False Impressions

To the Editor of the CRIMSON:

In an editorial in the CRIMSON of May 2, discussing the possibilities of successful government management of mines, the argument of the inefficiency of government management of industry in general was used, illustrated from the experience of the Canadian Government in managing the Canadian Northern Railway. The article implied that the deficit of $70,000,000 in 1920 on account of this railway was due to government mismanagement.

I wish to point out that the Government only took over the operation of the C. N. R. because the railway had never paid its way, and had become virtually bankrupt under private management. Generous grants of land, subsidies, and guarantees of its loans had not availed to make the road a financial success, and since it seemed that the expenditure of government money on its behalf was destined to continue indefinitely, it was only natural that the government should finally take direct control of the expenditure of the funds it was furnishing. Incidentally it is very doubtful if the former private management was as efficient as the present government management.

The editorial also attributed the success of Canada's most profitable railway--the Canadian Pacific--to the efficiency of private management. As a matter of fact this railway is profitable,--not alone because of efficient private management.--but also because of the huge land grants made to it by the Dominion Government. About one-half of the total dividends distributed each year is derived from the sale of some of these lands.

From the above material as good a case might be made out showing the advisability of public control of industry as the editorial made out for private control: but it is evident that we must go much deeper in our discussions of the question than the money profits of the undertakings now under state management.

Thanking you for this opportunity to correct wide-spread, false impression concerning the Canadian Government's relations with the C. N. R. V. O. WATTS, 1G.

May 3, 1922.