon 279: Powell vs. Oregonian Railway Company, U. S. reports, Sawyer 13, 536.
- The contract for rails was dated February 14, 1878.
- See Pacific Rolling Mill Company vs. Dayton, Sheridan and Grand Ronde Railroad Company, Willamette Valley Railway Company, Joseph Gaston et al, U. S. Court, Ninth Circuit. Sawyer 7. 61.
- See Powell vs. Dayton, Sheridan and Grand Ronde Railroad Company, 13 Oregon 450–52.