The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-11-27
RAILROAD NEWS.
Government Lines in Canada
Operate at Loss.
Two Systems in Dominion Fail
to Meet Expenses.
S EVERE CRITICISM.
/
Mon real GaZetteTells Briefly OF
Unsuccessful Roads.
Other Items CT Interest to
Railway People.
SEVERE CRITICISM.

Montreal, Canada, Nov. 27.-Govern-
ment railroads are operated at loss in
Canada, according to the Montreal Ga
zette. Both the Intercolon1al ana the
Prince Edward Island roads are found
to be expensive. The Gazette says:
The report for nine months OF the
minister of railways and canals tells
the story of the latest effort to give
the Intercolonial railway business ex-
cuse for existing. The result can be
counted happy only by comparison with
property:
In the fiscal year 10000 the working
expenses were s7,2399S2 the earnings
were $6,339, 231; there was loss on op-
Grating account of $9OO,75O. Things
seemingly were being got ready for the
general parliamentary election of 1904
In 1904-05, the year in which the cleo
ton actually took place, the working
expenses were IS, sos, 826, and the reve-
nue. amounted to but Sc, 7S3, 522 1t cost
in II months 81, 725, 1903 more to operate
and maintain the road than it earned,
and this though it traverses for the
greater part of its length one of the
well-populated and good traffic proV1d-
ing regions of Canada
The situation, it was felt, was more
than the country would stand, ana
though ministers vapored in parliament
about the road being splendid ma
tional asset. the testimony of its own
records that it was sinkhole for the
peoples money was too strong, and the
force of public opinion compelled an
effort to secure better things.
Here is the result for nine months
from July 1, 1906, to March 81, 1907:
Gross revenue, Sc, PAS, 311; expenditure,
Sc, 030, III, and net revenue S218,140.
This is good by comparison only, and
only by comparison with the Inter
colonial itself in the past.
The road is LAS miles in length. Its
capital cost to March 81 last is given as
$50, IA, 1897. The return to the treasury
a q / cent
construction cost.
The construction cost is constantly
increasing also. The expenditures on
capital account-that is, out of the ma
year of 190405 were So, 765,170 in 1906
06 and 81, SOC, 209 in 1906-07. There is no
other country with SO valuable pro-
perty showing such miserable results
The other government owned and op-
Grated railway is that on Prince Ed
ward Island. 1t never has been treated
as a business enterprise, and in all
probability never will be.
The road is 261 miles long, and,
though of narrow gauge. has cost ST.
307. 299, or $28, 900 a mile. 1t earned
during the nine months s215.434, While
the working expenses were $2S3, las.
There was paid out of the national
treasury to keep the road running over
and above the revenue a sum of $751;
713. Another sum of $91, 10, included in
the capital cost, was expended to pro-
NlClG lt1ClIllSS Luz Tic IdlllC
that did not pay. This, also, is in
keeping with the railways record. 1t
is useless to object to it. 1t simply has
to be endured.
There are those who think that the
Intercolonial should be extended west
ward, first to the Georgian Bay, then
to the Pacific coast. The road now
runs from Montreal, the chief traffic
point in Canada, through a noncom
petitive territory, second only in traffic
producing power to the Grand Trunk
between Montreal and Sarnia. Before
they can expect the people to agree to
such a proposition, the capacity of gov
eminent appointees. acting for the gov
eminent, to manage a business enter |
prise as such, must be established. |