The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-09-02
HARTMAN

air into au sorts OF dusty hooks and
corners. After "a few weeks he tele.
graphcd to- the board in New Nork
asking for authority TO purchase inn
medately a large quantity of cars, To-
comotiyes, rails. etc, and to start
various works of Improvement, the to-
tai aggregaliug, as / remember. some
thing like Sg5,0OO,00O. which telegram
was followed by a written communi
cation setting forth the reasons for his
REQUESTS and the main details Of the
proposed eAI euditurc The reasons, in
short, were that he clearly discovered
signs of returning prosperity after the
Tong period of depression, that he be-
lieved this prosperity would assume
proportions corresponding to the
depths and eXten, of the long drawn
out and drastic reaction which proceed
ed it, that labor and materials were
then exceedingly cheap, but would be-
gin to advance before very long, that
the Union Pacific should put itself in
shane to take care Of the largely in
creased traffic which he foresaw, and
to attract business to its lines by be
ing better prepared for it, and mus
afford shippers better facilities than
its neighbors. Remember that at that
time the Union Pacific had just
emerged from receiyershiD, that dur
ing the years of the receivership all
of its surplus earnings had been spent
on increasing its rolling stock, improv-
ing its physical condition, etc. so that
it was supposed to be amply supplied
with facilities to handle its then eN-
isting volume of traffic. that $25,000,-
900 in those days was vastly greater
sum than nowadays, when the stu
pendous development of the country
has made railroad expenditure OF pro-
portionate size familiar, and that it
seemed pretty hazardous thing to
venture upon this huge outlay simliy
on a guess of coming unprecedented
Drosperity. There was much doubt III
the board as to whether Mr.. Harri-
mans recommendation should be fol
lowed. remember that the statement
was made that if it were followed the
Union Pacific would find itself in re-
ceiyer's hands again before two years
had passed. The subject was laid
over until Mr.. Harriman's return to
Il and after
long and strenuous argument he car
ried the day. The appropriation Tor
the expenditure advocated by him was
made. though with considerable head
shaking and misgiving, and it was TINS
courageous outlay at time when the
dawn of the uneXampled prosperity
which was to come was barely discern
ible, and the intelligent and ethclent
application of the funds, that started
the new Union Pacific on it's amazing
" successful career and placed II,
with one bound, in the forefront
amongst Western railroads. nclden-
tally | may mention, as characteristic
of the man, that Mr., Hartman felt so
certain of the correctness of his judg-
ment and of his ability to carry the
board with him Though he had no IL
lusious as to the sentiment of some OF
it's members regarding him and OF the
fatal consequences to his career in
case his forecast should turn out TO
have been mistaken or even prema
ture) that. while he was stlll IN the
West. and so as to be sure not to lose
time or opportunity, he took upon nm
self the responsibility, at his persona
risk of concluding various contracts
for purchases and work included in
the program advocated by him.
Some months before, he had caused
his associates to wonder and doubt
by buying up all of the Union Pacific
common stock he could accumulate
up to the price of IS or Whereabouts
He must have acquired many chou
sands of shares, for the stock had lon
been selling freely between Is and y
it was considered to have but little N
trinsic value, and there were no div
bends in sight even for the Lreferret
much less for the common stock
recollect an influential financial PEI
sonage saying to me about these pu'
chases, which at the time attracted
GOOD deal Of comment; you see, tn
man is essentially a Spectator II
is putting everything he has and MOI
into Union Pacific common and pr
ferred at these prices. He will com
to grief yet" When | referred to tn
subject of these purchases in conYe
station with MT Hartman, he san
calmly: Union Pacific common IS il
trinsically worth as much as st, Pau