EXTRACTS FROM REPORT OF THE CANADIAN NATIONAL
RAILWAYS’ TRAFFIC DEPARTMENT, FOR
THE PERIOD SEPT., 1918—DEC., 1921, AS
SUBMITTED TO THE MINISTER OF
RAILWAYS.

To indicate what has been accomplished by the Traffic Department during the past three years, it is desirable to define the functions of that Department in the Railway Organization. It may be described as the sales department of the railway—selling transportation—under a Freight Traffic Manager, and Passenger Traffic Manager, each supervising his sphere of the work over the entire Canadian National Railways.

These heads are provided with assistants with prescribed territories—each of these assistants being supported in turn, by district men in immediate charge of assigned territories and staff.

The duties of the departmental heads are:—

1.—To establish the basis for the publications containing the prices at which the transportation is to be sold.

2.—To confer with officers of the Operating Department respecting services required to give patrons the maximum of satisfaction, consistent with cost.

3.—To advertise the prices and services, as by printed tariffs, time tables and other suitable advertising material and methods.

Advertising must then be delivered to the direct selling forces—the district passenger and freight men, and ticket men behind the counters, stationed in Canada, United States and Overseas.

All these representatives are required to keep themselves informed upon the day-to-day requirements of their districts. They must observe, if traffic is offering freely, if the proper proportion of competitive traffic is secured, if efficient service is given, and they must render such assistance to our patrons as will facilitate their comfort as passengers, or their requirements as shippers.

The supervision of the departmental heads also includes negotiations for the interchange of traffic with steamship connections, with other railways in Canada and the United States, and for the consummation of arrangements for satisfactory service for our patrons, and the maximum haul for the railway.

An officer with the title of General Foreign Freight Agent is also provided, supported by a sufficient staff for soliciting the inland rail haul on traffic from or to Overseas; for assisting patrons in securing quotations and space from Ocean Steamship connections; and generally, for keeping informed upon the world’s trade conditions.

The efforts of the Foreign Freight Department on this side are supplemented by the co-operation of the European Manager, in London, who, with a staff in Great Britain and agencies on the Continent, gathers up traffic that cannot be secured on this side. He also secures and forwards information as to prospective traffic, as to competition through Canadian and American ports. Through these representatives quantities of traffic are secured that might otherwise pass to competitors, American as well as Canadian.

The European Manager also co-operates with steamship connections Overseas and the railway representatives on this side in developing passenger traffic of the various classes, and in promoting immigration.

In Australia, New Zealand and the Orient, officers have also been appointed who perform similar functions with respect to the movement of freight and passenger traffic through Pacific Coast ports.

These Overseas representatives in Great Britain, on the Continent, in the Orient and Australasia are expected to gather traffic for the Canadian Government Merchant Marine, as well as to work closely with all other possible steamship connections.

Periodical reports—weekly, monthly, or daily when necessary—are submitted by all the district men to their immediate superiors, and are passed on through the passenger or freight traffic managers to the vice-president in charge of traffic. From these reports is gleaned the information necessary to a proper supervision of the work, and to be passed on to the President, to assist in keeping him informed upon the movement and conditions of business throughout the entire system.

In the development of our traffic organization, but three years have passed, since the combination of the former Canadian Government Railways with those of the Canadian Northern, and little more than a year since the absorption of the Grand Trunk Pacific.

Co-ordination with the traffic organization of the Grand Trunk has proceeded as far as possible under the existing conditions, the district and soliciting forces having been consolidated.

It may be said that with the consolidation of a number of Canadian National and Grand Trunk offices, the absorption of the Grand Trunk Pacific staff, and the resumption of work by our men returned from overseas, that we have greatly strengthened the personnel of our official and soliciting forces. We now have a most efficient staff in Canada and in the United States whose loyalty and devotion to duty is specially worthy of mention, as it is sometimes assumed that only those employed in privately-owned corporations can be credited with these attributes.

Success is only attained by the sales department of any large enterprise, through an efficient organization composed of experienced men with initiative, who are capable of responding promptly to every reasonable demand upon their services, in the interest of the enterprise they represent. Nothing produces efficiency in all lines of activity more than rivalry. With a large competitive system, privately owned, and operated in the same territory by which to measure our results, the rivalry that necessarily follows should ensure against inefficiency and stagnation, in so far as our organization may be permitted to function under the same business principles as those governing its competitors.

It is felt that this spirit of rivalry has dominated every officer and representative of the traffic department since its organization, not as an incentive to pursue unfair methods, but rather as a stimulant to their determination that results must be accomplished by close attention to the wants of patrons, and to the service rendered by all departments of the railway.

Perhaps it is too much to expect, with operating forces extending from the Atlantic to the Pacific, that complete satisfaction will be given by the staff at all times; but it should be realized that an organization in existence only three years, and engaged to a large extent in co-ordinating the services of a number of lines, previously operated independently, and in some cases in competition, has much yet to accomplish to gain the strength, and the same traffic-getting power as its chief competitor. This rival organization has gradually strengthened, as its mileage and territory grew, and as its facilities, both railway and steamship, for securing traffic, were increased.

Due economy, consistent with efficiency, has been observed in the organization of the Canadian National traffic force. The ratio of the cost to the gross revenue for last year, 1920, was 1.94 per cent., against 2.31 per cent. on the C.P.R. In this connection it should be borne in mind that we are meeting the competition of a strongly entrenched rival, and the results indicate a substantial measure of success.

GRAIN:—The following table of grain movements will give some indication of the productive value of the territory served by the lines of the former Canadian Northern and Grand Trunk Pacific, and it may not be out of place to point out that the portions of the three prairie provinces, served by the trunk lines of these companies, have been the steady producing areas of the West, where crop failure has been less frequent or entirely absent.

Number of cars of grain inspected and handled each crop year from the First of September to December 31st.

From the foregoing it will be noted that a total of 72,150 cars have been handled by the National Railways—September 1st, to December 31st, of this last season’s crop—in contrast with:—

A new movement of grain took place in 1920, of some 600,000 bushels of wheat from Alberta points to Vancouver, for export via steamships using the Panama Canal route to Great Britain. A substantial increase is shown this present season, and will possibly total close to three million bushels by both railways; the National Railways are handling considerably more than 50 per cent. of this quantity. To December 29th we had delivered at Vancouver 754 cars and on the same date had 1,114 cars in transit and were making deliveries in Vancouver as rapidly as the grain could be handled by the Government elevator at that port.[3]

The easy grades of the National lines through the mountains are favorable to such a movement. The grain this season is going forward to Japan as well as to U.K. ports.

In the last crop year the Canadian National Railways also handled approximately 50 per cent. of the grain moved East, all rail, from the head of the lakes to Eastern Canada and the eastern seaboard—thus indicating the ability of the railway to participate fully in this competitive movement.

LIVE STOCK:—The Canadian National Railways are also actively participating in the competitive movement of live stock traffic from Winnipeg and West as illustrated by the following:—

This very favorable showing is largely due to rapid transit, excellent transportation arrangements and recognition by the shipper of the efficiency and quality of our service.

COAL:—Commercial coal produced at mines served by the former Canadian Northern lines for each coal year ending with April 30th, in tons:—

Adding to the foregoing the production at mines on the Grand Trunk Pacific from May 1st, 1920, to April 30th, 1921, of 553,114 tons, we have a total tonnage for the year of 1,881,543 net tons.

The Drumheller district in Alberta on the Saskatoon-Calgary branch of the Canadian Northern, produced 54 per cent. of the total tonnage. The following figures are of interest indicating the growth of the tonnage in that district.

TRAFFIC BY LAKE AND BY RAIL:—In another line of competitive traffic the Canadian National has shown its ability to participate fully, illustrated by the increase in the year 1920 of some 79,600 tons by rail and by lake from Eastern to Western Canada, over the corresponding movement of the previous year, this increase being equal to 31½ per cent. The all-rail westbound traffic for 1921 shows a heavy decrease, due to the general depression in business. We are confident, however, that we have secured a greater proportion of the total tonnage that has moved by all-rail or by lake-and-rail both westbound and eastbound.

PASSENGER SERVICE:—The consolidation of the Canadian National-Grand Trunk Pacific lines has not only had the effect of removing an important competitive element but has enabled us to effect important economies and improvements in train services. Between Winnipeg and Vancouver we have been able to shorten our schedule by ten hours, thus meeting the running time of our competitor between these points. We have also been enabled to make substantial savings in train mileage.

In the past we have been seriously handicapped in securing the rail haul in connection with ocean steamship passenger business, by reason of our competitors having a more frequent service from Atlantic ports, than the steamship lines with which we co-operate.

The White Star and Cunard Lines recently announced that they were instituting an improved service by the St. Lawrence route. Under this arrangement there will be almost an equal number of sailings by these lines as by those of our competitor. This will enable us to secure a larger proportion of rail business, not only of passengers going overseas, but of passengers arriving by the steamship lines, destined to points in Canada—Trans-Canada or the United States.

We might also refer to the difficulty thus far experienced in getting support from the Canadian Australasian Line operating on the Pacific between Vancouver and Australia and New Zealand. This line has been receiving from the Dominion Government a yearly subsidy of $180,000.00, nearly $500.00 per day—in return for this expenditure by the Government its Railway should receive consideration in its passenger interchange, Canadian and Trans-Canada, but to expect such we must give a supporting rail service.

The inauguration of the daily transcontinental service following tri-weekly trains, the co-ordination of the Canadian National-Grand Trunk service between Toronto and Ottawa, and numerous other changes, have effected a much improved all-round service on Canadian National lines, which has met with many evidences of public approval. There is little doubt that the splendid service provided by these trains, with unexcelled equipment, has had a far-reaching effect in influencing the public mind in favor of the railway.

Business depression has seriously affected passenger travel all over Canada during the past year, and the volume of business shows a consequent falling off. We continue, however, to carry an increasing proportion of the competitive travel, so that the prospects for the future are distinctly encouraging.

Lack of hotel accommodation in the mountains has seriously handicapped us in increasing the long haul, incident to transcontinental travel, but as there is a prospect of this being remedied during the coming year, it will not only assist us directly in securing this class of travel in Canada, but will be a valuable medium to enable us to bring to the attention of the whole of the selling forces of the United States railways this feature of accommodation and the great attractions offered by our scenic route through the Northern Rocky Mountains, and will result in attracting additional tourist and transcontinental business.

The necessity of making known, what the Canadian National lines are and the territory they serve, also the numerous additions and changes in train service has involved a large amount of advertising during the past two years. This was necessary, not only to inform the public at large but also the transportation selling forces of other lines—particularly in the United States, in a position to direct business to us. The accumulating effect of this advertising is now beginning to be felt and is undoubtedly reflected in the proportion of competitive travel that we are securing. Steps are being taken to complete a wall map of the system which will fill a great want and when it is distributed, will have more effect in informing the Canadian public as to what constitutes the Canadian National Railways than any other medium.

DEVELOPMENT AND COLONIZATION:—It would appear necessary to emphasize the fact, that we fully realize the vital importance to Canada in general, and the Canadian National Railways in particular, of increased population. Immigration of the right kind should be fostered from Overseas, as well as from the United States, and settlement encouraged on our lines, not only in Western Canada, but in the Maritime Provinces, Quebec and Ontario.

To increase population, particularly in the agricultural districts is a necessity, and to that end, we have been working in the United States with a specialized staff at Chicago, Boston and Seattle, co-operating with our Canadian staff, and in close co-operation with the representatives in the United States, and in Canada, of the Immigration and Colonization Department of the Dominion Government.

Through the work of our Industrial and Resources Department, colonization is stimulated, and suitable people induced to settle in Canada, and acquire lands along the lines of the Canadian National Railways; adding directly to the country’s wealth, in capital, and in the plant and effects they bring with them, and as producers of increased traffic for the railway.

In order to give some idea of the activities of the Department in the United States during the period under review, it is worthy of mention that information is being sent out periodically to some forty thousand enquirers. The Chicago office alone is in correspondence with between five and six thousand prospective settlers, and has distributed some 374,000 pamphlets giving information about Canada and the Canadian National Railways.

It is estimated that over one million acres have been taken up so far in the West along the National lines, under the auspices of the Soldiers Settlement Board, and that 67 per cent. of the homesteading in 1920 and upwards of 80 per cent. in 1921, applied for in the prairie provinces were contiguous to the National lines.

Government figures show that during the past two years, 86,000 settlers came from the United States to Canada. Analysis indicates that two-thirds of such migrants from the United States are farm settlers. As most of the more recently developed mixed-farming areas are tributary to the Canadian National lines, it is fair to assume that at least fifty per cent. of these farm settlers settled along our railways, or allowing 2 to each family, 14,250 families, during that period.

Records show that on an average each American family takes up a half section, and is ultimately worth at least $750 a year revenue to the railway. Therefore, the settlements of the past two years may be computed to have a potential value in annual revenue to our line of from ten to twelve million dollars.

With references to colonization in Eastern Canada it may be said that progress is being made along the former National Transcontinental lines. In the Abitibi District, that portion thrown open to colonization by the Quebec authorities, stretching from the Megiscan River 125 miles to the Ontario boundary, Government Agents now report a population of some 15,000 souls. Over three thousand families settled in the district last year, which is a satisfactory indication that a farming community is being built up along this line.

Agricultural exhibitions have been held at Amos and Makamik, giving evidence of the interest that is being taken in the raising of live-stock and agriculture generally. In this connection it is of interest to note that a representative of the Quebec Agricultural Department estimated the value of the crops produced in the Abitibi District in 1921 at $1,100,000, consisting in the main of oats, potatoes and garden vegetables.

As the Industrial and Resources Department of the railway becomes better known it is being called upon to give information on the whole field of Canadian National resources and the activities and conditions of the country generally, and in this respect it is well equipped to meet the situation, having men of experience with technical training and wide knowledge of the country. It is also provided with perhaps the best working library of its kind in the country, dealing with the mineral and forest resources, agriculture, water powers, trade and commerce, fisheries, general statistics and other information on Canada.