May 6, 1925


s a o g g o



C.N.R.-Minister's Statement Port Arthur Division. Port Arthur Division Winnipeg Terminals Division. Winnipeg Terminals Division. Winnipeg Terminals Division. Portage Division Portage Division Portage Dibision., Portage Division.. Portage Division.. Brandon Division. Brandon Division Brandon Division Dauphin Division Dauphin Division Melville Division Melville Division Prince Albert Division. Regina Division Regina Division. Regina Division.... Saskatoon Division. Saskatoon Division. Saskatoon Division. Calgary Division____ Edmonton Division. Ed son Division Smithers Division.. Kamloops Division. Kamloops Division.. Kamloops Division. Kamloops Division Vancouver Island Division. 4-20 0-06 0-43 38-17 0-45 0-98 670-16 2-79 0-06 0-02 0-04 4-20 271-89 0-90 0-01 0-05 102-11 0-12 158-15 0-03 38-08 102-11 0-21 0-51 0-26 0-01 0-76 1-05 0-06 2-34 0-14 0-28 0-73 0-06 0-03 0-04 0-26 18-58 0-01 0-06 525-74 102-25 105-83 0-06 1-68 Portion of line at Transcona transferred to Winnipeg Terminals Division. Miscellaneous corrections. Transferred from Port Arthur Division. Transferred from Portage Division. Miscellaneous corrections. Transferred to Winnipeg Termnls. Division. Neepawa, Carberry, Rapid City & Rossbum Sub-divisions transferred to Brandon Division. Miscellaneous transfer tracks not now included as main line transferred to sidings. Miami, Carman and Pleasant Point Subdivns. transferred from Brandon Division. Miscellaneous corrections. Neepawa Carberry, etc., Subdiv. transferred from Portage Div. Miami, etc., Subdiv. transferred to Portage Division. Miscellaneous corrections. Rhein Sub. inch Wroxton wye transf'd to Melville Divn. Miscellaneous corrections. Rhein Sub. incl. Wroxton wye transf'd from Dauphin Divn. Miscellaneous corrections. Miscellaneous corrections. New and existing lines put into operation as main line-Hodge-ville to Neidpath 15-07 mis. Gravelbourg Jet. wye 0-22 mis., Peebles to Handsworth 22-06 mis. wye at Moose Jaw 0-19 mis. So. leg Bdy. wye 0-27 mis. Wye at Talmage 0-36 miles. Miscl. transfer tracks not now included as main line transferred to sidings. Miscellaneous corrections. Miscellaneous transfer tracks not now included as main line- transferred to sidings. Connections at Nutana 0-46 mis. Conn, at Yorath 0-22 and wye at Tichfield 0-26 miles. Miscellaneous corrections. Correction. Miscellaneous corrections. Miscellaneous corrections. Miscellaneous corrections. Rehabilitation of Grand Trunk Pacific Line Yelsum to Rainbow Conn. Can. Northern Line Yelsum to inactive, due to rehabilitation Line. Kamloops to C.P.R. switch 0-76 miles, Kamloops Junction wye 0-22 miles. Miscellaneous corrections. Addition to main line mileage of Cowichan Subdivision. Total net increase Western Region 139-22 miles. Rainbow Conn, rendered of Grand Trunk Pacific g > k!



to C.N.R.-Minister's Statement


SUMMARY


Territory Owned Lines Lines under Lease or Contract Lines under Trackage Rights Increase Decrease Increase Decrease Increase Decrease0-90 126-81 670-16 17-68 282-97 525-74 60-53 0-95 102-25 [DOT]2-92 105-83 001 0-06 3-55 1-68 797-87 826-39 163-73 108-75 0-07 5-23 Increase Decrease Miles Miles Net Decrease in Owned Lines 28-52 Net Increase in Leased Lines 54-98 Net Decrease in Trackage Rights 5-16 54-98 33-68 Total Net Increase 21-30 Office of Engineer of Standards, Montreal, Que., April 20th, 1925 Increase Decrease Miles Miles Net Increase Atlantic region 43-75 Net Decrease Central Region 161-67 Net Increase Western Region 139-22 182-97 161-67 Total Net Increase 21-30



§ o 5? Vj C.N.R.-Minister's Statement C.N.R.-Minister's Statement An interesting item to which I wish to call the attention of the House is that of insurance. As one can readily understand, the question of insurance in a system the size of the Canadian National Railways is a very important one. Prior to the present management taking hold of the system, there were three methods of insurance. Of course the government railway lines were never insured; the government of Canada always carried that insurance. When I had the honour of being Minister of Railways and Canals before, I instituted what was known as an insurance fund on the Intercolonial railway, with the result that in 1911 there was a tidy balance to the credit of the insurance fund and all the fire losses on the Intercolonial had been taken care of toy that fund. This insurance fund was established out of the receipts of the Intercolonial railway. Some lines under the company system were insured, partly, at least by a fund they had themselves. Others paid out very large sums to companies for insurance. After full consultation, having a competent actuary go into the figures, the management of the railway, in conjunction with the Railway department, came to the conclusion that this system provided enough insurance for a whole company in itself, that is a company of moderate size, and that the company with the government behind it not only could afford to carry its own insurance but could save a great deal of money in doing so. It was not left for the Receiver General to provide the moneys and the Dominion of Canada to carry the insurance through the Receiver General, but each year the amount of the premiums that would go to a company are laid aside in the Canadian National for the purpose of insuring the property. There is still some $2,000,000 or a little over of fire insurance carried with other companies. These policies fall due this year and they will all be brought under the Canadian National insurance fund. The result of this, I think, will be very encouraging.


IND

William Findlay Maclean

Independent Conservative

Mr. MACLEAN (York):

Then the government has a publicly-owned insurance company?

Topic:   QUESTIONS
Subtopic:   SUMMARY
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LIB

George Perry Graham (Minister of Railways and Canals)

Liberal

Mr. GRAHAM:

The Canadian National

Railway Company is operating it. The annual premiums paid to outside insurance companies in respect to risks placed with these companies amounted to approximately SI ,150,000. This was an annual cash outlay. In addition to this, there was charged to operating expenses and credited to insurance reserves, premiums aggregating $130,000 per annum. An examination of the premiums, as I have 185

pointed out, for a period prior to 1923, shows that there was a great profit in the insurance business as regards these railway properties. So the company, as I have explained, decided to adopt what we call self-insurance. The results of this policy have so far been very satisfactory from the standpoint of the National Railways, as may be judged from the fact that the actual losses in the entire railway system in 1923 and 1924 were only $679,050 and $420,250, respectively, whereas the actual cask paid to private companies for part of the risk carried was approximately $1,050,000. At the present time the cash or securities held in the insurance fund by the Canadian National Railways amounts to $4,074,153. This does not include the merchant marine which also has an insurance fund of its own. This will show to hon. gentlemen, I think, the wisdom of that step, and while we are charging in the expenses the amount of premiums each year, as a matter of fact we have that cash in the treasury, or, if not, we have the amount in bonds. In the Canadian Northern the money for insurance was carried as a book-keeping fund; there was no cash in sight; but the amount in the fund of the Canadian National Railway Insurance De partment is in government bonds or cash.

Topic:   QUESTIONS
Subtopic:   SUMMARY
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PRO
LIB
CON

James Arthurs

Conservative (1867-1942)

Mr. ARTHURS:

To what fund are the

expenses of this insurance department charged?

Topic:   QUESTIONS
Subtopic:   SUMMARY
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LIB

George Perry Graham (Minister of Railways and Canals)

Liberal

Mr. GRAHAM:

I think this is charged as part of the operating expenses. The insurance department is a department of the Canadian National. As a matter of fact, the expenses ought to he paid out of the insurance fund, although I am not sure whether they are or not.

Hon. gentlemen have heard a good deal about the difficulties of transportation companies in all countries in meeting competition brought about by automobiles and busses on account of the improvement of roads. This may seem small at first blush, but it is a very important matter and it has to be dealt with. The question will arise: Should' the railway companies of Canada forsake some of their steam lines and operate busses on short hauls, or should they replace their steam roads on little longer hauls with gasoline or electric cars to take the place of the more expensive steam locomotives and regular trains? This is a problem that is being studied by all railways in the country. One can never say that the busses must be banished One cannot say that hon. gentlemen must not ride in their automobiles, but

Topic:   QUESTIONS
Subtopic:   SUMMARY
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PRO
LIB

George Perry Graham (Minister of Railways and Canals)

Liberal

Mr. GRAHAM:

C.N.R.-Minister's Statement

Statement No. 1

CANADIAN NATIONAL RAILWAYS (Including Central Vermont)

Topic:   QUESTIONS
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INCOME ACCOUNT


Yeaes Ending December 31st, 1924 and 1923 Gross Operating Revenue 1924 1923 Canadian National Railways Lines in Canada $ 201,224,493 13 $ 214,787,207 46 Canadian National Railways Lines in U.S 34,303,689 42 38,348,280 15Total Canadian National Railways Central Vermont Railway 235,588,182 55 8,380,752 39 253,135,487 61 8,627,980 41Total 243,968,934 94 $ 261,763,468 02 Gross Operating Expenses Canadian National Railways Lines in Canada Canadian National Railways Lines in U.S 189,460,403 90 .. 28,883,52717 $ 202,936,658 84 29,768,179 69 Total Canadian National Railways Central Vermont Railway 218,343,931 07 7,298,127 43 232,704,838 53 7,677,080 80Total ..3 225,642,058 50 $ 240,381,919 33 Net Revenue or Deficit from Railway Operations Canadian National Railways Lines in Canada Canadian National Railways Lines in U.S 11,764,089 23 5,480,162 25 $ 11,850,548 62 8,580,100 46Total Canadian National Railways Central Vermont Railway 17,244,251 48 1,082,624 96 20,430,649 08 950,899 61Total 18,326,876 44 $ 21,381,548 69Tax Accruals, Uncollectible Revenues & Miscellaneous Operations Canadian National Railways Lines in Canada Canadian National Railways Lines in U.S 3,471,164 64 1,538,069 82 * 2,895,493 42 1,261,916 85Total Canadian National Railways Central Vermont Railway 5,009,234 46 230,656 79 4,157,410 27 243,696 02Total 5,239,891 25 S 4,401,106 29Total Operating Income or Deficit Canadian National Railways Lines in Canada Canadi * National Railways Lines in U.S 8,292,924 59 3,942,092 43 $ 8,955,055 20 7,318,183 61Total Canadian National Railways Central Vermont Railway 12,235,017 02 851,968 17 16,273,238 81 707,203 59Total 13,086,985 19 % Non-Operating Income or Charges Net Canadian National Railways Lines in Canada Canadian National Railways Lines in U.S 9,298,130 99 6,769,820,09 $ 6,350,039 31 9,121,629 11Total Canadian National Railways Central Vermont Railway 2,537,310 90 622,761 69 2,771,689 80 843,976 95Total 1,914,549 31 % 3,616,566 75



C.N.R.-Minister's Statement Statement No. 1.-Concluded. Total Income or Deficit Before Fixed Charges Canadian National Railways Lines in Canada Canadian National Railways Lines in U.S- 1924 1923 $ 17,591,055 58 $ 15,305,094 51 2,818,727 66 1,803, US SO Total Canadian National Railways, Central Vermont Railway 14,772,327 92 229,206 58 13,501,649 01 138,773 36 Total



Fixed Charges Canadian National Railways Lines in Canada:- Interest due Public Interest due Government 31,271,043 00 Canadian National Railways Lines in U.S.:-Interest due Public Central Vermont Ry. due Public " " due Can. Nat. Rys. Total C.N.R. and C.V. Ry.. Canadian National Railways Lines in U.S. Total Canadian National Railways.. Central Vermont Railway Total Deficit Total Deficit rTE.-in rnese siaiemema me imj uguica ' >* .... ** *. . , the accounting practices in effect in 1924. The net result, however, is not affected. .$ 37,459,173 25 s 34,125,745 92 31,271,043 00 30,157,943 67 68,730,216 25 64,283,689 59 902,530 89 915,634 36 S 69,632,747 14 $ 65,199,323 95 538,922 04 498,287 61 587,347 05 446,614 78 1,126,269 09 944,902 39 .* 70,759,016 23 $ 66,144,226 34SI,139,160 67 $ 48,978,595 083,721,358 55 2,719,079 8654,860,419 22 51,697,674 94897,062 51 1,081,675 76s 55,757,481 73 $ 52,779,350 69to afford a better [DOT] comparison with i is not affected. C.N.R.-Minister's Statement Statement No. 2


CANADIAN NATIONAL RAILWAYS


Lines in Canada INCOME ACCOUNT Years Ending December 31st, 1924 and 1923 Gross Operating Revenue Canadian National Railways (Inc. G.T.R. in Can.) $ 80,402,154 45 Canadian Northern Railway System 58,100,383 07 Canadian Government Railways 43,206,625 72 Grand Trunk Pacific Railway : '' 19^ 515) 329 89 Canadian National Railways Lines in Canada $ 201,224,493 13


May 6, 1925