Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-10-26
KING MAY BE SUBJECT
TO RAIL LAWS OF u. S.
Canadian Government as Owner of Grand
Trunk Would Have Control of Branch :
Lines in This Country.
BY ARTHUR r.. FORD.

BY ARTHUR r.. FORD.
Correspondence of The Star.
OTTAWA. Canada, October 23.-Is
King George v, ruler Of the British
empire. likely to become subject to
American law? A French-Canadian
member Of the Canadian, house OF
commons thinks he is. and is some-
what troubled over the complications
which may ensue.
This difficulty was suggested dur
ing the discussion Of the very COM
plicated Canadian railway situation.
which has had further perplexitfes
added to it through the fact that. by
a measure now before the Canadian
parliament. 1t is proposed that the
government shall acquire the Grand
Trunk railway, which has a mileage
in the United States Of 1868 miles
and extends from Portland. Me-. to
Chicago, with numerous branches
owned or controlled by the Grand
Trunk Railway Company.
The difficulty suggested Is at ieas.
Interesting, although it may be said
not anticipate any international com.
plications as result of 1t. The most
of the objections taken TO tne az
quiring of the Grand Trunk oy the
government have come from .ue
province of Quebec, where the ousl-
ness and financial interests are OPP
posing the extension of the principe
of government ownership. and many
of the French-Canadian members iaIo
great stress upon this question OF
ID nY
States government to the American
interests in what was formerly prl-
yate company being turned over 10
the ownership and control OF ior-
eign government, however friendly.
Arguments Presented.
Those Canadian members Of pariia-
ment who have criticised the proceeding
claim that it would he an unprecedented
thing If the United States or any otner
government should allow a foreign gov
eminent to own railway systems on It's
territory.
The reply of the minister who was
steering the bill through parliament did
not meet the difficulty squarely he
contended that Canada was merely
100 per cent stockholder in a system
which owns and operates railroads IN
the United States: that there were al
ready similar instances existing. potn
United States and American railroads
in Canada: and he cited the instances OF
the Canadian Northern railway (now
owned by the Canadian government,
which owns the Duluth and western.
wholly in American territory. and
connecting link Of the Canadian North
ern main line between Winnipeg ana
Port Arthur.
On the other hand. he pointed out
that the United States government was
he
New York Central. the Michigan Cen
trail, and the Great Northern. all run
ming in Canadian territory. Here ne
made a distinction between owning
and operating" which his critics were
Quick to observe. In the cases cited the
roads are not owned by the American
government. but merely operated, ana
| that only temporarily.
Iye admitted that the Canadian gov
ernnsent had not taken any steps to
| ascertain what the action of the United
| states government would be II Canada
| should become the owner OF these lines
on American territory, or whether the
United States would allow the American
connections and property at Portiana
and elsewhere Of the Grand Trunk or
Canadian Northern to revert to their
| ougefrs, if those owners should prove TO
| b1he Canadian government-king
Ged9He v. in theory-at the time wnen
| conSTIl is relaxed by the United States
government. He thought. however. that
! 1.-THE United States government would
| be just as honest in dealing with com
pany whose stock is owned by the DO
minion government as with any other
| company" The matter was left thus:
Hon Mr. Fielding (the former minister
Of finance, who negotiated the recipr1c-
| ity arrangement of 1911 with the United
States government observing that II
the United States had any OBJECTION; ne
did not think the device OF stockhoiding
would satisfy them
Largest in North America.
When the Grand Trunk is taken
over, the Canadian government Will
become the owner of the largest rail-
way system in North America, or In
the world. 1t comprises 2o.632 miles
over two thousand miles of which are
in the United States. 1t extends
across the continent from the Atlantic
to the Pacific, with numberless side
lines and branches running north,
south, east and west. 1t will have
ships on the seas. and elevators and
other trade hoppers for its transpor-
tation system on the land. At the
same time, it is constructing mer-
camille marine. government owned
and operated. of indefinite proper
lions. fifty-four ships of which al
ready are built or under construction.
Ac financial proposition the
Grand Trunk PaC1nc railway ana It's
parent company. the Grand Trunk.
now being acquired, do not look par
ticularly attractive to many Ca
nadians. Their total securities with
the public now amount to nearly
seven hundred and eight million dol
lars. In many parts of the west the
roads. constructed during the long
era of competitive railroad building
in Canada, parallel each other for
long distances. Some of this track
has already been lifted by the govern
ment. having been sent to Europe
during the war; and IL it would pay
to do SO, more might be removed
without loss to the combined systems.
There are long stretches of the Grand
Trunk Pacific in the west where
there is practically no revenue. The
loss on the system last year was
about ten million dollars.
Reasons for Acquiring Road.
Under such circumstances and with
one transcontinental already on its
hands, it might seem surprising that
Canada would desire to load up any
further. There were two reasons for
acquiring the Grand Trunk railway.
One was the desire to make effective
the western lines owned by the gov
eminent by giving them good eastern
connections. such as they will I'M
doubtedly receive when they acquire
the Grand Trunk. The other was the
fact that when the Grand Trunk Pa
cific was placed in a receivership by
the Dominion p0yernmepf bayiv-