The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-19
Complete Government system.

With the agreement completed and the
Grand Trunk Pacific in Government
hands Canada will have a complete State
owred railway system from Moncton,
y. b.. to Vancouver. Il. C.. and In time
this State owned system will he linked
up with the Governments Hudson Bay
line, which Is to run from lie Pas, Man,
to Port Nelson, on Hudson Bay. The
other Government road. the Interco,o-
NAL, from Montreal TO Halifax, VIII re-
ceive the Canadian Northern east and
west bound freight and passengers east
Of Montreal. This is a part OF the 1914
agreement with the Canadian Northern
company. That railway system has just
completed its transcontlnental line from
Montreal to Vancouver also success
fully foated an Sl1l5OO.O 600 loan in
New York, which has in a large measure
restored the confidence OF investors and
saved the system from bankruptcy or the
fate o. the National Transcontlnental
and Grand Trunk Pacific.
In April, 1914, the Canadian Northern
appealed To the Federal Government for
ssSist1ltce to complete the system, At
mat time the firm npOs OF Sir Will
lam Mackenzie and Sir Donald Mann
were sole owners of the dlsConr ected
lines In every province OF Canada. en-
cept New brunswick and Prince Edward
Island, popularity known as the Canadian
Northern, although'd!stinct railway COR
ppratiOHs.
The Government insisted that before
further aid he gran-ed--the COMPANY
had already received millions from the
treasury coi sOlidation of all the
Mackenzie and Mann interests be ac-
COmpllshed. This was done by creating
the Canadian Northern Railway system
OF which all the subsidiary companies
became n part. In lieu OF a hond guar.
antee of $40, 600 600 the Government took
40 per cent. Of the stock OF the system,
which was capitalized at 800, 600, 0OO,
and added a forfeiture clause that In the
event of Mackenzie and Mann failing TO
carry GU their part OF the agreement all
the stock reverted 10 the Government.
The arrangement met with general
approval n "A bad situation was saved
Three months after the completion OF
the transaction came he war ana with
II a period of stress for all Canadian rail
ways, Despite adverse conditions Mac
kenzie and Mann have hquidated all their
obligatbJns. reduced floating Indebtedness
and completed their main line across tht
contlncnt-achievements which came as
n relief to the Government, which saw
the possibility OF having this o a thrown
upon its hands along with the Grand
Trunk Pacific.
investors projected.
1t Is understood that Sir Robert
Borden assured British investors that
come what might the Dominion Govern
ment would see bhat their interests Were
looked after, the i-verumeut holding the
view that the credit OF the dominion is
at stake and hat any policy resulting IN
a blow for the London investor would
seriously affect Canada's borrowing
power IN the future, And with a better
understanding on the part OF British
fnanciers of the real situation there Il
more confidence in the future OF Can
adam railways generally,
1t is believed that the depression II
stock value of the Canadian Pacific Ia
over, Canadians, during the kw leye
of the Canadian Pacific Railroad stock
showed their confidence by buying thi'
stock as AN Investment whenever none
was available, In Canada people regar,
the Canadian Pacific as a solid nationa
institution, limos in the same light a.
they regard the Government
In January, 1914, there were 2,5Oj
Canadian stockholders In August. 1915
5,l3S. SIR Thomas Shaughnessy recent,
made an interesting statement on N,
stock lolders In this company. lie sal,
that the total number was i0,46s. Brit