The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-10-03
RAILROADS.
500 LINES OUTLOOK
The Wall Street Journal Has Some
Good Things to Say
of It. 49,.
Large Increase in West-Bound Bust
ness a Good Cause for Con-
graduation.

500 line prospects seem brighter to
Wall street journalists since Mr.. Lowry,
the president, went down among the stock
brokers. Long distance criticism on the
declaration Of the first dividend has been
rife in financial papers ever since the
special meeting. Figures were given to
prove If possible that little backing ex-
listed for dividend.
The Wall Street Journal now comes out
with an optimistic story. 1t shows that
the slight weekly decrease in 500 earn
ings comes from the late movement of
the Canadian wheat crop, the cause which
has operated to- drop Canadian Pacif1c's
average from 100000 to s65,ooo: The
Journal admits, however, that Interrupt
ton Of the heavy traffic is not likely to
be serious in It's effect on the years
showing.
1t says further:
1.-The 500 line is in position to show
better results this year than ever before.
Equipment has been constantly increased
wisely expended on the equipment already
owned. For two years the road has been
appropriating a considerable sum OF
money after charges for the general bet
terme nt of the system. In two years the
total sum SO set apart Is 100000, or at
the rate of about 5000 q mile per annum.
When it Is considered that this expendi-
ance for maintenance Of way and main
tenaEce of equipment in the operating
expenses, 1t appears a very liberal al
lowance for road whose total mainten-
ance charges are well under $1,000 pei
, mile per annum. T.
1.-The most gratifying feature Of the
traffic on this road during the past two
years has been the large increase in west
bound business, which Is naturally higher
grade than the grain tonnage that orig
| mates on Canadian Pacific. This increase
has been due to the gradual settlement
of the Canadian northwest, and the in
creased prosperity Of the general public
both in the Dakotas and across the bor-
der. 1885,
preliminary work on the Glenwood
extension Of this line is going on stead
! lily. So far as we can learn there is no
probability that it will be checked by any
| possible developments in the Wall street
| market. The line is designed to run
north a distance Of about 300 miles thru
| by the railroads but which Is believed to
have great possibilities as a grain-pro-
| ducing territory.
mo authoritative statement has ever
! been made as to the means that will be
| employed to finance the building of this
line. 1t is limited, however, that since
| the company can issue it's consolidated
mortgage per cent bonds at the rate Of
| $4,000 per mile on new mileage and OBJ
| tain the Endorsement Of Canadian Pacific
on these bonds, the road will be financed
in large part thru an increase Of this
bonded debt. There is a very good mar.
ket in London for these securities, which
sell above par. The road Is peculiarly
fortunate in having so we'll an6
we'll established a. memdium thru which
it is able to finance new lines deemed
advisable. .s; "
''This fact puts the 500 line in an en-
viable position. It Is well known to rail
road men that all the railroads in tina
section must sooner or later extend thei
lines unless they purpose to fall behind
the general average of American railroad:
in the matter of gross and net earning!
per mile. The 500 line Is no exception
to the rule. It must develop rich loca
traffic in some of the new territory prop
erly tributary to its main line, unless 1
| intends to be hemmed In by the exten
sfons that st. Paul, Northwest and tn
Hill lines are practically certain to mak'
sooner or later. The advantage Of hav
ing such an issue Of bonds as the con
| solfdated tours Is readily apparent. Thu
bonds, with the Canadian Pacific guaran
! tee, rank whit Northern Pacific prio
| lien fours." ~ .... -