The Minneapolis journal., 1903-04-02
500 TO GO YET
FURTHER NORTH
Its Glenwood Extension Will Be
Pushed to Connect With the
G. P. r. at Emerson.
'Tis the Canadian Pacifcs Answer
to the Northern Pacifc's
Manitoba Plans.
New Construction Won't Interfere
With the Dividend on 500
Preferred.
Special to The Journal.

New York, April 2.-The extension of
the 500 line will leave the main line at
Clenwood, Mimi, and will continue north
at Alexandria,, crossing the Northern Pa
cific east of Detroit City, MINI. 1t will
run through the lands of the Red Lake
reservation, which embrace some of the
best farming lands in the state. The line
Is decidedly an invader Of Northern Secu-
rites territory, no matter how strong are
official denials of any intention to antag-
onize Mr.. HILL 1t cuts across Northern
Securities lines and will certainly draw
twin city traffic from the northern Min
nesota lines Of that system.
A New Canadian Pacific Connection.
1t may be stated on authority that the
ultimate purpose of the line is connec-
| tion with the line of the Canadian Pa
| cific running south from Winnipeg to the
Minnesota border at Emerson. 1t is in the
nature of direct reply to the intention
| of the Northern Securities company to
force the issue in the Manitoba legisla-
! ture and obtain again the charter rights
| that the Northern Pacific sacrificed by
leasing of it's Manitoba lines to that prov
ince in the bad year. 1t will deprive the
Northern Securities lines of the haulage
of grain in the southern part of Manitoba,
| hitherto handed over to them at the bOr-
der by the Canadian Pacific. 1t is a reply
also to the invasion Of Canadian Pacific
| IerrllOry Dy the CdndO1dn NOTInern.
Hints are dropped by 500 officials in
| New York that the road is contemplating
several other extensions in the same ter
i ritory, which are designed with the same
purpose. Work will be begun this month
| and will be pushed through as rapidly as
! possible.
| A Dividend Just the Same.
This undertaking does not for a mo-
ment interfere with the dividend pros
poets of the 500 road. The surplus of the
| company will be drawn upon in some
measure for the work, but the policy OF
| the Canadian Pacific in building new ex-
tensions will be followed in it's entirety
! This policy is to capitalize new construc-
| ton, and this construction will be so cap
| italized. The Canadian Pacific demands
a return on it's investment in 500 securi-
ties,and this return will come in the shape
of dividend on the preferred stock. The
credit Of the Canadian Pacific stands
| squarely behind the major securities o1
! the 500, and it is believed that the new
| lines will be financed by an issue of bonds
either secured directly on Canadian Pa.
cifc assets or backed by the guarantee Of
| that company, as are the present bonds Of
the subsidiary companies.
/ The Conversion Plans.
There is reason to believe that there
are tentative plans for the retirement o.
300 preferred, Wnlch, however, may no
take definite shape for some time. Cana
dian Pacific interests are understood t.
be quietly picking up 500 stocks, par
ticularly the preferred and it is not un
t likely that by the time the conversion
plan is announced the latter issue ma!
be concentrated in few hands. Th,
conversion is not unlikely to be mad
within the present year, but there seem
to be some difference of opinion as t.
whether the exchange should be into
t Sk per cent bond, or into common stock
the preferred receiving two for one. TIL
= latter seems more likely of adoption. TIL
n purpose of the conversion is to get rid O
: the provision under which the preferre
stock must get per cent dividends be
: fore the common gets anything and
s entitled to share with the latter in an
t distributions on common above the pc
= cent rate.