The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-14
GOVERNMENT OWNERSHIP
OF RAILROADS IN CANADA.


. SIoTttSt EtOUu 10 ftDneSV 'fON-
eminent Ia by Way OF Public Owner
ship" In the hope Of correcting some
wrong impressions that might be gath
cred therefrom?
From the tenor Of this editorial article
VI is impossible not to conclude that
Government ownership and operation Of
railroads In Canada Is a pronounced
success. Since this Ia moi true II seems
hitting hat the facts about this situa-
ton should be stated.
The Canadian Government has oper-
ated the lntercolonial for forty-seven
years and the Prince Edward Island
Railway for forty-three years. 1t has
built and Ia now operating the National
Transcontinental. The aggregate mile
J x or these Government roads is $500.
| Not n Of these systems earned its
ended June 30. 1916. The combined
operating deficit was s350.000.
; For twenty-five years the expenses Of
the 1n~tercolonial exceeded its earnings,
the aggregate operating deficit being
$11.500,0 Oo. For twenty-five years it's
earnings were greater than It's expenses.
' the gain being 1861 900. The net def
cit from operation for the whole period
OF forty-seven years II therefore So
500. 900.
During every one Of the forty-three
years OF Its operation by the Govern
ment the Prince Edward Islands operat-
ing expenses exceeded It's earnings. re-
sulting in a total operating deficit Of
s32so,00o. Together with the net loss on
the lntcrcolonial, the deficit Of the two
Government roads Is st2. 500. 00o.
In 1914 both roads lost sii5.O the
joint difference be,wcen operating ex-
penses and earnings and. as previously
stated. these roads showed expenses
heavier than earnings for the fiscal year
cf 1918.
with such lossee confronting the tax
payers Of Canada. 1t IL pertinent 10
mention that these Government railroads
do not pay taxes. Last year Canada's
privately owned railroads paid tho pub
lie in taxes S3.ot972s
Apropos of honesty under Govern
ment railroad ownership and operation.
the building of Canada's latest acquis!-
ton. the National Transcontincntal Rail-
way. has led to n scandal. The COS, nj
this road was estimated originally at
s3ioS3 n mile Il has actually COS, sa?.-
n00 = mile
In 1914 a Government commission on
this operation said that there had been
gross m~isinauageWent. extravaganc and
waste I'm connection herewith running
INTO many millions Of dollars. and the
Grand Trunk Pacific. because OF the
Enormous expense ~ This line. declined
20 lease and operate 1t a, n rental ~ 2
per cent. OF its cost.
work on tho National T-ranscortiren-
al Was directed and supervised ny four
GoNcruueut commissioners The com-
mission subsequently, appointed to in
vcstigate the whole transaction reported
Vat $4,000 GOO was necdlessly wasted. 60
and that the cost ~ the National Trans
continental for principal and interest up
10 1921 will amount to s224.S5l. 25l.
speaking OF the work Of the Govern
ments commissioners who directed tho
roads construction, this investigating
commission saws:
Having decided upon n deslgn the rom
mission proceeded 20 md a country to a.
IN" design. u may seem Incredible. bat
2 10 the fac' thai T. was assumed that
the road would at once receive the maxi
mum business 4; was possible to earn with
a single track. That there was an entire
AK - business along :hs No a-.s r..
seem "a hav" occurred to them .
and IN our opinion me interss, payable to
the Government ana the operating az
peusos taken together viii be shou, the
same as the dividends. Interest charges ami
operating expenses ~ the competing roads
privately owned railroads.. which are only
capitalized ~ from ore-.h'rd - onc-hali
a. much n mile as IL N. National Trans.
continental.
Continuing the report says nat con-
tracts were not let to the lowest bidders
that contractors were oNerpaid $500. GOA
on improper cl~assifcations that certain
contractors we're paid two prices for
on" handling 81 material that tho chair
man ~ the commission paid one man
$3.50 on a pretended damage claim for
election activity that money was spent
improperly or unnecessary fences. on
unsuitable rails. on the building Of un-
authorized shops. and Of double track IN
violation nf the statue. which called for
single track.
The report further condemned tho pre-
mature construction Of the New Rruns-
wick section Of the railway. pointing out
that II one-third Of that COS, had been
expended on the Intercolonial all the
trunk line facilities necessary for tn.
province Of New brunswick for many
Years you have been provided
II may interest your readers 10 know
that the Montreal Gn-cttc once cons
m,n,ed upon these roads thus;
There are no, IN Nor,h America any
hing like the records the government
made last year in connection with tho IN.
,erco'nn,nl and Prime. Edward rsi'rf ra'-
-avs These records we're made. TOO af'e'
m. properties had been Tor eisht years
under control Of the present Ministers and
after tens of millions had been spent In
improving and strengthening the roads fNi
carving franc AZ a loss. II does not -eew
that Incompetence alone, even Of the worst
kind, can account for such a shameful ant
,hreaten!nglv ruinous state ~ snatrs
IN view Of these established and In
dispuiahle records. The people In THEN
organized capacity. through thelr GOV
ernment" Co quote the AmcricGn's oNr
vordsl do not seem TO have surpassed
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