Page:Memoirs of Henry Villard, volume 2.djvu/344

magic suddenness, raised him once more to his former position before the public. The Oregon & Transcontinental Company had remained inactive, though holding its own, after the crisis of 1883; but its management, although it represented so large an interest in Northern Pacific shares, had not been able to come to a satisfactory settlement of its former financial relations with the Northern Pacific. The board of directors of the railroad company also refused to recognize its legitimate demand for a representation in that body. The parties in control of the Oregon & Transcontinental Company thereupon formed a combination to change the directory of the Northern Pacific at the next annual election in the fall. For this purpose, they largely increased the company's holdings of Northern Pacific shares and thereby its floating liabilities. The Oregon Railway & Navigation Company, in which the Oregon & Transcontinental Company still held a controlling amount of stock, had created after 1883 $5,000,000 seven per cent. debentures, due April 1, 1887. To provide for their payment, the company issued $5,000,000 five per cent, consolidated mortgage bonds. The firm of Chase & Higginson, of New York, had purchased in November, 1886, on time, $4,000,000 of them at 102 plus accrued interest, which Mr. Villard had vainly tried to secure for his German supporters. The firm named made a public issue, but failed to dispose of more than $700,000. Chase & Higginson not calling for more bonds before the maturity of the debentures, the Oregon Railway & Navigation Company borrowed $3,300,000 on the remainder of the bonds from the Oregon & Transcontinental Company, which in turn negotiated loans on them. The tight-money spell which set in in the latter part of August made it impossible for the latter company to renew its loans then maturing. Its failure was imminent, and would have involved that of Chase & Higginson, as they were liable for the remainder of the purchase price of the bonds, and would have embarrassed the Oregon Railway & Navigation Company as a