The Canadian Pacific

Confederation and the Canadian Pacific

"This, then, has been the place of the Canadian Pacific in Confederation—to consistently foster the development of Canada and Canadian trade and commerce by every means within its power. This it has consistently done in the past, and this it proposes to continue for the future, keeping close step in service with the further development of Canada which we have every reason to believe will be rapid as it is sound."

Mr. E. W. Beatty in an article in the London "Times".

Confederation

Union of the British Colonies in North America had been proposed as early as 1789. The same proposal was made many times in later years. Statesmen both in Canada and in England saw the political and economic advantages of a continent-wide union, but they could do nothing to bring it about while ox-teams, stage-coaches, slow-moving boats and canoes remained the best available means of travel. The success of other peoples in achieving political unity, while still depending on waterways and wagon-roads for transportation, meant nothing. They had accepted natural boundaries, having the areas and shapes of their countries arbitrarily fixed by physical barriers. In British North America men proposed to make a nation of settlements scattered across a narrow belt of land 3,000 miles long and broken into five physical units. The sentimental attachment to Britain, strong as it was, was too fragile a bond upon which to place entire dependence. The desired conviction of unity could not be implanted in the hearts of the people of Nova Scotia, of New Brunswick, of Upper and Lower Canada, of the Red River district and of the Pacific Coast until a miraculous means was found of compressing the vast distances, levelling the mountains, and erasing the wildernesses which isolated them from one another.

This Question of union entered the realm of practical politics for the first time when George Stephenson's small locomotive, the Rocket, was put on rails at Rainhill, England, in 1829, and proved a success. Within three years a charter had been granted by the legislature of Lower Canada for a railway from Laprairie on the St. Lawrence River to St. Johns on the Richelieu. This was opened in 1836—the first railway in Canada. Upper and Lower Canada united in 1840, and when the era of intensive railway development began in 1853, the long dreamed-of union of all the provinces became a possibility. Delegates from the Canadas, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland met at Quebec in 1864. Confederation of the first three followed on July 1, 1867.

In 1868 an Imperial Order in Council gave Rupert's Land and the North-West Territories to the fledgling Dominion. Manitoba entered Confederation in 1870, followed by British Columbia in 1871. The Dominion of Canada now extended from the Atlantic to the Pacific—but in name only. A railway linking East and West was needed to develop a national spirit in the far-flung people. Rebellion and secession threatened the stability of the young country in those first difficult years. When the Riel Rebellion broke out at Fort Garry in 1869, troops from the East took 95 days to reach the disaffected area. So long as the North-West remained isolated from Eastern Canada, there would be danger of further outbreaks. The physical barrier presented by the rocky north shore of Lake Superior kept Ottawa from a sympathetic appreciation of the problems of the white and half-breed settlers on the prairies. The discontent along the Red River was so apparent that the United States sent a special agent to Winnipeg to report on conditions. His opinion was that "the speedy Americanization of that fertile district was inevitable" unless the British connection was strengthened. The question of annexing the North-West had even been discussed in the Congress of the United States.

The Threat of secession came from British Columbia. As part-price of its acceptance of Dominion authority in 1871, British Columbia had written into the Terms of Union a clause binding Canada to "undertake to secure the commencement simultaneously, within to years from the date of union, of the construction of a railway from the Pacific towards the Rocky Mountains, and from such point as may be selected east of the Rocky Mountains towards the Pacific, to connect the seaboard of British Columbia with the railway system of Canada; and further, to secure the completion of such railway within ten years from the date of union."

Ten Years from 1871 the hopes of the Fathers of Confederation had been only partly realized. The nation was not a unit. The energy which might have been utilized for the commercial development of the nation was spent in agitation and argument. Macdonald's first attempt to build the railway as a government enterprise had ended in his resignation in 1873 and in Mackenzie's succession to power. Mackenzie believed the construction of the railway within the allotted ten years was an impossibility, so that the Dominion therefore was not bound to observe the full letter of its promise to British Columbia. He remained in office until 1878. In that time the Government let contracts for two small sections of the railway, from Selkirk to Emerson and from Selkirk eastward. Macdonald was returned to power in 1878 on the so-called National Policy. He carried on Mackenzie's programme of piece-meal construction for the next two years, letting contracts for the completion of the line from Port Arthur to Winnipeg, for the line westward 200 miles from Winnipeg, and the line from Yale towards Savona's Ferry in British Columbia. Only 264 miles of the main line had been been built when the ten years agreed upon for its completion were nearly up. something decisive had to be done at once. Macdonald had no choice. Millions of public monies had already been sunk in the project. The nation's word was pledged to the completion of the railway. Yet Canada faced bankruptcy, if saddled with the huge additional outlay necessary to build the railway from coast to coast.

Macdonald announced his intention of entrusting the stupendous enterprise to private interests. He went to George Stephen of Montreal, a merchant and banker, who had made a startling success in re-vivifying a small railway in the western United States. Macdonald was not particularly friendly to Stephen. Stephen was the one Canadian he knew who might possibly be able to build the railway; and Macdonald wished above every other consideration to keep control of this main artery of the new Canada within the country. It is probable that if Stephen and his associates had a fore-glimpse of even a part of the difficulties, abuse, and bitter antagonism they were to endure before they completed their task they would never have undertaken it. They were not young. They had already achieved hard-won successes, and were looking forward to retirement from business cares. Their motives in accepting the work could not have been other than patriotic. Few men of that day believed the railway could be completed, and there were fewer still who believed that once completed it could ever be made to pay. Judged by the money already expended by the Government in building a very small portion of the whole railway, the capital outlay threatened to be enormous. In all the North-West there were only 165,000 people. It was hard to imagine traffic originating on the prairies and the Pacific coast in volume large enough to pay the bare operating expenses of the railway.

Forty-Six Years have passed since the contract for the construction and operation of the Canadian Pacific Railway was signed. Canada in 1927 is a unit politically and socially. The dangers of secession, rebellion and annexation, present in the 80's, vanished before the advancing Canadian Pacific rails, and the provinces are now linked inseparably. George Stephen and his associates gave to Confederation the stability and permanence upon which Canada's amazing development since 1885 rests.

"If, as the result of the efforts of myself and the other officers of the company, I could persuade the people of Canada that there is something in the institution, some propelling force, which is even stronger than the mere desire for gain, and earn something more than the respect which is naturally accorded to success, to gain admiration for the company as a Canadian citizen from other Canadian citizens, my work and their work will not be entirely in vain, and those who follow us will have the advantage and satisfaction of working in an atmosphere of respect and admiration which is not usually accorded a corporation."

Mr. E. W. Beatty at the Electrical Club, Montreal.

Construction began on May 2, 1881, when the Company took over 162 miles of lines built by the Government from Selkirk to Pembina and from Selkirk to Cross Lake. By December the main line was located as far as Moosejaw Creek, and trains were running over the 145 miles between Winnipeg and Brandon.

Van Horne became General Manager on December 2. He made Thomas G. Shaughnessy Assistant General Manager and put him in charge of the Purchasing Department in Montreal.

Floods on the Red River delayed the start in the spring of 1882. When conditions permitted, Van Horne swung 5,000 men and 1,700 teams into action on the prairies. On February 16 trains were running from Winnipeg to a point 31 miles west of Brandon; on October 3 they were running 224 miles to Regina. 629 miles of track had been located, and 508 miles built, besides 897 miles of telegraph lines and 32 stations.

Van Horne drove the Prairie Section to completion on August 18, 1883. Trains were in operation over 881 miles of it by September.

An Average of 3½ miles of track a day was laid on the prairies during the summer of 1883.

Mileage in operation had increased from 748 to 1,552. Van Horne set to work to create traffic. He built grain elevators at Head-of-the-Lake and Winnipeg, bought timber-lands in Ontario, and laid plans for a string of hotels. To demonstrate the fertility of the prairies to the sceptical he broke ground for 10 model farms west of Winnipeg. He built at Lake-of-the-Woods a flour-mill, since grown into one of the largest milling concerns in the world.

Express Service from Prince Arthur's Landing (now Port Arthur) commenced May 14, 1883, via the steamer "Campana," connecting with Vickers Express, which operated on the Toronto, Grey & Bruce Railway—this being the first all-Canadian Express service between Eastern and Western Canada.

Work on the difficult Lake Section had started in the spring of 1883. Van Horne later described part of it as "200 miles of engineering impossibilities". What he really should have said was "engineering impossibilities to every one except Van Horne."

12,000 Men and 5,000 horses were employed. Later Van Horne put a track-laying machine to work to aid construction over mosquito-infested swamps. 200 miles of track on this section cost $12,000,000 to build.

3 Dynamite factories were built. The dynamite used cost $1,200,000.

The 3 Miles of track around Jackfish Bay cost the Company $1,200,000, 1 mile alone costing $700,000. Between Sudbury and Cartier a lake had to be lowered 10 feet to obtain a foundation for track.

In May, 1885, the entire section of 651 miles from Callander to Port Arthur was opened.

Surveying and location parties had gone into the Rockies in 1883. Van Horne later went to the Pacific Coast and crossed the Rockies from the west side. He chose the site for Vancouver and gave it its name. On his way east he found Calgary, Medicine Hat, and Regina grown into busy towns on sites where formerly only struggling little settlements had existed.

In 1884 Winnipeg had a population of 25,000, and 6,000 of these were directly dependent upon the Canadian Pacific Railway.

That Year the Government turned sections from Thunder Bay to Rat Portage over to the Company to finish. Seven successive lines of rails vanished in a muskeg on this line.

Work on the Rocky Mountain Section began at Kamloops the previous year. By June, 1885, the railway was open from Montreal to a point near the summit of the Selkirks.

Many a mile of track in the Rockies cost $500,000 before it satisfied the critical Van Horne.

Donald A. Smith, later Lord Strathcona, drove the last spike at Craigellachie between Sicamous and the Gold Range in British Columbia on Nov. 7, 1885, and the links of Confederation were at last joined up.

Port Moody was the terminus on the Pacific Coast in 1886. It was 12 miles from the present site of Vancouver.

The First transcontinental train left Montreal, 8 p.m., June 28, 1886, and reached Port Moody on the morning of July 4 sharp on time, the journey taking 5½ days.

The Trans-Canada Limited of 1927 travels from Montreal to Vancouver in 3 days, 17 hours. In January, 1924, a silk train made the trip from Vancouver to Prescott, 2,800 miles, in 81 hours, 10 minutes. If its destination had been Montreal it would have arrived there in 84 hours.

The Presidents of the Canadian Pacific

Since its incorporation in 1881, the Canadian Pacific has had only four Presidents. Stephen was President from 1881 to 1888; Van Horne, from 1888 to 1899; Shaughnessy, from 1899 to 1918; and E. W. Beatty, from 1918 until the present.

Every great national enterprise like the Canadian Pacific which has a million contacts with the public each day must inevitably reflect the ideals of the men who are responsible for its policies. The dates and brief facts concerning the lives of the four Presidents of the Canadian Pacific which are given below should be supplemented by a consideration of the character and extent of the influence which the Canadian Pacific, under their direction, has exerted for 46 years upon the economic and social life of the people of Canada.

Lord Mount Stephen

George Stephen was born on June 5, 1829, at Dufftown, Banffshire, Scotland. His father was William Stephen, a carpenter. As a boy George Stephen attended the parish school and in 1850, at the age of 21, he emigrated to Canada. He secured employment in Montreal with the firm of William Stephen & Co., manufacturers of woollen goods, and later bought a controlling interest. From merchandising he turned to banking, being elected a director of the Bank of Montreal in 1873. He was elected President of the bank in 1876, and held office until 1881. With three other Canadians, his cousin, Donald A. Smith, who later became Lord Strathcona, James J. Hill, and Norman W. Kitson, he bought control of the bankrupt St. Paul and Manitoba Railway in 1877. When the efforts of the Macdonald Government to interest English capital in the Canadian Pacific Railway failed, Stephen reluctantly undertook the work of building the Confederation line across Canada. From 1881 until 1888 he was President of the Canadian Pacific. He retired in the latter year and went to live in England, devoting most of his time and energy to philanthropy from that time until his death at Brocket Hill, Hatfield, Hertfordshire, on November 29, 1921. He was made a baronet of the United Kingdom in 1886 in recognition of his services to the Empire in connection with the building and operation of the Canadian Pacific. In 1891 he was elevated to the peerage with the title, Baron Mount Stephen. He was created a G.C.V.O. in 1905, and in 1911 an LL.D. of Aberdeen University in the Scotland which he had left 61 years before as a poor unknown boy.

Sir William C. Van Horne

William Cornelius Van Horne was born in Will County, Illinois, United States, on Feb. 3, 1843. He was educated in the common schools of the state and began work in 1857 as office boy in a railway station. Step by step he rose in the service of various American railways until in Dec., 188`1, he was appointed General Manager of the Canadian Pacific, then under construction. In 1884 he was elected Vice-President, and in 1888 President. He retired from the Presidency in 1899, but as Chairman of the Board of Directors retained his connection with the Canadian Pacific until 1911, when he resigned. He was created a K.C.M.G. in 1894. He died at Montreal on September 11, 1915.

Lord Shaughnessy

Thomas George Shaughnessy was born at Milwaukee, Wisconsin, United States, on October 6, 1853. He went to work for the Milwaukee and St. Paul Railway in 1869, and in 1882 became Purchasing Agent of the Canadian Pacific Railway. He was later made General Manager, and succeeded Van Horne as President in 1899, holding that office until 1911, when he was made President and Chairman. In 1901 he was created a knight bachelor, in 1907 a K.C.V.O., and in 1916 was raised to the peerage with the title Baron Shaughnessy. He received the degrees of D.C.L. from Trinity College, Dublin, LL.D. from Dartmouth University, and LL.D. from McGill University. He resigned from the Presidency of the Canadian Pacific in 1918, but retained the position of Chairman. He died in Montreal on December 10th, 1923.

Mr. E. W. Beatty

Edward Wentworth Beatty was born on October 16, 1877, at Thorold, Ontario. He is the son of the late Henry and Harriet M. (Powell) Beatty. He was educated at Upper Canada College, the Model School, and Harbord Collegiate Institute, Toronto; at Toronto University and Osgoode Hall Law School. He read law in the office of McCarthy, Osler, Hoskin & Creelman, Toronto, and was called to the Ontario Bar in June, 1901. He was appointed Assistant in the Law Department of the Canadian Pacific Railway on July 1, 1901; Assistant Solicitor on July 1, 1902; General Solicitor in January, 1910; General Counsel on July 1, 1913; and Vice-President and General Counsel on December 4, 1914. He was made King's counsel (Ontario) in April, 1915, and King's Counsel (Dominion of Canada) the following June. He was elected a Director of the Canadian Pacific in January, 1916, and the next October was elected a Member of the Executive Committee, while retaining the office of General Counsel. On October 10, 1918, he was elected President of the Canadian Pacific, at the age of 41; and in May, 1924, Chairman and President. He is Chancellor of McGill University and a Trustee of the Royal Victoria Hospital.

"The Canadian Pacific has endeavored to maintain its prestige, to from time to time explain its position in a dignified way, in order that the main phases of it should be appreciated by the public whom it serves, to give the best service it is possible to give, and, in addition, to show its faith in the country by reasonable expansion of its facilities where public necessities require that to be done. We have not hesitated to add to those facilities on land and sea, and we will not hesitate to continue that policy because of two factors, one, that the country is entitled to expect from the Company the maximum contribution to the country's development, and, second, the Directors have the same implicit confidence in Canada's future as their predecessors possessed, and propose to express that confidence with business prudence to the full extent of their financial resources."

Mr. E. W. Beatty at the Canadian Club, Toronto.

Capital and Funded Debt

Every $100 share of Common Stock has yielded to the treasury in cash an average of $112, and in addition there has been turned back into the property from surpluses, etc., an amount equal to $31 per share; therefore the shareholder has in effect paid $143 per share.

Thus From Premiums on shares sold and from Surpluses turned back a total of $286,083,668.79 has been added to the actual value of the Canadian Pacific Railway property; upon which excess of value over Capital and Funded Debt no Dividends or Interest Charges are paid.

This Policy of the Canadian Pacific in keeping Fixed Charges to a Minimum is responsible for the Low Freight and Passenger Rates enjoyed by the people of Canada, rates as low as or lower than those of any other country.

Not Until 1904, 24 years after the incorporation of the Canadian Pacific, did yearly dividends reach 6%.

Dividends of 3% were paid from 1885 to 1888, and of 4% in 1889. From 1890 to 1893 5% was paid. In 1894, 2½%. In 1895, 1½%. In 1896, 2%.

The First $25,000,000 of Canadian Pacific stock to be sold realized only 40 cents on the dollar. Common shares of the Canadian Pacific sold las low as 67 in 1890, 72 in 1891, 86 in 1892, 66 in 1893, 58 in 1894, 33 in 1895.

Out of $1,187,000,000 cash which Canada has spent on railways in grants, subsidies, outstanding loans and construction, the subsidies granted to the Canadian Pacific under the original contract, plus those received through the construction or acquisition of other railways, represent up to the end of the year 1925 just 6.80% of the whole, and that cost has been largely repaid in taxes alone.

Loans Made to the Canadian Pacific during the construction period were paid in full with interest by July 1, 1886. Since that time the Canadian Pacific has not borrowed one cent from the Dominion of Canada.

"It will be interesting to you to know that the return on the investment—not valuation—of your properties for the year 1926 was 4.66%, leaving a surplus from railway operations after payment of charges and dividends of 77/100 of 1%. the average return on investment for what is known as 'Class One' railways in the United States for the same year was 5.13%. This rate applied to the investment in the Canadian Pacific Railway properties would produce $49,480,000 in net earnings, and a fair return of 5¾% would yield $55,460,000. These figures indicate that the Canadian railways were not yet earning adequate net revenues; that under the existing rate scales their revenues in the aggregate are unduly low rather than unduly high, and that with mounting wage scales they are not able and should not be asked to submit to further reduction in rates and the lessening of their receipts."

Mr. E. W. Beatty, at Annual Meeting of Company, 1927.

Traffic

Freight

Earnings per ton per mile in 1926, 1.01 cents, are the lowest of any railway in the world.

Earnings per passenger per mile in 1926, 2.63 cents, are as low as or lower than those of any other railway in the world.

Mileage and Railway Equipment

The Canadian Pacific owns and operates more sleeping, dining and parlor cars than any other railway in the world.

Standard Rails used on the Canadian Pacific lines in 1886 weighed 56 pounds to the yard. Canadian Pacific main line rails in 1927 weigh 102 pounds to the yard.

Since 1905 all of the rails used on Canadian Pacific lines in Canada have been manufactured in Canada.

The Canadian Pacific either builds its own rolling stock or purchases it in Canada.

There Are approximately 4,000 bridges and 30,000 culverts on Canadian Pacific lines. Placed end to end the bridges on Canadian Pacific lines would extend nearly 70 miles

The World-Famous Lethbridge Viaduct on the Crow's Nest Branch of the Canadian Pacific Railway is 5,327 feet long, with a maximum difference in elevation of 314 feet between the river bed and base of rail.

The Canadian Pacific Bridge across the North Saskatchewan River at Edmonton, Alberta, is a double-decked structure, approximately 2,687 feet in length. The rail level of the river spans is 150 feet above mean water level.

The Canadian Pacific line north-west from Moose Jaw crosses the South Saskatchewan River near Outlook by a high-level bridge 3,004 feet in length. The rails are 150 feet above the river bed.

The Canadian Pacific double-leaf bascule bridge across the United States ship canal at Sault Ste. Marie has a span of 336 feet from center to center of the channel piers, and when raised provides the widest unobstructed channel afforded by a movable bridge.

The Canadian Pacific swing bridge across the Lachine Canal at Montreal, is the longest of its kind in existence. The swing span is 239 feet, 7 inches long, and weighs 615 tons. The difference of time between closed alignment for railway service and open alignment for canal traffic is exactly 70 seconds.

The Canadian Pacific bridge across the St. Lawrence River between Highlands and Caughnawaga is 3,657 feet in length.

The Largest of the many Canadian Pacific Terminals are those at Montreal, Winnipeg and Vancouver. The Montreal Terminals have 247 miles of tracks; the Winnipeg terminals, 314 miles, and the Vancouver Terminals, 52 miles.

"I have never known of a permanently successful corporation whose officers were not good citizens of their own country and I never expect to see one."

Mr. E. W. Beatty.

Shops

The Weston Shops and Car Service Yards at Winnipeg cover an area of 284 acres and comprise 26 buildings with an aggregate floor space of 16 acres. These are the main Locomotive and Car repair shops for Western Lines. The Buildings consist of Locomotive Erecting and Machine shops, Boiler shop, Tender and Wheel shop, Blacksmith shop, Coach shop, General Freight repair shop, Pattern shop, Railway Frog Assembly shop, Saw Mill, Grey Iron Foundry and Power House. The Locomotive shops have a capacity of 30 classified repair engines per month. The Freight shops handle 800 repairs per month and the Coach shops 40 Front End Passenger car. Weston shops employ 2,500 men when operating at full capacity.

The Ogden Shops are situated on the level prairie 4½ miles from Calgary. After Weston shops, at Winnipeg, the Ogden shops are the largest repair shops on Western lines. Ground was broken for the Ogden shops on 1st April, 1912. They were named after Mr. J. G. Ogden, Vice-President of the Canadian Pacific Railway. These shops cover an area of 213 acres with shop floor space of 10 acres. The shops consist of Locomotive and Freight car repair shops, comprising Erecting, Boiler, Machine, Blacksmith, Tender and Wheel shops, with a Pattern shop, Planing Mill, Freight Car Repair Shop and Foundry. The Locomotive shops have a capacity of between 20 and 25 classified engine repairs per month and the Freight repair shops a capacity of 500 cars per month. Ogden shops employ 1,200 men when working at full capacity.

Tunnels

The Spiral Tunnels between the Great Divide and Field on the main line of the Canadian Pacific through the Rocky Mountains form one of the greatest engineering feats in the world. Going west, the track enters the first tunnel under Cathedral Mountain 3,206 feet in length, turns 234° of a circle and emerges 48 feet lower down. The track then turns east, crosses the Kicking Horse River, and enters the second tunnel, 2,890 feet in length, under Mount Ogden and turning 232° emerges 45 feet lower down.

The Connaught Tunnel piercing Mount Macdonald on the main line of the Canadian Pacific through the Selkirk Mountains is one of the longest tunnels in America. It is slightly more than 5 miles in length, is double-tracked, and measures 29 feet from side to side, 21½ feet from base of rail to crown, and is lined throughout.

To say "Canadian Pacific Agencies throughout the World" is no idle boast; as witness the following summary of principal offices and agencies:—

America, United States—Company's offices in 26 cities in 18 states, besides 4 in Alaska and 2 in Hawaii. 9 agencies in the West Indies—1 each in Cuba and Mexico—2 in Central America. 6 agencies (in 5 countries) in South America.

Europe—67 offices and agencies in 32 countries.

Africa—8 agencies in 5 countries.

Asia—39 offices and agencies in 18 countries.

Australasia and Oceania—9 offices and agencies in 6 states in Australia, 5 offices and agencies in New Zealand, and 1 in Fiji.

Publicity

Every interest, every community, every merchant, is benefitted by this great inward stream of men, women and wealth. The summer tourist business alone is estimated, by the Government, to bring into Canada close to $200,000,000 of foreign money per annum—six times as much as all the gold mines in the Dominion produce.

Canadian Pacific advertising takes every form of publicity that long experience has demonstrated to be result-productive. As an example of its magnitude, it may be said that every year very close to 1,500,000 tourist publications alone are issued.

"I would be lacking in my duty if I did not refer to the spirit which pertains amongst the officers and men of the organization, to which and their efficient and loyal efforts must be attributed in a great measure the past and present success of the Company. I doubt if there is any corporation, Canadian or other, whose employees show more alertness in the Company's interests or whose loyalty in the Company's service is more conspicuous. Those of us whose duties are more executive or administrative are very conscious of the high morale which exists among all classes and of its effect on the Company's operations."

Mr. E. W. Beatty at Annual Meeting of Shareholders, 1927.

Canadian Pacific Steamships

Van Horne's clear vision of Canada's destiny gave Europe the trade-lane to the East it had sought ever since Marco Polo returned from Cathay and told his traveller's tales. The first cargo carried across the Pacific for the newly-completed Railway arrived in Port Moody (then the terminus) from Yokohama on July 26th, 1886, on board the brig "W. B. Flint". There is a decided contrast between this tiny sailing-ship and the huge fleet of steamships which carry the Company's house-flag and the name of Canada in and out of all the ports of the world in 1927.

The First Steamships owned by the Company were built in 1883 and placed in service on the Great Lakes in 1884. The Company inaugurated a regular service between Vancouver, Yokohama, and Hong Kong, in 1887, with the chartered steamships Batavia, Parthia, and Abyssinia. In 1891, the Empress of India, the Empress of China, and the Empress of Japan, built at Barrow-in-Furness, were placed in service on the Pacific.

The Company extended its operations to the Atlantic in 1903, buying 15 steamships from the Elder Dempster Company.

The Regular Services of the Canadian Pacific Steamships operate over 30,000 miles of sea.

Atlantic Service

Two passenger vessels and 5 freight vessels are at present under construction in England and will be added to the Canadian Pacific Steamships fleet in 1928.

Pacific Service

The Empress of Scotland is the Flagship of the Canadian Pacific Fleet. It is 699 feet in length and 77 feet in breadth. with a gross tonnage of 25,160. An oil-burner, with triple expansion engines driving its twin screws. The Empress of Scotland has a speed of 18 knots an hour. Its interior fittings are beautiful and luxurious. A majestic ball-room, pleasant Winter Garden, comfortable lounge, gymnasium, writing-room, smoking room and card room are a few of the attractions this really great steamship offers to the Trans-Atlantic traveller.

Cruises

The First Winter Cruise under one management by ship and shore of the Canadian Pacific was to the West Indies in January, 1922.

The Empress of Scotland left New York on the first Canadian Pacific Mediterranean Cruise on January 14, 1924.

The First Canadian Pacific Round the World Cruise was by the Empress of Canada, starting from New York on January 30, 1924.

On January 24, 1928, the Canadian Pacific Empress of France will leave New York on a South America-Africa Cruise.

On December 2, 1927, the Empress of Australia will leave New York on the Round the World Cruise.

On February 4, 1928, the Empress of Scotland leaves New York on the Canadian Pacific Mediterranean Cruise.

On January 26, 1928 and February 29, 1928, the Montroyal will leave New York on West Indies-Panama Cruises.

The Total Mileage covered by Canadian Pacific Cruises in 1928 will be 79,143. 79 ports in North and South America, Africa, Asia and Europe will be visited.

Canadian Pacific Great Lakes Steamships

The first steamships owned and operated by the Company were the Algoma, Athabasca and Alberta, placed in service on the Great Lakes in 1884. They were built in Scotland and crossed the Atlantic under their own steam. Too large for the locks of the St. Lawrence and Welland Canals, they were cut in sections at Montreal and towed to Buffalo where they were re-joined.

British Columbia Coastal Service

Atlantic Coastal Service

British Columbia Lake and River Steamships

Canadian Pacific Hotels

The Canadian Pacific chain of palatial hotels reaches from coast to coast, and has a total of over 3700 rooms, The Company's first hotels were established in 1886 at Field, Glacier and North Bend, B.C. None of these is operated by the Canadian Pacific to-day.

Banff Springs Hotel was opened in 1887, and additions were made to it in 1911, 1914 and 1926. Further additions will be made in 1927-8.

The Company erected a chalet at Lake Louise in 1890. This was rebuilt in 1893 and enlarged in 1900, 1906, 1911, 1913 and 1925. It is now called the Chateau Lake Louise.

The Hotel Sicamous was built in 1910, replacing an hotel built earlier.

The Company opened a hotel at Vancouver in 1887. The present Hotel Vancouver was completed in 1915 at a cost of over $4,100,000.

The Empress Hotel at Victoria was opened in 1908 and enlarged in 1910 and 1911. It cost over $1,500,000.

The Royal Alexandra Hotel at Winnipeg was first opened in 1906, and greatly enlarged in 1914. It cost over $2,860,000.

The Hotel Palliser at Calgary was built in 1913 at a cost of nearly $2,000,000, and opened in 1914.

The great Chateau Frontenac at Quebec was first opened on December 11th, 1893. It is situated on the site of the Chateau St. Louis, the residence of the Governors during the French and early English regimes. It was enlarged in 1904, 1906, 1916, 1923 and 1926.

The Company built the Place Viger Hotel at Montreal in 1897, at a cost of $450,000.

The McAdam Hotel was opened in 1901.

The Company took over the Algonquin Hotel at St. Andrew's, in 1905. The present structure was mainly erected in 1915 at a cost of approximately $885,000.

An hotel of over 1,000 rooms is to be built in Toronto on the site of the famous Queen's Hotel, opposite the new Union Station.

Bungalow Camps

The Canadian Pacific has established eleven Bungalow Camps which serve to supplement its hotel services. Three of these are in Ontario—namely, at French River, Nipigon and Kenora. Eight are in the Rocky Mountains at Moraine Lake, Lake O'Hara, Lake Windermere, the Yoho Valley, Wapta Lake, and three along the Banff-Windermere Road.

These Bungalow Camps were not operated by the Company itself, but by lessees

Colonization and Development

Since 1885 the Company has expended nearly $75,000,000 for colonization, land-settlement, irrigation, etc.; a sum greater than that expended by the Dominion of Canada on similar work over the same period.

The Company has established more than 55,000 families on lands in Canada and has settled more than 30,000,000 acres.

In Southern Alberta it operates the largest single irrigation project on the American continent, developed at a cost to the Company of $20,000,000.

The Company has always aimed to create a happy and prosperous agricultural population rather than to sell great areas of land indiscriminately. More than 20 years ago the Company organized a Department which later became the Department of Colonization and Development, to bring settlers to Canada and to look after them once they were located on farms.

The Department maintains colonization offices and representatives, outside of Canada, in the British Isles, on the Continent of Europe, and in the United States—totalling 78 agencies. These work to secure settlers of the best type, to interest foreign capital in Canadian industries, and to further the welfare of the Dominion in every possible way. They have well-equipped reference libraries at their disposal and are prepared to give information on every phase of industrial and agricultural development in Canada. No charge or obligation is attached to this service, and no one section of the country is favored as against another.

The Publicity Branch of the Department issues a monthly publication "Agricultural and Industrial Progress in Canada" and a daily news service which is circulated in 45 countries, along with authoritative booklets on Canadian agriculture and allied topics. Moving picture films and lantern slides, showing the attractiveness of Canada to the settler and investor, are also distributed free in Europe and United States.

The Exhibits Branch of the Department has display cases, containing representative collections of Canadian products, all over the United States and Europe. The Company has also displayed Canadian products and advertised Canada at exhibitions in Atlanta, Georgia; Chicago, Ill.; New York; Paris; Lyons; San Francisco, Cal.; Philadelphia, Pa.; Boston, Mass.; and other places; at the British Industries Fair, Paris Industrial, and at the Scottish National (Glasgow); Franco-British, (London); Brussels International; Ghent International, Japanese Peace and Wembley Exhibitions, and Auckland (New Zealand). A special Canadian Pacific car was attached to the Canadian Train which toured France in 1923.

The Development Branch, with sub-branches at Winnipeg and Vancouver, maintain expert staffs to investigate information relative to the mini wealth and industry of Canada, and to examine resources in the field, such as special opportunities for development, use of by-products, markets, industrial crops, prospecting, etc. This branch issues annually some 50 synopses of natural resources, which are available to the public on application.

The Industrial Branch of the Freight Traffic Department offers expert advice to manufacturers who contemplate establishing factories or branch factories in Canada. It investigates and recommends sites, and supplies information concerning available empty factories, electric power rates, labor costs, freight rates, etc. It also issues pamphlets telling of business and industrial opportunities in Western Canada.

The Company has Model Demonstration Farms in Brooks, Strathmore and various Veterans' Colonies in the North-West. Other Model Farms established by the Company were disposed of to settlers when they had served their purpose.

The Company has for years operated Better Farming Trains which run on a regular schedule, visiting the different agricultural districts in turn. By means of lectures, demonstrations, etc., practical help is given to the farmers in solving all problems relating to agriculture, care of live-stock, sanitation, etc.

In conjunction with the Ontario Government the Canadian Pacific operates a school-car over its lines in Northern Ontario. The car is equipped with modern school equipment installed at the Company's expense, and is in charge of a competent teacher. Stops of 5 or 6 days are made at school-less settlements. Day classes are held for children, and classes in the evening for adults. This school-car meets a long-felt need in the isolated communities of the North.

To Improve the poor condition of many herds in Western Canada the Company distributed several hundred pure-blooded bulls and boars to selected farmers, who were given full title to the animals after two years of free service to neighbors. This distribution cost the Company over $530,000.

The company has distributed millions of young trees to farmers without charge, and at a cost to the Company of approximately $200,000.

In harvest-time each year the Company is instrumental in bringing thousands of needed laborers from Eastern Canada and from other countries to the West.

The Company assists farmers in marketing their products by freight-rates lower than those of United States railways, and by making radical reductions in these to meet special needs.

The Company has for sale many acres of choice lands in Western Canada at low prices and on long 35-year amortization terms. It sells land in certain districts without settlement obligations, but grants concessions to those who will settle upon and develop their farms. In the irrigation districts in Southern Alberta the Company has irrigated lands for sale at reasonable prices and on similar terms.

The Canada Colonization Association, a subsidiary of the Department of Colonization and Development, offers further service to new settlers in obtaining partly or fully improved farms from private owners near Canadian Pacific lines in Western Canada.

The Company inaugurated the plan of assembling picked settlers at central points in a British Isles and conducting them directly to Canada. This system has been extended to selected settlers from other countries.

Farmers may make application to the Canadian Pacific for an immigrant or immigrants of any race to assist them on their farms. Through the Department of colonization the Company makes a selection and looks after the immigrant or immigrants until the final destination is reached.

All of these services are carried on without expense to the Dominion of Canada. The Company's work is by no means limited to the securing of settlers for its own lands. The prosperity of the Company and Canada's prosperity are indissolubly linked and in helping Canada the Company is helping itself.

The Company is just as concerned with the development of Eastern Canada, where it has no lands, as it is with the development of the North-West. It is greatly interested in the association formed in 1923 to promote settlement in the Maritime Provinces. It has done much to revive the apple industry in the Annapolis Valley by publicity campaigns and experts brought from other parts of the country.

"Greater travel between the East and West is essential because no Canadian, whether he live in the East or live in the West, can help but be a better Canadian if he knows both parts of the country. Sectionalism and parochialism will disappear or be minimized, to such an extent as not to be a retarding influence in the country's development, once our people, the moderate and the constructive, realize what those problems are and provide the sentiment which ensures the success of public measures taken to secure them."

Mr. E. W. Beatty at the Canadian Club, Toronto.

Canadian Pacific Telegraphs

Canadian Pacific Telegraphs' land lines to Bamfield, Vancouver Island, connect with cables to New Zealand and Australia.

Saint John, N.B., and Halifax, N.S., talk direct on through wires to Vancouver and Victoria, B.C. The direct wire from Halifax to Bamfield, the Canadian end of the Pacific Cable Board's cables, is worked night and day. A second line from Halifax to Bamfield is now under construction to handle the increased traffic resulting from the completion of the Pacific Cable Board's second cable.

Canadian Pacific Telegraphs connects with all points in the United States by exclusive arrangements with the Commercial Cable Company's Atlantic and Pacific cables and the Postal Telegraph Cable Company. Canadian Pacific Telegraphs gives direct connections with all points in South America, West Indies and Bermuda.

Direct Working Agreements with the Marconi Wireless Telegraph Company and the Radio Corporation of America enable the Canadian Pacific Telegraphs to handle ship-to-shore and trans-Atlantic messages both by radio and beam wireless.

"So Long as the Canadian Pacific Railway has a dollar left in its treasury, it will fight for the ideals, uphold the faith, and maintain the precious heritage of Confederation."

Mr. E. W. Beatty at the Canadian Manufacturers' Association, Hamilton.

Canadian Pacific Express Company

By 1884 operations had been extended from Rat Portage to Prince Arthur's Landing (now Port Arthur), and a joint traffic route formed with Vickers Express Company for traffic to and from Toronto, using steamers between Owen Sound and Prince Arthur's Landing. This arrangement, which was the first all Canadian Express route between Eastern and Western Canada, continued until the lines of the Railway were joined on the North Shore of Lake Superior.

In 1884 the head offices of the Company were moved from Winnipeg to Toronto.

To-day its goods-transportation and financial services extend from coast to coast in Canada, to the United States and to far distant corners of the world.

The Dominion Express Company was essentially Canadian. It was originated in Canada, owed its success to the good-will of the Canadian people and to that development of Canadian economic life to which it had contributed in some measure as an arm of Canadian Pacific service, and on September 1st, 1926, assumed a distinctively Canadian name, the Canadian Pacific Express Company.

The Canadian Pacific Express Company handled 16,008,024 pieces in 1926, a total weight of 577,487,025 pounds.

Every piece handled represented opportunity for failure resulting in claim. The percentage of accuracy was 99.97.

The Canadian Pacific Express Company issued 2,973,975 Money Orders in 1926, with a total value of $42,031,203.95.

Mr. W. S. Stout, who as Superintendent organized this service in 1992, is still President, directing its world-wide activities.

"Those who live in this country enjoy a privilege even greater than that of a bracing climate. Nothing is more fascinating to human beings than the process of construction, particularly when those human beings feel that they themselves are sharing in that construction. That is one of the reasons why we all delight in belonging to a growing concern, and one of the factors which is helping to develop a Canadian spirit is the realization of our people that they are making their own not unsubstantial contribution to the building of the country."

Mr. E. W. Beatty at Trois Rivières.

Securities of Leased Lines, Controlled Companies and Miscellaneous Securities and Investments

The Canadian Pacific has (as of date December 31st, 1926) investments in securities of leased or controlled lines, miscellaneous securities and miscellaneous investments representing a total cost of over $167,000,000. The leased lines number 47, of which 8 are operated under their own names, the remainder by the Canadian Pacific. The other investments include railways in the United States, stock-yards and mini interests.

Amongst the more important of these controlled companies or investments are the "Soo" line (Minneapolis, St. Paul and Sault Ste. Marie Railway), with a mileage of 4,398; the Duluth, South Shore and Atlantic Railway, with a mileage of 616 (both these mileages being included in the total on page 22); and the Consolidated Mini and Smelting Company, with its valuable mini interests, of which the Canadian Pacific holds an investment with par value of over $6,000,000.

"The Railway was itself a part of the scheme of Confederation, the Sixtieth Anniversary of which is being celebrated in Canada this year, and from its inception has been charged with the great and serious responsibility of providing a facile means of communication—a constant and thoroughly efficient service—to enable the people of this wide Dominion to enjoy the close communication that is essential to the integrity of Confederation and the continued development of the Nation."

Mr. E. W. Beatty at Annual Meeting of Shareholders, 1927.

Pensions

"I have reached the conclusion that the things upon which the progress of this country have heretofore depended are those upon which our future prosperity will likewise depend. I believe that private initiative and the effort of corporations, groups of men and individuals are what will make for Canada's commercial prosperity and economic stability."

Mr. E. W. Beatty at the Canadian Club, Toronto.

War Services

The Canadian Pacific played a very important and varied part in the War of 1914-1918. Both Railway and Steamships were of inestimable value in East-and-West communication.

Loans and Guarantees made by the Company to the Allies amounted to approximately $100,000,000.

The Company granted six months' pay to many employees enlisting, with a guarantee of re-employment at the end of hostilities.

11,340 Employees of the Company enlisted in the Army, Navy, and Air Force.

1,116 Employees of the Company were killed an 2,105 were wounded.

385 Employees of the Company received decorations on account of their military services. These included two who received the Victoria Cross.

7,573 of Those enlisting were re-employed along with 13,112 other returned soldiers.

During one period of industrial depression the Company took on 6,000 extra men.

37 Canadian Pacific steamships with a Gross Tonnage of 329,960 tons did war service either as transports or armed cruisers.

12 Canadian Pacific steamships were lost by enemy action and 3 others were lost by misadventure.

Canadian Pacific Steamships transported approximately 1,000,000 troops, 4,000,000 tons of war supplies and thousands of horses and mules.

Shell-Making and Case Cartridge making were carried on in the Angus Shops of the Company.

The Company lent the services of 31 experts to the Food Control Board.