East Oregonian : E.O. (Pendleton, OR) 1888-current, 1908-03-04
OREGON FURNISHES DIVIDEND
BUT IS NOT BE|NB DEVELOPED

Commenting upon the enormous
dividend Of $S,25O.00O declared last
Friday by o. R. & n. stockholders
in New York city the oregon Daily
Journal reviews the work of Harri-
man in Oregon, in which territory all
of the dividend originated:
BY declaring an extra dividend OF
S75 per share on its preferred stock
approximately $S,250,000 of the o.
r. & n. companys big surplus has
been appropriated by E. H. Hartman
and his New York associates to the
Union Pacific company which owns
the bulk of the o. R. & N. companys
stock, says the Journal. Union Pa
ciffc interests actually own $10,99S,-
$50 of the o. r. & n. company's stock
issue. This newest and juciest melon
cut by Hartman coterie was raised
in Oregon, a state which Mr.. Harri-
man processes to believe not worthy
of any considerable additional rail-
road trackage.
Il
practically all of the o. r. & n. COM
panys common stock issue of S24,-
OOO. 600. so that the profits from its
operation go directly into the pock-
cts of Mr.. Hartman and his friends
at any time they decide to make
division of existing surplus funds.
This time it is said they elected to
take the profits because they needed
the money to take care of personal
speculations growing out of the fl
nancial stringency.
The owners of the controlling stock
of a railroad are, under the law, en-
abled to take the profits regardless
of any extreme need that the road
may have for expenditure of the mon
ey on its lines, for betterment or ex-
tension. All construction work on
three of the most important railroad
extensions in Oregon has been shut
down since last October contractors
held up construction camps boarded
up and provisions spelling because of
the alleged financial stringency" at
Mr. Harriman's office down in New
York.
Two years ago other interests at
tempted to build a railroad into Wal
Iowa county, which is entirely with
out transportation facilities, and the
Hartman people drove them out,
fenced up their right of way and
started TO build a Hartman extern
sion from Elgin to Joseph. This ex-
tension is not more than half com
pleted and work has been at stand
still because of the financial strin-
gency."
Some three years ago Independent
interests began construction of a
railroad from Portland to Tillamook.
About 10 miles of the grade out of
Hillsboro was completed when Mr..
Hartman succeeded in wrecking the
company and suspending operations,
leaving a ruined contractor and a
lot Of unpaid workmen. Hartman
interests then began construction of
the road part of the line has
been constructed at the Hillsboro and
Tillamook ends. The contractors,
Robert Wakefield and associates, had
well provisioned camps, steam SHOW
els and complete construction equip
ment on the ground and were hard at
work building the track when they
were suddenly ordered last fall to
shut down. because Of the Financial
stringency." Nothing has been done
since on the work. The contractors
are wondering whether the Hartman
interests intend TO use their $780,
600 o. r. & N. dividends for the pur-
pose of continuing construction on
this line.
About two years ago the Southern