The Guardian And Evening Star, with which is in corporated the West Coast Time. MONDAY, NOVEMBER 23 , 1925. A RAILWAY MERGER.

Hokitika Guardian, 23 November 1925, Page 2

The Guardian And Evening Star, with which is in corporated the West Coast Time. MONDAY, NOVEMBER 23 , 1925. A RAILWAY MERGER.

A railway merger of tremendous importance to the Dominion of Canada, the Empire, and in a no lesser way to the Enited States, says a Canadian Journal, is in process in Canada. The result of public operation of the Canadian National since that system was formed out of the Grand Trunk and other mileage, and placed under government control is a familiar story. Briefly, the road is costing the people of Canada more than >50,0(!0,(XX) dollars ever year. Not only that, the debt of the system is continually piling up. with no chance of stoppage or reduction. Financially the Canadian National is a hall and chain hindering prowess of the Dominion. The next generation may profit trom it. hut people who are paying to-day’s taxes are under tribute to posterity. So .scrims lias the’situation become that the Senate, through a committee, has Issued a report favoring a merger of the Canadian National with the Canadian Pacific. This does not mean that the Government will seize the Canadian Pacific, a most profitable enterprise. but it- would practically turn over the Canadian National to operation under a combined management, guaranteeing the Canadian Pacific a fixed dividend on its present stock irrespective of results. Of course, in a very brief article like this, details cannot he given. It is sufficient to say that the estimate* are that a merger will save the government between 50.000.000 and lOO.OOO.OX) dollars a year, eliminating 20(50 to 3000 miles of competing roadway and permitting operation with 50.000 less employees than are now used. ‘‘Merging of the two railwav systems for purposes of operation and administration.” the report said. . . will remove or dispense with duplication in railway tracks and rolling stock, in passenger and freight service, in railway stations from the Atlantic to the Pacific, in telegraph, express and other .services, in offices, in accounting and book-keeping, in numerous other special offices and staffs, in administration hoards, etc. etc. and therebv and otherwise save an enormous amount of money to the country.” The Canadian Pacific and the Canadian National are now about the

two largest railway systems in tlic world. What they will he under merger may be determined when it is stated that they will have .'IO,OOO miles of operative railway and that their gross earnings will lie between 400.000,000 and 400.000.000 dollars annually. Better yet. careful figuring has shown that with the savings to accrue, stockholders of the Canadian Pacific will receive their guaranteed dividends and probably a little more, and that the deficits of 50,000,000 and above on the Canadian National will he wiped out. This is equivalent to saying that taxes in Canada may lie reduced by that sum at least. The Senate committee in its report plainly indicated that continuance of present conditions is impossible. Its language is plain enough to need no explanation : “Your committee is of opinion that unless energetic means ho adopted to reduce our national debt and the income tax, as i- rapidly lioing done in the United States, we will he unable to command the Inreign capital absolutely necessary for the development of our national resources. The project is not of the visionary promotion (lass. It arises out of a serious situation and is being handled in an orderly manner. The effect of the merger when completed-—and it will he carried through if only for the reasons stated—will he felt in commercial circles in Canada, in England and in the United States. The lifting of the burden of expense will stimulate trade, and will add to the financial strength of Canada in every particular. The project, while gigantic, is feasible, and founded on good business sense. Once accomplished, a more stable future of the Dominion of Canada is assured.