The Washington herald., 1912-05-30
WALL STREET NEWS
Statement Of Canadian Pacific
Earnings Reaching slOO,s47, 900
Astounds Operators.

New York, May 29-It was within the
last few years that the most Optimistic
bulls on Canadian Pacific were predict
ing the time when the company would
pass for the irst time the slOO.oOoOoo
mark for a years gross earnings. Little
wonder that these same people could
scarce believe their eyes when the cur
rent statement Of the company's earn
ings showed an excess of s6f7, 900 above
that figure for the ten months to April
so Il was the first time that In such a
period the gross had run up TO the CEN
tury million level
The report showed that Canadian Pa
cifc earned gross Of 40 in the ten
months ending with April 90. an increase
Of S15OOQ 900 as compared with the 49,
S76,os5, for a similar period in the prev
ious year. To so back four years, the
gain was SS7OO0,OO0 The net gain has
been substantial, amounting TO 5000. 600
for the ten months period over last year
and S16.o0A000 In four years The April
showing itself was a remarkable one, re-
vealing gross OF 81. .sO1. 900. an increase of
s.. 900 over April, 1911. and within a
few thousand dollars OF being double
that Of April, 1909
The Canadian Pacific, has long been
an empire in itself, the magnitude Of
which has never been fully realized
south Of the Canadian border. Not alone
do the tracks and equipment and roll
ing stock directly operated by the COM
pany. furnish large revenues, but through
other companies 1t rules Thousands Of
miles Of telegraph lines, some Of the
best hotels in the world, and magnificent
ocean liners. The price of the stock
has long denoted huge hidden surplus,
L. IL
Of an increased dividend beyond the cur
rent rate unless freight traffic is lowered
correspondingly.
Daniel Reid, the recognized bull lead
er Of the market, has gone West and his
partner, Judge W. H. Moore. has sailed
Tor Europe Before leaving, both
expressed the most optimistic and
bulIish views. Mr.. Reed predicted
unusual crops and general prosperity.
Judge Moore said that the period OF
liquidation, which has lasted more than
a year, seems to be ended and that when
the period of wild political excitement Is
over all will see the broad foundations
Of progressive expansion Of business and
that the boom period has already started.
May Absorb Tire Companies.
The United States Rubber Company is
contemplating the ABSORPTION of several
ing. which will leave only that company
and the Goodrich-Diamond Company
still in the tire business. The issue of
United States Rubber preferred stock
will be underwritten without commission, !
which has never happened before in the |
COmpany's financing.
The Brooklyn Rapid Transit Company |
will not burden itself with an additional |
bond issue. The contract to build the !
new subways and elevated lines will be |
taken up by a new company to be-
formed which will supply the So 900 |
necessary for the new construction.
Kuhn, Loeb & Co. and the Central Trust |
Company will take the principal part
IL financing the new company.
Big Bond Sale.
Through the sale of $2O,OOO,OO0 New
York Telephone Company ~ per cent |
bonds and s14OOO,OOO Chicago Telephone |
Company per cent bonds, there is |
nearly S34OOO,OOO in cash available for |
borrowing purposes for the American 1
Neither one of the subsidiary companies |
has any immediate use for the funds
which will probably be loaned on notes |
TO the parent company.
Although conditions in the bond
market were poor railroads, public |
utility. and industrial corporations in
the United States accumulated $751;
100000 new financing during May, |
800, 100000 more than any previous
month and Sl57,OOO,OOO in excess of
May, 1911.
The earnings Of the United States
Steel Corporation for the current quar-
ter will be larger. than for the first
quarter, because of better prices, and
e far heavier production and shipment.