The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-01-30
RAILROADS.
SOO'S STRENGTH
DUE TO G. P. R.
THAT is THE SENTIMENT ON
WALL STREET.
The History of the Road Is Remem-
bered to Its Benefit-A Financier's
Amusing and Informing Comment
on the Roads Present Position.
New York Sun Special Service.

New York Sun Special Service.
New York Jan. 30.-1t is stated in
Canadian Pacific circles here that the
recent strength in 500 Line securities
has been due to the knowledge on the
part of Toronto, Montreal; and twin
city interests that Canadian Pacific
has begun a comprehensive plan that
will ultimately make the 500 Line one
of the heaviest earners OF gross earn
ings on the entire system and one or
the most important divisions In the
system.
The original plan in the purchase
of this road by Canadian Pacific was
to obtain route to Chicago from
Winnipeg, in other words an outlet |
for the wheat of the northwest to the
great grain distributing center of the
United States. For that reason 500
Line was bought, with the ultimate
intention Of building it thru to Chi
cago.
This plan has changed with the
changing years. 1t Is believed to be
mately to reach Chicago from the
west, either by purchase of Wtscon- |
sin Central or by building its own line, |
but in the meantime the traffic from
Winnipeg to Minneapolis & st. Paul Is
becoming more important than the
Chicago connection. 1t is therefore
the first aim Of the Canadian Pacific |
management to secure to itself the
cheapest route from one of these CEN
ters to the other, and, with that aim In
view, work Is to be rushed on the line |
between winnipeg and the twin cities
This is as far as the Canadian racine
people here can foresee.
On Wall street the brokers discuss
with considerable interest the new life
that seems to have come to thls c. com n
securities. One Of the oldest brokers
on the street has this to say about 1t:
II remember when Washburn re-
organized that road and said he had
sold it to Canadian Pacific. The big
Canadian trunk line was a kind of 81
bugaboo In those days. Nobody knew
just where 1t ran and nobody cared
very much. 1t was only few years
old and had tried hard to make it's
country as it went along. remem-
Der we used to wonder whether the
road would bust Canada. When
Washburn said he had sold the 500
Line to Canadian Pacific we were
pretty sure the two Of them together
would bankrupt the country. 1t ap-
pears we didn't exactly guess right
From what they say Canadian Pacific
seems to have created Canada--or at
least the west Of it--and 500 Line is
now paying handsome rental to
Canadian Pacific.
Canadian Pacific took hold Of q line
that ran from Minneapolis out into
the wilderness to place. called
Cathay-because they thought it was
near China, I suppose. 1t was five
years before they made connection.
Since then things have been looking
up.
ITO think of 500 Line now paying
dividends and building new roads 1s
most refreshing. But a railroad that
can coolly offer rights on per
cent stock at 10 during 1903 can do
anything. Here are the per cent
bonds of 500 Line, guaranteed of
course, selling abroad at premium,
while our crackest per cent bonds
are no better.
AS to the new plans I suppose Ca
madam Pacific knows Its own bust
ness. If anyone comes along here and
tells me that Canadian Pacific Is 60
ing to run the 500 Line from the twin
cities to the coast, or up to the Yukon,
or down to the gulf I'll believe it. OF
course they intend to have the short
est line from Winnipeg to Minneap-
oils. That's the mill supply route isn't
it? I suppose they will build the line
for about $4,000 a, mile the way they
built Canadian Pacific. They have
always done things no other road can
do. It's all very we'll for Mr.. Hill to
gibe at the 500 Line-and anyone will
confess it isn't Great Northern-but
/ haven't heard that either Canadian
100000 on notes this last year the
way Great Northern did. In fact, the
annual report Of Canadian Pacific
showed cash and cash assets of
practically $so.ooo,.ooO-and about
100000 loaned in the street on
cali Maybe Mr.. Hill borrowed some
Of Canadian Pacific's money without
knowing it. After all-money talks.
This conversatiOn-from banker
and broker who knows the northwest
and has known it for thirty years
fairly outlines the sentiment of the
speculative community toward 500
Line at the moment. There is a good
deal of wonder. some uncertainty and
a disposition to lay the whole matter
at the door of Canadian Pacific. Ger
tainly the Canadian Pacific railroad
guarantee Endorsed on the cOnsoli-
dated bonds Of the 500 Line has a
good deal to do with it. T..
There Is no uncertainty at all with
regard to the financing of the new
lines. 500 Line will sell consolidated
a 1,n oh $nS. hof