Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1885-03-19
DAILY POST.iKTELLIGEHCR
rag r,sassas PACIFIC.


The Canadians Psetse Railroad Doen-
nsnv Il again in financial oiEasuiiiss'
ana asknoxisdess NOT only tsss i can
pos complete is line. bet thai it soale
not equip and opsrsbs il II built ne
hspe of the stockholders Of the pres
emit company is shsi the pro6asls gar
with Russia Gill ref,deE the road 20
necessary for sae transporsAtson OF
troops and the munitions Of var ths'
the Imperial Government VII eiin-'
farussh the money With ~hiSa 10 push
il 70 completion, or viii bring suSh
urssurs TO bear aptn the Dominion
Goyernmeut that th1, necessary iSnos
Gill be forthcoming from tia. source.
The folloxing plan his been suggested
for securing aid In the manner last
mentioned.
The Dominion Government 70 rem slIa
ouish lie lien for lkD,OCoAN Inis
having been done, the Governments ~
Essas 80 prefersscs oonos 70 W
amount Of f3uOOo,0oo spsn an,bean-
bered road. The eoiHpaIy ~ 49,
hand el5.010, 900 OF these pond- 70 70 - 10 Z
fse,vern raent. toqe4haR with Epb0suo
$50 ~ land yniusd a. 81 per acre, 10
sonside,ation Of its sarreDder Of ths
onortoaoe Tor a80,OO0j)00. Fifteen mil
ion doilars OF The ts0nds remaining VIII
- disr,osed Of By the ,sesDganJ, TIE pro
sseds beine applied 10 the complstion
AVA eouipneut of the read. bat VIII
snahIe the Company "a paT on is noat
INC det,t. The Government vii be ASK
"a n advance. for ita immediate USE
ann Of a. 600 900, which ulil Be repaid
ont IN the procseds al bonds thus sole
Nv the company. OF 10000 acres 70
be transferred 10 the cOTernmeni'
100000 acres viii be 'Eithin the railway
belt.
This plan, however, snefts With such
general opposition thai there Is little
prospect Of iis being put into execution,
and some other method viii have 10 he
III. upon for relieving tie company OF
its difiioulties.
The history Of this ,'oBpany is one OF
che most remarkable Ia the toTtdoos
and altogether beWiIdsriae annals OF
raiIroadins. les operations have ex-
haas,ed taoney IN manner that would
essua almost iaorsditla TO oRs unae-
auaInted with the peculiar financial
abilities OF ~ managHrs. GORE
spondsnt Of the Toronto Stob~ attempts
10 explain some OF the transactions OF
the company as follows;
Among the curious ttansaetioBs OF the
syndisate are its stock Watering and the
payment Of dividends put OF the sapitsl,
the latter arfanRemtnt having been
wrongfully authorized BY ihs CANADIAN
Government. The original subscribed
stock OF the company vas EoyOO'UO'
divided into 5000 Bnares OF BloO each.
This was paid IN i've instaiments. %
August f7th, 1881, the meinbeFs of the
syndicats decided 10 Issue go, OO0. 900 Of
sfook pro rata anSug The holdeTs OF the
0rioinal 5000 600, at rs pef cent Of its
face yalue, and TO pritoeed al once TO
nav d;yIdends oat OF the capital at the
IL Of 6 per cent upon She par or face
yaIue OF the Stock. They took
the stock for one fourth It's value and
bends, or ~ per cant. ieT annum upon
the alleged lnvessmaat. seven half
yearly dividends have i,eeR paid on THE
twenty millions Of stuck, four az the
rate OF 6 ler cent per i.nnum, and three
al g per cent. "On Ftbrsary II, 1882
says the Globe, "a lf.yeariy dividend
Of 8 per cent. was declared; on 18th Of
August, 1882, ditto; on lTth February.
1893, ditto; on l7th August, 1888, ditto;
on 18th February. 1884. under the qua
ranteo aQreement) q half yearly divi-
dend at the rate OF pr cent. per an
mum Was paid, and this operation wa
repeated on the nth Of August, 1884
and 18th OF February, 1855. Thus the
stockholders got two annual dividends
Of "a per oeu,. upon their inyt stments,
and thsee half yearly dividends-a year
and q half--At 20 Ter cent. In other
words they have received back n divi
dsnds 70 per cent, OF the meBey they
sRy they paid for the twenty millions
OF stock, which Ia now worth In the
market 50 por cent. more than they gave
for 10"
He then gives In tabular form tbs div.
idsnds paid from the capital TO several
Of the prominent stockholders. and
continues;
This gives snfhcisn, evidence that the
business Of paying dividends before thu
roaa earned o dollar. While 10 IL under
construction, In a tolssaelf profitable
one 10 the shareholders Tie e3, 966. 5G6
paid out In this way showa where the
money goes. Under this Arrangement
the capital must disappear before long.
II cannot stand for sseii two yearly div
idends Of Q per cant. aud two Of 8 per
cent. On the $5.000.0eO Of subscribed
stoek the total dividends to date have
been u 10000. The holders Of the
tNO00,000 watered ssoclI, hoated
through NJ. l.. Scott Of Erie, Pa, have
had 20 per cent. Of their money returned
10 them In dividends.
Mr.. George Stephen, the President OF
the Company, has not hl,en entirely neg
leosful Of his own Interests, ~ the fol.
loving will show;
Take Mr.. George Stephen, for in.
stance. lie holds 23,41l shares of the
twenty. millien issue OF stocks, the par
value Of which h x2.3ft. 100. For this
Immense block Of stocls be claims 20
have vaia k5SS.25h kIs received In
dividends e4tS, bIS. aud draws tIi7 .0h6
year under the present system Of pay.
ing 8 per cant dividends oat Of capital.
when thu i7th OF mex, February ar.
Fives, Mr.. Stephen will have drawn out
at The capital Of the Canadian Pacific
Railway Company $s7i.b79. or pFaot;.
eAlly every cant thai b, ever paid in.
while be will still haws bis stock and
seven year, interest At Y per coat vill
SIN remain guaranteed by the Govern
nent. Each Of the ether individual
stockholders win be propoEtionatsly In
the same position.
On ths shole. 10 is not 80 much of 3
wonder that the company is In din,
Guilty and 10 forced 70 confess is in
ability 10 complete ice read. The won.
der would have heen u it bad been
otherwise
Nov that The piankine Of fTuat |