Canadian Northern Railway report.

The annual meeting was held in Toronto, Nov. 4. Following is the directors' report, issued over the signature of W. Mackenzie, President.

The results for the fiscal year ended June 30, 1905, are as follows:—

Gross earnings.
Passenger traffic	$663,935.85
Freight traffic	3,061,530.77
Express, mail, telegraph, dining and sleeping cars, including profits from elevators and other subsidiary companies	464,745.34
	$4,190,211.96
Working expenses	2,644,729.64
Net earnings	$1,545,482.32
Fixed charges	1,128,779.38
Surplus for year	$416,702.94

In submitting the figures, the directors are gratified in being able again to report continued and satisfactory progress during the past year. The gross earnings show an increase of $947,509.27, or 29.22% over the previous year's figures; and the net earnings an increase of $423,552.06, or 37.75%. The working expenses were 67.05% of the gross earnings of the railway proper, and 63.12% of the gross earnings from all sources.

Four per cent. perpetual consolidated debenture stock to the amount of £600,00 was sold during the year, and the proceeds applied for general purposes. With a view to consolidate the various issues of bonds created at different dates, secured on separate sections of the railway, the directors, with the consent of the Government of Manitoba, secured the necessary legislation authorizing the issue of a new 4%, consolidated debenture bond, guaranteed as to principal and interest by that Province. Provision is made for the exchange of the bonds issued in respect of existing mileage for bonds of the consolidated issue at par, and provision is also made for the guarantee of principal and interest of further issues of bonds at the rate of $10,000.00 a mile in respect of the construction of future lines which the Legislature of Manitoba may from time to time approve. The result to the holders of the bonds on existing mileage is that instead of holding bonds secured by a charge on a portion of the company's line, they will, upon making the exchange, hold 4% consolidated debenture bonds, secured by a general charge on the company's system within the Province of Manitoba. A reference to the statement of fixed charges will show that a substantial amount of bonds has been exchanged.

The physical condition of the railway has been fully maintained and improved. During the year the directors found it necessary, in the interest of traffic within the zone of the older parts of the system, to build new stations and sidings, extend the facilities at other stations and industrial sidings, and in other ways enlarge the company's ability to meet the demands of a rapidly growing country. The total mileage under operation, at June 30, 1905, was 1876.4 miles, and the average mileage operated for the fiscal year was 1586 miles. Substantial progress has been made towards the completion of the limes to Edmonton and Prince Albert, and the directors expect by the time the report, is issued that the rails will be laid to both places. Every effort will continue to be made to complete and equip the limes in question, so that a permanent service can be established and the fullest advantage taken of moving the traffic ready for the company without unnecessary delay.

A careful inspection of the country adjacent to the lines referred to has recently been made under the direction of the directors, and the report received mot only sustains previous reports in respect to the high quality and extent of land from which the railway will draw profitable traffic when settled upon, but confirms the information that the number of settlers already located on lands tributary to the limes is very large, that they are of a superior class, and that the number is increasing daily. The harvest just recently gathered promises to be the largest in the history of Western Canada, and the railway is so situated that it will enjoy a substantial share in the movement of the grain to the lake port. The directors have again to record the fact that business conditions continue good, and that the returns from the marketing of the crop referred to will enhance these conditions to the material advantage of every interest in Canada.

The accounts were submitted by D. B. Hanna, Third Vice-President, as follows:—

Condensed general sheet, June 30, 1905.
Cost of railway and equipment			$53,533,852.91
General Assets.
Minnesota & Ontario Bridge Co.
4 1/2% first mortgage debenture bonds		$180,000.00
Capital stock		100,000.00
Minnesota & Manitoba Rd.
5% general mortgage bonds		250,000.00
Capital stock		400,000.00
Lake Superior Terminals Co., Ltd.
5% mortgage bonds		1,000,000.00
Capital stock		500,000.00
Canadian Northern Telegraph
5% mortgage gold bonds		300,000.00
Capital stock		500,000.00
Winnipeg Land Co., Ltd.
5% mortgage gold bonds		300,000.00
Capital stock		100,000.00
		$3,630,000.00
Taken to account at actual cost to Co.			1,946,666.66
Operating assets.
Materials and supplies on hand		$351,882.17
Due from agents and companies, traffic balances, etc.		935,176.68
			1,287,058.85
Cash on hand			374,815.93
			$57,142,394.35
Capital stock			$30,750,000.00
Four per cent. perpetual consolidated debenture stock			4,866,666.66
Bonds			15,450,551.93
Car trust obligations			3,678,362.26
Current liabilities
Unpaid pay rolls		$214,204.09
Unpaid audited vouchers		445,614.72
Due to other companies		683,123.40
Accrued interest on bonds, etc., to date		77,269.56	1,418,211.77
Surplus			978,601.73
			$57,142,394.35
Fixed charges for year ended June 30, 1905.
Bonds guaranteed as to principal and interest by the Government, Manitoba:—
Amount.	Issued.	An. Charge.
£53,100†	Aug. 1, 1896	$345,732.13
£262,900†	Feb. 1, 1899
£153,700†	Feb. 1, 1899
£6,200†	Nov. 1, 1900
£101,000†	April 1, 1903
£1,307,860‡	June 30, 1904
£46,300	July 6, 1900	$231,575.46
£1,134,300x	Sept. 30, 1901
Guaranteed as to principal and interest by Dominion Government:—
£189,657	July 29, 1903	$27,690.00
Perpetual consolidated debenture stock.
£400,000	June 30, 1903	$77,866.66
£600,000	Feb. 18, 1905	26,604.43*
			$104,471.09
Leased lines, etc.
Northern Pacific and Manitoba Ry.		$210,000.00
Minnesota and Manitoba Rd.		13,960.00
Interest on equipment leases		195.350.70
			$1,128,779.38
†To be exchanged at par for consolidated debenture bonds on application by holders. ‡Consolidated. xOntario division. *For part of year only.
Gross earnings.
Class		1905	Per cent.
Passenger		$663,935.85	15.85
Freight		3,061,530.77	73.06
Mails		20,962.58	00.50
Express		35,199.67	00.84
Miscellanous		408,583.09	9.75
Total		$4,190,211.96	100.00
Operating expenses.
Class		1905	Per cent.
Maintenance of ways and structures		$557,260.80	21.07
Maintenance of equipment.		410,706.89	15.53
Conducting transportation		1,515,299.72	57.29
General expenses		161,462.23	06.11
Total		$2,644,729.64	100.00
Summary of earnings and expenses.
Class		1905	Per cent.
Gross earnings		$4,190,211.96
Operating expenses		2,644,729.64	73.12
Net earnings		1,545,482.32	36.88
Description of freight carried.
		1905	1904
Flour, sacks (100 lbs. each)		414,824	282,214
Grain, bushels		9,681,829	9,992,195
Live stock, head		20,299	25,188
Logs and lumber, feet		141,614,000	117,517,000
Firewood, cords		176,365	171,714
Fish, tons		5,770	4,619
Immigrants' effects, cars		1,558	1,113
Building material (lime, stone, brick, sand, etc.), cars		5,968	2,602
Miscellaneous, tons		459,972	308,347
Passenger traffic.
	1905	Increase or Dec.	Per cent.
No. passengers carried	486,591	128,458	35.87
No. pass. carried 1 mile	28,883,378	7,046,971	32.27
Earnings per passenger per mile, cts.	0.2951	0.124	05.23
Earnings per traffic train mile, cts.	92.61 0.591	06.81
Total passenger earnings	748,564.40	189,090.29	33.29
Freight traffic.
	1905	Increase or Dec.	Per cent.
No. tons carried	1,368,896	259,311	23.37
No. tons carried 1 mile	385,834,234	91,335,559	31.01
Earnings per ton per mile, cts.	0.793	d0.026	0.317
Earnings per traffic train mile, $	2.0468	d0.2447	10.68
Total freight earnings, $	3,061,530.77	649,147.26	26.91
Passenger and freight.
	1905	Increase or Dec.	Per cent.
Gross earnings per mile of road	$2,641.37	238.66	09.93
Operating expenses per mile of road	$1,667.55	96.15	06.12
Net earnings per mile of road	$973.82	142.51	17.14
Amount required per mile of road to pay fixed charges, including leased lines	$711.71	144.85	19.24
Train and car mileage.
	1905	Increase or Dec.	Per cent.
Mileage of passenger trains	808,282	163,029	25.26
Mileage of freight trains	1,495,856	443,123	42.09
Expenses per traffic train mile.
	1905	Increase or Dec.	Per cent.
Maintenance of way and structures, cts.	24.18	d3.91	13.92
Maintenance of equipment, cts.	17.82	0.37	0.12
Conducting transportation, cts.	65.76	d3.45	04.95
General expenses, cts.	07.01	d3.15	31.00
Total, $	1.1477	d10.12	08.10

Equipment, June 30, 1905; locomotives, 106; sleeping and dining cars, 7; passenger coaches, 47; baggage, mail and express cars, 15; business cars, 5; freight, refrigerator and stock cars, 4,154; conductors' vans, 58; boarding, tool, auxiliary cars and steam shovels, 70.

The number of miles of railway owned and operating, including leased lines, at June, 1905, was as follows:—

Province of Ontario	353.70
Province of Manitoba	1180.54
Province of Saskatchewan	298.46
State of Minnesota	43.70
			1876.40
Average operated for fiscal year, 1586 miles.

Following are the officers and directors for the year current:—President, W. Mackenzie; Vice-President, D. D. Mann; Chief Solicitor, Z. A. Lash; other directors, F. Nicholls, J. M. Smith; Third Vice-President, D. B. Hanna.

Railways: C.No.Ry.

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