The Board, loaded with many lines which, as distinctive features of the system, could never be expected to pay operating expenses out of revenue, introduced an entirely new system of transportation in Canada—the self propelled single car, operated by one driver and one conductor, like an ordinary street car. We placed this sort of service, some of it run by gasoline, and some by electricity, on several branch lines, saving costs in power, in the weight of equipment used, and in wages, at the same time giving greater frequency and efficiency in service. The policy has, I believe, been extended under the substituted management, with considerable success. A light service for example is being given between Toronto and Parry Sound, on the old Canadian Northern.

One is inclined to think that in this kind of service, rather than in the electrification of branch railways, which is far more costly than the general public supposes, the most economical and efficient adjustment of old steam lines to modern conditions will be achieved. The principle of the automobile on rails offers a flexibility which nothing else can; and the possibilities of the electric storage battery are not yet exhausted.

Very inadequately the scope of the Board’s work, from the fall of 1918 to the fall of 1922 has been sketched—although we stepped out in October, our resignations were requested in July. The co-operative spirit was not confined to the directors, or even to the higher branches of the daily service. The esprit de corps that was developed far exceeded the expectations of those who believed that Government ownership meant general slackness. The consolidation of the staffs of the Intercolonial, the Grand Trunk Pacific and the Canadian Northern was accomplished without friction of any kind; and the loyalty of the employes all over the system was admirable.

The justification of the policy laid down in 1918 is contained in the figures of earnings and expenses for the four years of our regime—it is fair to include the whole of 1922 in this survey, since we retired in October and the new chief did not take charge until mid-December. It will not be too wearisome to give, on the next page, the only considerable table of statistics which this work contains.

From the mass of facts embedded in these tables one can only extract a few. The progressive decline in the total loss on operating after the zero year of 1920—a decline which has been accentuated in the figures for 1923—is obvious. But it is not so obvious that the disparity between earnings and expenses in 1922, is due to the revival of the Crow’s Nest Agreement which threw the railways backward, from a business point of view. We had expected to break almost even in 1922; and would have done so, if the revived agreement had not lopped over eight millions from revenue.

CANADIAN NATIONAL RAILWAYS

COMPARATIVE STATEMENT OF EARNINGS AND EXPENSES

(For the Years 1919, 1920, 1921 and 1922)

GROSS EARNINGS19191920
Canadian Northern$53,562,177.57$66,695,398.80
Canadian Government40,179,380.9344,803,045.84
Grand Trunk Pacific11,294,617.8714,408,549.66
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Total$106,036,176.37$125,906,994.30
OPERATING EXPENSES:
Canadian Northern$60,034,023.92$82,953,978.60
Canadian Government47,728,205.7355,445,651.29
Grand Trunk Pacific17,587,567.3724,543,063.60
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Total$125,349,797.02$162,942,693.49
OPERATING DEFICIT:
Canadian Northern$6,471,846.35$16,258,579.80
Canadian Government7,548,824.8010,642,605.45
Grand Trunk Pacific6,292,949.5010,134,513.94
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Total$20,313,620.65$37,035,699.19