The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-08
CANADIAN PACIFIC'S
NET HAS SHRINKAGE
Presidents Report Puts Blame
on Higher Wages and Cost
of Materials.
NEW RATES REDUCE LOSS
Beatty Asserts Country Is in
Serious Need of Additional
Railroad Facilities.
NEW RATES REDUCE LOSS
Special Despufch TO THn Sun.

MONTREAL. May 7.-President E.
w. Beatty, In an address to the share
holders at the annual meeting Of the
Ca madam Pacific Railway In Montreal
TO-DAY stated that the results of the
yer's operations on the whole were sat
isfactory Notwithstanding the shrinkage
n net earnings due to the extraordinary
Increase in wage scales and cost Of ma
terials.
Mr.. Beatty said that more than n
per cent of the total increase In operat-
ing expenses was due to the increases
In wages. The increase in gross earn
ings, he said, was due to the increase in
rates granted in March and July. The
eurplus was satisfactory evidence of the
foresight of the shareholders N having
approved substantial expenditures In
previous years. permitting economy of
operations otherwise impossible, he de-
clared.
The financial showing Of the last three
months of the fiscal year, he said, had
been disappointing, In view of the falling
or of general traffic and the heavy costs
of maintenance and operation due to
high wages and high price of materials.
In order to provide as much employment
as possible no drastic reductions were
made in the number OF men employed,
and the shops were maintained at full
speed. he added.
Need New Contraction.
The financial position of the company
at the end of the fiscal year was on the
whole extremely gratifying to the direc-
tors, who consider that a reasonable
amount Of additional branch line con-
struction should be gone on with when
M ha
statutory authority is obtained In that
connection.
THE country" said Mr.. Beatty, as
faced with condition unprecedented in
the recent history Of Canada The Ma
tional railways and the Canadian Pacific
are the only large companies with re-
sources sufficient to provide additional
railway facilities to any substantial ex-
tent. Serious and continuing blunders
In railway policy have resulted in the
Government being required to assume
the ownership at present Of 11,400 odd
miles OF railway with the prospect of the
acquisition OF an additional 640o miles.
When this acquisition has been accom-
plished the principal competing systems
In Canada will be the Canadian Pacific
and the Canadian National Railways.
Il have no fear OF Government owner
| ship. but Government ownership appar-
emily has some fears OF private compe-
tition under equal conditions.
National Lines Are Favored.
ut has recently been found necessary
to give the national railways privileges
In the matter of construction of rail-
ways not enjoyed by private companies
| and to exempt them from complying in
| other respects with the existing laws re-
| speeding railways. l sincerely trust that
this policy of making one law for the
| national railways and one for the Cana
| dian Pacific and other private enterprises
Will neither be continued nor extended.
| because nothing would In my opinion be
| calculated to destroy confidence in Ca
madam railway enterprise more than a
policy which confers exclusive and De-
| culiar rights on the national RAILWAYS
| destined to make the competitive condi-
lions unequal.
| THE subject OF Government ownership
has received much attention recently,
| but not nearly as much as the impor-
| lance or the subject justifes notwith-
| standing our previous experience and
| that of the United States and Great
Britain. II Government ownership and
| operation of railways is to be attempted
| on large scale the situation Is full of
danger which cannot be avoided or even
minimized except by vigorously indie
pendent and non-political administration,
which is at least difficult to establish
under our system of Government
THE returns from sales OF land dur
/ ing the fiscal year just closed have been
the largest In the history of your COM
pany. AS a direct consequence of the
efforts of the company more than a.
| 100000 acres of land have been sold to
solicitors and more than half million
| settlers induced to come to Canada and
settle in the Canadian West"