The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-12-18

Sir Thomas Shaughnessy, with no
other Disgusting Of its n~akedness than
the use Of some circumlocutory
p~hraseology Is that Sir Thomas and
his fellow directors of h c. P. r.
have taken the outstanding lands ac-
count, that is, the payments yet to be
made on such G. P. r. lands as have
been sold and are not yet fully paid
for, amounting to "about $50, 000, 000,"
and converted them into a trust fund,
which Is to be turned over to the
shareholders at so cents on the dollar.
The result Of this act Of creation" Of
a $50,000,0fl trust fund"-The Royal
Trust Company of Montreal being the
trustee-as it will work out, will be
that the treasury Of the C. P. r. will
get Sal, 600, 900. and the shareholders
will get a "bonus," a 'rake-on" q
segregation" amounting to $10,400.-
900.
Under the terms Of this latest
creation" Of the c. P. r. authorities,
the shareholders will get Z 1-2 per
cent for ten years On the money they
pay, and at the end OF ten years will
get 500 for every $50 they now pay
for certificate notes." But that Is
not all. They will not have to wait
: or they will not all nave to wait
ten years to get their 800 for every
| . NLICN 1OH I1dA1I ia IIS IL 0A
soil Of C. P. r. high finance" The
mote certificates" it is announced,
may be redeemed in part by drawings
at any time when the trustee has
funds in hand for the purpose.
The Royal Trust Co. will be in con-
slant receipt of payments from pur-
chasers Of G. P. r. lands. The peo-
pie Of Canada will have no more to do
with 1t, now that the trust" has
been Created by Sir Thomas and
his fellow directors, than the people
Royal Trust Co. will probably have
several millions of dollars of this
money on hand. 1t will hold a draw
ing. and the winners Of the lucky num-
bers will get their money in full.
AS an example Of how the thing will
work out. let us suppose that Sir
Thomas Shaughnessy invests $4,000
Of spare cash in these certificate
notes." He will get 100000 worth
face value. Every year he will receive
$500 in interest until the tenth year
when he will receive 500, 900 in cash
in payment Of the Certificate notes"
But If, in any Of the drawings, he gets
a lucky number, he will get his $500,
600 down at once. He might get q
lucky number at the very first draw
Ing. In that case he will receive, ir
hard cash $27,500 for the use Of $780,
for one year, and the principal in full
-$107, 500 in all.
Thus the beauty Of "~segregation'' Of
"the e~xtraneous assets" discloses it.
self. 1t Is a costly way of increasing
G. P. R. capital-costly to the people
Of Canada in more ways than one
The G. P. R., the greatest railway cor
poration in the world, could get al
the money it might need for better
ments and new lines by issuing 4 pei
cent bonds. AS a matter Of fact, I'll
treasury is overlooking. It's last an
nual surplus for the year ended June
Is, 1913, was $1S,310, 257:s4. But thu
c. P. r. has adopted a policy Of retir,
ing bonds and issuing no new ones
The board Of directors know "a {
better way" namely, "~segregation' O.
"the extraneous assets" Incident
ally Is Is to be noted that 3 per cen
Of the 10 per cent annual dividends
which actually amount to more thar
10 per cent because OF preceding mel
on cutting-has come from the land
account Hereafter, it Is announced
the dividends of the C.. P. r. will al
come from the revenues Of the railwa,
system. The wonder Is that counse
for the c.. P. r. did not add this t.
his reasons why there should be no re
auctions in rates.