Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-07-14
cd the. Grand Trunk railway OF the
east With the western provinces and
made It . transcontinental system.

have been made from time to time tt
her national system of railroads evil
dence OF Canada's progressiveness
Al 4 matter of fact, the Canadian gov
eminent has become a large owner
of railroads, not because OF any spe-
cial leanings in the direction Of pub.
lie ownership. but through considera-
lions Of political ~expediency and eco.
nomic necessity.
When the Dominion government
first went into the railroad business
! Canada consisted of Ontario, Quebec
and the maritime provinces. The west
ern territory was ~undeveloped and
practically unknown. Ontario and
Quebec had no direct railway connec-
ton with the other provinces, and
the building Of a connecting line was
not attractive to private capital. There
was no prospect that such a road
would pay for many years. Chiefly
as a means Of influencing opinion in
the east in favor Of the confederation
the government undertook the build
ing Of the Intercolonial. This had the
desired political effect. but the road
was operated for many years at q
loss.
Then came the Incorporation OF
Manitoba and British Columbia into
the Dominion and the demand from
them for connection with the east,
There was the great stretch Of ster-
lie and forbidding country north OF
Lake Superior, the vast expanse of
western plain, whose possibilities were
unknown. and the great mountain
ranges OF the west, with construction
cost enormous and local revenue pos
sibilities absolutely nil. AS a straight
investment such a project would have
brought to bankruptcy anyone who
had undertaken it. But it was felt
that the road must be built, just as,
In an earlier day, it was felt tina the
Union Pacific must be built to bring
California into communication with
the country east of the Mississippi.
The Canadian government, like the
American, adopted the only course
that seemed possible and subsidized
the building Of the Canadian Pacific
With large grants of land and cas-, hi
There were scandals which shook the
country and ousted one administration,
but the road was built. :.
With the development of the west
came the demand for competitive lines,
and the Canadian Northern was built.
also with government assistance, to
fail later as a private enterprise and
to pass into the hands of the govern
ment as chief creditor. Similarly. but
ON a more ambitious scale, the Grand
Trunk Pacific was constructed, to be-
come absorbed by the government as
the result of default.
With the exception of that portion
which lies in the densely inhabited
and wealthy sections Of the east, no
part of Canada's railway system couk1
have stood for a moment on its own
feet as an independent business enter
prise. The Tntercolonfal was a nolit-
ica1 railroad. The Canadian Pacific
has made money out Of it's hand grant
The roads were under govern
ment tutelage and government guar
antee from the first and it has been
necessary for the government to take
them over.
1t does mo- follow that the e
has acted unwisely. II a Cana
dian nation was to b established
means of communication must he
provided. Whether or not the roads
paid expenses for a long term of Years
was a secondary matter. But ~nr,vate
individuals coule not be expected to
donate fortunes in order to maintain
political union between British Co.
lumbia and Nova Scotia. II hat were
to be lone it was the function ~
government to do it, or to enable
others to do 1t.
But IN the development of the
scheme the Canadian government is
oaded up with an immense business
enterprise which will be administered
by politicians. The outlook is not a
cheerful one. Canada would have
been immensely better off if her peo-
pie and her government could have
FACED the issue frankly and squarely.
mad undertaken to pay at the outset
and from year to year the proportion
OF construction, maintenance and
operating expenses of the
railroads due to political requirements,
and a left the strictly business ele-
ments of the situation to be directed
M administered by competent private
management. realizing financial re-
turns properly based on actual outlay
OF money and exercise of ability.