ton and their occupation by cattle dealers and cattle raisers, Portland gained largely in business and trade. The steady growth resulting from this development was not greatly accelerated until in 1867-68 plans for opening the country by means of railroad were brought to completion, and ground was actually broken for a line to California. With the prospect of railroad connection with the rest of the world, the speculative imagination of the people of Portland was excited, and almost extravagant dreams of great immediate growth and wealth were indulged by even the most steady and conservative. Property increased greatly in value and improvements were stimulated. The early railroad days of Oregon were, however, beset with difficulties, as will be seen in the preceding chapter, although producing much real growth, did not ultimate so hopefully as was by many anticipated. Ben Holladay's weakness and incapacity in managing his roads, and as his bonds declined and the general expectation of failure was felt, depression was experienced in all parts of the state. When a few years later occurred the great business collapse in the United States, which began with the failure of J. Cooke & Co., and the Northern Pacific Rail- road Co., Portland was left to the simple cultivation of her domestic commerce, and inflated prices and expectations had to be abandoned. With the passage, however, of the California and of the Oregon Central railroads into the hands of the German bondholders, and a better system of management thereby introduced, business revived once more and Portland found herself obliged to add to her accommodations to meet the incoming tide of immigration and the increased flood of business. Independent commerce with the east and with Europe having sprung up stimulated very largely the production of grain in the Willamette valley and also in eastern Oregon and Washington, so that there was a steady increase in the amount of treasure received into the country and in the volume of business transacted at Portland. Exports of wool, lumber and salmon also figured largely to swell the volume of trade. With the year, 1880 and those succeeding, prospects and at length the realization of a through line from Portland to the east, produced a greater volume of trade and raised higher expectations than had previously been known, Portland began to assume a metropolitan appearance. Activity in real estate and in building and an expansion of all kinds was everywhere noticeable. All went well, until the O. R. & N. road and the Northern Pacific had been so far completed as to make a through line to New York; and then Villard and the Oregon and Transcontinental railroad having gone beyond their means, suffered a reverse, and in their ruin involved also many of the citizens of Portland. For a time the people of the city seemed discouraged, nor did they quite realize the immense importance to them of railroad connection with all parts of the northwest. Gradually, however, they began to see the ease with which they might connect themselves with all parts of Oregon and Washington and command the wholesale business of this region; and how they might even more stimulate the agricultural and mining interests of this whole region. Gathering up these lines of business they began to push vigorously and in a short time were at the head of the commercial, mining, manufacturing and banking interests of the country. As a result of this active policy, business began to pour in, in through the thoroughfares, the docks, the commercial houses and the banks of our city. Real estate rose greatly in value; addition after addition being added to our city; suburban towns began to spring up; manufacturers began to press in for a location, and capitalists found themselves obliged to erect buildings as rapidly as materials and labor could be obtained. A generous public spirit began to be felt and a general desire for public buildings which would do credit to the city was expressed. By public enterprise, such buildings as that of the Northwestern Industrial Exposition and the grand Hotel Portland were constructed. Fine churches were also erected. Street car lines were multiplied. Electric railways and motor lines to the suburbs and other points near were built, with rapidity. With the passing out
