The Canadian National lines at the end of 1919 had 1,644 locomotives. At the end of 1921 the total was 1,718. The Grand Trunk Pacific engines at the same periods were 259 and 256. Passenger equipment during the same periods stood at: C.N.R., 1,816 and 1979; G.T.P., 355 and 352. The freight car situation was C.N.R., 1919, 62,576; 1921, 66,591. G.T.P., 1919, 15,232; 1921, 14,908. At the end of 1921, therefore, this Department was responsible for 1,972 locomotives, 2,331 passenger cars and 81,499 freight cars. We also had altogether 4,032 work cars. C.N.R.--G.T.R. CO-ORDINATION:--Following the acquisition through special legislation of the Grand Trunk Railway System on March 8th, 1920, a mixed Committee of Management was appointed by the Government to co-ordinate the two systems to improve service and reduce cost of operation. This Committee consisted of the following: Mr. Howard G. Kelley, President Grand Trunk Ry., Chairman. Mr. Frank Scott, Vice-President Grand Trunk Ry., Finance. Mr. W. D. Robb, Vice-President Grand Trunk Ry., Operating. Mr. C. A. Hayes, Vice-President Canadian National Rys., Traffic. Mr. S. J. Hungerford, Vice-Pres. Canadian National Rys., Operating. A conference of officers of both lines appointed sub-committees to study and report upon various phases of activity, which, if approved by the Committee of Management, were immediately put into effect. Traffic and ticket offices throughout the United States and Canada were consolidated, terminals and stations were used jointly, track connections were constructed to permit of consolidation, freight movements rearranged, interline passenger services established, and tickets and passes interchanged. Express services were also closely co-ordinated. Most of the physical connections and other required facilities have been provided, and authority will be asked to complete the program. Very substantial economies in operation have been secured, and the relative position of the Government-owned lines materially strengthened. The Operating Department consolidations are at the following points: FREIGHT STATIONS:--Toronto, Toronto (Cherry St.), Port Hope, Cobourg, Grafton, Colborne, Brighton, Trenton, Belleville, Napanee, Kingston, Brockville, North Bay, Pembroke, Ottawa (Hurdman), Ottawa, Washago, Rockland, Hawkesbury, Aston Junction, Lyster and Ste. Rosalie. PASSENGER STATIONS:--Parry Sound, Napanee, Brockville, North Bay, Pembroke, Rockland, Hawkesbury, Ste. Rosalie, Quebec, Washago, Kingston, Cobourg, Grafton, Colborne, Brighton, Aston Junction and Lyster. YARDS:--Toronto, North Bay, Hawkesbury, Pembroke, Rockland and Ste. Rosalie. ENGINEHOUSES:--Toronto, Brockville, Pembroke, Hawkesbury, Ste. Rosalie, Kingston, North Bay, Ottawa, Rockland, and Chaudiere.