It is a pleasure to pay tribute to the splendid loyalty, energy, and enthusiasm displayed by the official and working staffs as a whole. It can be said, without reserve, that the officers and employees of the National are as enthusiastic and zealous in their work as those on any privately-owned railway. No tendency to relax has been observed since certain lines were acquired by the Government. This enthusiasm is one of the most valuable assets of a large organization. If encouraged it will be a most powerful factor in placing the National Railways upon a basis entirely satisfactory to the owners, the people of Canada. APPENDIX B EXTRACTS FROM REPORT OF THE CANADIAN NATIONAL RAILWAYS’ TRAFFIC DEPARTMENT, FOR THE PERIOD SEPT., 1918--DEC., 1921, AS SUBMITTED TO THE MINISTER OF RAILWAYS. To indicate what has been accomplished by the Traffic Department during the past three years, it is desirable to define the functions of that Department in the Railway Organization. It may be described as the sales department of the railway--selling transportation--under a Freight Traffic Manager, and Passenger Traffic Manager, each supervising his sphere of the work over the entire Canadian National Railways. These heads are provided with assistants with prescribed territories--each of these assistants being supported in turn, by district men in immediate charge of assigned territories and staff. The duties of the departmental heads are:-- 1.--To establish the basis for the publications containing the prices at which the transportation is to be sold. 2.--To confer with officers of the Operating Department respecting services required to give patrons the maximum of satisfaction, consistent with cost. 3.--To advertise the prices and services, as by printed tariffs, time tables and other suitable advertising material and methods. Advertising must then be delivered to the direct selling forces--the district passenger and freight men, and ticket men behind the counters, stationed in Canada, United States and Overseas. All these representatives are required to keep themselves informed upon the day-to-day requirements of their districts. They must observe, if traffic is offering freely, if the proper proportion of competitive traffic is secured, if efficient service is given, and they must render such assistance to our patrons as will facilitate their comfort as passengers, or their requirements as shippers. The supervision of the departmental heads also includes negotiations for the interchange of traffic with steamship connections, with other railways in Canada and the United States, and for the consummation of arrangements for satisfactory service for our patrons, and the maximum haul for the railway.