The sun., 1919-09-16
|ERAND TRUNK DEAL
CANADA'SPROBLE
purchase or Lease Of Road Is
10 Be Parliament's Big
Domestic Question.
REGULATIONS PROCEED
aovornment Anxious to Make
Terms Which Will Meet
Public Approval.

o-r.wA. Sept. 13.-The largest CANA
aomestic question that will come
this session Of Parliament prom
-. 70 be the deal to consummate and
s.o the purchase or long term lease
AZ. Grand Trunk Railway Negotia-
ara proceeding and progress is be-
made. but heavy interests are at
',, on one side and on the other the
..,r,ent is DESTROYS of not only ac-
v.,., that very desirable and valuable
e u.~s, hut also to make terms which
pI ~, IN approval of the public, which
WV 10 appreciate the meaning OF
nnNIIc opInion in Canada Is some
a.. hozv on the subject of Govern
w. ownership. In ontario the power
ne mont enterprises led the Provincial
s.s-sr,art and some municipalities
w. than they first intended to go.
W. Inc initiative is assumed 1t Is hard
VIZ" .',vn hack. In the western provinces
a. -nnriclpalities were disposed to favor
WI. ownership, but II is doubtful II
- "a ANYTHING like as much support
ths idea as there was. The testing
Avs a, operating and payment OF over
s.sd charges have arrived.
Tss nolIcy of the Federal Government
scauiring the Canadian Northern
n.uwav system and the organization oil
y. canadian National Railways into
.r.,sr, under one corporation lends sup
~, N the general notion that this Gov
r.,rmsnt Is in favor of the principle OF
government ownership. At no time has
~ Robert Borden given support to the
,rrcinle He adopted 1t for reasons oil
ooutlcal expediency, as to protect the
sopntry that was under heavy liability
nm the insolvent Canadian Northern
galway seemed best. In taking over
nat property the Federal Government
rsnt 10 the rescue of the several provln-
eal governments which were guarantors
for the road.
The Government system OF railways
oomprising nearly $4,000 miles, is being
operated at heavy annual loss Inc
deficit for 1919 Il estimated at sS,Ooo'-
OOO and that takes no account OF tht
interest charges on the transcontinenta
and intercolonial lines between Winni'
neg and Halifax, which were built ano
maid for with Government money. Al
considered, therefore, the total deficit or
,he Canadian national system this yeai
will not be far short of $50.0O0,OoO. II
Il under those circumstances that ths
Government wants to acquire the GRAND
Trunk to round off its system and be II
a position to make better showing with
coeration. The Prime Minister Is desir'
Gus OF giving the plan OF operation
under a corporation fair trial. II Il
fails, which is possible, the next big
railway deal will be with company
that will assume financial responsibility
for the property and its operation.
q. t. Has 1885 Miles of Track.
The Grand Trunk system. exclusive
Of the Grand Trunk Pacific. has a mile
age Of about 1885 miles, OF which j 3O'
are In the United States. The estimate
value Of the property is approximate!
$3.50 900 900. Whether the Government
wants to acquire the line from Rich
mond, Quebec, to Portland. Me-, is no
stated. That line is essential to the hes
results, but the Government is not S
free to operate across the border as
private corporation. In one year of tn
AATar the Grand Trunk handled 5000,
O0o bushels Of grain through the Port
land terminals and It Is to the credit o
the operating executive that no ship eve
collected demurrage from the Gram
Trunk at Portland. The highest flgur
Of grain handled in pre-war years a
Portland was 100000 bushels by IL
Grand Trunk.
Growth in traffic and increased 70
turns in the past decade max the &c
ord Of the company. The annual gros
traffic returns of $35, 100000 for tn
enure system ten years ago have grow
10 double that sum for the Canadian
lines alone and its mileage is 1900 less
The gross traffic returns of the Gran,
Trunk in Canada in 1918 reached SCI,
$4,000 For the system in 1914 1t wa
seZOO0OOO and in 1915 $62,000,0 00
Traffic returns so far this year indicat
receipts Of $7OO0O,600 for Canada
One feature of the Grand Trunk tina
makes It desirable from the c. ". r
viewpoint is that the main lines from
montreal to Chicago. Toronto to Mort
bay, and Detroit to NIAGARA Falls VII
london and Hamilton, run through tn
very best parts of Ontario and ar
cong steadily a heavy traffic in freigh
and passengers.
Inc terminals OF the Grand Trunk ar
estimated to be worth $4,000, 900 an
tofh highly desirable part of tn
property for the Canadian Nationa
Wnoh Is lacking in that important re
specl The Grand Trunk was the ear
.sN national railway of Canada, an
Ms property acquired has grown to
valuable just because the towns and citie
Vi Jus area, grown to wealth and impoI
lance have had long advantage of tn
.snWays service. The railway shout
sIare IN the Increased equity of it's ter
mlnas property.
government Began Negotiations
me present negotiations were starte
the Government. There was no r.
sese from nor any advance made b
vac Grand Trunk. The Government al
paehuy wants the property and will ne
t0uale until It gets II. The liability {
Eiahd Trunk for the Grand Trun
avlhc enters into the deal. But ths
ttp,Opefty Is worth more than the liabil
"sS against It, The G. T. p. mileage
.'aOs miles and the estimated valu
s.so'VooOOO. The liabilities are in tn
..seshborhood OF 100000, 900. for whic
ne Sle Governments, Federal and provir
"a, are liable to almost half. tt
,.,hu trunk Pacific project was undel
Isos oy the Laurier Government
tIr' along with the National TranscoI
S "ellaL In taking over the q. It. p. II
sO'eInment Is simply paying the sht
~ ~, an enterprise Of Its own. For Will
NV. Borden coalition Government wa
s SUs men In Office, IT is the constitution
\ bessor OF that OF 1908. That is II
ma u laet about government ownersh
~ ~ one That the people and advocat,
ci.,a n9 principle do not sufficiently Apr,
r,e e The @. T. p was a Governmer
= Gee chC'ect not a private enterprise, and Il
ns, e'Hinent did not protect its inves
W, out gave charters to the Canada
I,hern Railway to build third tran
oos,i,.'al' which was a serious ar
omnder Of all concerned.
An me negotiations carried on at Loi