Canadian National Railway

:CN redirects here, as it's the most common usage of the abbreviation in Canada; for more uses, see CN (disambiguation).

Canadian railway industry in crisis

In response to public concerns fearing loss of key transportation links, the Government of Canada assumed majority ownership of the bankrupt Canadian Northern Railway (CNoR) on September 6, 1918 and appointed a "Board of Management" to oversee the company. At the same time, CNoR was also directed to assume control of Canadian Government Railways (CGR), a system comprised of the Intercolonial Railway of Canada (IRC), National Transcontinental Railway (NTR), and the Prince Edward Island Railway (PEIR), among others. On December 20, 1918 the federal government created the Canadian National Railways (CNR) through a Privy Council order as a means to simplify the funding and operation of the various railway companies. The absorption of the Intercolonial Railway would see CNR adopt that system's slogan The People's Railway.

Related Topics:
Government of Canada - Canadian Northern Railway - September 6 - 1918 - Canadian Government Railways - Intercolonial Railway of Canada - National Transcontinental Railway - Prince Edward Island Railway - December 20 - Privy Council - Order

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Another Canadian railway encountered financial difficulty on March 7, 1919 when the Grand Trunk Pacific Railway's (GTPR) parent company Grand Trunk Railway (GTR), defaulted on repayment of construction loans to the federal government. The federal government's Department of Railways and Canals took over operation of the GTPR until July 12, 1920 when it too was placed under the CNR.

Related Topics:
March 7 - 1919 - Grand Trunk Pacific Railway's - Grand Trunk Railway - Department of Railways and Canals - July 12 - 1920

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Finally, the bankrupt GTR itself was placed under the care of a federal government "Board of Management" on May 21, 1920, while GTR management and shareholders opposed to nationalization took legal action. After several years of arbitration, the GTR was absorbed into CNR on January 30, 1923. In subsequent years, several smaller independent railways would be added to the CNR as they went bankrupt, or it became politically expedient to do so, however the system was more or less finalized following the addition of the GTR.

Related Topics:
May 21 - 1920 - Nationalization - January 30 - 1923

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Canadian National Railways was born out of both wartime and domestic urgency. Railways, until the rise of the personal automobile and creation of taxpayer-funded all-weather highways, were the only viable long-distance land transportation available in Canada for many years. As such, their operation consumed a great deal of public and political attention. Many countries regard railway networks as critical infrastructure (even to this day) and at the time of the creation of CNR during the continuing threat of the First World War, Canada was not the only country to engage in railway nationalization.

Related Topics:
First World War - Railway nationalization

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In the early Twentieth Century many governments were taking a more interventionist role in the economy, foreshadowing the influence of economists like John Maynard Keynes. This political trend, combined with broader geo-political events, made nationalization an appealing choice for Canada. The Winnipeg General Strike of 1919 and allied involvement in the Russian Revolution seemed to validate the continuing process. The need for a viable rail system was paramount in a time of civil unrest and foreign military intervention.

Related Topics:
Twentieth Century - John Maynard Keynes - The Winnipeg General Strike of 1919 - Russian Revolution

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