New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-11-06
A Situation for Craftsmanship

A Situation for Craftsmanship
The present situation undoubtedly is
one demanding real craftsmanship Tor
its successful handling. In submit
ting the thirty-ffth annual report OF
the Canadian Pacific Railway Company
to the shareholders on October Lord
Shaughnessy. the president, said:
"The progress and prosperity OF your
company during the last few years
tempted other railway companies TO
enter the field, and they received en-
enlargement and support from the Do
minion and provincial governments IN
the shape of cash bonuses and guaran-
teed securities, with the result that
hundreds Of millions of dollars were in
vested in railway lines throughout
Canada, many of them in territory al
ready served by your railway years be-
fore they were required or could De
mazda self-sustaining. 1t has been
necessary for the government on more
than one occasion to come to the AID OF
these companies by advancing large
amounts of money to prevent hquida-
ton and collapse. AS a consequence, a
situation fraught with anxiety and
come apprehension has developed"
This statement sets down the facts IN
a fairly accurate manner. OF the three
transcontinental railways of Canada
only the Canadian Pacific Railway is
able to meet fixed charges from net
earnings. The Canadian Northern Rail-
way has come to be considered as al
most a chronic suppliant for govern
ment assistance, while the Grand Trunk
Pacific Railway has refused to take
over the National Transcontinental,
from Moncton, N. B., to Winnipeg. as
It had agreed to do, justifying such re-
fusal on the ground that the excessive
cost of the government section made
impossible successful operation by any
private company.
Canada's railway mileage has out
stripped In it's growth the population
Of the country. In 1915 no less than
1852 miles of railway were in opera
ton in the Dominion. serving a popula-
ton Of not quite 100000. From 1891
to 1901 railway mileage increased from
1888 to 1910, or by 3l.1 per cent.
The population increase during the
same period was only Ill per cent. In
the next decade railway mileage in
creased 40 per cent and population BAL
per cent. From 1911 to 1915 there was
a further addition of 401 per cent to
railway mileage, while population did
not increase in the same proportion.
Had Csnada's population grown at the
same rate as its railway mileage since
1891 the Dominion to-day would con-
tain nearly l2,500,O00 people
Heavy Construction Costs
When the Laurier government at Of
tawa decided to support the construc-
ton Of new transcontinental railway
to compete with the Canadian Pacific
and open up new territory, the Grand
Trunk and the Canadian Northern COM
panies were brought into direct contest,
as both aspired to cross the continent.
without generous support from the
federal treasury neither line could have
been built. Attempts were made TO
effect a satisfactory solution by pur-
chase of the Canadian Northern system
by the Grand Trunk interests, but
terms could not be arranged, and rather
than antagonize either group of pro-
motors and capitalists, the govern
ment supported both. Public aid in the
form Of federal and provincial bond
guarantees, cash subsidies and land
grants financed a large part Of both
enterprises. The expenditure on the
Grand Trunk Pacific, which was sup
ported by bond guarantee of 70 per
cent Of the cost and money subsidies
of s20,O00,O0o. was very heavy. From
Edmonton TO Prince Rupert thu actual