The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-23
GROWTH IN SURPLUS
OF CANADIAN PACIFIC
Reserve Of S79,711,092 in Face
Of Drop Of Nearly 100000
600 in Gross Earnings.
CHANGE IN PAYMENTS
Plan to Avoid Growing Again
$60,0OO,OO0 Expenditure
in Only Three Years.

The Canadian Pacific Railway Com
pany has issued Its pamphlet report for
the year ended June 80, 1914, showing
that the gross earnings for the year
were sl2s.s14,s24. as compared with
slSs,Ss5.699 for the previous year, with
net earnings OF s42,3Ss,s9s, against y46,-
245.S7f. The surplus after the payment
OF fxed charges was S32,lss,6i7 as com.
pared with s36.615.0 s5. and the, surplus
after the payment OF dividends S9,6ss, 245,
against sls.310,257. The above figures
were printed some time ago. but without
the statement of special income from in
terest on land sales and other exrraneous
assets
The statement OF the special income
account shows that dividends and in
teret on securities yielded s7btb,43I,
as compared with s4,556.366 In 1919.
Whlle interest on cash proceeds on de-
Ierred payments for land sold yielded
si,of2'439. making a total OF sS.5s7,s7O,
as compared with y6,59S151 The pay
ment OF $6.90o.000 in dividends left a
surplus OF Sl.6s7,s7o. which. added to
the previous surplus. made a total Of
s5.ot6,sl2. against S8.35s.s42 The state
ment Of assets and liabilities on June 3o-
1915. gives the company a pront and loss
surplus OF S1s.7l1,0s2. against a pront
and loss surplus Of S77.6s7.loo on June
80, 1918.
Change In Payments.
In his statement to stockholders SIR
Thomas Shaughnessy says In part. The
capital expenditure OF over 5000, 900
Tor cars and locomotives in the years 1910
1913 was so very large that your directors
decided that IL would he proper to spread
the payments for this years deliveries,
ABOUT $lf.OOO,oOO. over a period OF fifteen
years, under the terms OF an ordinary
equipment trust agreement. and therefore
a contract was made with the Victoria
Rolling Stock and Realty Company TO
provide the equipment and receive pay
ment In fifteen annual instruments. with
Interest at IA per cent. per annum.
The accounts for the year show that
s35,5I1.s59 had been advanced from your
current funds to meet the cost OF addi-
fional railway mileage and ocean steamers
against which no securities have been
issued or sold. In ordinary course 4 per
cent. consolidated debenture stock would
have been utilized to meet this expendi-
turo. but market conditions were not
favorable to the sale of this security In
large amounts without unduly depressing
the market price.
I'm these circumstances your directors
decided to create special investment
fund composed OF the deferred payments
OH land sold. and securities In which land
funds had been invested. to the amount
OF S55. 900. 900. and to issue against this
FUND and the companys credit ten year
note certificates to the amount OF s52,-
100000, carrying interest at the rate OF
per cent per annun, to be offered to
the shareholders at 50 per cent. OF their
face value. thus providing all the money
required for the present purposes OF tho
company and at the same time giving
Its shareholders participation In the pro
ceeds OF land sales TO the amount OF
about $4,000. 900.