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Rh TABLE X. Trade with United Kingdom.

Imports

Exports

1911.

$109,934,753

$136,962,971

1912.

116,906,360

151,833,379

1913 . ..

138,742,644

177,982,002

1914 . ..

132,070,406

222,322,292

1915 . ..

90,157,204

2U,757,7i8

1916.

77,404,361

463,081,241

1917 . ..

107,096,735

756,071,059

1918 . ..

81,324,283

861,073,399

1919 . ..

73,035,118

560,839,116

1920.

126,362,631

495,960,118

Railways. The Canadian railways in 1921 had become con- solidated into two great systems, the Canadian Pacific and the National railways. In 1918 there were 38,875 m. in operation, over 20,000 of which were under Government control. The capitalization of railways in operation at the end of 1918 was $1,998,880,494, and the aggregate earnings for the year were $330,220,150. There are six canal systems under the control of the Dominion Government.

As a result of the war the railway situation had changed very materially from one of optimism in 19123 to one of almost painful anxiety in 1919. This arose from the inability of the Canadian Northern on the one hand to sell its bonds to complete its trans- continental system, and of the Grand Trunk, on the other, to meet its interest and other obligations in connexion with the Grand Trunk Pacific, and to cope with the increased working-costs arising out of war conditions. Repeated appeals were made to Parliament for further financial aid. A Royal Commission, consisting of three eminent railway experts, was appointed to inquire into the entire railway situation of Canada, and after an exhaustive investigation there was issued what was known as the Acworth-Drayton (major- ity) report, practically recommending that the Canadian Northern should be taken over by the nation, amalgamated with the national railway system and operated under a council of a board of directors. A system which would apply if and when the Grand Trunk and Grand Trunk Pacific were taken over was also recommended. The nationalization of the Canadian Pacific was not recommended. The recommendations of the majority report of this commission became the policy of the Government, and on June 30 1918 the Canadian National ceased to be an independent entity. In the legislation of 1917 authorizing acquisition provisipn was made for acquiring the balance of capital stock, amounting to $60,000,000, not in the hands of the Government, its value to be determined by arbitration. This was fixed at $10,800,000, and the transfer was made. The system is now operated by a board of directors, of which in 1921 Mr. D. B. Hanna was president. The Grand Trunk, meanwhile, desired to be relieved of its obligations in connexion with the Grand Trunk Pacific and National Transcontinental. In the spring of 1918 the Grand Trunk Pacific notified the Government that it would not be possible for the company to continue its operations when the balance of money in hand had been exhausted (about March 10), and authority was immediately taken by Order in Council under the provisions of the War Measures Act to appoint a receiver for the company, Parliament having confirmed this action. In the fall session of Parliament a bill was introduced and passed authorizing the acquisi- tion of all the capital stock of the Grand Trunk system, the Govern- ment, however, guaranteeing 4 % dividends as well as interest upon present debenture stock outstanding. The value of the preference and common stocks (up to a maximum of $2,500,000) was to be determined by a board of three arbitrators, and a committee of management was to be formed two members to be appointed by the Government, two by the Grand Trunk and a fifth by the four so appointed to ensure as far as possible the operation of the railway in harmony with the Canadian National system. This went into effect. Not without some difficulty the consent of the Grand Trunk shareholders was obtained and arbitrators agreed to. Sir Thomas White, late Minister of Finance, acted for the Government; Mr. Wm. H. Taft, ex- President, and later, Chief Justice of the Supreme Court, of the United States, acted for the Grand Trunk; Mr. Justice Walter Cassels, Ottawa, was chairman of the board. In September 192 1 their awards were published. The two Canadian arbitrators held that " no value " attached to the common and preference stocks, though it would be for the Government to decide whether it should go outside the sphere of the arbitrators in granting ex gratia com- pensation. In a dissenting judgment, Mr. Taft held that their ' value " was higher than the maximum provided in the Act.

It was further contemplated that all the railways built or acquired by the Government would eventually be amalgamated into one large system, operated by a National Board of Directorate. During the several sessions in which the legislation referred to was brought about very keen and protracted discussion, involving largely the principle of Government ownership, took place. The opposition was greatly emphasized by announcements of increasing deficits in the operation of the National system in 1920-1, the amount being, it was stated, $68,000,000. Five steam railways paid dividends during 1919: the Canadian Pacific $29,227,277, and four others in the aggregate $761,000. The average number of miles operated in

March 1921 was 38,076-30. The Canadian Pacific and the National railways (including the Grand Trunk) operated over 85 % of the total single-track mileage, as follows: Canadian Pacific 13,785 m. ; Government railways (under jurisdiction Department of Railways) 4,564 m.; Canadian National (under board of directors) 9,757 m.; Grand Trunk Pacific (under receiver) 2,807 m. ; Grand Trunk 3,571. The total mileage of Government roads in Canada was in 1921 20,699. The mileage of independent railways -was: Algoma Central 347 ; Algoma Eastern 89; Quebec Central 277 ; Victoria, Vancouver & Eastern (Great Northern) 269; Kettle Valley (Canadian Pacific) 355i P ere Marquette 199; Canada Southern (Michigan Central) 380; Dominion Atlantic (Canadian Pacific) 274; Great Waterways (Province of Alberta) 113; Edmonton, Dunvegan & British Co- lumbia (Alberta Government, operated by C.P.) 406 miles.

The total capitalization of steam railways on Jan. I 1921 was $2,036,165,606, of which $568,606,803 belonged to the Canadian Pacific, $451,685,996 to the Grand Trunk, $417,924,087 to the Canadian National, $413,590,078 (capital expenditure) to the Canadian Government railways (including National Transcon- tinental & Hudson Bay railway), and $216,512,540 to Grand Trunk Pacific and branch lines. Salaries and wages amounted to $233,323,- 074 and the number of employees to 173,728. There was a total corporate loss on operation for the year of $15,097,747. The track mileage of electric railways amounted to 2,400 miles. Capital stocks outstanding and funded debt of these amounted to $173,041,340, and $20,211,576 wages were paid to 16,940 employees.

Canals. The river St. Lawrence, with the canals established on its course above Montreal, and the lakes Ontario, Erie, St. Clair, Huron and Superior, with connecting canals, afford a course of water communication extending from Montreal to Port Arthur, at the head of Lake Superior, a distance of 1,214 miles. The distance to Duluth is 1,336 m. and to Chicago 1,242 m. This through system comprises 74 m. of canal with 48 locks, the remainder of the distance consisting of river and lake waters. The minimum depth of water on this route is l feet. The canal approaches and the channels of the intermediate river reaches are well defined, and are lighted with gas buoys, admitting of navigation by night as well as by day. The Lachine, Soulange, Cornwall, Welland and Sault Ste. Marie canals are lighted throughout by electricity, and are electrically operated.

In view of the agreement signed by the members of the Inter- national Waterways Commission, it may be noted that the St. Lawrence river is the greatest waterway in the world and the oldest in use in the New World. There are no floods in the St. Lawrence as in the Mississippi, the Columbia or other large rivers of the continent. The difference between maximum and minimum volume is 1-19 ft., as compared with the Ohio, 28-22 ft.; the Missouri, 29 ft.; and the Mississippi, 10-29 ft. The lakes act as settling basins and no silt is carried down to be deposited in the river. Hence when a channel is dredged, the dredging process does not require to be continuous as in most other rivers. Between Montreal and Quebec the river was deepened some years ago to 30 ft. and work is in progress to increase it to 35 ft., so that the largest ocean vessels may dock at Montreal. Canals have been built at various times to over- come the rapids between Lake Ontario and Montreal, and six of these, varying in length from 0-75 to 14 m., in width from 144 to 146 ft., and in depth from 14 to 15 ft., are in existence. To make the waterways scheme feasible, this section of the river would have to be so improved as to admit the passage of ocean vessels. The Welland Canal, which was being rebuilt between Port Colborne on Lake Erie and Port Waler on Lake Ontario in 1921, will be 80 ft. wide and 30 ft. deep. It will be able to accommodate ocean vessels and will form the key of the entire scheme of oceanizing the international waters of Canada, if that should be decided upon. Locks on the "Soo" Canal have opened Lake Superior to the world, and improvements from Lake Superior to Detroit have been made to render navigation on the proposed scale practicable. Incidentally, the scheme involves the development of water-power estimated at 2,000,000 H.P.

Of the minor systems, the Murray, Trent, Rideau and Ottawa river canals may be considered as branches of the through east-to- west route. In operation, however, these canals serve a distinct traffic of a more local nature. Isolated from the system of through navigation, the navigation of the Richelieu river, from its junction at Sorel to Lake Champlain, is effected by means of the St. Ours lock and the Chambly Canal, while to the extreme east the St. Peter's Canal provides communication between St. Peter's Bay, in Cape Breton, Nova Scotia, with the Bras d'Or lakes. It crosses an isthmus half a mile in width, and gives access to the Atlantic. A ship canal was in course of construction from Port Dalhousie to Port Colborne, connecting Lake Ontario and Lake Erie; work was suspended on account of war conditions. Among projected works may be mentioned what is known as the Georgian Bay Canal, to connect the Ottawa river with Georgian Bay. Some years ago the Government engineers surveyed the route, and reported that a waterway with a depth of 20 ft. could be provided at a cost of about $100,000,000. By this route the distance from Fort William to Montreal would be 934 m., as against 1,217 by the present route, and Montreal and Chicago would be brought within 972 m. of each other, as compared with 1 ,242 by the present route.

Roads. At the end of 1920 about 250,000 m. of public highways in Canada were open and serviceable for ordinary travel during the