The prime minister borden accepted government taken

Info icon This preview shows pages 14–16. Sign up to view the full content.

The Prime Minister Borden accepted government taken over the CNR and consolidate several other railway lines. The process led to the Largest Crown corporation in Canadian history: Canadian National Railway (CN) Sir Wilfrid Laurier’s Railway Policy 1896 Liberal Party was elected to form the government of Canada for the first time in 20 years. Laurier is the first French Canadian prime minister in Canadian history After elected Laurier adopted most of the National Policy from Sir John A. Macdonald: protective tariff, settlement of the west, and a national railway the Canadian Pacific Laurier was so optimistic about the country’s future and pronounced the 20s century belongs to Canada and authorized the construction of the second transcontinental railway. Such decision to build a second transcontinental railway (National Transcontinental) led to both short term and long term problems. Two entrepreneurs Donald Mann and William Mackenzie (original CPR contractors) we redeveloping a new prairie network and aggressively to obtain a charter to extend their western railway lines into transcontinental railways.
Image of page 14

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Grand truck railway in the east adopted a policy of western expansion Laurier opposed to government operating railways (and he did not choose to merge GTR with Mackenzie and Mann railways) so he decide to choose Grand Truck to build this railway and on completion the National Transcontinental was to be leased to Grand Truck Pacific which was a subsidiary of the Grand Truck Railway on very favorable term. In long term such decision of building second transcontinental system set of an unrealistic building boom and led to proliferation of railways and much waste of public money in support of building more. A Flood Tide of Railway Construction Laurier’s commitment to reciprocity with the US in 1911 which led to the legislative authority and financial assistance for Mackenzie and Mann’s Canadian Northern Railways to build a third transcontinental line. After the election of 1911, Borden’s Conservative party come to power and indicated the “Railway Mess” problem- three transcontinental railways in a country with less than 7.5 million populations. After the GTR president Charles Melville Hays went down with the titanic in April 1912, the Grand Truck Pacific reneged (refused) its agreement to take over the National Transcontinental because they could not afford to do so. Canadian Northern Railway expanded rapidly and burning up capital, they kept asking and received huge amount of money from the government and public Prior to the war railways in Canada are doing well both in passenger and freight operation Capital structure for GTR and CNR were split by stocks, debt (45%) and with government assistance(in addition to debt their cost exceed estimates and revenue decline during recession), CPR capital structure was much less depending on debt compare to those two When war outbreaks in 1914 British government banned the export of capital which led to disaster, since London Market has been the main source of Canadian railway financing.
Image of page 15
Image of page 16
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern