CHAPTER XV.

_Speaking some truth about the difficulty of operating a railway for

the nation._

On this continent there surely never was such a weird phantasmagoria

of railroad changes as occurred during and immediately following the

war.

Canada led the Western Hemisphere into the fight that was to save

freedom, and was to magnify Canning’s saying about the New World

redressing the balance of the Old. The cost of the war in economic

disturbance, during its progress, and since the delusive peace, was

as little foreseen as its immediate cost in blood and treasure. What

Armageddon did to North American railways is not yet appreciated by

the millions who use them.

As the war worsened, the Canadian railway situation worsened with

it. The penalties of overbuilding were felt on every side. There was

extraordinary development of war industries; but the cessation of

immigration, the attendant drag upon agriculture and commerce; and

the curtailment of ordinary measures of maintenance and betterment

made it inevitable that very heavy expenditures must be faced as soon

as peace returned.

The war brought a grievous end to the Canadian Northern as a

Mackenzie and Mann enterprise. It also demonstrated beyond a

peradventure the hopelessness, from the beginning, of the Grand

Trunk’s fathering of the Grand Trunk Pacific, by throwing that

western system into the hands of the Government, under a receivership.

Then, as if these difficulties were not aggravating enough, the

entry of the United States into the war, at a time when wages across

the line had soared almost beyond trade unionist dreams of avarice,

threw the railways into a Government pool, with a confounding result

on Canadian railway administration. The McAdoo wages award on the

railways which came under control of the Secretary of the Treasury

raised expenses on all Canadian railways to a point which, though

they compelled rate increases, still could not adequately be met

by any charges which the Railway Board deemed fair to the public

interest. The policeman’s lot in the Pirates of Penzance was indeed

a happy one compared with the Canadian railway executives’ job

towards the end of the war, and during the period of re-construction

immediately following the armistice.

In such circumstances it was fated that we should carry through

one of the strangest phases of the history of transportation--to

change two great systems of privately projected and privately

controlled railways, into public ownership properties, to join them

with a network of Government railways already in existence; and to

prepare the way for the speedy incorporation with these three main

ingredients, of the senior system of Canadian railways--the Grand

Trunk.

One had travelled a long way from the tiny line between Gladstone

and Dauphin, although it was less than twenty-two years from the day

I left the old Manitoba North Western to the period during which

the new directors of the publicly-owned Canadian Northern Railway

took over the Intercolonial and the National Transcontinental, and

“Canadian National Railways” was first used as a name that was to

represent the legal unity of the largest system in the world.

Perhaps, if we were hunting for records here, something unique might

be discovered in one’s service. A little pioneer railway came into

existence; grew to a system of nearly ten thousand miles, passed from

private ownership to a national enterprise; carried on for four years

under its former statutory identity, during which period there were

associated with it, first all the Government railways whose building

was fundamental to Confederation; and, secondly, the Grand Trunk

Pacific, launched as a semi-public enterprise with the intention of

dwarfing its existence. Only one general officer was concerned with

every phase of that kaleidoscopic story.

His experience involved a multiplicity of responsibilities which,

viewed from a comparatively restful contact with less exacting

business, seem now to be chiefly remarkable for the fact that

they did not entirely swamp his sense of personal identity. An

advantage of being away from it all is that one may obtain a

clearer perspective of what happened, and of the trend of its

public importances, than was possible when one was encompassed by

administrative labour.

There were eight years between the outbreak of war and the departure

of my colleagues and myself from the Canadian National Railways.

That fateful period seems naturally to divide itself into three

distinct phases: the labour immediately attributable to the war;

the measures required to make the best of the general situation

left by the war, and the methods by which it was endeavoured to

reconcile the efficiency of private management with the essentials of

responsibility to Parliament. The last first.

As far as public policy was concerned, the situation into which

a Board of Directors, newly appointed by the Government, entered

was made for them by events which happily, perhaps, for them, were

part of the war, as well as part of a railway problem of the first

financial and administrative magnitude. We came into office when

members of Parliament had something to think about besides jobs.

Even if the word “politics” were not used here, readers would use it;

for, after all, you cannot have a revolution in a nation’s railway

affairs which depends on Parliamentary action, without political

considerations entering into it. Besides the great interest of the

whole body politic, which is statesmanship, the pull of the hungry

partisan is sure to be felt, sooner or later.

Except for the infinitesimal proportion of men to whom nothing in

public service is so important as the chance to get their hands on

some public post or property, I think the public sentiment west of

Montreal was, and is, all for keeping politics out of all the railway

administration for which Parliament became responsible by the taking

over of the Canadian Northern, and the receivership of the Grand

Trunk Pacific.

During private ownership, the few attempts which were made to

influence appointments by friends of Governments which had given

guarantees had failed ignominiously. When the Canadian Northern

became a National liability altogether, the war was almost at its

worst. The acquisition of the system meant so much obligation that

few supporters of the Government felt like making a party holiday

out of the transaction. The war had for three years been the

universal preoccupation, when, in 1917, party considerations were

subordinated to the formation of a Union Government. From the point

of view of starting with a clean slate, as far as the attentions of

old-fashioned machine politicians were to be apprehended, conditions

could not be more favourable for nationalizing thousands of miles

of railway, hitherto privately directed. Indeed, the Government

exercised its authority over the Canadian Northern, before the Union

Government arrived, by appointing as directors: Mr. W. K. George of

Toronto, Mr. William Christie of Winnipeg, and Mr. Harry Richardson

of Kingston. This happened almost without Parliamentarians or the

public waking up to its significance.

Mr. Richardson was appointed to the Senate. Senator Nicholls of

Toronto had been a director of the Canadian Northern from the

beginning. While the final transfer to the Government was still in

the future, certain legislation was pending affecting the railway,

and these two senators resigned their directorships so as to avoid

every appearance of political advantage being associated with the

railway.

It was in the spring of 1918 when the complete surrender of the

Canadian Northern to the Government was announced. On May 15th Sir

Robert Borden described to the House of Commons the administrative

policy of the Government:

“As to the immediate future, I have already said that we do not

intend to operate the Canadian Northern system directly under a

department of the Government. It is our intention to operate it

at present through the corporate machinery by which it has been

operated in the past. There will be a reconstituted Board of

Directors. We shall endeavour to get the best men we can; and we

shall not interfere with them. We shall leave the administration

and operation of the road to be carried on absolutely under that

Board of Directors, and we shall use every means available to the

Government (and, if necessary, we shall come to Parliament for that

purpose) in order that anything like political influence, political

patronage or political interference--I am using the word ‘political’

in its narrowest sense--shall be absolutely eliminated from the

administration of that road.”

This was the only policy which could be laid down with adequate

appreciation of the magnitude of our task. It would be less than

justice to Sir Robert Borden to refrain from saying that he and his

Government lived up to that declaration. The same is true of his

successor, Mr. Meighen. Neither directly nor indirectly did either of

these Prime Ministers make a single communication to me, or intended

to reach me, as far as I have the slightest inkling, with a view to

influencing any decision likely to affect any man’s good will towards

the Government.

Up to that time Government railways to the north of the St. Lawrence,

had not been operated on the basis of political advantage which

had affected the Intercolonial management from the beginning. The

National Transcontinental, between Quebec and Winnipeg, except for

the grain traffic to Fort William, was a sort of waif, with so

scanty a revenue that, with the war occupying everybody’s mind,

nobody interested in votes seemed to pay it any attention. It found

practically nothing for idle political hands to do. Satan was busy

elsewhere.

Between the Ottawa and the Pacific, members of Parliament had not all

their lives seen the section men of the only railway in their region

changed with every change of Government, because they were friends of

the departing Administration, and friends of the incoming Government

had been promised their jobs.

The election of December, 1917, was followed by limitations of

patronage which the old-style politicians did not like; but which

they knew it was futile then to attempt to revoke. Sir Robert

Borden’s declaration was received without vociferous enthusiasm and

without audible complaint from his supporters.

Parliament prorogued eight days after the Premier notified the

politicians to keep off the track. In September the complete new

Board of Directors of the Canadian Northern was appointed. Not one of

them knew anything of his contemplated appointment until he received

the direct offer of a place. Not one of them was considered because

he had any political influence. Every one of them was chosen for his

potential value to the board as a man of wide experience in business,

in most cases as a large shipper of freight; and in one case because

he was of the foremost financiers in the Dominion. Every man hated

the idea of political influence being injected into the railway

business. If it be of interest to such as love to look minutely into

such matters, it was found later that a majority of the Board were

old-time Liberals.

We were a real Board of Directors, and I think no more harmonious

body of business men ever worked together--I don’t mean in the sense

that there were no differences of opinion; but in the sense that

there was unity of aim, and a single-minded desire to do the best

that was in us for vast properties, in the success of which the

national prosperity was very heavily at stake.

The Board had not been at work very long before it discovered that

it had been given the task of fusing ancient and modern, and that

one of the elements in the projected fusion was not in love with

the operation. There was, indeed, some temptation to feel that the

situation was expressed by:--

For East is East and West is West

And never the twain shall meet.

Our appointment as the Board of Directors of the Canadian Northern

system was followed by an order-in-council appointing us to

administer all the Canadian Government Railways, and to that extent

removing them from the immediate oversight of the Minister of

Railways and Canals, who was liable to be changed as some section men

were.

It is as well to copy here the letter which Dr. Reid, the Minister

of Railways, wrote to me when he had parted with the direct

responsibility for administering the Government lines:

“Now that the Board of Directors has been appointed for the Canadian

Northern Railway and that the Transcontinental Railway and the

Intercolonial Railway and all other branch lines of railway owned by

the Dominion Government are being placed under your Board for the

management and operation, I wish to impress on you the understanding

that I had with you here last week, namely: The Board must operate

the railways without any interference or influence from anyone

connected with this Department or any influence outside of it.

“The future of the Government ownership of railways in my opinion,

depends entirely on their operation being carried on free from any

political or other influence. The operation should be carried on the

same as a private corporation, keeping in view at all times economy

and the interests of the shareholders who of course, are the people

of Canada.

“If you desire any information from the Government or consideration

of any matters in connection with the Government Railways, then I ask

that you submit it in writing, so that I can lay all matters before

the Governor-in-Council in the proper way. I shall then forward you

the reply officially. In this way a proper record will be on file.

“This in my opinion, is the way to carry out the operation of the

road, and if you agree with me, I hope you will see that this is

done.”

The name Canadian National was used, as already said, for general

convenience, but legal identities were then in no way affected. The

Board’s first duty was to see the property it was to manage. There

was a trip to the Pacific coast and then one to the Atlantic seaboard.

Since before the war the West had known the disadvantages of hampered

operation and delayed completion of branches that were urgently

required. It wanted service; and it had no hoary traditions,

practices, or hopes to recover or maintain. No old war horses had

been running loose for ten years expecting that when next the

fortune of political battle turned out a Minister of Railways they

would be turned into the paddock.

The East was as different from the West as chalk is from cheese--it

could not be otherwise. For nearly fifty years the Government railway

had been an unquestioned engine of political patronage. The oldest

inhabitants when they gazed at a time-table saw in it the covenants

of Confederation. The attitude of many men who are not so grey

was and is: (1) That the Intercolonial being named in the British

North America Act, and projected and promised as a political link

between eastern and central Canada, must so remain; (2) That, taking

not the most direct route from Montreal to Halifax, and therefore

giving rates to shippers based sometimes less on mileage haul than

on the shippers’ desire, the Intercolonial must not be treated as a

commercial railway; but as a sort of douceur to induce the maritime

provinces to remain confederated with the Canadas.

This view has been advocated with great fervour by deputations that

have come to protest against the ruthless administration that had its

head and offending in Toronto. It is not unanimously held, down east.

Even some politicians have said openly to their friends that there is

nothing worth fighting about in the views of the departed fathers of

Confederation, and that the East must look for business connections

with the West only on businesslike bases.

A few days after the armistice the Board reached Moncton for a

Saturday afternoon and Sunday acquaintance with the Intercolonial

headquarters. It found the atmosphere as chilly indoors as out,

after the President had given to a representative meeting the

Board’s assurance of goodwill, and appreciation of the need for the

local officers to have large jurisdiction; and had sketched the

possibilities of interchange between Eastern and Western officers

with a view to broadening the experience of the whole staff.

A gentleman of much ability and intense local patriotism presented

us with a picture of an Ontario we had never seen before; and

generally left the impression that something like a Western pirate

was determined to prey on an Eastern victim.

Plainly, we were not as welcome as the flowers in May. The archangel

Gabriel could not have become popular down by the sea if he had

undertaken the job of co-ordinating the services of the railways

which the Dominion of Canada now possessed. With all the good will

in the world, it can be said that it was too much to expect that

excellent men, habituated to party control of a railway, would

discern the least beneficence in the revolution which had come upon

the ancient institution.

There never was anything substantial in the objections to control

from Toronto, as compared with the former conditions. Actual conduct

of the Intercolonial centred in Moncton, as much as it always did.

What really happened was that Toronto was substituted for Ottawa;

and a President and Board of Directors succeeded a Minister. The

local superintendents’ proposals for the year’s betterments, as

passed upon by the general manager, formerly reached Ottawa, and

were there approved by the Minister or rejected, in readiness for

the estimates to come before Parliament. Now, by the like process,

proposals reached Toronto, before being incorporated in Parliamentary

estimates. Fundamentally, that was the change. But, there was the

difference that existed between the President and the Minister--as to

coming into office and going out, they weren’t both subject to the

same powers as determined the choice of the section men.

It would have been vain to look for the instantaneous disappearance

of a temper which, during two generations, had been deeply embedded

in the political consciousness of three provinces and of half

of a fourth. Sir Robert Morier, who was regarded as the ablest

British ambassador of the later Victorian era, used to say it

was the business of the statesman to be five per cent. ahead of

public opinion. How far Sir Robert Borden’s policy was ahead of

public opinion in the maritimes--or rather the opinion of the party

stalwarts--one cannot say. But as session succeeded session it became

clearer and clearer that, in the East, the administration of the

National Railways would be regarded from a very different point of

view from that which actuated the West.

In the House of Commons there were criticisms of my former relation

to the Canadian Northern, and demands for more plentiful financial

details of our work. Nothing was ever alleged, or could be alleged,

on the first count, of which dignified notice could be taken. The

second criticism did raise a question of public policy; and it is as

well to say one or two things about it.

Against Parliament’s right to control the expenditures of

Parliamentary money no word can be said. But there are limitations,

for instance, when competitive contracts and commercial services are

concerned. There is, indeed, a question of the use of ordinary common

sense, which must not be jettisoned by a railway president, and ought

not to be abandoned by a politician.

Look at imperial naval defence for a minute. The House of Commons is

asked to vote say two million pounds for a battleship to be built by

Vickers-Maxim. Every member of the House, therefore, has the right

to inquire into everything relating to the contract. But honourable,

experienced, trusted servants of the Crown have been employed to

formulate a proposal on which their character, skill and experience

are staked. Suppose one member, not to say twenty, began to inquire

meticulously into the prices for all sorts of materials--the House

would become tired of and then furious with him, and he would be

suppressed as a nuisance.

Parliament’s attitude to a national railway must be based on one

of two assumptions--that the management is worthy or is unworthy

of confidence. The efficiency of its management, like that of any

other public management, is to be judged from the methods employed

to carry on its business. The first test of these methods belongs

to the known character of the administrative chiefs of the railway.

On this point I have nothing further to say. The second is in the

processes by which financial demands reach Parliament. What were

these processes?

In the old days, I believe, the estimates for the Intercolonial were

well sifted, first through district officers, and finally by the

Minister with whom a committee of the Cabinet was associated. But,

based on too abundant experience, there was always the fear, in the

railway officials, of political interference from the constituencies;

and always the possibility that somebody with a real or fancied

grievance would get access to the Minister.

The Board’s method was for the local superintendents’ suggested

appropriations to be refined by the officers above them, passed on by

the President, submitted by him to the directors; revised by them,

and then by the President carried to the Minister and a strong and,

as I can testify, a vigilant committee of the Cabinet. Finally they

were brought to the House by the Minister, with whom sat his deputy,

who was also a director of the railways. Then they were open to the

criticism of two hundred and thirty-five members, and were entirely

subject to the approval of the House of Commons, which could demand

all our reports.

Now let us take a concrete case, not of permanent betterment, but of

contracts for one of the most important operating supplies. In 1922

we were summoned before the Public Accounts Committee. What took

place is on the record. Inquiry was made by a member for the current

cost of a commodity for the supply of which known friends of his were

also in the field. I took the position that it would be against the

national interest to disclose prices, which, I knew from experience,

were apt to be taken by certain firms desiring to get the business,

the duty and freight added, and a tender put in for a few cents per

ton below the price obtained by absolutely strict competition. I

instructed my subordinate not to bring the information demanded.

The member demanding the information is one of the most expert in

all the forms of the House. When we pointed out that the subject of

his demand had to do with the current year’s expenses, with which

Parliament was concerned only as estimates; and did not touch the

year’s business then before the Public Accounts Committee, no further

effort was made to get the information. It would be inaccurate to say

no further effort was made to get me. The episode was typical of many

things, as to which men of affairs will need no further elucidations.

Heaven preserve me from expressing political opinions; but there is

a temptation to say that the Conservative party may regard itself

as fortunate in the Borden Government’s double experience of war

and railway administration. From the point of view of observing the

conditions which Sir Robert laid down in May, 1918, the war stress,

and the necessity for respecting the non-partisan avowals of the

Union Government helped greatly to wean old fashioned politicians

from the ancient customs. Whatever their private feelings about the

loss of patronage and the helplessness of pull, they could not launch

bitter complaints to Mr. Speaker without harming their own side of

the House. Some of them had the mortification, though, of seeing

their traditional opponents making attacks, which, naturally, were

received with intense interest and favor by some of the folks back

home.

During the session of 1921, strong attacks on us were made; and were

continued in the campaign that preceded the election on December 6th

of that year. The Board was assailed on the ground of interlocking

directorates. Intimation was given that there would be an alteration

if the Government were changed. Evidently we were to be the section

men to retire with the Minister of Railways.

One of the most vehement critics of our administration was Mr.

Kennedy, of Windsor, who became Minister of Railways. There is no

reason why I should not tell of my first meeting with Mr. Kennedy.

Naturally, I had taken note of what had been said in the House by Mr.

Kennedy. When he sent for me I took along the Hansard report of his

speech. Though I had heard good accounts of how he was shaping as a

railway administrator, it seemed best to be ready to let humility

wait upon candour.

We had never met. As soon as I entered his room, and before there

was time to say anything, Mr. Kennedy opened with a speech of which

this is a fair summary: “Mr. Hanna”, he said, “before we begin

our official relations I want to say something to you. You know,

politicians in opposition often make criticisms and say things which,

if they bore the responsibility of office, they wouldn’t say. You may

have read some pretty strong things I said about you. I want you to

forget them entirely, if you will. I know nothing about the railway

business; and you have spent your lifetime in it. I want your help in

mastering my job, as freely as you care to give it me.”

To such frankness only one reply was possible. I offered to prepare

for him a survey of the work we had done since 1918, the head of each

department setting forth its activities.

When that had been done Mr. Kennedy was extremely appreciative

of a very voluminous document, all of which, I came to know he

had read. Mr. Kennedy won my entire respect, for the speed and

comprehensiveness of his grasp of whatever was put before him; for

his desire to give the Board all the support to which we had become

accustomed, and for the openness and confidence with which he treated

me personally and officially.

It is characteristic of an old politician that he cannot believe

his fellow on the other side has changed his habit. The persistence

of the partisan attitude towards the Intercolonial manifested

itself speedily after the election of 1921. It must have been

assumed by many veterans of hustings and committee rooms that

all the talk inside and out of Parliament about the abolition of

political considerations from the National Railway management was

so much bunkum. Letters soon began to arrive from Parliamentarians

the substance of which was “Now that we are in power, of course,

our friends will have consideration.” Hundreds of such letters

went on file, some of them from men high in the nation’s service.

Surprise was great when it was found that the talk about political

eliminations wasn’t merely gas.

In July, 1922, the resignation of the whole Board of Directors was

asked for by the Minister, I believe with sincere regret. It was made

known that besides myself, Mr. A. J. Mitchell, the vice-president in

charge of finances, would be forgotten when the new executive was

formed. We carried on until October, when the execution was publicly

performed, and one life, at least, was appreciably lengthened.

Trains of Recollection Drawn from Fifty Years of Railway Service in Scotland and Canada, and told to Arthur Hawkes · 第 15 / 17 章