CANADIAN RAILWAYS.

New Zealand Herald, Volume LXIII, Issue 19221, 9 January 1926, Page 11

CANADIAN RAILWAYS.

THE STATE ENTERPRISE. BANKRUPTCY AVERTED. GREATLY INCREASED EARNINGS. Speaking at the Aldwych Club, in London, Sir Henry W. Thornton (chairman and president of the Canadian National Railways), said that the State railways 111 Canada, representing a mileage of 22,000, had been threatened with bankruptcy. The Government had decided that it was better to take over the entire mileage, rather than allow it to pass into 'tlie hands of receivers, with a possible interruption of transport facilities. A ■ considerable proportion of the peoplo of Canada had, ho contended, become converted to State ownership. Sir Henry proceeded to point out that the. transportation system in any country must be solvent, and must provide to the public adequate service at reasonable rates if State ownership were to be avoided. Furthermore, wages to employees must be sufficient to enable them and their families to live in comfort. The infraction of those three conditions would be almost certain to provoke State ownership. The problem in Canada had been to amalgamate the constituent pieces into one entity in a period of two or three years. In 1922, the year before the present administration took charge of the Canadian National Railways, the net earnings of the system were approximately £6,000,000. This year the net earnings would probably be £5,030,000, as for the first ten months the total was £4,000,000. That distinctly showed measurable progress. The achievement of two objectives was absolutely essential in such an undertaking. The first was to excite the loyal co-operation of all officers and men, and to make them anxious to do a little more than they were paid for, simply because they were glad to do it. The second was that they must give a satisfactory service which excited the confidence of the travelling public. The Canadian National Railways had placed these two objectives as the goal which they desired to reach. Courtesy on the part of the officials was a thing of very great value. There was really no difference between transportation and selling fish. It was simply a problem of merchandising a product.