The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-24
A GREAT FUTURE
FOR 500 SYSTEM
Canadian Pacific Said to Be Heavy
Buyer Of the Preferred
Stock. @r'
It's Officials Are sanguine of Z Per
Cent Dividends Without u
sgA Any Breaks. o.. :"
Discussion of the Rates on Grain
and Flour-Mr. Hill and
l.. the Erie. .....
gnecial to The Journal.

Special to The Journal ...... IT. 49,
New York, Dec. 24.--The Canadian Pa
cif1c is reported to have been for some
time buying 500 preferred stock and ulti-
mately the company may own practically
the entire preferred issue of the road.
500 preferred is entitled to per cent div
idends before the common receives any
thing and 1t is estimated that before any
dividend Is declared on the preferred
stock. the greater part OF 1t may have
found its way into the Canadian Pacific
treasury.
Some Of the largest interests Of the
Canadian Pacific are very optimistic re-
garding the future Of the 500 system which
they speak Of as a second Great Northern.
They are sanguine that when dividends
once begin to be paid on the preferred
stock at a 7 per cent rate, the rates will
be continued indefinitely. Should this
prove to be the case, "other income de-
rived from this source by the Canadian
Pacific will amount to $500. 900 per annum.
Rates on Grain and Flour.
Ever since the date appointed for the in
creased rates on grain and grain products
to go into effect the impression has pre-
vailed that the postponement to Jan.
was forced by the action of two more
lines giving notice that they would pro-
tect the low rate Of the lines between
Chicago and the twin cities. A prominent
ton thus.
The new rates have been in effect ever
since the date appointed. Dec. 8. but the
western roads while apparently engaged
in losing business will probably come
out all right in the end but the millers are
obliged to pay the full amount Of the
higher through rate and that is just what
we want.
I'VE do not believe that under prevail
ing conditions they were paying the
freight charges they ought to pay. Our
records show that in computing our share
Of the total amount. we are getting all
that is due us under the advance but
there is settling day coming. When that
time arrives, have reason to think that
we will all get together and agree that the
western fellows are entitled to something
more than their share now appears to be.
II think this will be entirely fair. 1t is
right and proper and assurances to that
effect from one or more lines, Ihaye rea-
son TO believe, were given and this Is the
basis Of the story about the new rates
g., having been postponed eE' 90 $50; ?, <fS4'f>.
II know they never have been and think
it safe to say that in the end as far
as the railroads are concerned. every
thing will be entirely satisfactory.
Mr.. HHI and the Erie.
The Wall Street Journal says: The
idea prevails generally that the Erie is to
become the eastern connection Of the Hill
system and be tied up to 1t. We have
never been able to find a shred Of evidence
pointing to any definite connection be-
tween any one of the roads east Of Chi
cago and the western roads terminating
at that point. There is good and suff1-
cient reason for this in the fact that at
such a point commodities change own
ers and therefore it has never been ncees-
sary or desirable for the trunk lines to
secure western connections. They have
always found 1t preferable to divide bust
ness as circumstances arose and oppor-
tunity offered. Thus there Is no reason
whatever to suppose that Erie Is any ex-
ception to the rule or that any special re-
lations are likely between it and the
Great Northern"