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Broadside advertising the sale of stock in the Canadian Pacific Railway Company through the Guaranty… Canadian Pacific Railway Company; Guaranty Company of New York 1921

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 $25,000,000
Canadian Pacific Railway Company
4% Coupon Consolidated Debenture Stock
PERPETUAL NON-CALLABLE
Outstanding in the hands of the public (including this issue), $232,644,882
Interest payable January 1 and July 1 in New York City, in U. S. gold coin.   Certificates issuable in coupon form in denominations of
$100, $500, $1,000 and multiples of $1,000, exchangeable for fully registered Certificates.
Application will be made to list on the New York Stock Exchange the Consolidated Debenture Stock now offered.
The following description of the Consolidated Debenture Stock has been summarized principally from a letter, dated
December 19, 1921, of E. W. Beatty, Esquire, President of the Canadian Pacific Railway Company:
The Canadian Pacific Railway Company 4% Consolidated Debenture Stock is authorized by Act of
Parliament of the Dominion of Canada passed in
1889 and subsequent Acts.
By the terms of the Act the stock is a first charge
upon and over the whole undertaking, railways,
works, rolling stock, plant, property and effects of
the Company, excepting lands received by way of
subsidy, subject however to the payment of working
expenses, and to certain priorities in respect to
charges, which now consist of securities aggregating
approximately $38,651,724, issued in respect to
only 1,642 miles of railroad, while the lines embraced in the Canadian Pacific Railway's traffic
returns aggregate 13,402.2 miles.
The interest on the Consolidated Debenture Stock
is therefore a first charge, subject to the above-
mentioned priorities, upon the net earnings of the
Company derived from the operation of its railway
lines.
The net earnings of the railway system in the
year ended December 31st, 1920, were $33,153,-
044.60, while the net earnings from ocean and
coastal steamships, telegraphs, hotels, investments,
etc., were $10,966,447.81, or a total of $44,119,-
492.41. The interest and dividend requirements of
the securities underlying the Debenture Stock were
$1,907,396.20 and the interest charges on the
Consolidated Debenture Stock were $7,181,587.30,
which together with rentals and interest on equipment obligations made total fixed charges for the
year 1920 of $10,775,408.99.
The Debenture Stock has priority over $80,681,-
921.12 Preference Stock and $260,000,000 Common
Stock. The Preference Stock has received dividends
without interruption since its issuance in 1895 at
the rate of 4% per annum. The Common Stock
has paid dividends continuously since 1882, with
the exception of the year 1895. The rate since
1912 has been 10% per annum.
At present quotations the preference and common
stocks represent an equity of over $357,000,000.
18
Price to yield about 5.13%
When, as and if issued and received by us, and subject to approval of counsel.    It is expected that temporary certificates of the Company will be
ready for delivery on or about January 4, 1922, exchangeable for definitive engraved Consolidated Debenture Stock, when available.
Guaranty Company of New York
140 Broadway
Fifth Avenue and 44th Street
ALBANY, N. Y. BUFFALO, N. Y. ERIE, PA.
ATLANTA, GA. CHICAGO, ILL. HARRISBURG, PA.
BALTIMORE, MD. CINCINNATI, O. HARTFORD, CONN.
BOSTON, MASS. CLEVELAND, O. JAMESTOWN, N. Y.
WASHINGTON, D. C.
Madison Avenue and 60th Street 268 Grand Street
JOHNSTOWN, PA. PITTSBURGH, PA. ROCHESTER, N. Y.
LOS ANGELES, CAL. PORTLAND, MAINE ST. LOUIS, MO.
MINNEAPOLIS, MINN. PROVIDENCE, R. I. SAN FRANCISCO, CAL.
PHILADELPHIA, PA. READING, PA. SCRANTON, PA.
WILKES-BARRE, PA.
We do not guarantee the statements and figures presented herein, but they are taken from sources which we believe to be reliable
December, 1921 Canadian Pacific Railway Company
The Company
The Canadian Pacific Railway Company operates
a transcontinental line from St. John, New Brunswick, to Vancouver, British Columbia, operating
directly about 13,402 miles of railway; mileage of
other lines worked, 940; mileage under construction,
357. It also controls through majority stock ownership 4,964 miles located principally in the United
States, making the total mileage of the system 19,663
miles. In addition, the company operates directly
its own steamship lines to European and Asiatic
ports.
The Consolidated Debenture Stock
The Consolidated Debenture Stock is the premier
security of the Canadian Pacific Railway Company.
This stock is authorized by an Act of Parliament
of the Dominion of Canada, passed in 1889, and
subsequent Acts. By the terms of the Act of 1889
the stock, subject to certain priorities created in
respect to charges existing at the time of issue,
and to the payment of any penalty imposed for noncompliance with the requirements of "The Railway
Act" respecting returns to be made to the Minister
of Railways and Canals, and to the payment of
working expenses as defined by law, is a first charge
upon and over the whole of the undertaking, railways, works, rolling stock, plant, property and
effects of the Company (except lands received by
way of subsidy), including all rights of the Company
in the several railways held by it under lease and all
branches or extensions of the said railways now held
by the Company either as lessees or proprietors
thereof.
The interest on the Consolidated Debenture
Stock is, therefore, a first charge subject to the
priorities referred to above, upon the net earnings
of the Company derived from its operation of its
railway lines.
The priorities mentioned in the Act as being outstanding in 1889 now aggregate approximately
$38,651,724. These securities are issued in respect
to only 1,642 miles of railroad, while the lines embraced in the Canadian Pacific Railway traffic returns aggregate 13,402.2 miles.
The Consolidated Debenture Stock is not redeemable and is entitled to interest at the rate of
4% per annum, payable semi-annually on January
1 and July 1. Upon the sale of the $25,000,000
now offered there will be outstanding in the hands
of the public an aggregate amount of $232,644,882.
Issues of the stock may be made from time to time
when authorized by Act of Parliament and by at
least two-thirds of the votes of the Preference and
Common shareholders present or represented at a
Special General Meeting called for the purpose.
Earnings
The net earnings of the Canadian Pacific Railway
System in the year ended December 31, 1920, were
$33,153,044.60, while the net earnings from ocean
and coastal steamships, telegraphs, hotels, investments, etc., were $10,966,447.81, or a total of
$44,119,492.41. The interest and dividend requirements of the securities underlying the Consolidated
Debenture Stock were $1,907,396.20 and interest
charges on the Consolidated Debenture Stock were
$7,181,587.30, which together with rentals and
interest on equipment obligations made total fixed
charges for the year 1920 of $10,775,408.99. For
the past ten and one-half years the Company has
earned a yearly average of 4.74 times the fixed
charges.
In the ten months ended October 31, 1921, net
earnings have increased $1,754,196 or 6p£% over
the corresponding period in 1920. The following table gives the condensed income account of the Company for the ten and one-half year
period July 1, 1910, to December 31, 1920, showing total operating revenues, amount available for fixed
charges and net income:
Year Ended Total Oper.
June 30 Revenue
1911  $104,167,808
1912  123,319,541
1913  139,395,700
1914  129,814,824
1915  98,865,210
1916...  129,481,886
1916*  76,717,965
1917**  152,389,335
1918**  157,537,698
1919**.  176,929,060
1920**.  216,641,349
*Six months ended December 31.
**Year ended December 31.
Available for
Fixed Charges
$42,732,215
49,561,277
54,089,589
48,897,956
43,049,807
57,243,586
36,146,047
55,290,635
42,437,162
41,982,378
44,119,492
Fixed Charges
$10,011,071
10,524,937
10,876,352
10,227,311
10,446,510
10,306,196
5,132,551
10,229,143
10,177,513
10,161,510
10,775,409
Net Income
$32,721,144
39,036,340
43,213,237
38,670,645
32,603,297
46,937,390
31,013,496
45,061,492
32,259,649
31,820,868
33,344,083
Equity
The Consolidated Debenture Stock has priority
over $80,681,921.12 Preference Stock and $260,000,-
000 Common Stock. The Preference Stock has
received regular 4% dividends without interruption
since its issuance in 1895. The Common Stock has
paid dividends continuously since 1882 with the
exception of the year 1895. The rate since 1912
has been 10% per annum. At present market prices
the Preference and Common Stocks indicate an
equity of over $357,000,000.
Price Record
The Canadian Pacific Railway Consolidated Debenture Stock has been listed for many years on the
London Stock Exchange. Its high price was 118>£
in 1902 and for the fourteen years preceding the
outbreak of the World War, averaged well above
the average prices of premier American railroad
first mortgage bonds, viz.:
Average price Canadian Pacific Debenture Stock,
107fyi. Average price Atchison, Topeka & Santa Fe
General 4s, 100^. Average price Northern Pacific
Prior Lien 4s, 101^. Average price Union Pacific
First Mortgage Land Grant 4s, 102. 

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