Canada and NewfoundlandCarpenter, Frank G. (Frank George)
History
Canada and Newfoundland
Carpenter, Frank G. (Frank George)
Canada -- Description and travel; Newfoundland and Labrador -- Description and travel
It was in 1914 that these railroad chickens came home to Ottawa to
roost, and the end of the World War found the government up to its neck
in the transportation business. This did not come about by anybody’s
choosing, but through the working of forces set in motion years ago.
The Dominion government was first led into running railroads by its
bargain with the Maritime Provinces. Out of this came government
operation of the Intercolonial Railways serving the eastern provinces
and joining them to the St. Lawrence basin. This system never earned
any profits. The government built the National Transcontinental from
Quebec to Winnipeg on the understanding that the Grand Trunk would
lease it for fifty years. When it was finished, the corporation
begged off, and the government was compelled to operate the line. In
1914, the owners of the Canadian Northern announced that unless they
received sixty million dollars at once they would have to suspend. They
got the money. Two years later it was the Grand Trunk Pacific that
appealed to Ottawa for financial aid. Sustaining these railroads was
such a drain on the public treasury that finally the government assumed
responsibility for all their obligations and absolute control of the
properties. It then began to weld them into the single system now known
as the Canadian National Railways.
For years the Canadian Pacific Railway has paid dividends regularly.
The lines making up the Canadian National have, for the most part,
never paid anything, and they were unloaded upon the government
because they were regarded more as liabilities than as assets. As the
largest taxpayer in Canada, the Canadian Pacific Railway Company must
contribute indirectly to the support of its competitor, unless the
government lines are able to earn their own way.
After the war, one year’s deficit on the government lines was
sixty-seven million dollars. In railroad subsidies, Canada has paid
out nearly three hundred million dollars. Bonds and other railroad
obligations to the total of four hundred and fifty-five millions have
been guaranteed, while four hundred and seventy millions of public
moneys were spent in building roads for the government. One student of
Canada’s railroad policy tells me that the national treasury would now
be four hundred millions to the good if the government had given the
National Transcontinental, the Canadian Northern, and the Grand Trunk
Pacific to some corporation, and had thrown in a cash bonus of two
hundred millions besides.
Public-domain text, read in full here on John Shaqi.
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