The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1908-03-13
Reasons for Suspicion.

The following clipping from the
New York World in regard to the Ore
gon Railway & Navigation company
declaring an extra dividend of 10 per
cent and the declaring of a 90 per
cent dividend by the Oregon Short
Line in 1906, of which no news was
then given to the public, contains
matter of great interest in southern
Idaho. These are the roads concern
ing which southern Idaho is most es-
necially interested and they are the
roads southern Idahoans will most
especially consider when the question
of freight rates, proper earnings, etc.,
is discussed extensively during the
next few years. The World prints
the following:
There is good deal of mystery
over the announcement that the ore
gon Railroad & Navigation company
one of the subsidiary companies OF
the Union Pacific, has declared an
extra dividend of SIS a shareion us
preferred stock. The positive news
came to Wall street yesterday from
Oregon. Alexander Miller, secretary
of the Union Pacific company, sald'
!" AT any rate, it is merely DOCK
keeping transaction.
ut is such bookkeeping transac-
tions that led to the inquiry institute
ed by the interstate commerce COM
mission into the Hartman lines a
wear ago This inquiry developed that
there had been several bookkeeping
transactions in the Union Paclnc
Offices which had been withheld from
the public. The interstate commerce
investigation brought out that early
in 1905 the Oregon Short Line Rail
road company declared a dividend OF
so per cent but the public was never
informed of the fact.
"A point which puzzles Wall street
in regard to the present transaction
is that the preferred stock OF the ore
gon Railroad & Navigation company
is limited to a dividend Of per cent
per annum.
"The authorized and outstanding
common stock of the Oregon Railroad
& Navigation company amounts TO
$4,000, 900, of which, according TO
the last annual report of the Union
Pacific Railroad company, there was
only $4,000 in the hands OF the pub
lie, the balance being owned by the
Oregon Short Line Railroad company
The company has $11,OOO,O0O pre-
ferred stock, of which it appears from
the Unon Pacific's last annual state
ment 5000 was in the hands OF the
public and the balance was owned by
the Oregon Short Line.
THE declaration of IS per cent
dividend on the Oregon Railroad q
Navigation common would mean the
payment of approximately $4,000
600 into the treasury of the Oregon
Short Line Railroad company 1t was
reported yesterday that this latter
company would also soon declare
big dividend, and thus turn over to
the Union Pacific Railroad company
the amount it received from the Ore
gon Railroad & Navigation company.
The 100000 would be sufficient
to enable the Oregon Short Line to
declare a dividend of about 500 a
share on its outstanding stock
OF course it is explained that these
are bookkeeping dividends. But the
point which will naturally be raised
for discussion is whether the rate in
the far west Is excessive. However
the dividends are expressed they have
a strong bearing on the matter. This
all tends to the conclusion that the
time is approaching when the rail-
WAYS must take the people into their
confidence by furnishing open, hon
est, full statements of incomes, eX-
penses, etc. The railways cannot |
blame the public if it looks with
suspicion upon statements that the
rates are as low as they can possibly !
be made when such dividends are be-
ing declared Statesman
Railroad Law Invalid.