Daily capital journal. (Salem, Oregon) 1903-1919, 1910-06-29
CANADA IS
IN GRASP OF
THE OCTOPUS
CANADIAN PACIFIC WAS GIVEN
MONEY TO BUILD IT'S ROAD,
PROTECTED FROM COMPETI-
TION AND GIVEN LANDS TWICE
VALUE OF IT'S ROAD.

According to The Sun, of Toronto
America, the home of the trusts, hes
keen competitor for that doubtful
honor in Canada, and it cites the
Canadian Pacific Railway as the
Canadian money trust.
This railway had an original length
of 1850 miles, with an estimated
first cost Of $91.5O0,00O. To this
building cost the public contributed
as follows: % Completed railway,
$35, 100000; (2) cash, $25, 900, 900;
| CD land, 25,00O,000 acres, selected
in the Northwest; (4) rails and other
supplies imported free of duty; (5)
exemption from taxation on its land
grant, not less than twenty years,
and perpetual exemption as to road
bed and equipment; (6) monopoly
of trade. The government binding
itself not to allow the building of
competing lines routhward to the
border.
Here is $70,000,000 actual cash,
and an unknown side value. Up to
June 80, 1909, the land sales had
aggregated $63,73O,7SS net, and
there were still remaining 8,437,594
acres in the prairie provinces, and
4,403,505 acres in British Columbia
At the price of last years land sales
these lands, exclusive of the British
Columbia group, have valuation
of $190,00O,O00, or twice the cost Of
the original road. The government,
in order to cancel that last clause
which restricted competition, went
security for a $3O,OO0,O0O loan 20
the company, and, furthermore, to
use the exact statement by The Sun:
"As a matter of fact, not only did
Canada make these enormous dona-
tions, which seem to have been all
swallowed up by some intermediate
absorbing agency, but it had from
time to time to furnish the ready
cash or the credit necessary to carry
on the construction of the railway"
1t further appears from a state
ment of Hon. Edward Blake, made
in 1885, that
"They raised by the new finance
on stock $24,5OO,OOO, and have de-
voted to dividends $21, 100000, MAX
ing $8,5OO,OOO to go on with the
work, and $21,OOO,OOO to go into
their own pockets. If you include
the September (18S5) and February
(1SS6) extra dividends there will
have been ! aid and provided for divi-
dends $24, 5000, or a sum equal
to the whole amount realized from
the sale of the company's stock. The
shareholders will have paid $24,5OO,-
600 for their stock, and there will
have been paid and provided for
dividends to them $24 100000. The
net result Of the transaction has
been to invest money with one hand
for the purpose of taking it out with
the other, In substance, the pro-
ceeds of the stock have been divided
among the stockholders. We, (the
government) are to raise the money
to build the road, and the country
is to pay tolls for all time in order
to pay dividends upon stock so pro-
vided. All this is to be done because
the stockholders in this enterprise,
having realized from $65, 100000 of
stock $24,5OO,0OO, have chosen to
appropriate $24,5O0,OOO to pay
dividends upon their stock"
Forty-four stockholders are named,
among whom the American reader
will readily recognize those of w. c.
Van Horne, Lord Mount Stephen,
Lord Strathcona and ]. j. Hill, whose
shares in total aggregate a face
value of $19.907, 700, for which was
paid S4,9S1,4 and on which the
aggregate dividends within the five
years ending in 1884, according to
the records on file at Ottawa, were
$5,S70,1S0, These shares, original
ly bought at s25 per 500 share, are
now worth $50, and on face
valuation of $2O,OOO.OO the Cana
dian farmers are paying dividends
OF between six and seven per cent
per annum, In other words, within
five years the investors got their
money back, and now have a prop
erty worth S3S,UOO,O00, paying an
nually 25 per cent on the original in
vestment,