K.C., of Toronto, became Chief Solicitor to the Company. In October Mr. W. R. Baker, of Winnipeg, was transferred to Montreal as Assistant to the 2nd Vice-President, and on October 31st, was entertained at a dinner by the Board of Trade. He was presented with a silver tea service in token of the great popularity which he had won in Winnipeg. On December 9th, it was announced that Mr. I. G. Ogden had been appointed 3rd Vice-President and Mr. G. M. Bosworth 4th Vice-President. Under the new arrangements thus entered into, Mr. McNicoll was to control the operation of the road, Mr. Ogden the finances and accounts, and Mr. Bosworth the traffic details. They really became heads of departments with only the President to report to and advise with. The Grand Trunk Railway This system of railways, in 1900, had a Canadian mileage of 3,158, and a paid-up capital of $343,722,162. It carried passengers to the number of 6,214,374, and freight to the amount of 9,621,705 tons. The train mileage was 16,488,361, the receipts, $20,430,167, and the expenses, $12,999,371. The earnings from passenger traffic were $5,478,775, and from freight traffic, $13,329,695; the maintenance of lines and buildings cost $2,714,895; the working expenses and repairs of engines and cars cost $5,862,117; and the general working expenses were $4,422,359. Of the freight carried there were 543,400 tons of flour, 1,503,115 tons of grain, 329,533 tons of live stock, 1,445,941 tons of lumber, 223,675 tons of firewood, 1,103,302 tons of manufactured goods, and 4,472,739 tons of miscellaneous articles. A semi-annual meeting of the Directors of the Grand Trunk System was held in London, on April 30th, with Sir Charles Rivers Wilson, the President, in the chair. The latter spoke with hopefulness of the increased traffic which should come as a result of the Buffalo (New York) Exposition, and of the advantages accruing from the entrance of the road into the United States at Buffalo. He stated that for some time past the existing Elevator accommodation at Portland, U.S., had been inadequate, and had involved serious detention of loaded cars and loss of revenue. In order to obviate these difficulties the Directors had decided to construct a new grain Elevator at Portland of about 1,500,000 bushels capacity, and for this purpose the Company had arranged to borrow the necessary money from local banks at 3 per cent. interest. An additional wharf was also to be built, and other improvements made. The President thought the feeling in Canada upon this matter unjustifiable, as Montreal's facilities for shipping and storing grain were extremely inadequate. The halfyearly Report showed the gross receipts to be $12,096,090, the working expenses, $8,162,585, and the net traffic receipts, $3,933,505. The 4 per cent. debenture stock had been increased by $2,092,575, which had been applied on other loans, and by which a saving of $23,000 per annum was secured. Amongst the expenditures from capital account were $249,895 upon new works and sidings, $373,260 upon double tracks, and $547,835 upon rolling stock. In the Chicago and Grand Trunk—or the Grand Trunk Western Railway, as it was now called which the Directors had acquired under a sale by foreclosure, the gross receipts for the year 1900 had amounted to $4,416,525, as against $4,006,860 in 1899, and the working expenses, $3,651,385, as compared with $3,373,045 in 1899. It was announced that on December 11, 1900, Mr. Charles M. Hays had retired from the post of General Manager, and been replaced by Mr. George B. Reeve (General Traffic Manager). On October 8, 1901, another half-yearly meeting of the Directors was held, and the Report for the six months, ended June 30th, submitted. The gross receipts were $11,438,975, the working expenses $7,723,055, and the net traffic receipts, $3,715,915. With other sums received the latter total reached $4,339,040. The net revenue charges for the half-year included $388,075 on rentals for leased lines; $2,292,300 interest on debenture stocks and bonds; $326,290 interest on stocks and bonds of acquired lines; $31,105 advance to the Grand Trunk Western, and $91,050 to the Detroit, Grand Haven and Milwaukee branch Lines. With one or two minor items, debited or credited, the surplus for the six months was $984,175, out of which dividends were paid on the four per cent. guaranteed stock and the first preference stock. Since the previous meeting, the Directors had leased the Cincinnati, Saginaw and Mackinaw Railway, with a length of 53 miles. During the half-year 3,205,441 passengers had been carried, with receipts of $2,760,585, and 5,613,613 tons of freight and live stock, with receipts of $7,806,280. The increase in all directions over the period ending June 30, 1900, was marked. The train mileage for passengers was 3,313,169, and for freight 5,250,887. The gross receipts of the Grand Trunk Western were $2,183,980, the working expenses, $1,932,590, the net profits, $251,390, and the net revenue charges, $282,495—showing a deficit of $31,105. The gross receipts of the Detroit, Grand Haven and Milwaukee were $485,835, the working expenses, $390,355, the net profits, $95,480, and the net revenue charges, $186,530-leaving a deficit of $91,050. The bonded indebtedness of the Grand Trunk on June 30, 1901, was stated at $13,522,000; the debenture stocks at $106,378,190; the total annual interest, payable, at $5,296,525. The rentals charged in net revenue account included $12,698,940 divided amongst the Atlantic and St. Lawrence, the Chicago, Detroit and Canada Grand Trunk and the Buffalo and Lake Huron, with a yearly charge of $713,470. The bonds of controlled lines amounted to $18,842,820 and the annual charge to $884,370. Securities which had been acquired by the issue of Grand Trunk 5 per cent. debenture stock, under the Act of 1874, amounted to $17,684,445 and the interest upon them to $927,190; those acquired by the issue of 4 per cent. consolidated debenture stock from August 12, 1882, to June 30, 1901, amounted to $36,457,865 and the interest thereon to $1,887,425. Securities held by the public, which may be acquired by the Company, under the issue of 4 per cent. debenture stock, and subject to the consent of *The British_currency, as given in the official Reports, has been changed here and elsewhere into Canadian figures. the holders, amounted to $82,249,985 bearing interest totalling $4,130,965. Securities owned by the shareholders of the Grand Trunk Railway Company were stated at $132,713,750. According to the Report of the Minister of Railways for 1901 the length of the Grand Trunk Railway, proper, without its branch or leased lines, was 883 miles and the ordinary share capital subscribed and paid up on June 30th was $109,356,584. The preference share capital was placed at $89,244,198; the bonded debt authorized was $167,253,996-including many securities of amalgamated lines—and the paid up portion was stated at $90,410,830; the amount of loans received from the Dominion Government was $15,142,633. The total capital was placed at $304,154,246 and the total cost of the Railway and rolling stock at $332,920,945. The Directors of the Grand Trunk Railway System for 1901 included the President, Sir Charles Rivers Wilson, G.C.M.G., C.B., and the Vice-President, Mr. Joseph Price; Messrs. George Allen, George Von Chauvin, J. A. Clutton-Brock, Alexander Hubbard, L. J. Seargeant, A. W. Smithers; Lord Welby, G.C.B., Sir W. Lawrence Young, Bart., and Sir Henry M. Jackson, Bart.; all of England. Some changes in the Canadian staff took place during the year. The appointment of Mr. George Bell Reeve, as General Manager and 2nd Vice-President, late in 1900, has already been referred to and it may be added that his predecessor, Mr. C. M. Hays, had been banqueted on December 17th at the Windsor Hotel by two hundred of the leading citizens of Montreal. Senator Mackay occupied the chair and some of those present were the Hon. S. A. Fisher, Minister of Agriculture, Mayor Prefontaine, Mr. C. Drinkwater, Secretary of the Canadian Pacific Railway, Senator J. P. B. Casgrain, Mr. R. Bickerdike, M.P., the Hon. A. G. Blair, Minister of Railways, Mr. R. S. White, Principal Peterson, of McGill University, Mr. James Crathern, Mr. L. E. Geoffrion, President of La Chambe de Commerce, and Mr. E. F. Craig, President of the Corn Exchange Association. The Montreal Herald, of the succeeding day, referred to the rise in Grand Trunk securities and the general transformation of the road under Mr. Hays' administration and declared that "it is the unanimous judgment of those who have observed the reforming process at close range that, making allowances for favourable conditions, Mr. Hays has demonstrated his superiority as a railway organizer." Upon January 1, 1901, Mr. William Wainwright became General Manager and Comptroller of the System and Mr. Frank Scott, Treasurer. On March 6th, following, Mr. R. S. Logan, Assistant to Mr. Reeve, resigned to accept the post of General Manager of the Central Vermont Railway-a part of the Grand Trunk System-and Mr. J. E. Dalrymple was appointed in his place. At the close of the year for which he had been appointed Mr. Reeve retired from his position and Mr. Charles M. Hays again assumed control of the Railway. A dinner was given to Mr. Reeve by the heads of departments in the System on December 19, 1901. Wainwright presided and there was a large attendance of railway men. Mr. The Inter- Railways The Government railways of the Dominion include the Intercolonial and its branches and the Prince Edward Island Railway. The former had a track mileage of 1,360 and the latter of 211 on June 30, 1901. The Windsor Branch of the Intercolonial was 32 miles in length. The working expenses of the Intercolonial for the fiscal year were $5,320,422 and the earnings $4,972,235-showing a deficit of $348,186. The $140,000 rental paid annually to the Grand Trunk was not included in these figures. The Windsor Branch showed a profit of $30,399 and the Prince Edward Island Railway showed working expenses of $261,766 and earnings of $193,883, or a deficit of $67,882. These figures indicated a total loss on the year's operations of $385,670, or with the Grand Trunk rental, of $525,670. The total gross earnings of Government railways during the year was, therefore, $5,213,381, and the gross working expenses $5,599,051* as against $4,774,162 and $4,665,228 respectively in the preceding year. The total deficit in 1901 was, therefore, $385,670, as compared with a surplus of $108,934 in 1900. The tons of freight carried during the year upon the Intercolonial Railway were 2,111,310, or 40,000 less. than in 1900, and the number of passengers carried was 2,025,295, or 233,000 more than in the preceding year. Of the freight carried there were 1,292,106 barrels of flour, 3,535,364 bushels of grain, 396,858,964 feet of lumber and 95,923 head of cattle. In all of these products there was an increase-grain showing 815,000 bushels improvement. The ocean-borne goods carried by the Railway, to and from Europe, via the Port of Halifax, weighed 163,838 tons as against 39,794 in 1900. The refined sugar carried amounted to 25,821 tons, the fresh fish to 9,393 tons and the salt fish to 9,768 tons. The total cost of the Intercolonial Railway up to June 30, 1901, including road, equipment, purchase of the Drummond County Railway for $1,459,000, and the value of the rolling stock, was $63,640,028. The expenditure during the fiscal year 1901, which was included in this capital account, totalled $3,652,313, and the principal items were as follows: • There is a discrepancy of $140 in the figures given in the Report of the Railway Department (page 20). I have used those which appear to make the results harmonize.-The Editor. The Windsor Branch of the Intercolonial Railway is operated by the Dominion Atlantic Railway Company which pays the Government one-third the gross earnings for maintaining the way and works. This sum amounted to $62,523 in 1901. The Prince Edward Island Railway, which had cost up to the end of the fiscal year 1901 a total for road-bed and rolling stock of $4,123,827, carried passengers to the number of 157,793, and 73,696 tons of freight-an increase in each case. During the year various criticisms and the reverse were heard regarding the management of the Intercolonial. The Maritime Mining Record of March 6th denounced the purchase in January of 60,000 tons of American coal. It declared the action to have been precipitate and unnecessary; to have involved the payment of $5 per ton, or nearly twice the price of Nova Scotia coal; to have hampered the collieries for a time owing to the transport by rail of this large importation; and to have deprived the Provincial Government of $6,000 revenue. The St. John Telegraph of April 15th stated, as facts too obvious to be questioned, that the improvement in management could be seen in every direction. "The trains are better, the road-bed is kept in finer order, there is more business being done, and there are evidences in all directions of a higher tone and superior methods in the conduct of the Line." Referring to the deficit between earnings and expenses the paper declared the price of coal and the rate of wages to be the causes. Since June, 1900, coal had been sold in the Maritime Provinces at from $1 to $1.25 per ton higher than in preceding years and, at the lower figure named, this fact would involve increased expenses of at least $400,000. As to wages the increases announced from time to time would amount to over $200,000. Hence the deficit. The Conservative papers took a very different view of the subject. The St. John Sun of December 31, 1901, referred to the expenditure of over two and a half millions upon sidings, repairs, construction work, rolling stock, etc., and the charging of the amounts to capital account, with condemnation. It declared that under the Conservative Administration most of these sums had been charged to the working expenses of the year. "The road is charged with the old bridges and the new ones which take their places, with old engine houses and the new ones which replace them, and probably with old rolling stock and new plant which supersedes it. Such book-keeping reduced the deficit from a million or two to half a million by swelling the capital to that extent." The Halifax Herald pointed out that the amount charged annually to capital account had increased from $250,423 in 1896 to the present sum of $3,600,000. Crow's Nest Pass Parliament and the country generally shared in a controversy over this road and its proposed Dominion charter. At the beginning of the year the immense coal fields of the Crow's Nest region had only commenced to be appreciated by the public, notwithstanding the pioneer labours and investments of Lieut.-Colonel James Baker who so long held a position in British Columbia Governments, and the construction |