The White Star and Cunard Lines recently announced that they were instituting an improved service by the St. Lawrence route. Under this arrangement there will be almost an equal number of sailings by these lines as by those of our competitor. This will enable us to secure a larger proportion of rail business, not only of passengers going overseas, but of passengers arriving by the steamship lines, destined to points in Canada--Trans-Canada or the United States. We might also refer to the difficulty thus far experienced in getting support from the Canadian Australasian Line operating on the Pacific between Vancouver and Australia and New Zealand. This line has been receiving from the Dominion Government a yearly subsidy of $180,000.00, nearly $500.00 per day--in return for this expenditure by the Government its Railway should receive consideration in its passenger interchange, Canadian and Trans-Canada, but to expect such we must give a supporting rail service. The inauguration of the daily transcontinental service following tri-weekly trains, the co-ordination of the Canadian National-Grand Trunk service between Toronto and Ottawa, and numerous other changes, have effected a much improved all-round service on Canadian National lines, which has met with many evidences of public approval. There is little doubt that the splendid service provided by these trains, with unexcelled equipment, has had a far-reaching effect in influencing the public mind in favor of the railway. Business depression has seriously affected passenger travel all over Canada during the past year, and the volume of business shows a consequent falling off. We continue, however, to carry an increasing proportion of the competitive travel, so that the prospects for the future are distinctly encouraging. Lack of hotel accommodation in the mountains has seriously handicapped us in increasing the long haul, incident to transcontinental travel, but as there is a prospect of this being remedied during the coming year, it will not only assist us directly in securing this class of travel in Canada, but will be a valuable medium to enable us to bring to the attention of the whole of the selling forces of the United States railways this feature of accommodation and the great attractions offered by our scenic route through the Northern Rocky Mountains, and will result in attracting additional tourist and transcontinental business.