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Opinions of the American press Canadian Pacific Railway Company 1883

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Canadian Pacific Railway Company.
OPINIONS   OF   THE   AMERICAN   PRESS.
[The New York Review, February 10, 1883.]
A  VALUABLE  OPPORTUNITY  FOR  INVESTMENT.
Among the achievements of the present century that will be chronicled
among the world's greatest events in all ages was the construction of the
railroad across the American continent. The undertaking was, however, of
other value than as a means of communication between the opposite shores
of our vast country, it served as an experience of long distance railroad construction that will be of value for ages, and it showed the necessity for facility of communication between the Eastern and Western extremes of the
hemisphere. North and south of the original line other railroads have been
commenced, the latest and best of the lines to be constructed being the
Canadian Pacific Railroad, which has already a finished double-track, steel-
laid road 1,730 miles in length, or considerably over half the distance between the starting point at Montreal and its terminus at Port Moody, a magnificent natural harbor on the Pacific coast of British America. The remaining 1,576 miles are already in process of construction, and by the commencement of 1886 the entire road is bound by contract with the Canadian government to be open for through traffic. Constructed by skilled engineers on
principles of the strictest economy, subsidized by the Canadian government
to the extent of $25,000,000 cash and 25,000,000 acres of the most valuable
wooded and arable land on the continent, the entire cost of the road is expected, according to the progress thus far, which has included the most expensive parts of the road, to come to about $90,000,000, or $29,000 per mile
for the whole length, including the mortgage on about 441 miles of railroad
purchased complete. The cost of other transcontinental lines runs between
$75,000 and $100,000 per mile. The capital stock of the company is $100,000,-
000, so that after the road is completed there will be $10,000,000 of stock in
the treasury to be used in the further development of the road, as well as
17,000,000 acres of the company's valuable land, free from all encumbrances
and subject to sale for stockholders' benefit.
It would be difficult to select an investment bearing more certain'promise of profitable return than the shares of this company, as the facts we have
just stated will sufficiently prove. If more ample corroboration of the genuine character and select nature of the investment is wanted, it will be readily
supplied by Messrs. J. S. Kennedy & Co., 63 William Street, who will also
furnish full particulars as to terms of subscription, etc.
[From Bullion.]
THE CANADIAN PACIFIC.
The strivings to reach India by the " Northwest passage " had hardly more
wonders in store for the adventurous souls whose paths into the unknown
are now the highways of half the world than have come to the pioneers of
the great North-west. While the history of the former was in tedious decades, the history of the latter wonders is written by days.
Prophecies but lately made to ridicule are exceeded by sober facts.
Proctor Knott's extravaganza, that set the world laughing in derision at the
proposed Northern Pacific, has become the stalest of jokes in the face of
the almost completion of not only the Northern Pacific, but also of a great
trunk line still farther to the northward, the Canadian Pacific, with towns
and cities that in point of wealth belittle the growth of the old commonwealth Mr. Knott represented. The development of these projects, rivaling
the grandest commercial achievements, vividly illustrates three things: 1st,
the tremendous demand for new country ; 2nd, the power of steam transportation, and 3d, the infinite possibilities of the North-west to support life.
Few things in history better show the ability of combination through the
commercial facilities of the age to subdue nature than the history of the
Canadian Pacific thus far, and no project of like magnitude has better
guarantee, in results already attained, of vast and permanently growing
profit, promising to rival in a few years the profit of the Hudson's Bay Company for its existence.
The Canadian Pacific was incorporated two years ago this month with a
capital stock of $100,000,000. The Government of the Dominion granted the
company a subsidy of $25,000,000, and 25,000,000 acres of land—all of the land
to be fit for settlement ; and in addition to this and most liberal and important powers, the Government gives lands for  the road-bed, stations,
station grounds, workshops, dock grounds and water frontage at the termini
of navigable waters; also completes 713 miles of railwajr, costing about
$35,000,000, and covering two of the most expensive sections ; exclusive control of territory for twenty years, and all of the Canadian Pacific property
forever free from taxation, with all material used in construction free of
duty. The total length of the main line proposed is 2,904 miles, and 402 miles
of branch lines, making a total of 3,306 miles, of which there is already completed and equipped 1,730 miles ; building, 1,576 miles.
Construction and equipment are of the best and most lasting character
possible. Although the divisions constructed are not yet connected, the
gross earnings exceed $3,000 per mile, or one-half that of the Union or Cen.
tral Pacifies. After providing for the construction and equipment of the
railway and telegraph lines, the company will hold $10,000,000 of unissued
stock and about 17,000,000 acres of land, unincumbered, except by $5,000,000
of bonds held by the Government as security for the operation of the railway
for ten years. The whole property of the company will be represented by
$90,000,000 capital stock, and will be otherwise unincumbered except for
about $5,500,000 on purchased lands. The company pays dividends upon
paid-up shares during construction of not less than 5 per cent., and the proceeds of the unsold lands (about 17,000,000 of acres) are reserved to supplement the net earnings for this purpose, if necessary. Under these circumstances, the enormous rate of construction seems to be fully equalled by the
growth of business and security of dividends to the investor, helping without
disturbing commercial growth.
That the road and its telegraph lines, when built and equipped, will have
but $30,000 per mile capital stock for its 3,000 miles, no bonds but $5,500,000
on purchased lines, no taxes, a monopoly in Canadian territory for twenty
years, and the isolated sections already earning $3,000 per mile, makes a
very promising showing for a profitable investment, especially as, at present
price of stock, the dividends are about 9 per cent.
[The Commercial and Financial Chronicle, New York, Feb. 3,1883.]
The Canadian Pacific Railway is one of the grandest enterprises of the
period, and to many readers it may be news that this corporation has
already in operation some 1,739 miles of main line and branches, which is
considerably more than half of the whole contemplated line of 3,306 miles.
The Canadian Government grants a subsidy of $25,000,000 in money and
25,000,000 acres of land, all guaranteed to be fit for settlement. The total
authorized capital is $100,000,000, or about $27,000 per mile, and there is no
mortgage on the railway except $5,500,000 on 441 miles of the eastern section. This is a point of the utmost importance to the holders of stock, as
there will be 2,865 miles of road free from any mortgage (the lands only
being covered by a mortgage). There' are yet only $25,000,000 of stock outstanding, and it is now proposed to issue $10,000,000 more, for which proposals at 60 or upward, will be received on February 6 and 7, by J. S.
Kennedy & Co., New York, and A. Boissevain, Amsterdam, Holland. Copies
of the charter and act of the Dominion Parliament can be inspected, and
copies of the President's official statement of the condition and affairs of
the company, and any other needed information can be obtained at the
offices of Kennedy & Co.
[The Tribune, New York, January 31.]
The railway, it is stated, runs from Montreal to Port Moody, 2,904
miles, with 402 miles of branches, all to be built with steel rails and in a
first-class manner in all respects. Among advantages specially claimed
for the line are its short and direct route, remarkably easy grades, and
the favorable character of the region through which it runs, its route
being at the east through a settled and populous country, comprising also
fine timber lands; further west through the Lake Superior timber
and mineral lands; and still further on, for 900 miles through an
unsurpassed wheat region. Various privileges granted by the Dominion
Government are enumerated in detail, and an extended showing of the
present financial condition of the company is given, together with the location of several offices at which investors may deposit proposals for purchase
of stock as above named.
A
da/*#JY [The Tribune, New York, February 4.]
On the 6th and 7th inst., Messrs. J. S. Kennedy & Co. will receive public
subscriptions for $10,000,000 of the capital stock of the Canadian Pacific
Railway Company at not less than 60 per cent. It is stated that the applications from investors in Amsterdam and London already amount to one-half
of the stock to be disposed of, and the indications here and in Canada point
to a demand exceeding the available balance. The popularity of the stock
of the Canadian Pacific Railway Company as an investment with the Dutch
public is doubtless due, in part, to the success which has attended the St.
Paul, Minneapolis and Manitoba Railway, an enterprise which is controlled
by substantially the same parties. Besides being under practically the same
management, these roads connect at the international boundary line, and
open up for settlement a vast wheat countiy.
[The New York Time 3, Feb 7, 1883.]
The railway, which, with its branches, will include 3,3)6 miles of road,
will be entirely completed in 1886, making a through rail connection between
Montreal and the Pacific Ocean through Canadian territory. The road,
its equipment and capital stock, are forever exempted from taxation, and
its valuable land grant is exempted for 20 years.
LThe Mail and Express, Feb. 3, 1883.]
The line is to extend from Montreal to Port Moody in British Columbia, on the Pacific ocean. The main line and branches will be 3,336 miles in
length, of which 1,720 miles have been alread\^ built and equipped. The road,,
will be a short line to the Pacific ocean, and will have a direct rail connec-'
tion with New York city by the Brockville branch. The line traverses a
country especially rich in lumber and wheat, and the company has a subsidy of $25,000,000 in cash and 25,000,000 acres of government'1 land west of
Lake Superior, the land grant being exempt from taxation for twenty years.
The stock is offered at not less than $80 per share, and full particulars of the
enterprise will be found in the official prospectus elsewhere.
vestment seems promising for the future, nor does the intimation of the com
pany that during construction interest will be paid at 5 per cent, per annum
on the par, or say 8 1-3 per cent, on the price now asked, make it undesirable
for the present.
[The Mail and Express, Feb. 6, 1883.]
The capital stock of the Canadian Pacific Railway Company, of which
$10,000,000 is now offered to the public at not under 60 per cent., presents the
unusual feature of having practically no bonded debt ahead of it. The company intimates that five per cent per annum will be paid on the par during
the period of construction, thus the return to the investor at 60 per cent,
will be large. The earnings, as published in the President's Official Memorandum of December, 1882, exhibit a most satisfactory result, and promise well
for the dividend-paying capacity of the property when construction is completed. Among other reasons for this company being able to complete a
line of railway from the Atlantic to the Pacific without bonding the same,
may be mentioned the large subsidies granted by the Dominion government,
consisting of $25,000,000 in cash, 25,000,000 acres of selected land all fit for
agricultural settlement, and over 700 miles of railroad constructed and to be
constructed by the government and transferred to the Canadian Pacific
Railway Company free of cost.
[Commercial Advertiser, Jan. 31, 1883.]
This road, incorporated by letters patent under the great seal of the Dominion of Canada, runs from Montreal through Canadian territory to Port
Moody, British Columbia. The road will be 2,901 miles long, of which 1,730
are in process of construction. It will be 427 miles shorter than the shortest
line from New York to San Francisco, and the distance from Montreal is 167
miles shorter than from New York to San Francisco. The grades will be
moderate, not exceeding 40 feet to the mile on an average. The road for
over 1,000 miles passes through the finest wheat region and grazing ground
in the world. Aside from its privilege of running through government land,
the company is accorded the right to use free all government timber, stone
and other material on adjacent lands necessary for construction. All ma"
terials are admitted free of duty, the land grant is exempt from taxation for
twenty years; the railway, its equipment and capital stock are exempt from
taxation forever, while the government is constructing 713 miles of track
which it will turn over to the company free of charge, in addition to paying
a subsidy of $25,000,000 and presenting the company with 25,000,000 acres of
land. No incumbrance of any kind is on the compan ■/. Its board of directors is composed not only of representative men of Canada, but of Great Britain.   Subscriptions will not be received under $60 a share.
[Commercial Advertiser, Feb. 6, 1883.]
THE CANADIAN PACIFIC  RAILWAY.
Whoever of the public takes the present opportunity to subscribe to the
issue of Canadian Pacific Railway stock, offered them by J. S. Kennedy &
Co., will find themselves (if the company's promise be performed) in the
unique position of part owners of a main line of railway from ocean to
ocean, without a dollar of funded debt on it. The stck, moreover, will be
only $29,000 per mile, and there are 18,000,000 acres of guaranteed good land
in the company's treasury to sell. The subsidies granted by the Canadian
government are simply enormous, being worth about $100,000,000.   The in-
[The Philadelphia Press, Feb. 3.]
The privileges conferred upon the Canadian Pacific Railway by the
Dominion are somewhat surprising, even to Americans, whose government
has been more than charitable in this respect. The railway equipment and
capital stock are exempt from taxation forever ; the government will construct and hand over to the company more than 700 miles of railroad, free
of cost, and a subsidy of $25,000,000 in cash and 25,000,000 acres of land
west of Lake Superior has been granted. The cash is pajTable in installments, by the government, on the completion of every twenty miles of
road, and the land is guaranteed to be fit for settlement. All materials
required for the road are admitted free of duty, and the company has the
right of way free through all Government land. No charter in this countrg
ever contained such royal grants.
[Boston Daily Advertiser, Feb. 1, 1883.]
This road, which is to run through Canadian territory from Montreal to Port Moody, British Columbia, will, with branches, be 3906 miles
long. There have already been built and equipped 1730 miles, and
1570 miles are now in" process of construction. Full particulars of the
advantages of the line, of its privileges, and of its financial condition, is
given in the advertisement, to which we call attention.
[Boston Journal, Jan. 31.]
Canadian Pacific Railway.—The Canadian Pacific Railway Company invites proposals for the purchase of any part of $10,000,000 worth of its capital
stock. Of this line which, with its branches, is to have a total length of 3306
miles, 1730 miles have been built and equipped, and 1576 miles are in process
of construction. It is expected that the entire line will be finished in 1886.
The company possesses a number of important privileges granted by the
Dominion government, including perpetual immunity from taxation, and
large subsidies of money and land. The capital stock of the company is
$100,000,000. Other particulars will be found in advertisement published
elsewhere in this paper.
[The Tribune, New York, Feb. 15.]
RAILWAY INTERESTS.
A VANDERBILT   LINE    TO    MONTREAL—ARRANGING    FAST   FREIGHT   LINES   OVER
NEW YORK CENTRAL AND   CANADIAN PACIFIC.
Another step has been taken by Mr. Vanderbilt to equip himself with
weapons of defence against the Grand Trunk Railway of Canada. Arrangements are now being perfected in detail for the admission of the Canadian
Pacific Railroad into the fast freight lines running over the system of the
New York Central and all its Western connections. When they are completed, the Vanderbilt system will be furnished with connections to Montreal and other Canadian points. It will have, as a prominent Vanderbilt
official put it yesterday, as good a Canadian as the Grand Trunk has a New
York line. Already the Canadian Pacific and the New York Central are
exchanging business, but it will be a month or six weeks before the fast
freight facilities now being provided for the two systems can be put into
active use-. »
In an interview with Mr. Vanderbilt he said: " Well, as to my interest in
the Canadian Pacific, I do not consider that a subject of public importance.
A good deal has been published about it, and some statements are correct;
others are not But the relations of the Central with the Canadian Pacific
are very friendly and harmonious."
A prominent director in the Vanderbilt companies said yesterda3r: " There
is no question about the permanency of the alliance between Mr. Vanderbilt
and the Canadian Pacific. Every growth of the latter's system will furnish
a new connection by which we will gain better access to Canadian territory.
Mr. Vanderbilt has long desired a connection with Montreal, and at one time
talked about building to that place himself. The alliance with the Canadian
Pacific renders an independent line unnecessary."
[New Yorker Handels-Zeitung, Freitag, den 2. Februar 1883.]
CANADIAN PACIFIC RAILWAY CO.
In voriger Woche berichteten wir bereits, dass $55,000,000 Actien dieser
Gesellsehaft zur officiellen Coursliste der Hew Yorker Fondesborse zuge-
lassen worden. Laut Anzeige an anderer Stell d. Bl. worden jetzt durch die
Herren J. S. Kennedy dt Co., New York, und A. Boissevain <& Co. in
Amsterdam, Holland, $10,000,000 dieser Actien, (100,000 zu je $100) am 6. und
7. Februar zur Subscription nicht unter 60 per cent, aufgelegt, zahlbar in drei
gleichen Raten am 10. Febr., 10. Marz und 10. April. Die Bahn ist, abgesehen
von  $5,500,000 Bonds auf 441 Meilenj durch Kauf ubernommener Strecke, ganzlich frei von Hypothek-Last; 1,730 Meilen derselben sind bereits fertig
und soil die ganze, nur 2,904 Meilen lange Transcontinental-Route von Montreal nach Port Moody am Stillen Ocean, welche 427 Meilen kiirzer ist, als
die kiirzeste, jetzt von New York nach San Francisco existirende, bis 1886
vollendet werden, ohne die Emission von Bonds zu benothigen. Aus diesen
Thatsachen ist ersichtlich, dass der sich aus dem Betrieb der Bahn erge-
bende Netto-Gewinn fast unverkiirzt den Actionaren zufliessen wird. Die
Gesellsehaft besitzt unter anderen werthvollen Privilegien eine Subsidie
von $25,000,090 baar, in Raten nach Construction von je 20 Meilen Bahn
zahlbar, sowie eine Landschenkung Seitens der Dominion Canada von
25,000,009 Acres. Von Letzteren sind 6,452,000 Acres bereits verkauf t, deren
Erlos geniigt, am die emittirten $20,000,000 Land Grant Bonds, bis auf
$2,700,000, zu tilgen, so dass es nur nach cles Verkaufs von ca. 1,800,000
Acres, selbst zu viel billigeren, als den bisher erzielten Preisen, bediirfen
wird, diese Schuld ganzlich abzutrafen, und werden alsdann der Gesellsehaft, resp. ihren Actionaren noch nahezu 17,000,000 Acres verbleiben. Wie
uns mitgetheilt wird, ist bereits die Halfte i.er jetzt offerirten Actien in
Holland ubernommen wrorden, und zeigt sich auch am hiesigen Platze sehr
gute Meinung fiir dieselben, so dass der Erfolg der Subscription schon im
Voraus als gesichert zu betrachten ist.
Laut Anzeige an anderer Steile d. Bi. laden die Herren J. S. Kennedy &
Co., New York, in Gemeinschaft mit den Herren A. Boissevain dt Co. in
Amsterdam, zu Zeichnungen auf $10,000,000 Actien der Canadian Pacific
Railway Co. am 6. und 7. d. Mts. ein. Die Bedingungen sind so gunstige,
dass der fiir hier reservirte Betrag unzweifelhaft voll subscribirt, wahr-
scheinlich sogar iiberzeiclmet werden wird.
(,fyte\v>^$oxtev ^taats^ettung", l. gebruar 1883.)
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bon $10,000,000 entgegengenommeu tserbea ; oxe .''ngebote !5nnen fid) auf irgenbetnen
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Meilen lange 23atm mit 402 Meilen 3^"9^at)uen, tft nad) ben neueften Snfiemen mit
StarY(fd)tenen angelegt, btetet bie fittjefte unb angeneljmfte Oioute unb bevufort gut
betoolferte, l)ol3= unb mineralreidje liflrttte, fomie auSgebeljnte SRegionen, bie ftdj
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®arantten fiir ba$ $ubltfum. J
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