The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-08-15
sIncludes interest on land grant bonds.
Tremendous Current Assets,

On June 80 1902. year ago, the &c company M my
issued BALANCE ans sheet showing cash In the
companies (the 500 line and Duluth South
shore), So OO0, 900; bills receivable from agents.
etc., $4,000, 900: and deferred land payments
about 81, 900, OO0-a grand total Of about $780,
O0o, 900 Of quick assets This year the cash
is added to by the surplus Of nearly $4,000
900. Deferred land payments have also In
creased. The current assets of Canadian
Pacific to-day are nearly if not quite $685.,
900, 900. 49,.
1t is the cash item that makes Wall street
t hRk ba ha5o Of IS to
look up to in these days when Union Pa
clfio, Pennsylvania, Lake Shore, etc, are
has tG had rumors ; that tn Ca Canadian Pacific had
call loans in the street for $4,000, 900 and that
the 500 line had similar loans for 81, O00,O 00
Now that the figures are before it Wall street
wonders If the stories were not true. With
a cash balance Of $40, 900 Canadian Pa
@ might ntt very yss well o hays
Tactic can do whatever 1t likes.
Its 500 and Other Securities.
More figures Of startling kind-and quite
new to Wall street: In June, 1902, Canadian
Pacific was carrying $39, 00o, 900 of securities
come was only $95S, o0o-as shown in the table
above. Moreover $3.50, 600 of this other income
came from the deferred land sales; Canadian
Pacific only received 100000 Of the deferred
land sales. Canadian Pacific only received
$500, 900 Of the income from its investment of
$39, QQo, 900 in 1902 That means an income Of
less than per cent on the investment. 1t
is not hard to understand when it. is remem-
bored that 900 of the investment is in
500 o. stocks, TO- eeS shares Of the preferred and
ing. Also the company owns Crows Nest
Coal and other things like that, from which
the real return is in traffic results, not in
interest or dividends .s--s..- ,.=r=.ss.
Wall, street always discounts. 1t is, there
! fore, little wonder that when 1t discovered
laCnadian Pacific with an investment Of about
$40, 600 900 paying about per cent It con-
cluded that the company could readily in
crease its income ii it desired There is Moth
ing IN the world to hinder 500 preferred pay
one-third and more of the preferred dividends
of Canadian Pacific -. 49,,
| "other Income" to Be Increased.
| The conclusion of this matter is that Wall
street expects, to see Canadian Pacifc's
the next annual report in other words, that
the increased dividend will be more than met
by this increase in ''other income.''' :
cilc balance sheet tells tales It does not tell
the biggest tale of all, however, for the simple
reason that the land department IS kept sep
| arate. The company received this year almost
Sl0,0oO,O00 in land sales. an amount equal to
about u per cent the common stock. At
| present stockholders do not get any of this,
about two. more years the last of the land
grant bonds viii have been retired. Canadian
Pacific will then have approximately IA, OOO =
900 acres of land, with absolutely no liabil-
lty to balance 1t. 1t is no wonder the land de-
partment Is kept separate 1t is the candid
opinion Of Wall street that any railroad that
can get hold of about $50, 900, 600 of assets
without a liability has right to keep them
separate. They would disorganize most rail-
roud balance sheets On this side Of the line.
Sixty Millions Cash Coming.
The, serious question remains as to what is
going to happen to the land when the bonds
are gone. Just now there are tales afoat of
the impossible formation Of company, with
Sir William Van Horne and Lord Strathcona
IN the lead again, to take the remaining lands
Off the hands Of Canadian Pacific by purchase
The price named is $50, 600, 900. The mere men
tion Of such a contingency is enough to make
most American railroad directors turn green
with envy. Imagine for a minute any Of the
roads listed in Wall street travelling along
with contingency like $50, 600, 900 cash hang
ing over It,! And with bonds attached!
Wall street, contemplating this thing, won
ders why Canadian Pacific does not sell
higher.
Last week Wall street, contemplating Its
own wretchodness and lack of available cash
wondered why Canadian Pacific refused to go
down to par. -, ...
In thu income account, the balance sheet
and the land department Wall street thinks
it has discovered why Canadian Pacific, a
per cent stock, sold above Pennsylvania, {
per cent stock. s. r.. ..'..
kno,.,. rLona,. =.