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HomeMy WebLinkAboutThe Clinton New Era, 1921-5-12, Page 4MOE POs. "Ever since a boy of fourteen," writes Mr, John 'Redmond, of West TPrampton, Que., "I had trouble with a .bad log, I used' many retnedtes. Though some appeared to heal the ulcer for a while, it always' brake out ;gcrtra as 'bad as ever, This last time I suffered continuously for nine years, and the old ' remedies had absolutely no *•fleet, "The 11mb was in an awful state 'when someone advised me to get Zara I3uk right away, 1 had only used this herbal healer a few days when I began to see great improvement. Sol .continued the treatment, - for even Zain-Buk, needed time tp have. complete +effect, However, 1 am glad to tell you that it was only by the aid of Zam-Bak that the leg was eventually thoroughly. healed, Never a sign of the ulcer since.' 50c, box, all dcalcra. MAGGIE MOORE , "They never thought you were. They knew all along that you were a farmer's daughter; but looked so ele- gant and were so superior to them in every way that they had to come and scratch you;" said Rossford indig- .nantly, "Miss Crawford reproved me for wearing such vulgar finery," she said aiteekly, "1 sayl What confounded cheeki" cried her visitor. "Why, nothing could be prettier that, that simple white thing!" • "Pin thinking of buying a little plaid shawl and a skirt like Peggy -Jane's" faltered Maggie. "Perhaps that would suit my station better!" "You'd look ripping in it!" Ross - ford assured her eagerly. "But don't pay the slightest attention to those silly cats; wear your pretty clothes and snap your fingers at theml You ar a lady. So whet do clothes ntatterl' "Pm a small farmer's niece," she reminded him. "You are an educated gentlewoman, I don't give tuppence for these silly class distinctionst Look what an ass I am, and yet rem a peer, ' Maggie's face was radiant with smiles "You are a gentleman in the true sense of the word." she protested; "and there is no need to call yourself names)"• fPBut, really, your were not—not hurt by those Crawford women?" he .asked. "Not one bit hurt; in fact I enjoyed the episode. So please forget it, and, whatever you do, be careful not to en- tourage Jeggy-Jane to discuss it. Her mind is full of rancour. I think she would have liked to fhrow stones after them, And you must go. You have been here for an hour, and 'f have let- ters to write," "May I conte again?" Rossford asked eagerly as they shook hands, 'Nes, you shall come to high tea some day," she promised him. "When? To -morrow?" he persisted. "No; not till next week!" said Mag- gie firmly, but she smiled, and the young man went off apparently con- tent, CHAPTER . IV Maggie wrote her letters and chang- ed her gown; and then after an early dinner set out for a walk. She had a commission from Peggy -Jane to carry pound of the new butter to an .In- valid in a cottage two miles away, She was glad of the excuse, for already she had been asking herself what kind of lives the people on the desolate little farms must live, if her uncle find only managed to make a very simple living out of the richer lands of Tallack, what could the peasants make out of their little holdings on the bare hillside? She would know the truth, for the very :poorest would accept her as their equal .and hide nothing from her. Was she mot a peasant like themselves? After a long search Maggie had :found a blue cotton gown that was not too elaborate, and a plain straw Int In which she would pass even Miss Crawford's severe eyes, she thought. On her way back she meant to call on Mrs, Brogan and her son, her friends of the journey hone, Peggy -Jane had pointed out their cottage a little dot white beyond ,the big • lake, its place Rh heumatism Neuritis, Sciatica, Neuralgia. empleton's otic '.�heum (Capsules Dav6 brought d health to Balt-/t-rlilllion rreufferere. in A healthful, monDess _ v g remedy, r, r - ft years, pre- ' known for fi oen y , p �y re- l� bydru - )'well dodo sold tied b S ' ac Y , kat c nts Aa un illi s 1.00 a R. tt 1$ C a .ka •e. for .rootrial g tidot, Or w m letana 4lltin Vi� 'Toronto T'. 8 , P �. LOCAL AGENT*- . J HOVEY on the mountain marked by a ' few, stunted ash -trees. The weather was still glorious 1011 the mountains were veiled its golden light. tier path 0104 the side of lite lift lay through rubt heathery land, with agr'ay boulders and little green birch -trees Isere and then;. The, nttitt of gorse filled the ,air, and now gird then clime a whiff of sweet cool air straight. from the. sea. Bglow her lay Ross,• the whole demesne spread out like a nett. The long drive was mark ed by trees; she could see 'low It wound round by the water's edge, a, voiding the, pile and rough uplands. Whet a wonderful place it. must be, shut in behind miles of gray stone walls enclosing ()most the whole peninsula! The man who lied chosen Ross for hie home must have thought himself a king at least when he enclosed such an expanse of land for his own private park. There'the land rose in a sharp ridge covered with firs, here stretched a veritable moor clothed with heather, there lay like a blue jewel, here a wide inlet of the sea, silnet and secluded, .A turn in the 'path brought the gir in view of the house— a grey stone mansion facing towards the At{antic. It looked a huge place, Those great 'squares like a chessboard must be the gardens! Irish landlords in the past had not lacked large ideas. What a colony the place -must have been when it was properly kept up, with servants and grooms and gardenersl her thoughts passed naturally to the pres- ent owner, living alone in that vjist house without even maids enough to keep it clean. Tallack was far preferable to that- remnant hatremnant of decaying grandeur. Tall- ack was homely and comfortable and easily kept in order, Maggie could well believe that Ross was more or lass in a state of negeet, weeds in the garden, rats in the stables, and dust ire the house. Soine day when she knew that Lord'Rossford was away' from home she would go down and see what it was like, 'ContinuedNext Week HEART and NERVES 1?attTHE E HE c, Housework Fayed ries' Out. Mrs, Earl Farr, Ogema, Sask., wri tee:— Three years ago my heart and nerves began to bother me- I could not do my housework without being almost oom pletely played out. After sweeping a email room I would have to sit down and rest, and would feel as if I could not get enough air. Every few night I would have horrid dreams, such as th well caving in while I wee pumping a pail of water, or the children, or my husband falling in, and I could get no rest as I would be awake some time after. 1 went to my doctor, and he told me it was my nerves, that they had been shaken by a previous ill- ness. He gave me some medicine, but aa` soon as it was gone I was as bad as ever again. I got half a dozen boxes of Milburn's Heart and Nerve Pills, and they helped me so much I got more, and can truly say I have no lack of health now, and don't feel so tired after a good days work, as I did before after sweeping one small • room; also have had none of those horrid dream* for months and months," Price 50e. a box at all dealers. • 9,178 ; SETTLERS IL VIA C.P. FLEET 4Snglish Settlers Brought $1750 ,,(y,,��'t 000 Here to Buy Land Despite the strengthening of res Striations against fresh immigration into this country, and the continuer tion of the ruliag that all new set - tiers must show $250 in; cash and r railway fare to their destine - on before being admitted into the of inion, these new settlers cone nue to arrive in large and increase numbers. uring the months of January, gAmery and Mitch no less than ,187 new colonists entered St. John via the Canadian Pacific ,vessels alone; being 1,460 in January, 2,045 ?in February and 5,692 in March. These numbers would have been con. siderably larger, ao the shipping men aver, if the $250 requirement had been dropped to the former $50 rate, as it was recently thought would be done. In fact, steamship officials state that many hundred in- tending ntending immigrants cancelled their bookings upon learning that the high rate was to be maintained. In detail, the Canadian Pacific re- eorda for the three month* are as follows: During January, five of the tom. pang's steamers arrived at St, John' N.B. with a total passenger list oil 3,866, of which 1,450 were new colon- ists for Canada and 1,307 for the United States. In February, six steamers arrived with a total o" 6,022 passengers, of which 2,045 were new colonists for Canada and 1,430 foe the .United Staten Nine steamers arrived In March, bringing 9,851 passengers; 5,962 be- ing new colonists for this country and 509 for the United States. As to the type of colonists on these incoming vessels, the case of thei v, nnedosa"—last to arrive a the M 1 be cited as fairly In n March—mi it March—might representative. She brought sixty-five farmers together with their wives, ninety children and $175,000 to invest in Canadian.lands. These new settlers were personally conducted to their western destination by A. M, E. Bill of the C.P.R. Colonization and De-' velopmgnt Department. Most of these were for the district around Lloydminater, a flourishing town on the Alberta -Saskatchewan boundary. There were also 40 domestics belted for Regina and forty for Toronto, From which it will s. 1 sen• that , Bits so,ntry is pre ring a mutt* 'hare .of the sort of nowrn •cr ikl gest requires. The Clinton ' New Era Whichever you choose It will be the' Basr you ever tasted. BLACK TEA Rich, Satisfying Plavour. Prom. the finest gardens. MIXED TEA Just enough green tea to make the blend delicious. GREEN TEA A fevelation in Green Tea. Pure, translucent anti so Fiavory. Two prisoners escape from county Refiners in Montreal reduce sugar jail at North Bay. from $1.1 to 10,50 per cwt, Pools t„nadian Railroads l. one Big System t.� u.� rd. Yc.. �:1-1 4% LORD SHAIJGIINESSY'S PRACTICAL REMEDY FOR GRAVE PROBLEI I—OPERATION BY C.P.R. UNDER CONTRACT—DEFICITS OVERCOME 13Y ECONO,,IIES Lord Shaughnessy has prepared and given to the public his personal view of the railway problem in Can - rade, prefacing his statement with the following letter addressed to the ;Prime Minister: Montreal, April Gth, 1921, Dear Mr. Meighen,—National rail- way affairs are, I ata sure, to you a source of constant anxiety. To my mind the railway question, involv- ing, as it does such an enormous draft on the annual revenue of the country with no .prospect of any im- provement In the war future, is the most ntrnentous problem before our country at this time. I fear very much that the Grand Trunk transaction will net disap- pointing and expensive, and if it were my case I would go a long way to secure the consent of the Grand Trunk shareholders to the abroga- tion of the statutory contract. 1 am enclosing a memorandum giv- ing in rough outline my opinion as to the only process through which the atmosphere can be cleared. Some people, whether 'they believe it or not, will find in my suggestions a selfish desire on the part of the Canadian Pacific to control the rail- way situation, The Canadian Pacific bogey has served its turn on every occasion in the past thirty-five years when schemes were being pro- moted with disregard of the cost to the country. ' The Canadian Pacific has no fish to fry, and I am not sure that my plan would be viewed with favor by the executive, the directors or the shareholders. Everybody connected with the company would prefer to see its status undisturbed, but it is impossible to accept with equanimi- ty a situation which makes a de- mand on the public treasury of about $200,000 per day, without any com- pensating advantage, if there be any possibility of improving it. My memorandum, as you will ob- serve, merely brings up to date on very muchethe same lines a similar paper that I prepared about the end of 1917 and sent to Sir Robert Bor- den. He feared, I imagine, that as my plan would apparently create a Canadian Pacific monopoly is trans- portation it would not be acceptable to the country. Even if there were foundation for that theory at the time, the current of events since ,1917 may have resulted in a decided change of sentiment. I am submitting the memorandum to you with the best fatentions in the world for such conaides'ation as yon may think it deserve& fraYou _y cry truly, Rt, Hon. A�rthgurJMeiH benG13P.CES3Y. Premier, Ottail, dot: ONE NATIONAL SYSTEM Lord Shaughnessy's Plan for 1 Canadian Railways In 1917 I prepared a memorandum analyzing the railway situation in Canada as it then existed end sug- gesting a pian of dealing with it, which I read to Our directors and subsequently forwarded to Sir Rob- ert Borden for the consi.deratioa of himself and his Cabinet. Evidently my views did aot appeal to the Government nor to the advisers from whom the Government at that time received its inspiration on railway affairs. Meantime, conditions have sub- stantially changed. Capital ex- penditures of considerable amount that might have been avoided have been incurred, and the deficits re- sulting from the operation of the weaker lines have increased by leaps and bounds so that the sug- gestions contained' fm the memoran- dum of 1917 would not now • be available. 1 It Was not my purpose then, nor is it now, to discuss the railway policy of successive Governments, federal and provincial, during the past thirty-five years. In most cases the legislation defining the policy received the approval of the electorate at the polls, and there- fore if serious and expensive blund- ers were made weshould be pre- pared to podket our chagrin and foot the bills with equanimity. We have, however, the obligation to try to discover and develop plans that may serve to relieve the Canadian people from .some part of the die ,tressing • and dangerous financial 'results now in evidence and which 'threaten the future. i Canada has now about 40,000 miles of railway lines. Of the lines (included in this mileage approxi- mately 87 per cent. ,.arn annually ;surf' lent money to pay all inter- est c arges and to give a return on fail 54 per cent. a the sh ra capital; t to earn enough pay n h to n their work. ing expenses and are consequently operated at a loss; and 9 per cent, earn interest on some of their major securities but have nothing to apply as dividend on the share capital. z Grand 'trunk a3ystem. included In the last mentioned is the Grand Trunk Railway System, which is international in charas• ter, owning or controlling import- ant railways in the United Stales with termini at Chicago, Portland vi •and elsewhere. Serving S g consider able portions of the Provinces of Ontario and Quebec; the Grand ;Tenet System enjoys a substantial, volume of Canadian traffic, but its international business yields the greater part of its gross revenue. Relieved of the handicap that was imposed by the Grand Trunk Pa- cific the parent company should. in normal times, be in a position to pay the annual interest on most of its securities that take precedence of the common stock, but a return on the common stock would appear to be exceedingly remote in any circumstances, This railway sys- tem is, however, of national lin- portancei and it would be unfor- tunate from our Canadian stand- point if, hampered by the methods and ambitions of previous manage• ments, the company should be kept in a state of embarrassment and should be prevented from carrying out plans for increased efficiency and economy. It would be still more unfortunate if by any process the Grand Trunk should be placed in a position that would have the effect of destroying, either on sen- timental grounds or others, the movement through Canada of in- ternational traffic to and from its feeders in United States territory. Even at this advanced' stage it would be wise for the Dominion Government to drop all measures looking to the acquisition or con- trol of the Grand Trunk, to relieve that company of all obligations in connection with the Grand Trunk Pacific and to grant easy terns covering a period of years for the repayment of any amounts ad- vanced by the Government to the Grand Trunk or secured on the credit of the Government in the last two years. ' 0 The Transcontinental Line. The National Transcontinental - Grand Trunk Pacific scheme of a line from Moncton to Prince Rup- ert was a deplorable blunder in its inception and execution. Doubt- less the Grand Trunk objected to the line from Cochrane east and only yielded under pressure, but the eastern and western termini of the Iiae having been once .deter- mined, the Government was, I know, guided by the advice and wishes of the Grand Trunk man- agement of that day in fixing the location and standard of construc- tion. It .was pointed out that four - tenths grades and light curvature would make for economical opera- tion, because of the increased weight of the train that coukl be hauled ever the line by a single engine. The theory was at rigid, but the basic essential was ignored. The traffic was e4of available and wild not- be bailable for a long period of time to furnish loss fdr these heavy trains surd . refore the advantages could not be util- ized anima the practice were pur- sued of holding traffic until a suf- ficient amount was accumulated, with the consequent delay and ex- pense and the dlasatiefaction of patron. le railway quit* sufficient for any traffic • likely to develop for many years could have been built in less than half the time and' at a saving of 50 per cent- to' 60 per cent. In cost, and as business in- creased and revenue unproved the requisite changes to meet new de- mands could be carried out, as in the case of the Canadian Pacific. Recognizing the National Trans- continental portion of the route as, a national incubus the Borden Gov- ernment soon after coming into power relieved the Grand Trunk Company from financial responsi- bility with reference to it, and the burden fell on the country. Grand Trunk Pacific, X11 The extravagantly coestructed Grand Ileunk Pacific with its ter- minal at Prince Rupert proved a most disappointing enterprise, be•. cause over most of the route there was no traffic to yield revenue suf- ficient to meet the interest charges on its mandatory securities, or, in- deed, to cover the cost cf mainten- ance•and operation, meantime these interest charges, as well as any operating deficits, had to be met at regularly recurring ceded*, and the Grand Trunk Company could sot have shouldered tae burden without incurring financial die. aster. It was apparent that in the cir- cumstances it would be necessary for the Dominion Government to give relief even to the extent •of taking over the 'Grand Trunk Pa. attic. This was finally determined upon but coupled with it was the decision of the Dominion vert` ment to acquire the Grand Trunk Railway System as well. Clearly this was a mistake, as all the ad would ata e§ that o d result to the va g Grand Trunk Pacificand other par - hon Canadian Na of the a National Rail- ways ways could have been secured by a traffic agreement. By its Grand Trurik policy the Government is unnecessarily adding to its burdens, and the Grand Trunk System, as I have stated he• fore, would now and hereafter be a much, greater asset to Canada if privately owned and operated than it can possibly be if merged into the National � S ystem. While the transfer f r of the Grand Trunk Pacific to the Government oqort Hent ra the c se P Canada end lief of the and Trunk beReilerey • fiinvilon wad 'Louden , Presbyterian Synod meets et Chatitani, rvtn� Sheminn, M, G, it, inspectol', fatally injured felling frmn train et Windsor, JAS, Philipson, fapt sleesing, drawn. ed, when it footbridge over the, river broke its tyle, Church of lin glend pobi' cations stay, be issued under one mawstgement. Miriteles of ""fhitli-healing" draw lin- Meese throngs to Massey Hall, Rev, Dr ,'Cody deellttes invltetian to become Archbishop of Melbourne, Presbyterian inlssionitrles were not harmed during rebellion in Homan, Hydro and Gas Departments in St. Thomas are separated. St. Thomas thirsty ones prdered $30,000' worth of liquor last week. out Its justification, .bemoan when the Donrinion Government wee framing its policy with reference to the route -end gharaeter of the line the objei•lroes and, indeed. dangers of tee 'polae'y •were fre- q'envy pointed oat • to the Govern- ment by those who lied the re- quisite knowlc 1^•e of the country and the tete-mien! experience to en- title their o amen end advice to more co eele;attun than they re- erevelt. '1 le- Gururnrni•at cannot esu ,:rue its stIre of the blin,a Thy C'anedian :Mort hem, ' The Canadian Northern System was 'by over -expansion made a hopeless bnsiness proeosition. With- oet wishing to Criticize the policy pursued by the company it is evi dent that the future of the property wee founded en the assumption that the prosperity and expansion which Canada enjoyed for a period of eight or ten years would con- tinue indefinitely, and the mileage of the system was increased year by year until the annual interest charges of the company reached a sum out of all proportion to ores eat or prospective revenue. !lad. the promoters confined themselves to tie territory between Lake Su- perior and Ed:nor-ten their venture would have been of advantage to the country and profitable to them- selves, but. their crelnits east of Port Arthur and west of Edmonton were untimely and 11, a;trous, 11 became clear that ti:e company must collapse unless Inapt alive be very large grants from the peedir treasury. For this there could be no justification, and the only other alternatives for the Government were to permit default. and liquida- tion or to take the property over under the tern's of the Act of .1914. The Dominion Government, having become a partner in the enterprise by accepting 40 per cent. of the share capital at a cost to the coun- try of $57,000,000 in subsidies and guarantees, and being guarantor of the company's securities to a .large amount, default and a receivership would have led their disadvant- ages. While it is probable that in the circumstances the country's in- terests were best served by the acquisition of the property, it strikes one that the legislation re- lating to the transaction would have been the subject of leas cri- ticism had provision. been made for the .payment of a very substantial honorarium to the men who had de- voted nearly twenty' years of their lives to the establishment and de- velopment of the enterprise instead of the creation of a tribunal to de- termine the value of something that in the minds of the large sec- tion of the public was valueless. With the ownership or control of the Intercolonial, National Trans- continental, Canadian Northern, and Grand Trunk Pacific lines vested in the Dominion Government, the Can- adian people are now the proprietors of about 17,000 miles of railway, y�vriith g cAAppital investment of say $31ib,000,000•, nd el grin��n] ,into?est charge of something like $34,0017,00: In" the annual interest charges noth- ing is included for the Intercolonial and Prince Edward Island Railways, because these have been with us for so long '* period a's urtproiuctive and, expensive property, nor for the Na- tional Transcontinental absorbed in the Consolidated Fund. There fs no rolling steel( equip- ment nor are there terminal yards, freight facilities, repair shops or other requirements commensurate with a system of this magnitude. and the cost of providing them will be very great indeed. Operating Revenues. ' 'A Aeeirrdinr to the brief return sub- mitted to Parliament a few days ago, the operating revenue of the Cana- dian National Railways, including the Grand Trunk Pacific, for the year 1920, was as follows: From pas- sengers, $23,713,834; from freight, $90,982,832. The train mileage re- quired to earn this money was as follows: Passenger trains, 18,222,587 miles; freight trains, 24,485 286 miles. In the same period Canadian 'Pacific earned from passengers $49,- 125,738; and from c.-r'riage of freight, $145,803,309; with passenger train mileage 20,538;038, and freight train mileage 26,281,627, "9 It will be gathered from these ; figures that the train mileage en the Canadian National Sysl:em is out of all proportion to the revenue, taking the Canadian Pacific as a standard. Were it possible to effect a reduction in train mileage on the National System to ma -\e the ratio of train miles to earnings same as that on the Canadian Pacific, the saving in transportation alone would represent upwards of $22,000,000 per annum. This, however, is out of the queetior. because, while there might be a sub- stantial shrinkage of train mileage without serious public inconvenience, the great mileage of the National System, to be servedan thei y m, d limited traffic available prevent a' proper relation between traffic and train miles. AA It is to be observed, however, that the Canadian Pacific handled traffic representing r venue 71 cent 'n e or , i p excess of the Canadian National, with an additional cost of transpor- tation tation of only 13 per cent. This is Accounted tot to some extent by the greater expense . per train Mile for transport on the ',r,tational System. In this unit of operating expenses there would have been a saving of 'i the Canadian N- ettie$6,500,000 t basis_had been reached, ;m Maintenance Costs. Maintenance of way and struc- tures National furca test the C about $48,000,000 for 17,000. miles of railway, or an average of $2,520 per mile. On the same account the Gan- adian Pacific expended $82,574,000 en 13,402 miles of railway, an Aver - handled would transaction, it is not with, - - • -• , Teitiil'aeleq,,'Bitty 12th, 1( ;1 CARTER'S LITTLE WT";'�� A Purely Vegetable Laxative That Keeps the Stomach,Lleroranci3owwelsinperfect condition , Don't take purgatives for Constipation—they act harshly—they overstrain the delicate membrane and leave the Bowels in a R worse condition than, ale"ore, 6' lP you , •I vR are troubled with Constipation, Indi- 't �i gestion, Sour Stomach, Dizziness, Bili- '. ousness, Nervousness or loss of Appetite PILO Don't Hesitate -- Oct a Mottle _ :¢t ;', ,a '` raJ;i CARTER'S LI'I"1'I.F LIVER PILLS -•take one atter each meal and one at bedtime. A few days' treatment will put Stomach, Liven and Bowels in normal condition. Small P111 Small Dose Small Price to Genuine must bear signature age of about $2,430 per miles, Doubt. less considerable expenses was in volved in bringing to a higher stand. and main lines of the National Sys- tem that had been permitted to run down, but so large a percentage of the system consists of unimportant branches with light traffic where maintenance charges should be Com partitively low that' the average for whole system would appear to be rather excessive. If it be as- satmed that destroyed and obsolete ears and locomotives were replaced in accordance with the Canadian Pa- cific practice, the expenditure for maintenance of equipment was not r'-"essive based on the Canadian Pa- efic average cost in the same year per locomotive and per car. Taking nto account the extent of the Sys. em, the traffic and general ex- pense of the Canadian National Railways are not excessive. If the very large annual deficit re - tilting from the operation of these Ines is td be reduced it must come ither from a substantial increase in 'avenue from traffic or a shrinkage n the cost of operating. If immigration and settlement are of restricted by legislation or other renditions, there will in the ordinary puree of events be a continuing 4005015 of traffic, but at best this •rott:'h is apt to be slow and quite esffi••ient to make• any important more:cion on the annual results for] ower years to come„ Meanwhile the Canadian, people vill be compelled year after year o raise, by taxation, sufficient Riney to meet the appalling annual leficits, unless by some process the est of the maintenance and opera - ion of the National Lines can be rought to much loeeer figures. This, iotvever, would not appear to be raacticable, as the National System niraged in competition for traffic vitt) another very strong railway ompany would be at serious dis- dvantage unless in train service, quipment and in other respects it ffered the public facilities ap- roaching those obtainable else - here. Reduction of Rates. I have made no reference to the conomies that will result from a evision of the schedule of wages nd working conditions, which are on fictitious basis and must be amend - d, because concurrent with this will e a reduction in the rates for the arriage of commodities that are es- ential if the country's basic Indus - :ries are to be stimulated or indeed *fit alive. The situation is a serious one and lmost hopeless unless some plan can e devised that will promptly and ffectively bring to this National ailway System additional financial trength and sustenance. 'With but one set of shareholders, he Canadian Pacific Railway Com - any is really two separate entities. he shareholders have their rel- ays constituting the Canadian ystem of over 14,000 miles, with Lake, River and Paeffic Coast teamship Linea, express and other egaceetermegeolose income is included n last years Tota`1 of $216,000,000, nd the net revenue of3 000 000. nd then they have their o'theras- sts that are dealt with in a separate ccount, consisting of their owner - hip is railway c'mpanies is the mated States that are under separ- te management but that inter- hange traffic with the Company at he frontier, the 'ocean steamship Ines, lands still owned and payments accruing on lands -already soil min - ng and other interests in all rep - minting a substantial sum from hich revenue is derived to supple- ent the distribution to the share - elders from the proceeds of the railway operations. If by some arrangement with the Company these assets could be seg- egated and the railway property tided to the Government System hat I have just described, the Sys - em would comprise 31,000 miles of ailway with a considerable amount f parallel lines unimportant or use - 885. Price to be Paid C. P. R. The consideration to be given the hareholders of the Canadian Pacific Railway Company in exchange for he properties above defined would, imagine, be in the nature of an ndertaking by the Government of Canada to pay to the shareholders n perpetuity a fixed annual dividend n the share capital, to be supple- mented by a further payment when he whole property was ?yielding a pecified return. The extraneoda assets of the Can- adian Pacific would be transferred a and administered by Trustees or by a subsidiary Company with an- other Board of Directors, so that the Directors of the Railway Company would be interested only in the ad- ministration of the trust plsiced in heir hands by the people of Canada. There would be no motive for self- shness, if such a thing were pas- sible in the circumstances. The in- come on their shares being fixed and unchangeable, excepting as above provided, the Canadian Pacific shareholders (guld receive no ad- vantage d- a g preferential treatment v ata a from given to any particular portion of i he Railway System. stem Director- ate r- ate would have every incentive for wise, prudent and business -like ad- ministration, Of course there are many details that would have to be worked out, but it is not accessary to refer to them here, Now, having brought these pro parties together, we are faced with the most serious problem o m of all lamely, that of administration and operation. Political management would he impossible, because among eater .reasons. Polley and manage - Ment must have the cls ments eon- tau/1w tnuity and could not be cluingad with *nett change or ciovernment withodt ruinous results, While I havegreat, regard for the opinion of my friends,' Sir Henry Drayton and Mr, fie - worth, I do not agree that their plan, of management would eliminate the danger of political interference, be - rause it could be changed at any session of Parliament. My sugges- tion would be that if an agrcenent with the Canadian Pacific Railway; Company on the lines that I have indicated were found feasible, that Company would be used •anderthe terms of a contract approaching per- petuity in its duration to administer' and operate the whole property fox account of the Canadian people.) I mention the Canadian Pacific ^ be- cause the magnitude, scope and variety of its operations compel a comprehensive organization, and this: could be supplemented by judicious selections from the staffs of the oth- er companies to meet the demands of the larger work. Savings to be Effected. On the returns for the year 1920 the gross earnings of the combined system would be $342,283,000 and the operating expenses $345,973,000, a deficit In operation/of approxi- mately $3,700,000. The annual fixed charges of the whole system, includ- ing the dividend on Canadian Pa- cific Preference Stock, would be $47,490,000, or a total deficit of about $51,100,000. Essential expenditures on capital account from time to time will tend ' lo swell these charges, but by the addition of the Canadian '9 Jifie with its ample rolling stock equipment, its sfacili- ties, the use of which rals and tthe whole system would participate, important expenditures which could not be avoided in other circumstances would be rendered unnecessary. To this amount of $51190,000 per annum, of course it would be neces- sary to add the guaranteed dividend on Canadian Pacific common stock hereafter to be determined, but if we set aside an estimated amount For that purpose the total deficit, includ- ing everything, would be approxi- mately $80,000,000. In the light of these figures present conditions would not be improved, but then we must take into account the sav- ing that would result from the con- solidation by the elimination of un- necessary train service and of dupli- cate work at important terminals! and at other points; the restriction of maintenance work on unnecessary duplieate lines; the decrease in gen-' eral as well as traffic and agency expenditures; the common use of, ears and locomotives, reducing to a minimum capital expenditures ons that account with greater economy in the maintenance of equipment and the stoppage of outlay in many other - directions. In 1920 the operating coat of the combined system was about 101 pe;, sent. of the gross earnings. The Cam adiaa Pacific Bost was 84.7 per cent, of its gross earnings. If the averemi for the combined system could he brought to the Canadian Pacific level it would represent a saving is the cost of operating of about $56,000 000 per annum. There would still be a deficit of $24,000,000 per an- num, but ter a number of reasoaui 1920 was an expensive year and I see no reason why the operating ratio should not be brought as low as 80 per cent. at most, which would reduce the total deficit to eleven or twelve milliea dollars. To catch up with this a growing volume of traf- fic would have to be relied upon but with immigration aettlenentimmigration and development this Mould come im gradual magas, and the saving to . eountry in the meantime would be very large. In connection with these tramper. Intim matters there are sure to be miscalculations and diaappointmente, but the consolidation that 1 hem outlined above w.uld appear to be the most logical and economical pol- icy. Besides the National Railways, Canada would then have an Inter- national group consisting of the Grand Trunk, Canada Southern, Tor- onto, Hamilton & Buffalo, and Pere Marquette Railways of 4,600 miles • and other lines of local or provincial, character, These latter lines may, 1vel1 be left to work out their own saltation, and if they require aid, the provinces having been relieved of their major liabilities under their guarantees, can well afford to give it, I am not giving expression to these views as chairman, director or shareholder of the Canadian Pacific Railway Company, and it is quite possible that neither my fellow -di- rectors not the shareholders would be in accord. The Canadian Pacific, with its low capitalization and ea- pacity for securing and handling a vast volume of traffic, should as time passes yield a larger return to its owners than at any time in the past. Indeed, about this there is lit- tle room for doubt,,but with a satis- factory annual dividend guaranteed in perpetuity by the Canadian Gov- ernment the shareholders could prob- ably be induced to forego their speculative benefits, as their shares would then have the security and stability of G o *runent bonds. It is ay solo purpose to assist if be I can in the solution of what is yond doubt the most serious and' menacing problem that faces our country, and to frankly outline the,' policy that I would adopt and carry nto effect if the responsibility were, upon me to act as the representative and trustee of the Canadian people in safeguarding the present and In. tore railway transportation interests' of the Dominion, and in endeavoring s to stop, or at any Tato minimize the vast demands on the treasury and,, the credit of the country that are' pretty sure to be mode yearly if di present t oticY •s continued.