St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-04-19
A CANADIAN ANACONDA.
The Pacific Company About to Alb
sorb the Grand Trunk.
New Syndicate of English, French
and German Capitalists.
Special to the Globe.

! Special to the Globe.
OTTAWA, Ont. April 1s.-The rumor
that the Pacific railway is about to
absorb the Grand Trunk system is again
revived, with some show of proba-
bility. 1t is known that when
Barring Bros. of London invited tenders
of the issue of $50, 900, 900 of Canadian Pa
cific bonds short time ago. The great
success which attended the scheme was in
large measure due to the entire absence of
Grand Trunk opposition. Three years
ago when the Pacific company made sim
liar attempt in the English market, it was
a complete failure, and at that time the mis-
carriage was wholly due to the bitter hos
tility of Grand Trunk interests. This was so
manifest that the Pacific company's then
crippled condition was openly laid to the
charge of the Grand Trunk by the Cana
dian ministry in the house of commons.
This charge, which could not be success
fully contradicted, greatly strengthened the
hands of the government in procuring the
sanction of parliament to the Canadian
Pacific loan. When the Canadian
parliament espoused the cause of
the Pacific company in 1854 by
the loan of S22, 500, 900 the Grand Trunk
received severe blow, for Immediately
after the former was enabled to extend its
lines to st. Thomas by the purchase of the
Credit Valley railroad and from that point
to make through connection with Chi
cago. over the Canada Southern and
Michigan Central. For nearly two years
the latter connections have been a consider
able source of loss to the Grand Trunk sys-
TEN, while the short line of the Canadian
Pacific between Toronto. Ottawa and Mon
treal has for longer period absorbed the
BEST OF THE TRAFFIC
of that year. Two years ago, when the
Grand Trunk company asked parliament
far the privilege to make new loan for
the purpose of laying an additional track
between Montreal and Toronto, a clause
was tackled on the enabling act
prohibiting an amalgamation of the
two great rival companies, but it is
known that since that time negotiations
! have been in progress between the two
presidents, looking to the purchase of the
Grand Trunk by the Canadian Pacific. 1t
is now creditably stated that the loan of
$50. coo, 900 negotiated for the latter road BY
Barring Brothers, was rather as
sisted tn N opposed by the Eng
ish Grana Trunk magnates, and
that, although it was obtained ostensibly
for the purpose of paying off the claim of
the Canadian government, it is really the
first step in the scheme of absorbing the
Grand Trunk system. 1t is true that S2O.-
600, 900 would not go far toward the
purchase of the Grand Trunk, but
1t is said that the scheme provides
liberal subsidy to the heaviest
Grand Trunk stockholders and that a new
syndicate is being formed, consisting of
English, French and German capitalists, in
connection with the Canadian Pacific COM
pany by which the funds of the latter will
be sufficiently supplemented to enable it
to carry to its point. Sir Charles
Upper, the Canadian high COM
missioner to England, who was
formerly minister of railroads in
the Canadian government and as such the
founder, to great extent, OF the Canadian
Pacific system is credited with hay-
ing been the chief power in the alleged re-
suits reached. If the scheme should be
successful there will be greater need than
ever Tor Mr.. McCarthy's commission