The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-09-29
C.P.VIEW OF THESOO
Originally Intended as Part of a
Line From Saskatchewan and
Assiniboia to Chicago.
With That Line Complete or With
Reciprocity, the Roads securi-
ties Would Go Ballooning.
A representative of the Canadian Pa

A representative of the Canadian Pa
cific in New York says Of the 500 Line:
when the Canadian Pacific bought
controlling interest in the 500 line it was
done with definite idea that the road
was indispensable if the Canadian Pacific
was to work out the destiny that it's con-
trollers had mapped out for it. At pres
ent the road is only playing a passive
part in the working Of the system, act
ing practically as a local line between
the wheat fields and the great northwest.
1t has considerable future before it,
even in this capacity for the traffic in
wheat to Minneapolis is getting heavier
each year as more and more OF the north
west is under wheat, and moreover as
the crop finds it's way to the United States
rather than directly to the old land and
the provinces.
1.-THE future Of the 500 line, however,
lis much wider than that When it was
bought it was in the minds of the con-
trollers of the Canadian Pacific that this
road would ultimately become the west
ern division of line from the wheat
fields Of Assiniboia and Saskatchewan to
Chicago. I do not mean that any nego-
tiations at present under way for
the buying or building of a line from
Minneapolis to Chicago. I have heard
considerable about Wisconsin Central in
this connection, and certainly this road
would adequately fill the bill. 1 do not
know anything about an intention on the
part of the Canadian Pacific to purchase
control of the Wisconsin Central, but I am
of the opinion that the plans Of the road
are not SO far advanced as this. The
I original plan was to see to the settle
fment Of the northwest and make the aver
age yearly output about 100, 100000 bush
| els of wheat before any effort was made
| to carry the whole plan into completion.
1t will be some time, even at the present
rapid rate, to accomplish this.
i when Manitoba leased the lines of
! Northern Pacific and shut the American
roads out of the province Manitoba by
that act made the 500 line the great high
way for wheat traffic from the northwest
to Minneapolis and Chicago. Whether the
action of the government was by instiga-
4 ton of Canadian Pacific I do not know
| At any rate the 500 line became imme-
diately an important factor in the rail
| road system of the states. This year
| the road has shown what earnings it can
! make in bumper year. In 1903 this pro-
| gress will probably continue as all indi-
cations point to traffic this year at least
as heavy as last. Until the future place
| of the 500 line is assured, that Is until ii
enters Chicago, I should not consider the
i securities of it in any way an investment
| In a, lean year the decrease in earnings
| would break the price Oh CnG preferred III
a way that would rather startle people
| that held it for investment. This year. on
a most conservative estimate the road
earned fully per cent over and above
/ preferred dividends. If the crop of 1905
should fail doubt whether it would carr
| the preferred dividend. When it does it Will
be because the Canadian Pacific interest or
the board things it well to let the latter
/ road get some return for its investment in
500 line Also it will be because it has
earned the dividend according to the con.
i servative Judgment Of Canadian Pacific
! The latter road has just issued s19.O0O,Oo0
new common stock on which it will have
to pay dividends amounting to $950,000
i 1t is safe to say that 500 line stock helt
by Canadian Pacific will help to pay those
Il dividends.
i IT consider that 500 preferred at 1873 i:
i about the dearest stock on the list. If /
paid it's full S per cent it would not bt
i worth that money. 1t has never paid {
i cent, and in most years it will hardly carr
the per cent. If that isn't optimistic
/ specializing miss my guess.
u "Out in the northwestern states the.
are talking some Of reciprocity with Can
ada in the matter of wheat. 1t is mostl,
talk and it is not mutual between thu
y countries. IF it were to be taken seriously
200 would not be too dear for 500 pre-
I, ferred and the common would be wort
$50 in a year or two"