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HISTORICAL ROOTS OF CANADA’S RAILWAY 41
operation plus its sizeable debt. Occasionally, this took place before construction could be finished, and in a few notorious instances, happened before construction had been started. he advantages were real enough, but a new railway line frequently had more hype than solid planning or adequate inancing. Severe competition made it more diicult for any new venture to succeed — towns fought over who would receive the new railway line and too often multiple charters were given for the same region.
By the mid-1910s, four independent railway companies dominated the market — the Canadian Northern Railway (CNoR), the Grand Trunk Railway (GTR), the Canadian Paciic Railway (CPR) and the Grand Trunk Paciic (GTP). Each became over-extended because of their individual whirlwinds of expansion. Increasing rivalry for diminishing traic, resources and government backing drove three of the companies toward insolvency (CNoR, GTR and GTP). By the start of the Great War, the problem had become critical and the Canadian government had to step in. As a result, the three weakest railways were combined to form the Canadian National Railways (CNR). What remained were two transcontinental railway companies.
Railroads started to suffer from other forms of competition. In the 1930s, buses and cars, along with paved roads, had become prevalent. he 1940s and 1950s saw airlines compounding the problem. By the 1960s, a growing quantity of branch lines had closed and many of the smaller railway companies went out of business. Both the CNR and CPR were incapable of continuing as they had been. In 1978, they divested most of their
passenger services to the newly formed VIA Rail.
Grand Trunk Railway Company of Canada (GTR)
The need for a railway between Canada’s two main cities —Toronto and Montréal — inally had a solution in 1852
when the Canadian government made the announcement of its designs to construct such a system. he Grand Trunk Railway Company of Canada was born on November 10 of that year. Its unusual name derived from its purpose of operating a vital, central line to which other, more minor lines would connect — similar to the branches which stem from the trunk of a tree.
Beginning construction of this main line in 1853, completion came by late October, 1856. he following month, the line extended to Sarnia, Ontario. By the 1860s, Grand Trunk Railway also operated a railway line connecting Sarnia to Portland, Maine in the United States.
By 1861, however, Grand Trunk Railway had built up liabilities totalling several hundred thousand pounds sterling. he cause had been its rapid expansion combined with
Pre-Confederation Grand Trunk sleeping car.