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.