The report for the year 1922, the policies for which were laid down under the first President’s chairmanship, was written by another hand. Six months after the old administration ceased, this is what was reported to the Minister of Railways and the Governor-General-in-Council:—
“On behalf of the Board, I would like to state that after inspection of the main arteries of the system, we find that the work undertaken has been well performed, and that the expenditures have been well applied. While the demands for capital expenditure on a system of such extent in a growing country, as the former Board stated, are never-ending, yet it may now be said that the three groups of lines, until recently the Canadian National Railways, enter the consolidation in excellent physical condition and operating at a high mark of efficiency as regards actual performance, or movement of traffic, and other factors controllable by management. Apart from certain well-known cases of duplication, the lines are well located and in exceptional position to successfully perform the transportation demands of the country. The problem, as far as the lines covered by this report is concerned, is how sufficient traffic may be developed to carry the overhead and maintenance expenses. As far as transportation costs go, an economical performance is being made. Under these circumstances the margin for improvement, with the present light volume of traffic, is largely dependent on circumstances beyond the control of the management.
“On some of the older sections there are still improvements that should be undertaken, but in the main the lines are modern in character, and were built or have been brought up to standards which are ahead of actual traffic requirements, except under stress of seasonal movements.”
Finally, touching these early years of nationalization, one may be allowed to indicate the footing on which we parted from our working associates by repeating two paragraphs from the President’s farewell circular:
“It has been our constant aim to keep the National system free from anything that could be used to support a charge that the Government’s railway, steamship, express and telegraph services, were being used for political purposes. I can only say for myself and those directors who retire with me that nothing in the nature of political interference would have been tolerated while we were in charge. It is a necessary policy if efficient administration is to be obtained.
“In sending out this note of farewell, which will reach many of those with whom I have had practically a working lifetime’s association, I desire to express my hearty appreciation of the friendly personal relationships and friendships which have resulted from our joint efforts to do the best in our power for the fine properties in which we were employed, which properties, I know, we have felt are of such potential worth that they can be made great national assets. The way has not always been smooth, and the work has always been hard, but it has always been worth while, because of those with whom I have had the pleasure of sharing the load. For all of you who remain to carry on I wish the best of good luck. I hope that you will be permitted to advance the interests of Canada’s National Railway, Steamship, Express and Telegraph services, to an extent that will demonstrate that public ownership may still be consistent with good management.”