Mr. Elliott's financiering, however, did not carry the enterprise very far. The $2,000,000 of seven per cent unassessable stock in the company was issued to A. J. Cook & Co., (fictitious name for Elliott) under an agreement that $1,000,000 of it should be given to the directors of the Salem company, and this stock for the directors was deposited in the safe of E. N. Cook and lay there for two years and until the company ceased to exist. But that stock brought no aid or comfort to the company or its directors. Goldsmith's money was all spent, the laborers on the grade were clamoring for back pay, and Elliott's scheme was on the verge of collapse when in very desperation the whole scheme, with all its hopes, assets, and great expectations was turned over to Ben Holladay.
HOLLADAY^ AND THE LAND GRANT CONTEST.
Holladay appeared in Oregon about six weeks before the meeting of the legislature in September, 1868, and took energetic steps to attack the rights of the corporation first named above to its land grant. With ready cash Holladay pushed the work of construction on the east side grade, subsidized newspapers to advocate his cause and sing his praises, bought up politicians on all sides to do his bidding, and treated with imperious contempt the rights of all who dared to question his career. At the ensuing session of the legislature he ap- peared at Salem as the host of a large establishment, dispensing free "meats and drinks" to all comers, and otherwise equipped with all the elements of vice and dissipation. Joined with and a part of this force, was the first hired and or- ganized band of lobbyists in the history of the Oregon legislature. And so ener- getic and successful was the battle they waged, that on October 20, 1868, the legislature passed a joint resolution declaring that the act of the previous legis- lature was made in mistake, that the designation of the company to receive the land grant was still to be made, and that The Oregon Central Railroad Company of Salem, be designated to receive such grant. This was done in the face of all the facts stated above, fully presented to the legislature, and of the further facts that the first named company had filed its acceptance of the land grant in the department of the interior at Washington city according to the law, and within the time provided, which acceptance had been accepted by the secretary of the interior ; and the time had passed by within which any company could file another acceptance of the grant. Such a high-handed outrage was prob- ably never enacted before in any state, and was accomplished in Oregon only, as Holladay afterwards admitted to the author of this book at a cost to him of $35,000, paid to members of the legislature. This however, was about the least of the Holladay's offences against public morals, common decency and jus- tice during his career in Oregon.
Thus securing this act of the legislature in his favor, Holladay continued to push the work of construction on the grade, and sent agents to Washington to get an act through congress enabling his Salem company to file its acceptance of the land grant act. Congress finally, on April 16, 1869, passed an act extending the time for filing acceptance of the land grant act and providing that which- ever of the two companies should first complete and put in operation twenty miles of railroad from Portland southward into the Willamette valley should be entitled to file such acceptance of grant.
But this concession was not secured without a bitter contest before congress, Mr. S. G. Reed, spent the winter of 1868-9 ^^ Washington city in labors before congress in the interest of the real Oregon Central company, while the fraudu- lent Oregon Central was represented by John H. Mitchell and S. F. Chadwick, who afterwards became secretary of state and governor. Senator George H. Williams, espoused the cause of the Salem fraudulent company, while Sena- tor H. W. Corbett faithfully supported the rights of the honest corporation. On final vote, Williams got support enough to pass his enabling act to let in the Salem company to compete for the land grant. And upon this hope, Holladay
