The Railroad Comes Collecting: Olympia's Subsidy Fight Heads to Court
Northern Pacific's own attorney admits the line into Olympia cost the company $40,000 more than it took in — and announces he will sue every citizen who signed the bond anyway.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
TACOMA, Dec. 19. — In an interview with James M. Ashton, attorney for the N. P. Railroad company, relative to the subsidy for that road in Olympia, Mr. Ashton says:
"The delay in running trains into Olympia was caused by the action of the people there. In justice to the railroad it should be said that it was not through its neglect that the road was not completed at the stipulated time. We agreed to have trains running there at the time specified, with the agreement that we were to receive free terminal grounds and free right of way. The work was delayed by injunctions and legal proceedings caused by the actions of the people themselves. If the bond and subscription were all paid the company would still have lost $40,000 by building the line. The subscriptions amounted at the time to $25,000 and there is a bond for $30,000. In view of the fact that this bond had been given, the company, upon the recommendation of Chief Engineer Kendrick and myself, cut the promised subscription down from $50,000 to $25,000. Much of this was in land, and owing to depreciation in values it is probable that the subscriptions would not amount to much over $15,000 now. The bond for $30,000 was given by thirty gentlemen who each pledged himself to give $1,000. Each man is responsible individually. We propose, of course, to demand the money. The only way to get it is to sue for it. We will bring suit against every man on the bond and on the subscription list, if necessary."
“"The only way to get it is to sue for it. We will bring suit against every man on the bond and on the subscription list, if necessary."”
Olympia had promised free terminal grounds, a free right of way and a cash subscription to lure the Northern Pacific's tracks into town — then balked when the trains were late. The railroad's answer was to sue thirty individual signers for their $1,000 pledges. Every public subsidy dangled at a private company since has run into the same question: when the promised benefit doesn't arrive, who is left holding the bond?
From readers
No comments yet. If you know something about this story — a correction, a family memory, a source — it belongs here.