Distribution of Cash Advances to The Canadian National Railways to March 31,1926, as given in Speech of
Minister of Finance, April 15, 1926
- Total Chargeable to Canadian National Railway Co. Canadian Northern Ry. Grand Trunk Ry. Grand Trunk Pacific Canadian Government Rlys.Operating deficits... Interest
Refunding and Retir- $ cts. 55,269,684 39 186,872,514 20 108,334,685 22 179,352,204 66 28,528,993 66 $ cts. 5,468,300 86 1,898,433 01 2,633,266 13 $ cts. 23,810,869 22 121,144,730 33 53,721,326 10 124,376,243 94 3,187,466 56 $ cts. 1,877,047 56 29,055,222 48 52,714,926 11 16,832,947 36 18,102,038 82 $ cts. 30,595,524 56 31,204,260 53 $ cts. 1,013,756 95Capital expenditure. Working capital
Purchase of bonds... Purchase of stock.... Total given in speech of Minister of Finance 25,775,443 22 7,239,488 28 9,734,304 01558,358,082 13 33,048,000 00 10,000,000 00 10,000,000 00 326,240,636 15 118,582,182 33 94,814,716 59 33,048,000 00 8,720,547 0610,000,000 00
601,406,082 13 10,000,000 00 336,240,636 15 118,582,182 33 127,862,716 59 8,720,547 06
Of the loans from the Dominion of Canada, 485 millions odd, 127 millions went directly into betterments during the last six years. Including capital expenditure provided from moneys raised by guarantees during the same period, the total is $228,693,560. If to these be added 36 millions put into the property
as the result of the railways' own financing, we have a total expenditure on investment account, during the last six years of $265,068,560. This capital expenditure, on a yearly basis, is set forth in a statement which, with the permission of the House, I will hand direct to Hansard.
Expenditures on Investment Account Canadian National Railways
Improvement of property by new construction betterments, property acquirements and new equipment:-
Dominion Direct Riy.
1920-21 Total Dominion Loans $ 60,464,922 30 29.748,478 74 21,343.131 26 7,943,457 18 5,321,302 65 Guarantees financing $27,000,000
1921-22 $ 3,903,030 65
1923-24 55,715,292 04 23.620,679 12 18,000,000 00
1924-25 1924-25 9,375,000
1925-26 2.633,266 13
$265,068,560 07 $127,454,558 26 $101,239,001 81 $36,375,000
The 18 million guarantee, 1924-25, was for branch lines construction and Toronto terminals, under the viaduct agreement.
Turning now to some of the other items on the liability side of the balance sheet, traffic balances and accounts payable show an increase due to additional business at the close of the year. Interest matured, unpaid, shows a substantial reduction of $6,500,000, due principally to a reclassification of unpaid interest on the Grand Trunk Pacific 4 per cent debenture stock. The interest on this security is accrued by charge against income, but is not paid if not earned. Unpaid arrears
are now classified as a deferred liability, and this explains the increase in the item, Other Deferred Liabilities.
Under unadjusted credits, insurance and casualty reserves increased $1,408,000 of which $1,387,000 is the fire insurance reserve. The merchant marine is also insured through the railway insurance fund. The steady increase in this reserve indicates the wisdom of the policy adopted in placing insurance
through the company's own fund instead of outside underwriters. Under present policy, all profits which the underwriters would have received, remain with the company.
Profit and Loss account, being a debit balance, is shown as an impairment of the government equity in the property as represented by $265,628,338.70 of capital stock owned by the Dominion and $1,188,482,341.48 in Dominion of Canada account.
Before leaving the balance sheet, I would just like to make one further observation. The Minister of Finance (Mr. Robb) in his budget speech, estimated that for the fiscal year ended March 31, 1926, there was a shortage of net earnings against the interest payable to the public of $7,400,000. When the budget speech was delivered, the actual figures for the government fiscal year were not available. Since they have been available, it is shown that the position is even better, and that the deficiency in net earnings to meet interest charges due the public was not $7,400,000, but $5,735,502-and this after allowing for such charges as amortization of discount, depreciation accruals, and retirements of the ledger value of equipment taken out of service, amounting in all to more than three million dollars.
Sir Henry Thornton, on page 7 of the report, has dealt with increases and decreases in certain items of the income statement. I will simply add, for the information of parliament, a statement of the profits of separately operated companies as shown in account No. 512 of the income statement, and of losses of separately operated companies, as indicated by account No. 545. Perhaps the members will be good enough to take these as read and let them appear in Hansard.
CANADIAN NATIONAL RAILWAYS Profits of Separately Operated Companies, as Shown
in Account No. 512
Oshawa Railway ,
$ 151,777 58Thousand Island Railway
25,418 60Terminal Warehousing Company
Chicago, New York & Boston Refrigerator
194,600 26Montreal Warehousing Company
104,835 28G.T.P. Terminal Elevator Company.. .. 19,155 07
Canadian National Express (except revenues
281,113 49Canadian National Realties
16,087 12Niagara, St, Catharines & Toronto Railway Navigation Company
83,014 77Canadian National Steamships
24,837 87Canadian National Telegraphs
176,061 14Canadian National Transfer