through eastern Oregon and southeastern Washington led to the determination to commence at once the construction of a number of branch lines as feeders to the river line. During this tour he met and addressed gatherings of settlers at different points, explaining his purpose to give them railroad communication, and urging them to increase their wheat planting. He made it a point to ask his hearers what rate on wheat to tide-water would be satisfactory, and was able to promise them lower rates than they asked. He defined his policy as that of a beneficent monopoly, and his executive action bore him out, for, upon the completion of the Oregon Railway & Navigation Company's railroad system, the cost of transporting grain to the sea was at once reduced forty per cent. and more.
To provide the additional capital required by the change of gauge and for the construction of feeders, the capital stock of the Oregon Railway & Navigation Company was increased by $6,000,000, which was offered to the stockholders at par, who took it readily, as the market price of the shares had risen to above 180 before the new issue. In his first annual report as president, published in the summer of 1880, Mr. Villard announced that 115 miles of the river line were about being completed, and that the grading on the branch lines in southeastern Washington was done.
During his sojourn on the Pacific coast in 1880, a project for another company matured in his mind, the object of which should be the development of the natural resources, mineral, agricultural, and otherwise, of Oregon and Washington, and the North Pacific coast generally, in cooperation with the Oregon Railway & Navigation Company. The name of Oregon Improvement Company was adopted for it, and it was authorized to issue five millions of stock and five millions of bonds. The latter were offered at par with the full amount of stock as a bonus, and were eagerly subscribed for by Mr. Villard's followers. His success was even more immediate than with the Oregon Railway &
