Evening journal., 1921-04-15
FRIDAY, APRIL IS, 1921
HUGE DEFICIT OF CANADIAN GOVERNMENT RAIL
WAYS

rgN4E Railway Age publishes in its current issue an ar
Il uce by J. L. Payne, formerly Controller OF Stats
tics OF he Department OF Railways and Canals OF Canada
which shows that with the advances in wages and
rates in Canada have been made in the United States
not single OF the railways composing the system
owned by the Canadian government earned its operating
expenses last year and that the government system has
deficit per capita which, applied the popula
ton of the United States would be equivalent to over
si.sooO0oooO year.
Nir Paynes aricle7 says the Railway sge "discloses
situation which should be very interesting and extremely
instructive 70 the people OF the United States at the pres
ent time
Ovins the excessive operating expenses and the un
precedenied decline OF freight business the railways OF
the United States have been doing very badly financially
he present freight and passenger rates fixed
Many persons have persuaded themselves and trying
persuade Others at the only solution OF the problem
presented is 70 return railways 10 government control
In Canada 52 per OF the railway mileage owned
and operated by the and ne other IS per
which made Op almost entirely OF the mileage OF the
Canadian Pacic, is privately owned The advances
Wages and Of have made Canada
as IN the United States
The Canadian railways fortunately have not had ap-
piled then he National Agreements win the labor
hat In effect his country Under these
duons a Mr. Payne shows not single railway Of the
system and operated BY the Dominion Government
earned It's operating expenses Their expenses from
zoe cents 70 40 cents for every dollar they earned
While the Minister OF Railways has conceded that The
government system had deficit year or over s7O-
10000 Mr. Payne. who formerly Controller OF Stats
tics o. the Department Of Railways and Canals shows that
proper allowance for interest the total the
rzEays would make the dencit siOOOOOO This is Sf75
for Every man child OF the counrys popula-
ton An equally large denc per capita for the railways
the United States would be 81 S375OOOOO It must be-
borne IN mind Also that this deficit incurred by only
bali Of thc railways OF Canada.
An the railways OF Canada have been very adversely az
fcted by the increase in operating costs unaccompanieC
By advances in rates.
The Canadan Pacific however under private operation
succeeded In keeping It's expenses down So
each dollar Of earnings and had earnings OF s33OOO0
The present management OF the Canadian governmen
lines Is not responsible for the bad financial results
They partly due to unfavorable conditions whic
are affecting all the railways OF the United States an
Canada and partly 70 the extremely unwse policy whc
the Canadian government has followed for nifty years
building and operating state railways in disregard
sound business principles.
Certainly. however the comparative results OF
and private operation in Canada suggest anythiu
but the desiraby OF consideration OF return TO govern
mcnt operation in the United States.
What they do very forcIby suggest is the imperau'
need both countries OF government aid to the railway
whether under public private management in bringir
about reasonable relationship between operating cos
on the one hand and earnings on the other hand.