SMAGE EVALUATION 
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CIHM/ICMH 
 
 Mecrofiche 
 
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 CIHM/ICMH 
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 Canadian Institute for Historical Microreproductions Institut Canadian de microreproductions historiques 
 
 1980 
 
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 :. 1 R C U L A R 
 
 fo the Shareholders of the Canadian Parifir Rnilway Companyy. 
 
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 [t is now a 111 lie li'sts iliaii ii y-in' siucc a poitiou ol' tho C!upilal 
 Stoivk ol ihiM (!(>iupany was thrown oprii lov public isiibsoripliou. Dviiiia- that 
 ptfriocl tliej'ti iia-s Ix't-n a vcrv ariiit dcilin'' in ilir iiuukt'l valiK-s ol Anicrican 
 Itiiilwa^ St'ciiritiiis in gi^ncral. ami CHpiv-ially ol' .shanvs in loipoiations opiuuiting 
 ihrouyh liuos ol railway Initw^.'i'U tlm Hastern States aud the I'at.ilic uoa.-^t. It is 
 not a maltiT lor Hurprisi!, therolori', that some uuxk-ty should huvi.' been Icit by 
 lioldiu'tiol'tlif iStOfkot tiiis Company, or that Npcculators should havn takeu advau- 
 ta>r< of Die opportunity, lo nniko a fonrcrti'd i-tfort lo dc^prcss Iht^ m,.;k»'t pric 
 of tln! shuvs, I'spi'cially iu view of Ihc malignant atlack.s with whirh the Com- 
 pany has been almost daily a.s.snilcd, by a section of the local and lorciirn press, 
 inspired by rival railway lines, or inllneiiied by political \r itive.^. The shareholders 
 are rather to be conu'ratnlaled that in the face oriheS(>attark« and ol'suih wide- 
 spread dep es^ion in the stoiks of othi'v Iranseontiuental lines, the Stock of 
 this Company, with its line not vel rompleled, should have maintained such 
 <:omparative steadiness. 
 
 ' '" For the purpose o'' liiving- to the shareholders tlie ,':niieBl possilile inlorma- 
 fion of the results achie\ed durine' the now I'iosing riileudar year, and in view 
 of )lu! gross misstateuients tliat have been iiui)lished as to the position of the 
 Comjiany. Ilii> Directors have thuughl it Wi-li. in advance (jf the regaiiar annual 
 report, to submit a short summary of what has been done, and also a brief state- 
 ment of facis alle.ctinu' the intrinsic and market vahies of the shares of the Com- 
 pany. 
 
 It is m^ressary at the outset not to I'orirer that the ])osition of the Canadian 
 Piu'iHc Railway is unique, — with its own line stretching from the Atlantic to 
 ihe J-'aciiic — m roiuple'e and intlependeni U'ailway system within itsell. 
 DiH'erimz in this resi})ect from every other Transcontiiieutal line; oii tin- continent, 
 It need look for nothinu- from its rivals, beyond ieasonal)ly fair treatment. 
 
 During the year 1>!H;i tlie C-ompany built (il'o miles of Railway ; eoiiKistiug- 
 of .J,'!;! miles of n;ain liui-, and 140 miles of Branch lines. 
 
 ( »n the Western Division ;>77 miles of rails luivc been hud — completing the 
 track \t) the Summit of the Rocky mountain pass. JHiO miles west of Winnipeg — 
 leaviTi!'- a ffa)) of less than :{()!> miles to complete the connecti<in with the Paiitie 
 Oeean, and there i,s every reason to expec t that this connect ion will be (ompleted 
 within the next two vears. 
 
 tin the opening of navigation next season, the C'omi>a.ny will have its own 
 sleel steamships, built this year on the Clyde exi)ressly for the JiStke traltic, ready to 
 run between Lake Huron, and Thunder Hay oji Ijake Sujierior. Anew through 
 lim' of its own will thus be opened, tarrying freiglit and pass.eiigers from 
 Montreal to all points iu the newly ope)i.'d ccniiury for a lontinuous distance of 
 1,40(1 miles west of I'ort Arthur 
 
 On the section of the line norlli of Lake Superior 167 miles of track have 
 been laid during this y<'ar, and within the next few weeks .')4 miles more will 
 be added, making a total on that sertion of 221 mil.'s, leaving 4;!() miU's yet to be 
 built iu order to complete the through all rail connection between Montreal 
 aud the North West Provinces. There are at the pieseat tinu' over It.OOO man 
 
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 at work ui>«)ii this sci lion, whii'Ii, it is hilly •■xpccti'd. will hi- roiiipUdwl imd 
 roiuly I'or opt'iatioii li.-rorc tlu* close ((fth^ycar JKHft. 
 
 Without the tlirouurh all rail liiii' wlii<li i he loiiipletiouol" this swtiou will 
 provide, and without the iii'ccssiny i Dniicilions with tin- l'io\ iutoH ol' Onturio 
 and QinOx'c, now bt^my set urcd, the (.'aiiadian I'acilic U'ailway would have little 
 or no luiitrol over the l-iri^v w<'h1 hoiim! tiailii in Jniinii^ranls, si'tli(^rs and general 
 lr«»ipht. which the Kcttlcmcnt of the Northwest, is rapidly developing, and that 
 trallic wonhl I'onliniie in the I'lituie, as in the pnst. to he carried over the (Irand 
 Trunk Railway, and thr(ni<rh the I'tiited States. This west Iionnd trafiic is of the 
 greatest importance to the Canadian I'acitie JJailway. enahlintf it tocarry freight 
 and passengers at lower rate.s than would he possible, if the line had only an 
 ea«t bound business, and nothing to carry west but empty cars. 
 
 When the Company is in a position to send trains through, direct from Mon- 
 treal w/ Winnipeg to tlie l'a<.ific Ocean, its express trains making the entire 
 distance in niui'ty hours ; and when the connections of the lini' with tlie business 
 ceutresof the I'rovinccsofOiitarioaiuKiuebec have been establislied ; the Canadian 
 I'acilic, Railway will assume ucommanding position as Canada s national highway, 
 and by better seiA'ice. a shoiler line, sui'crior accommodation, and moderate rates, 
 will secure the tratKc which naturally belongs to it, and e tied ua I ly prevent it from 
 seeking transportation u\er foreign lines. 
 
 The surveys of tin- gap between the completed portions ol' the Eastern and 
 the Western Divisions have been com|)leti'd, as well as the survi-ys across the 
 Rocky and Selkirk mountains. Tlie work has in both cases been found much 
 ttasier thtui was anticipated and tin? Directors feel no\v iliat they may safely 
 stale that the entire line will be completed within the original estimates of cost. 
 
 It has l>een a-scertained that the cost of jinishing the line will not ex'vrtd 
 twenty-seven million dollars — barely the amount of the cash subsidy and land 
 grant Bonds unsold, and remiiiniug in the hands oithe tlovernment 
 
 The gross earning; for ]>*><-i (estimating the month ol' 
 
 December) were *."1,I'J(),91;^ 
 
 This includi'S for the transportation of construction materials 
 
 and supplies 1,274,000 
 
 The a.tual revenue from ordinary trallii' wa*s ihiirefore in 1883. 4,140,918 
 As against in 1882 2,44'.i,824 
 
 lucTeafie in 1888 1,61I7,(»H9 
 
 The net earnings for the 9 months ending Nov. 30th have been $889,811 
 
 Considering the adverse circumstan< es under which this result has been 
 obtained, and in \iev\ of ihe extraoidinary development and rapid settlement 
 of the North-West during tlie past year, and of the fact that on the opening of 
 navigaiion, the ('ompany will have — as already stated, — a through line of its 
 own from Montreal to the summit of the lioiky Mountains; a still greater in-' 
 crease in the earnings of the coming year may fairly be looked for. 
 
 SetMUg the effect whi< h the operations of s))eculators. aided by the hostile 
 efforts of the enemiesof the Company in the press and elsewhere, had on the market 
 price of the shares; being unv.'illing that the shareholders should be iutimi- 
 dalfd into sacrili( ing their proi>erly : and desiriiiir to increase the value of the stock 
 as a sound investment ; the Directo"s t^nrly in November last made an ammgement 
 with ihe Dominion Government to ensure for ten vears, a minimum dividend 
 
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 of thrci' per coiiuiin ('l p. c) per iuuuim upnn tl..'ouiKhm(li)i^- cHpitul stock of the 
 Company: the Coiiipuuy (■outiiiuiiig to pay an addirtoiml two por tviitnm (2 
 p. (■..; pnr aiiniiiu. diiriiisr ronstrurtiou, uiakiii}? livo per <eiii. (;"> p. c.) per uuuum 
 in all. 
 
 ThiH arrangemcni. haw also been niadt^ tht^ objeit of attack «v«n to tho extent 
 of pretending to inipui,Mi th.' ability of the Qovernnienl to rarry it ont, but it 
 will probably sutiire to say, that it consists. of the deposit with the (lovcriniient 
 of cash and securities to an amount suili< icnt to provide the money with which 
 to pay eacli half-yearly dividend; that the Goveruineut ha« nhsoiutely 
 assumed such payments, and has bound itself to place the required amount each 
 half year hi the bank of Montreal as Truste.- For the shareholders, and that tb.- 
 Hank has lovenanted to pay the dividend .so dei)osited on the I7lhday of Kebru- 
 arv and August in eacti year of the next tim years. 
 
 Fuller details (jf the oi)erations of tlie Company duriiii;- the pa«t year, of its 
 poditiou uenerally, its resources and its prospe.t,^. will be furnished to the share- 
 holders, as soon as [ho report i-inbodyinK the siiine can l)e prepared. 
 
 In cou<dusion it may safely be stated : — 
 
 1. Thai the work of construction lias l)eeii economical, and rapid beyond all 
 l)reviou8 experience. 
 
 2. That the coiilract with the Government will be hnished, and an all rail 
 route throujyh Canadian territory, from Montreal to ilie I'acitic Ocean, established 
 within two year."., or in barely half the tune sjtecilied in the contract. 
 
 ^^. That the business of I lie line is already much greater than could fairly 
 have been expected, before (lie completion of the road 
 
 4. That the settlenu'ii'. ol the North- West. notwithstaiKlinij,- all the elforts to 
 depre('iate its advantages, is progressing more rapidly than any one, three years 
 ago. supposed possible. 
 
 ;■). That the cost of the completed road will not exceed i)i(>vious estimates. 
 
 tj. That the road, when liiiished, will he practically unemumbertMl. 
 
 7. That the net earnings, from and after the comi)leti«in of the line, will, it is 
 tirmlv believed, be sulhcieut to give the sharehokhM-s a handsome dividend ov(«r 
 and above the three per cent already provided, without <ounting on the income 
 from the (Company's Land Grant: thus making the shares of the Company a 
 sound and y)iofitable investment. 
 
 The Directors aresatislied that, with such re.sources and inospects as are here 
 s«a tbrth, the Company lias a great and successful future b(>fore it ; and they hope 
 that the statements, which the facts have thus enabled them to make, will be 
 accepted by the shareholders, as asuthcieiit .answer to the misrex>resentationfi, by 
 which it has l)eeii sought to induce them to sucrilice their investment. 
 
 GEORGE STEPHEN, 
 
 F^iesident. 
 
 MoNTRKAt.. •2!l//i Dcremher. 18815.