The sun., 1895-04-04
CANADIAN pAcIFIc REPORT.
President Van Horne Tells what Becnv,e
of the DINldend ReserYc.

MONTREAL, Quebec, April 3.-At tho annual
meeting Of the Canadian Pacific Railroad Com
pany to-day the apnuai report was adopted and
the old Boarl reelected.
In reference TO the failure to declare the last
semi annual dividend, President Van Horne
says in his report:
In their report for 1899, your directors,
recognizing tho desirability Of keeping n large
portion OF the surplus earnings In cash, an
nounccd their intention to place S4,0oo,000 on
special deposit with tho company's bankers to
meet any possible deficiency in the net earnings
applicable to dividends, and this intention was
carried out; but the untoward conditions OF lnst
year, already referred to In this report, made It
necessary not only to pay the interest on the
land bonas from earnings, but to heavily trench
upon the special fund for the payment OF the
August dividend, and for the necessary assist
Marie and Duluth. south Shore and Atlantic
railways. Had this course not been followed.
flee or a floating debt must have been incurred.
Neither of these courses was adopted, and the
Tho following Is n summary of tho years re-
suits; Gross earnings Sls,I52l0s; working
ndd interest earned on deposits and loans
S?06.0l2; add interest due from Duluth Com
ON Its Gona It's he'd ny soSR
S5si.000; less advanced by Canadian Pacific
Company. S456ls7; deduct direct fixed charges
including interest on land bonds and dchenture
stock issued against bonds of the Duluth COM
pany. S05sD,3!!s; deduct contingent liability in
@ ings account at end Of is03 was S7..t1.s .sli.
abovs. s5s" .ai: dividends on preierence stock
SSr AsTs s4 oSssS Sssss
i1;si$s: i Tsss sss d sS4 Essvns :s surplus
\ somewhat startling resolution was offered
by Joseph Morrison: a stockholder. to the effect
Nice-president and other big 1illcial, who
s nea tic interest hsy SaSo in shs
prosperity, of the company ought to be sufficient
and that saaried offices shall be filled at snla-
ries ranging from $500 TO $1,000 per annum.
The motion rrs was not ,ho. ,nov
should change half the capital into four per cent.
dehenture stock which would give shareholders
Sir Donald Smith, as the largest individual
stockholder in the company. emnhatically de-
directors with inside knowledge of the affairs
Of the company had been selling out.
devoid e Of truth. such action Would Would
be highly immoral. lie might have made
e Ssd Ss ea IN
company and in its future. and he thought as it
was its p?stion was fortunate, tor many roads
Mr.. Donald MacMas.er, 9; G; asked TO what
extent the reserve OF S4,000.000 had been en-
croached upon.
Sir William Vanhorne replied that il had been
drawn upon to pay interest on large bonds. but
there was still $2,0OU.U0O cash available.
Mr.. MacMaster severely criticised this action
holding that the reserve mad been accumulated
for tho express purpose of paying regular five
per cent. dividend upon tho ordinary stock, and
now It was admitted that most Of the four mil
lions had been used for other purposes.
Mr.. MacNlnster III strong terms attacked the
system of fnauciering. and said that while the
Presidcnt was very good railroad man he
proved bad tinancier.
ST. William Nanhorne said tho decrease in
earnings had made it necessary to draw on
tho reserve. The directors might have made
mistakes. but they had acted for what they
thought was in the best interests Of the com.
pany.
After reelection OF tho old Board of Directors
they later held n meeting at which Sir William
Nunhorne was reflected President. and Mr.. u.
q. Shaugnnessy Vice President.
The list OF shareholders shows that the direc-
tors hold shares in the company's stock as fol-
lows:
Sir Donald A. Smith. 10000 shares; Sir VIC.
Nnnhorne loo: T.. G.: Shaughnessy. $50: H.
i. Angus. 1000; l.. b. Osler 500; Sanford
Fleming 5000: Lieut;,6ov Kirk patrick; .5o;
25O; Thos. Skinner $50: John w. Mackay, 800.