Analysis of Cost of Freight Service, Grand Trunk Railway Company of Canada

A part of the evidence presented to the Board of Arbitration appointed to determine the price to be paid by the Canadian Government for the preference and common stock of the Grand Trunk Railway Company was a study of the cost of freight service. For many years, the Grand Trunk Railway "Company has sought traffic from Chicago, Ill., via Montreal, Ont., Canada, to New England ports, and even to New York City, in competition with the shorter American lines. This business is necessarily handled at high speed and low rates per ton-mile. The immediate purpose of the investigation was to determine whether this traffic is carried at a loss, but the methods used are here presented as applicable to the operations of any railroad, their specific application to the Grand Trunk Railway being u sed only for the purpose of illustration.