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them something of the State-ownership of railways in Canada but emphasized the point that the success or failure of the system in one country should not be a guide to the people of the other country. Sir Henry also spoke at the annual dinner of the Dominion Commercial Travellers' Association in Montreal on Dec. 20.

The
Canadian
Pacific
Railway
in 1926

While the year, 1926, was not marked by an particularly outstanding developments in the history of the Canadian Pacific Railway, it was signalized by steady and substantial progress in the extension and improvement of the many services rendered by this great corporation. During the year, 135 miles of new

branch lines in the Western Provinces were graded, 192 miles of track were laid and 175 miles ballasted, while upwards of $9,666,000 was expended in improvements, replacements and other construction work on the system as a whole. Important new work was carried on in the hotel department and action was taken to replace several of the company's steamships with new and more modern vessels. These progressive steps were justified both by the results of 1926 operations and the 1927 outlook. The income account for the year revealed the highest net earnings shown since 1917, with 14.12 per cent. earned on the ordinary stock of the Company. Gross earnings were the largest since 1920, amounting to $198,025,592, an increase of nearly $15,000,000 over 1925. Working expenses, owing mainly to larger appropriations for maintenance, were up nearly $10,000,000 at $153,080,464, leaving net earnings at $44,945,126, an increase of $4,790,351.*

From its freight traffic the Company earned in 1926, $141,205, 619, which compared with $128,410,055 in 1925. The quantity of grain carried was slightly less, dropping from 263,462,503 bushels in 1925 to 252,085,434 bushels in 1926. There was also a small decline in livestock from 2,073,801 to 1,961,237 head but in all other classes there was an increase, flour being up from 11,161,630 to 12,175,910 barrels; lumber from 3,016,673,997 to 3,286,786,667 feet; manufactured articles from 8,541,238 to 9,607,147 tons and all other articles from 9,234,382 to 10,415,506 tons. The total tonnage carried was 33,593,497, an increase of 2,500,000 tons; the number of tons carried one mile was up from 13,275,706,601 to 14,049,459,953 and the earnings per ton per mile rose from 0.97 to 1.01 cents. The number of passengers carried totalled 13,559,830, as against 13,695,633 in 1925 but the number carried one mile showed an increase from 1,259,632,689 to 1,263.326,715 and in consequence earnings per passenger per mile were up from 2.55 to 2.63 cents.

At Dec. 31,1926, the C.P.R. mileage consisted of 14,408.7 miles of track under C.P.R. traffic returns; 484.6 miles of other lines worked and 161.7 miles under construction, a total of 15,055 miles. In addition, the Company controlled 5,091.2 miles through subsidiaries in the United States. As illustrating the extent of the

NOTE.-See Supplement in this volume for further details of the Company's financial position, etc.

Company's services at this time, the following statistics are illuminating: number of locomotives, 2,255; first and second class passenger cars, baggage cars and colonist sleeping cars, 2,131; first-class sleeping, dining and café cars, 596; parlour cars, official and paymasters' cars, 139; freight and cattle cars (all kinds,) 90,881 conductors' vans, 1,334; boarding, tool and auxiliary cars and steam shovels, 6,532; lake and river steamers, 20; ocean and coastal steamships, 54 with gross tonnage of 375,996.

General Happenings of the Year. On Apr. 25, 1926, the Canadian Pacific Railway, in co-operation with the Boston & & Maine Railway, put into operation new fast night trains between Boston and Montreal, to which the name Red Wing was given. These cut one hour from the previous time between Montreal and Boston and two hours and twenty minutes from the northbound run. In connection with the first trips of these trains, parties of Boston and Montreal newspapermen were carried between the two cities and entertained at either terminus. On Apr. 26 new day trains, christened L'Alouette, were also placed on the run.

Two vacancies on the Board of Directors occasioned by the deaths of Sir Thomas Skinner and Sir Augustus Nanton were filled in August, 1926, by the appointment of the Rt. Hon. Reginald McKenna, Chairman of the London Joint City and Midland Bank, and Edward Robert Peacock, a Canadan financier long resident in London, England. Other noteworthy changes in personnel during the year included the retirement after many years' service of F. W. Peters, Vancouver, General Superintendent of the British Columbia District, who was succeeded by C. A. Cotterell, and of William Blackstock Lanigan, who retired from the position of General Freight Traffic Manager, on Sept. 1st but who was retained in the service so that his special knowledge might be available in connection with rate cases before the Board of Railway Commissioners.

It was announced on Dec. 17, 1926, that the Company would seek authority from Parliament for the construction of six branch lines in Saskatchewan and Alberta, aggregating more than 200 miles and costing several millions of dollars. A Bill covering these lines was introduced in the House of Commons on Feb. 21, 1927, and given its third reading on Mar. 7. Authority for the construction of the following lines was granted to the directors at the Annual Meeting on May 4, 1927; (1) Moose Jaw Southwesterly (Saskatchewan) mileage 96 to 109, 13 miles; (2) Rosetown Northerly (Saskatchewan) mileage 0 to 21, 21 miles; (3) Gem Colony Branch from Rosemary North (Alberta) mileage 0 to 8.5, 8.5 miles; (4) Cut Knife-Whitford Lake (Alberta) mileage 115 to 181, 66 miles; (5) Asquith to Cloan (Saskatchewan) mileage 0 to 28, 28 miles; (6) Cassills Southerly (Alberta) mileage 0 to 22, 22 miles; total 158.5 miles. Approval was also given to the proposal to extend the Tuffnell-Prince Albert Branch of the Manitoba and North-Western Railway across the Saskatchewan River at Nipawin,

a distance of 4 miles, and to construct a branch of the same railway south and west from Kandahar or Foam Lake, 37 miles.

The Company's Annual Meeting on May 4, 1927, was featured by a comprehensive address by the President in which he touched on various outstanding matters in connection with the Company's affairs. Referring to the wage question he stated that applications for increases had been made by all classes of employees; that negotiations so far had resulted, with one exception, in amicable adjustments and that all had involved increases which in the aggregate were very substantial. He deprecated accepting the position that rates paid in the United States should, for that reason, alone, apply in Canada. He added that other negotiations were proceeding or pending and he had no reason to expect that any dislocation in the operations of the Company would be occasioned. On the question of freight rates, Mr. Beatty laid down the principle that investments honestly made were entitled to the protection of fair rates and that rates should not be fixed on the theory that, because part of the railway mileage in Canada was government-owned, they should be unremunerative and deficits be made up from the public purse. Mr. Beatty also took advantage of it being the Sixtieth Anniversary of Confederation to point out many of the achievements of the C.P.R., which was itself a part of the scheme of Confederation. It had been directly responsible for the settlement of 55,000 families on 30,000,000 acres of land; had expended nearly $75,000,000 on colonization, land settlement, irrigation and similar works and had sold 14,705,605 acres of its land grants. It owned an aggregate tonnage of 469,000 tons in its lake, coast and ocean fleets; maintained 100 general agencies in 40 countries on 5 continents; and owned and operated a chain of 14 hotels and 11 bungalow camps. Its telegraph service, opened in September, 1886, had now a wire mileage of 134,000 miles and a cable mileage of 400 miles. To date it had paid $80,000,000 in taxes. In the last eight years it had spent over $2,403,000,000 in wages and for supplies and materials; $32,000,000 in branch line construction and $71,000,000 for rolling stock, improvements and replacements. The personnel aggregated

81,000.

Retiring Directors, Col. Henry Cockshutt, Sir Herbert S. Holt, Col. Frank S. Meighen and F. W. Molson were re-elected for a term of four years and two new Directors, James A. Richardson of Winnipeg and W. J. Blake Wilson of Vancouver were added to the Board, increasing the membership to 17. The Meeting also approved of the issue of $75,000,000 additional ordinary capital stock from time to time according to the requirements of the Company in such amounts, at such times, in such manner and form, at such price and upon such terms of payment as the Directors might determine. At a subsequent meeting of the Board of Directors, Mr. Beatty was re-elected President and Grant Hall, Vice-President. The other members of the Executive Committee

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re-elected were Sir Herbert S. Holt, Charles R. Hosmer, Sir Vincent Meredith, Bart., and W. N. Tilley, K.C.

The 40th anniversary of the arrival of the first C. P. R. passenger train at Vancouver from the East was celebrated on May 23, 1927, by the Canadian Club of Vancouver. Several men who had been associated with the event were present as guests and the speaker of the day, Sir Esme Howard, British Ambassador to the United States, paid a tribute to the C. P. R. as a nation-builder.

C.P.R. Hotels. On Jan. 14, 1926, extensive damage was done by fire to the Chateau Frontenac, Quebec, the old section of the hotel built in 1892 being practically destroyed with a loss of about $2,000,000. The main portion of the building was not damaged and was re-opened on Jan. 18, while steps were taken for the immediate reconstruction of the burned section. This was completed early in June.

During the Winter of 1925-26, work was prosecuted on an annex to the Banff Springs Hotel, containing 100 bedrooms and this was completed in time for the 1926 Summer season.

On Feb. 21, 1926, it was reported from Regina that announcement had been made by D. C. Coleman, Vice-President, Western Lines, that a 200-room hotel would be built by the Company in that city. An agreement between the city and the railway was effected and ratified by the city council in March and by June a contract had been let for the erection of a 284-room hotel. Work of construction was carried on during the Winter of 1926–27 and the hotel was opened by President Beatty on May 24, 1927, under the name of Hotel Saskatchewan.

On Apr. 7, 1926, the Banff Springs Hotel was visited by a fire which completely destroyed the north wing and did damage to the lower portion of the central stone tower. As the Company had already arranged to rebuild the north wing during the Winter of 1926-27, the loss was not so serious and steps were immediately taken for its reconstruction under the new plans. This work was prosecuted during the Winter of 1926-27. The old south wing was also demolished in the Autumn of 1926 and replaced during the Winter by a 60-foot extension of the main tower.

When in Toronto on Jan. 17, 1927, E. W. Beatty, K.C., President of the C. P. R., was questioned regarding rumours that the Company would build a hotel in that city. He was quoted as saying, "For some years the Canadian Pacific has had to postpone the construction of a Toronto hotel through reverses which that branch of our business has suffered by fires, particularly the Banff fire. This year, however, we have been carefully considering such a building. That is about all I can say at present. On Feb. 2, Mr. Beatty announced that the Company had bought the Queen's Hotel on Front St., West, and would erect on the site a new hotel comprising 800 to 1,000 rooms.

Activities of President E. W. Beatty. Occupying the dual position of Chairman and President of the Canadian Pacific Railway, E. W. Beatty, K.c., shouldered large responsibilities in 1926-27 and was frequently called upon to enunciate the policies of the great organization over whose affairs he presided. On Jan. 16, 1926, he was the guest of George H. Mead, President of the Spanish River Pulp and Paper Mills, at the tenth Annual President's banquet of that Company, held in Sault Ste. Marie, and he there spoke on Canada's problems and the best methods for their permanent solution. On Jan. 26 he addressed the Montreal Council of the Knights of Columbus on "Transportation and Opportunity." The Canadian Lumbermen's Association had him as guest of honour at its annual dinner in Montreal on Feb. 4 and he there informed his audience that his Company was a purchaser of some $7,000,000 worth of Canadian-produced lumber a year. Its road-bed required 6,000,000 new ties each year, and, besides operating two mills in British Columbia, it was interested in 5 plants for creosoting ties. This led him to a consideration of conservation and he said: "To Canada the preservation of forested areas is particularly vital, as on that conservation depends our water powers, and it is on the electricity generated by water that the future progress of the Dominion largely depends." For the rest, Mr. Beatty spoke on railway rates maintaining that "no company should be asked to carry an individual commodity at less than cost, because of the burden that imposes upon the users of the railway and upon the public" and he touched on the need for immigration and reduced taxation.

Mr. Beatty spoke at the Annual dinner of the Sun Life Assurance Co., on Feb. 9 and was present on Feb. 10 at a meeting of the Men's Association of St. Andrew's Church, Westmount, when he spoke on Canadian conditions. On Feb. 16 he addressed the monthly dinner of the Montreal Purchasing Agents' Association on the relationship of the purchasing department to the executive. He went to Chicago on Mar. 10 and spoke at the Annual Meeting of the American Railway Engineering Association, paying at tribute to the work of the engineer, stressing the value of technical education and giving his hearers much information about Canada and the C.P.R. Returning to Montreal he delivered an important address before the Canadian Club on Mar. 15. Reviewing Canadian railway history and coming to the advent of government ownership, he declared that the acquisition of the Grand Trunk had never been suggested to the Canadian Pacific or by the Canadian Pacific, and had never been considered or contemplated in any way, or by any means, direct or indirect. It was the old familiar bogey raised again in fulfilment of a time-honoured practice in the purchase of property, viz., that of securing an imaginary secondary purchaser in order to make the purchase more attractive to those who had some doubt as to whether or not they wished to make the purchase at all. Continuing, he expressed the view that Canada's commercial prosperity and economic stability would

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