The report for the year 1922, the policies for which were laid down under the first President’s chairmanship, was written by another hand. Six months after the old administration ceased, this is what was reported to the Minister of Railways and the Governor-General-in-Council:-- “On behalf of the Board, I would like to state that after inspection of the main arteries of the system, we find that the work undertaken has been well performed, and that the expenditures have been well applied. While the demands for capital expenditure on a system of such extent in a growing country, as the former Board stated, are never-ending, yet it may now be said that the three groups of lines, until recently the Canadian National Railways, enter the consolidation in excellent physical condition and operating at a high mark of efficiency as regards actual performance, or movement of traffic, and other factors controllable by management. Apart from certain well-known cases of duplication, the lines are well located and in exceptional position to successfully perform the transportation demands of the country. The problem, as far as the lines covered by this report is concerned, is how sufficient traffic may be developed to carry the overhead and maintenance expenses. As far as transportation costs go, an economical performance is being made. Under these circumstances the margin for improvement, with the present light volume of traffic, is largely dependent on circumstances beyond the control of the management. “On some of the older sections there are still improvements that should be undertaken, but in the main the lines are modern in character, and were built or have been brought up to standards which are ahead of actual traffic requirements, except under stress of seasonal movements.” Finally, touching these early years of nationalization, one may be allowed to indicate the footing on which we parted from our working associates by repeating two paragraphs from the President’s farewell circular: “It has been our constant aim to keep the National system free from anything that could be used to support a charge that the Government’s railway, steamship, express and telegraph services, were being used for political purposes. I can only say for myself and those directors who retire with me that nothing in the nature of political interference would have been tolerated while we were in charge. It is a necessary policy if efficient administration is to be obtained.