The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-19
CANADA TO CONTROL
GRAND TRUNK PAC.
Hard Times Will Force DOmin-
ion to Take Over Second
Big Railroad System.
NOT NORTHERN

Sept. 1S.-As a result OF
conferences between Sir Robert Border
and British ~fnanciers while the Cana
Premier was In London the
Dominion railway situation has meas
urably improved. Instead OF the pros
pect OF the Government being saddled
with two transcontlnental lines, and pos
sibly three, there is now a strong PROB
ability that the Canadian Northern sys-
tenn will tide over the period of general
depression and reach a sound financial
basis. The Grand Trunk Pacific, how
ever, Is practically certain to follow the
National Transcontinental unde Gov
ernment control and operation.
Following the return of Sir Robert
Borden n his railway adviser, X. u.
ne-nctt. NJ. p, from England the Hon.
Frank Cochrane. Minister of Railways,
left IN an inspection of the Grand Trunk
Pacific system with T.. J. Chamberlain.
president Of the Grand Trunk Railway,
the parent company of the Grand Trunk
Pacific. Although nothing has been Of
ficially stated, 1t Is understood from
authentic sources that the o a is TO De
taken over by the Government. An
nounceinent to this effect Ii expected at
the coming session OF Parliament
Government Ownership Welcomed.
There is little doubt that the Grand
Trunk Railway woulds welcome Govern
meut ownership of its subsidiary, as two
railway systems disconnected by a thou
sand miles is regarded by Grand Trunk
officials as an impossible business prop
-L.4 ~ ,,Ata,t .Ntar nn4iAAHnfin
by the Government Is that the Grand
Trunk Pacific he taken over and linked
up with the National Transcontinental
making a Government owned and OPP
Grated system from Vancouver to None"
ton, with an interchange OF traffic ar
rangement between the Government sys-
tenn and the Grand Trunk Railway. This
arrangement would still give the Grand
Trunk entrance into the west. and TO the
Government system. the advantage OF
the Grand Trunks network OF eastern
lines, tapping all the principal freight
and passenger centres. The Grand
Trunk would turn over all its freight
for the west to the Government system
at North Bay and Fort william and re-
ceive western consignments from the
Government system for eastern centres
at the 50 ne points.
The stock OF the Grand Trunk Pacifc
Is s25, zoo. 900. all held by the parent
company. Only $1,000, 900 vas expended
for equipment of the eastern section,
and il will not be an expensive under
taking to secure the stock, Fixed
charges falling due on the bonded in
debtedness of the Grand Trunk Pacific
since June. nearly all guaranteed by
the Grand Trunk, ave been large. II
is common railway and financial knowl-
edge that this liability could not be met
BY the Grand Trunk Pacific but whether
II was paid by the Grand Trunk or the
Dominion Government IL not quite clear
1t Is largely to escape bonded indebted
hess guarantees that makes the Crane
Trunk anxious for Government controI
Of the Grand Trunk Pacific.
When the railway is taken over II vii!
be IA heavy drain on the country fol
years and a greater burden because III,
Dominion Treasury Is already feeling
the effects OF the interest charges and
operation deficits OF the Transcontinenta
Railway, but ownership by the Govern,
ment GEMS the only solution of III,
problem.