Several subdivisions can now carry heavy locomotives for which such power is not available. It is, therefore highly desirable in the interest of economy, that additional freight locomotives be purchased. A few large passenger engines are also badly needed in order to satisfactorily handle heavy through trains on certain sections. Five powerful freight locomotives of special design are essential to handle coal traffic on the Bickerdike branches of the Grand Trunk Pacific. These locomotives would effect very substantial economies, and fully justify the expense involved. PASSENGER CARS:--One of the first and most urgent problems of the National Railways was the securing of sufficient passenger cars to handle returning overseas military forces. One hundred and thirty steel Colonist cars with wood interior finish were ordered for the earliest possible delivery. The shortage of general passenger equipment was also extreme. A considerable number of cars in service at that time were wholly unsuitable on account of age, weakness, and obsolete character. The constant increase in the number of cars required to be handled on long-run passenger trains led us to adopt all-steel equipment for main line services. Very careful consideration was given to design, and the new passenger equipment is fully equal to that of any other line. FREIGHT CARS:--As there was much variation in the freight cars previously ordered by the several lines, each design was carefully considered, and new standards adopted. Heavier locomotives and longer trains imposed such severe stresses upon the older types of wooden cars that many more repairs were required. During the war cars in bad order accumulated. During Government Control in the United States all freight cars were pooled, and equipment repairs greatly neglected. When Canadian cars were returned in great volume last fall and winter a large percentage were in defective condition. Recently about ten per cent. of our freight cars were in bad order, or about twice the normal number. Contracts were placed with Canadian car builders some time ago to make heavy repairs to three thousand cars and the forces in our own shops were augmented. The freight equipment should be in normal condition by September 1st. A serious trouble with freight cars of older designs is the pulling off of wooden draft timbers. Four years ago we began to replace wooden draft timbers with steel members. This greatly reduces the cost of repairs, delays to shipments and trains, and prolongs the life of cars.