New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-22
Canadian Roads
To Benefit From
Loan To Allies
Dominion Will Be in Better Po-
sition to Finance Trans
portation Needs
n - nos, ,,--.y-n
By S. ROY WEAVER
Toronto. A m-iL 90.

Toronto, April 90.
Participation Of the United States in
the war and the readiness Of the Re-
public to extend generous credits to
the Allied countries may simplify the
solution of Canada's railway problem.
Heretofore, whatever loans this coun-
try has hoated in the United States
have been of a general purpose char
acter, while in the case of each of the
three domestic issues il has been adj
vertised that the proceeds would be
used for war purposes only. This ar
rangement is now likely to be reversed,
and the greater facilities afforded to
Canada to finance its war needs south of
the international boundary may leave
Canadian money free for other national
projects of an urgent nature. Among
the latter is the solution of a most
difficult railway situation.
The findings of the commission ap-
pointed early last fall to investigate
the problem are now ready, and, al
though ii is rumored that A. II. Smith,
president of the New York Central
lines and chairman of the commission,
does not indorse the proposals Of Sir
Henry Drayton, president of the Do
minion Railway Board, and W. N. Ack-
worth, the English financial expert,
there is, apparently, a good basis for
the belief that Mr.. Smiths colleagues
favor some form of naturalization of
the Grand Trunk, Grand Trunk Pacific
and Canadian Northern lines. 1t is un-
derstood that the commission has made
two reports, which are already in the
hands of the government awaiting con-
sideration. Meanwhile, the prospect Of
early discussion of the question in Par
lament is responsible for a great crop
of solutions" of which a few include
interesting suggestions.
Time for Permanent Solution
The absence in England of Sir Robert
Borden, Prime Minister of Canada, in
connection with the Imperial War Con-
ference, have delayed consideration of
the reports by the government, but
there is still likelihood of legislation
during the session of the Canadian
Parliament which reassembled yester-
day. The Minister of Finance has
gone on record unambiguously against
any further aid, in the form Of loans
or guarantees. to the Canadian North
ern and Grand Trunk Pacific railways,
and has declared that "the time has
arrived when it has become impera-
lively necessary that permanent So
luton should be found for the existing
railway situation" This is still the at
titude of the government, and it is rea-
sonably certain that the latter will an
nounce its policy this session. Unless
an election is forced, that policy is
likely to be supplemented by legislation
before the House adjourns.
While some measure of nationalist
ton is expected, there are powerful
interests to be conciliated and perplex-
ing difficulties to be dealt with. The
government would probably insist upon
occurring the old Grand Trunk Rail-
way as a condition of taking over the
Grand Trunk Pacific Railway, which has
admitted that it cannot continue IN
operation on its own resources. Inc
Canadian Pacific Railway is opposed
TO naturalization of the weaker roads
unless its own land transportation sys-
tenn be appropriated also. because it OBJ
iects to operating in competition with
a government owned rival. Sir Thomas
TAFT, who was at one time closely iden-
tilted with the management Of the {.
P R., hes made the interesting sugges-
ton that the government should lease
the C. P. R. and G. 7. r. on an agreed
dividend and interest basis and coordi-
nate all the railway lines Of the Domin-
ion in a national system under non
partisan business administration. There
are formidable objections. however. to
any such deal on terms which would
be acceptable to the c. p. K. share
holders. Whatever solution may be
decided upon by the government VIII
protect the credit of Canada, and If the
G. T. r. and the c. \. r. are TO be
taken over by the state this Will be
done without first allowing the roads
70 pass into bankruptcy.
Naturalization Possible
ACQUISITION on valuation and no.
on a liquidation basis of the Grand
Trunk Pacific and Canadian Northern
railways. and perhaps also the taking
over of the old Grand Trunk Railway,
would necessarily entail a very great
addition to national obligations already
more than doubled by the war. Three
years ago il would have been thought
an impossible task for Canada to raise
at home enough money 10 finance sucf
a project. To-day. despite war condi-
tions and Canada's part in the strug-
gle. naturalization of two transeonti-
mental railway systems Is not only ad-
mitted to be a possibility but IS actually
being considered. Such is the extent
10 which war experience has inspired
confidence IN this country's powers and
robbed great financial transsetions OF
- .katr taxror for Canadian legs