The Hood River Glacier, Hood River, OR., January 31, 1902, page 2

CASE OF O.D. TAYLOR SETTLED AT LAST

     The harvest reaped by O.D. Taylor in the North Dallas and Grand Dalles townsite boom, is shown in detail in a written opinion filed by Judge Cleland yesterday, in the suit of the Interstate Improvement Company against O. D. Taylor, Sarah M. Taylor, and the Interstate Investment Company, to recover about $200,000 on account of lots and blocks sold in these two wild cat towns.
     Taylor was once a minister, but he proved himself an exception to the rule that a minister is not a good business man, as he made things hum until his scheme exploded.  He then went East, established offices in Chicago, Cleveland, Saginaw and other places, appointed numerous agents, and money flowed into his coffers freely.  Taylor was arrested at the instigation of some persons who were dissatisfied with his methods of dealing.  They alleged willful misrepresentations, but he succeeded in beating the case.
     According to the opinion just rendered by Judge Cleland, Taylor and his wife, on July 5, 1890, sold to the Interstate Investment Company a large tract of land in Klickitat county, Washington, for $150,000, of which $50,000 was paid in cash, with two notes for $50,000 each, payable within 10 years, were executed in favor of Taylor, for the balance of the purchase price.  The land is situated on the banks of the Columbia River, opposite The Dalles, and is mostly barren and rocky.  It was platted into lots and blocks, and Taylor, who became a stockholder in the company, was appointed agent to sell the lots for a 15 per cent commission.  The prospectus issued was alluring.  It explained that North Dalles and Grand Dalles were to be made great factory towns, employing thousands of people.  A picture of a magnificent bridge across the Columbia river was shown with other things of an attractive nature.
     In March, 1891, so it is stated in the findings of fact submitted to Judge Cleland, the Interstate Improvement Company was organized, with J. F. Ellis as president and Taylor as manager.  The new company, in April following, purchased the property of the old concern for $400,000, giving notes in payment.  Taylor became manager of the Interstate Improvement Company, and entered into a contract to sell the lots at 25 per cent commission.  He took one share of stock for himself and held 3,000 shares as trustee for the Interstate Investment Company.  Taylor was to make an accounting at stated periods of his receipts and expenditures, but instead of doing so, he held the money, alleging that he was entitled to do so because of the two notes aggregating $100,000 which he held against the Interstate Investment Company, on account of their original purchased from him of the land.
     Judge Cleland gives a statement of the business done by Taylor as follows:
     Sales of lots and blocks prior to March 1, 1891, $7,300; after March 1, 1891, $109,809; sales of stock, $18,400; Cornell. Argus & Kneeland stock, $9,999; Ward & Thomas notes, $6,000; cash, etc., $188; total $151,696.
     Credits are allowed Taylor as follows: Commissions at 15 per cent, $1095; commissions at 25 per cent, $27,861; commission on stock sales, $2,140; notes turned over to corporation, $26,616; salary, January 1, 1893, to June 1, 1893, $2,500; expenses -- Eastern trip, $1,000; advertising $120; other amounts allowed, $8,958; total $70, 291.
     This leaves a balance of $81,404, and it is decided that Taylor may keep this money as part payment on the notes executed to him by the Interstate Investment Company, for $100, 000.  He is also to give the Interstate Improvement Company credit on the $400,000 notes issued by it, of this same $81,404.  Judge Cleland holds that the Interstate Improvement Company is entitled to possession of the land.
     The case has been pending for years.  Judge Cleland was appointed as referee to hear the evidence of report findings before he went on the bench.  Three thousand pages of testimony were taken, and witnesses were brought from Eastern points.  The arguments lasted for four days.  After Judge Cleland took his seat on the bench the parties stipulated that he could decide the case as a judge.  -- Oregonian.