tion stock as collateral for their advances to the Northern Pacific when they failed in 1873, and the stock became part of their bankrupt estate and was distributed by the trustees managing it, mostly in small lots among the numerous creditors of the firm in part settlement of their claims. The recipients knew nothing about the Navigation Company, and the stock came into the market at very low figures. The Portland directors were not slow in improving this opportunity to buy back the control of the company, and they and their friends held again, in the spring of 1879, over four-fifths of the stock.
On his arrival in Portland late in April, Mr. Villard immediately asked J. C. Ainsworth, the president of the Navigation Company, whether he and his associates were willing to sell their holdings. After some deliberation, they informed him that they were disposed to sell, but they wanted a high price, and suggested that, before beginning formal negotiations, he should inspect all their properties, and to that end visit the Upper Columbia and Walla Walla country once more. Accompanied by one of their number, he spent ten days in doing this. His previous highly favorable impressions of the Upper Columbia country and of the present and future business of the Navigation Company were fully confirmed. On his return to Portland, an inventory of the company's properties was produced, aggregating $3,320,000, including a fleet of side- and sternwheel steamers and the twenty-one miles of portage railroads. A statement of earnings for several years was submitted, with an offer to sell 40,320 shares at par. The directors thought that it was too big a deal for Mr. Villard, but, as the earnings showed twelve per cent. on $5,000,000 for the past year, with a certain large increase for the current year, he considered it a fine bargain and one well worth securing. They readily entered into a plan he had matured on the Upper Columbia, after seeing the difficulties of handling the large and fast-growing grain traffic owing to the natural obstructions to navigation, which involved breaking
