Venturers' Corner
It is just a little early yet to be quite sure of the prospects of Canada's wheat crop but the indications are good—good enough, I think, to justify a patient speculator in picking up Canadian. Pacific Preference stock around the current low price of £30. This is Poo stock which is entitled to a 4 per cent. non-cumulative dividend. In " normal " times holders get their 4 per cent. but during slumps the C.P.R.
(Continued on page 1168.) FINANCE AND INVESTMENT (Continued from page 66.) is obviously vulnerable. Between 1932 and 5935 there was no preference dividend ; for 1936 holders got 1 per cent. and 1937 brought a payment of 2 per cent. So far this year traffic receipts have run below those of the corresponding period of 1937 and I should not expect the company's " special income " from steamers, hotels, &c., to reach the high level established last year, but there are other factors on the credit side.
First, the C.P.R. should effect a considerable saving in the matter of interest payable under its " Soo " line bond guarantee. The railway takes the view that as the First Consolidated Mortgage Bonds of the " Soo " mature on July 1st the liability for interest automatically expires. The really big factor in favour of C.P.R. preference, however, is the promise of much better traffics later in the year when tht wheat crop is moved. Last year only 94,000,000 bushels were carried, against 585,000,000 bushels in 1932, which should be read in conjunction with reports from the Prairie Provinces indicating that the wheat crop may be the best for five years. The preference stock is not cheap in relation to current earnings but it has speculative scope on the next half-year's possibilities, as well as basic merit as a long-term holding.
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