Making Railways Pay

Sun (Auckland), Volume IV, Issue 1030, 22 July 1930, Page 8

Making Railways Pay

ROMANCE OF CANADIAN SYSTEM

IX the autumn of 1922 the Canadian National Railways consisted of 22,000 miles of line. The income was less than 2.000.000 dollars a year. This system of railways was far from solvent, and was crippled in equipment. Today it is a wonderful proposition. Last year its net income available for interest on funded debt was 51,585,945 dollars.

These figures are made still more Interesting when it is stated that in the last six years freight reductions aggregating 2,000,000 dollars have been put into effect and wages amounting to 8,000,000 dollars came out of the earnings.

The story of stabilising the Canadian National Railways is the romance of freeing them from political control, and the man who accomplished that romance was Sir Henry Thornton, an American by birth, but an Englishman by adoption. When Sir Henry took over the control of the Canadian National Railways in 1922 they were owned and operated by the Dominion Government for the people of Canada. It was then known as the “National White Elephant.” At that time one large Canadian newspaper and many individuals believed that Canada would be fortunate if someone could be found who would take the system for its debts; there were others in favour of complete abandonment, which would have been a national calamity. The Canadian National Railway was not- always State-owned and it was not always one system. In it were gathered the visions, the achievements and mistakes of Empirebuilders since the lS5Olg. The various railway systems had been grouped in 1919 under two headings, the Canadian National Railways and the Grand Trunk Railway—each with separate organisations and separate control. The obstacles were tremendous —the expense of two systems, a lack of co-ordination, a preponderance of pessimism and a general feeling of helplessness. Canada had got into the way of thinking that the job was helpless. After he had taken over the control of the railways in 1922. Sir Henry Thornton was promised by Mr. W. L. Mackenzie King, the Prime Minister, that politics would be kept out of

the way. Many people fought against the new control: but within a year Sir Henry had the people of Canada behind him. Today there is as much chance of politics getting into the Canadian National Railways as there Is of an elephant walking a tight-rope. Last year that railway system bought 99,000,000 dollars’ worth of supplies, not one cent of which was dictated politically. This romance of success is a long story of hitting above and below the belt, according to Sir Henry Thornton. First of all he toured the railways, building up a spirit of optimism. He made speeches, he countered the ridicule of political opposition. The first thing he gained was the confidence of officers and men. and then the cry went through Canada. "Give Thornton a chance.” By 1923. after a year of colossal labour and reorganisation. the Canadian National Railways showed a profit. Railway duplications were removed, one whole town was moved to another, shops were loaded on to trains and moved to other positions, and the homes of people went with them. Sections of line were abandoned, stations were eliminated and the whole system divided into four areas with a genera! manager in charge of each. These general managers were given as much power as though they owned the area. Yards were torn up and buildings torn down, and new bridges built; 50 per cent, of the mileage needed repairing; 97 engines were thrown on the scrap-heap. In two years the system was operating with 236 fewer engines and doing 37 per cent, more work; there were 9.000 fewer freight cars carrying IS per cent, more load tonnage; trains were speeded up. So the story went on. with assured success. Last year the Canadian National Railways returned more than 10,000.000 dollars to the Government on debts due on a bill which had existed since 1853.