The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-07-21
OAHU RAILWAY
Dividends in Sight to GLADDEN.
Hearts Of Stockholders.
Mr.. DILLINGHAM; INTERVIEWED
Says There Is No Truth In the Re-
port About Extending the Road
to Heeia.

\ special meeting of the stockholders
Of the Oahu Railway and Land Com
pany is called for next Monday after
noon, and while the object of the meet
ing was stated in the call TO be the
consideration OF the sale OF treasury
stock all sorts of rumors were aficat
concerning the future plans of the
road These were to the effect that
the treasury stock was to be sold pro
rata to the present stockholders, that
per cent. dividend was to- be declared
at once and regular dividends OF 81.
per cent. quarterly afterwards, that the
road was TO be immediately extended
TO Heeia and eventually to Honolulu
by means of a tunnel at Kalihi or by
way of the Pail.
To ascertain the tru,h of these rum
ors a representative called ON General
Manager B. F. Dillingham; yesterday
afternoon. The railroad magnate was
averse to talking about the matter un-
til after the meeting, but finally said:
I'm my annual report to the directors
| have made certain recommendations.
one of which relating to the sale OF
treasury stock they have considered OF
sufficient Importance TO bring before
the stockholders. il has at no time
been contemplated to sell the whole of
the treasury stock but only 100 shares.
l have recommended that this amount
be sold to pay for recent permanent
| improvements and new rolling stock
purchased lately. You know that we
have built in the last few months two
miles of new track to Kahauiki, besides
building about forty new cars and pur-
chasing several large engines. The
expense connected with all this has
amounted to about $4,000. and my
Recommendation was that enough
treasury stock should be sold to the
stockholders at par pro rata to meet 1t.
Whether this will be done or not de-
pends on the stockholders themselves :
| How about dividends. Mr.. Dilling-
ham,"
That will be decided by a meeting
of the board of directors. which will
take place after the stockholders meet
ing. The directors. of course. will
have to be guided by what the stock
holders do. If they decide to sell the
LOO shares of treasury stock, then
there may be a small dividend de-
clared. but whether it will be > per
cent or not can't say. That is mat
ter within the control OF the board. and
not of an individual stockholder like
myself"
How about the quarterly dividends
rumored?" was next asked.
There again you should wait until
the directors meet. l may say that
have recommended a per cent annual
dividend to be paid in quarterly. in
stallments and have based my recon-
mendations on the increased business
of the road and the constantly increas-
ing value of the outside securities held
by the company. We have large hold
lings in Oahu, Waialua and other Sc
curities which are constantly increas-
ing in value. and while we are now
hauling about $4,000 tons OF sugar a
year we expect TO increase that TO 150,-
600 in a few years. l consider the pros
poets of the road justify an annual {
per cent dividend from now on, with
perhaps, an occasional extra one
thrown in"
How about the extension OF the road
to heeia?" persisted the reporter.
We'll. you are wrong there. at all
events" said Mr.. Dillingham;, laugh
ing. NO, we have not yet gone into
that Too much money has been need
ed for new rolling stock and track 10
think of extending the main road any
further just now. That is entirely a
matter for future consideration"