Arthur meighen refused to provide any additional

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Arthur Meighen refused to provide any additional financial support to the GTR 1919 after the WW I post war recession followed, the GTR could no longer operate the GTP subsidiary line, the government appointed the minister of railway and canals J.D Reid as receiver in charge of managing and taking over the bankrupt line. Meighen’s stand is that public ownership was appropriate in the case of a ‘Monopoly’.(although the nearly created CN would be competing with CPR, in most area the two companies would not competing with each other) House of Common had two arguments the bill of to acquire the GTR: 1. the government should acquire GTP and let GTR to continue operating 2. The government should let the GTR go bankrupt rather than take over a losing proposition.
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Meighen responded, the new Canadian National (CN) needed the GTR lines in the eastern Canada to complete its system in a logical fashion. Although it have good feeder line in the west, the same was required in the more populous east. He also contended (argued) that liquidation of GTR would lead inevitably (eventual) to the CPR’s acquisition of the GTR which is not tolerable. 1919 Nov 5 the GTR acquisition act was passed and nationalized the GTR. For the next seventy year Canada was unique in the world, possessing two major railroads that competed with each other- one a crown Corporation, CN, owned by the government, the other owned by shareholders, the CP. What should Arthur Meighen have done? The roots of the railway mess was lay in the previous government’s failure to create one transcontinental line to compete with the CPR back in 1903, rather than allowing for the possibility of two. Laurier’s third transcontinental line the CNR for the 7.5 million populations was unsustainable and the authorization compounded the problem. Both CNR and GTR had week to non-existent feeder systems in large parts of their territory. Both GTR and CNR were heavily reliant on debt for financing; CPR was the only moneymaking railway in the time. CN Today: The most Efficient Carrier in North America 1923 was the first year of consolidation The CN was burdened with substantial long-term debt and was regarded as a dubious business venture. Year after year the company required huge subsidies to keep operating 1992 the PM Brian Mulroney and conservative government appointed Paul Tellier as the president and CEO of CN and privatized the company. 1998 CN acquired Illinois Central, three years later Wisconsin Central, recently Great Lakes Transportation and BC Rail Bill Gates is the largest shareholder of CN today CN is one of Canada’s most important companies, not only the largest railway, but also the most efficient of the six major North America freight railroads with significant free cash flow. Week 5: The role of trade policy in the rise of Canadian automobile industry
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Henry Ford’s assembly line revolutionized the way labour worked and level of production that could be achieved which is mass production for mass consumption.
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