Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-03
1t Will Leave Main Line at
Glenwood and Tap Cana
dian Pacific
WILL INVADE HILL TERRITORY
In Spite of Strong Denial There Is
Suspicion That It Is Intended to Cap
ture Some of the Business Now
Owned Exclusively BY Northern
Pacific.

| New York. April 3-The extension OF
the 500 line will leave the main line al
Glenwood, Mimi, and will continue
north at Alexandria, crossing the
! Northern Pacific east Of Detroit City
| MINI. 1t will run thru the lands of the
Red Lake reservation, which embrace
some of the best farming lands in the
state. The line is decidedly an invader
matter how strong are official denials
of any intention to antagonize Mr.. Hill.
1t cuts across Northern Securities lines
and will certainly draw twin city traf-
tic from the northern Minnesota lines
of that system.
1t may be stated on authority that
the ultimate purpose OF the line is d
connection with the lire of the Cam
adam Pacific running south from Win
nipeg to the Minnesota border at En-
erson. 1t is in the nature of direct
reply to the intention of the Northern
Securities Company to force the issua
in the Manitoba Legislature and obtain
again the charter rights that the
Northern Pacific sacrificed by leasing
of it's Manitoba lines to that province
in the bad year. 1t will deprive the
northern Securities lines Of the haulage
of grain in the southern part of Mani-
toba, hitherto handed over to them at
the border by the Canadian Pacific. 1t
is a reply also to the invasion of Cam
adam Pacific territory by the Canadian
Northern.
Hints are dropped by 500 officials in
New York that the road is contemplate
iEg several other extensions in the same
territory, which are designed with the
same purpose. Work will be begun this
month and will be pushed thru as rap
idly as possible.
This undertaking does not for mo-
rlent 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 build
ing new extensions will lie followed Iii
its entirety. This policy s to capitalize
new construction, and this construction
will be so capitalized. The Canadian
Pacific demands return on its invest
ment in 500 securities, and this return
will come in the shape CT a dividend on
the preferred stock. The credit of the
Canadian Pacific stands squarely be-
hind the major securities of the 500,
and 1t is believed that the new lines
will be financed by an issue of bonds
either secured directly on Canadian Pa
cific assets or backed by the guarantee
of that company, as Ire the present
bonds OF the subsidiary companies.
There is reason to believe that there
are tentative plans for the retirement
Of 500 preferred, which, however, may
not take definite shape for some time.
Canadian Pacific interests are under
stood to be quietly picking up 500
stocks, particularly the preferred, and
ii is not unlikely that by the time the
plan is announced the lat
ter issue may be concentrated in a Few
hands. The conversion IS not unlikely
to be made within the present year.
but there seems to be some difference
Of opinion as to whether the exchange
should be into a 31a per cent or into
common stock, the preferred receiving
two for one. The latter seems more
likely of adoption. The purpose of the
is to get rid 81 the provision
under which the preferred stock must
get Z per cent dividends before the
common gets anything and is entitled
to share with the latter in any distri-
button above the Z per cent rate.