The CNR- Creating a Crown Corporation

Recommends canadian northern take over grand trunk

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: believe governments should operate them •  Sets off an “unrealis*c” building boom compared to the dot- com bubble of the late 1990’s 22 What did Robert Borden inherit when he was elected PM? Three intercon*nental railways 5.5 million popula*on Railway track increased 40% between 1903 – 1911 Track doubled to more than 50,000 miles up to the war in 1914 •  1913 Grand Trunk renegs on commitment to take over the Na*onal Transcon*nental. Canadian Northern burns up capital and asks for $30 Million •  War saves the day – railways earning over $250 million per year (30 percent passenger and 70 percent freight) •  40 million passenger trips and ninety million tons of freight with 5,000 locomo*ves, 5,000 passenger cars and 200,000 freight cars •  •  •  •  Sept 2012 ADMS 1010 23 Sept 2012 ADMS 1010 24 Sept 2012 ADMS 1010 25 The Railway Mess •  Capital structure of the industry –  40 percent equity –  45 percent debt –  15 percent “government assistance” •  Over- capacity •  Revenue from passengers and freight fell 5 percent in the pre- war recession of 1913- 1914 •  1914 Canadian Northern asks for $100 million •  Government takes a 40% equity posi*on •  Bri*sh gover...
View Full Document

Ask a homework question - tutors are online