New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-27
Canadian Railroads
May Be Merged and
Run by Government
Parliament Committee Recon-
mends Dominion Ownership
as War Measure

The majority and minority reports
or the commissioners appointed by the
Government to investigate the Cana
dian railway situation were presented
to Parliament to-day, says the Mon
treal correspondent of "The London
Post" The majority report, which is
signed by Sir Henry Drayton, chair
man of the Board of Railway Com
missioners, and Mr.. Acworth, the
financial member of the commission,
recommended that the Grand Trunk,
Grand Trunk Pacific and Canadian
Northern lines be merged with the
government railways and formed into
single national transcontinental
system, owned by the state and man.
aged by board representing the peo-
pie. The board places total aid given
and investments in railways By the
country at fl93,600,00O. The Grand
Trunk Railway Company is found to
be liable as guarantor for Grand Trunk
Pacific issues and loans amounting to
100000 in addition to having adj
vanced s5,200000 to the same under
taking. The grounds advanced by the
Grand Trunk Railway some time ago
for the naturalization of the Grand
Trunk Pacific line are rejected. The
commissioners find the Grand Trunk
Railway requires over f10,200,000 to
meet the requirements of its own bust
ness. and states that this condition
would not have arisen had the board
been in Canada.
Regarding the Canadian Northern
Company, the report finds that the
working Of the system during the year
ended last June resulted in a deficit
of fl.0000 900. The shareholders in the
company have no equity on the ground
either of cash put in or physical re-
construction or saleablc value as go
ing concern. OF e74.OO0,00 put into
the undertaking. f59.600,000 has been
provided by public credit or subsidy.
These roads, linked with the Nation
al Transcontinental and Intercolonial.
constitute the worlds largest system
except that OF Germany. The ANAL
gamation would obviate an enormous
waste in duplication il the western
lines are completed independently. and
will ultimately produce favorable
financial results. The commissioners
suggest the working of the system by
five trustees, consisting Of three rail-
way experts, one representative Of the
employees and one business man, ex-
ercising full control free from any
political interference.
Mr.. Smith, Of the New York Central
Railway, in the minority report, ad-
vises the nursing Of necessitous roads
by the government until they become
self-supporting, which he believes will
be the case in the near future. He
finds that a serious fault in past gov
eminent policy was the encouraging OF
railway duplication in fields unable to
support one line, and he suggests n
corrective policy even to the extent
Of abandoning useless property. Fur
Their. he advises state control % new
construction. expresses the opinion that
there was insufficient business 70 JUS
tify the outlay on the Grand Trunk
Railway and that the Grand Trunk
line would be made profitable If re-
iieved of its responsibility to the
Grand Trunk Pacific line and states
that the Canadian Northern line is
we'll built. but that its extension to
Eastern Canada was unwi5e.