Mr. G. R. GEARY (Toronto South) presented the fourth report of the standing committee on railways and shipping owned, operated and controlled by the government as follows: .
Your committee, in accordance with order of reference dated March 4, 1935, has considered the annual reports respecting the accounts of the Canadian National Railways and' the Canadian Government Merchant Marine, and in connection therewith has examined the following witnesses:
Hon. C. P. Fullerton, K.C., Chairman, Board of Trustees, Canadian National Railways;
Mr. J. E. Labelle, K.C., Trustee, Canadian National Railways;
Mr. S. J. Hungerford, President, Canadian National Railways;
Mr. S. W. Fairweather, Director, Bureau of Economics, Canadian National Railways;
Mr. T. H. Cooper, Auditor of General Accounts, Canadian National Railways;
Mr. B. J. Roberts, Comptroller, Government Guarantee Branch, Department of Finance;
Mr. 0. A. Matthews, George A. Touche & Company, Accountants and Auditors.
Your committee had under consideration Bill No. 24, an act respecting the Canadian National Railways and to authorize the provision of moneys to meet expenditures made and indebtedness incurred during the calendar year 1935, and in its second report presented on the 9th of April, 1935, reported the said bill without amendment. A full explanation of this bill was given in the House of Commons by the Minister of Railways and Canals.
Your committee had under consideration items numbers 293, 294. 295, 296 and 207 (Canadian National Steamships and Maritime Freight Rates Act), of the estimates of the fiscal year
1935-1936 approved the same and recommended them to the house in its third report dated the 19th of April, 1935.
The budget for the year 1935 of Canadian National Railways and Canadian National Steamships estimates totals operating revenues for the year at $180,000,000 and operating expenses of $163,200,000. In addition to operating expenses there are sundry other items charged against operating revenues including interest on funded debt due to the public amounting to $62,600,000, showing an estimated deficit on the year's operations of $45,800,000. Of this amount, however, $1,020,000, depreciation reserve and $780,000 amortization of discount on funded debt, or $1,800,000 in all, are not required in cash; so that the estimated net cash requirement on deficit account for the year is $44,000,000.
The total capital expenditures for the year, estimated as follows:
For additions and betterments, $5,279,600; for investments and securities representing capital expenditures, $220,400; a total of $5,500,000, call for no special comment beyond the fact that under the item of "hotels" some $600,000 is provided for opening the Saskatoon hotel, and $300,000 to continue the construction of the Vancouver hotel.