Case The creation of the CNR

Case The creation of the CNR - What was Wilfred Laurier...

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What was Wilfred Laurier trying to accomplish by building two Railroads? 1. Continue Sir John A MacDonald’s nation-building 2. Boundaries 3. Provinces 4. Agriculture and infrastructure 5. French-English connections What did Robert Borden inherit when he was elected PM? The Railway Mess a. Three intercontinental railways b. Fewer than 7.5 million people c. Financially weak d. Unable to meet debt obligations e. Banks at risk Problems with CN Part 1 Abnormally high operating costs. In seven of the ten years between 1985 and 1995, the CNR's revenue from freight operations failed to cover its operating costs. To compensate for the shortfall, the railway raised the fees it charges other carriers to use its lines, driving down traffic and increasing shipping costs. But its owner, the federal government, acted as a patron and covered most of the difference. Because it could rely on this support, the CNR was able to avoid taking the steps necessary to become profitable. Problems with CN Part 2 Excess trackage. After railroads were deregulated in the U.S. in 1982, they shed 25% of their unprofitable lines. Between 1985 and 1995, the CNR trimmed only 15%. That left one-third of its track carrying only 1% of its freight volume. Less than half of its runs made money. It had
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