Heavy construction costs and economic dislocation during World War I caused the bankruptcy of the Grand Trunk Pacific in 1920. The line was taken over by the government of Canada and operated as a division of the Canadian National Railway. In 1927, the Kitsap County Transportation Company (KCTC) and Puget Sound Freight Lines (PSFL) formed a joint venture company called the Ferry Dock Company, which took out a long-term lease on the Grand Trunk Pacific dock, which was then in a rundown condition. The dock became the main terminal and for both lines. In 1929, the stockholders of KCTC and PSFL reached agreement with Wilbur B. Foshay (b. 1887) to sell their companies, including the Ferry Dock Company, to Foshay, who was then assembling a utility and transportation business empire. Foshay however was financially ruined in the October 1929 stock market crash and the transaction never went through.