The Canadian National Railways (CNR) was created between 1918 and 1923, comprising several railways that had
become bankrupt and fallen into federal government hands, along with some railways already owned by the government.
In 1995, the federal government privatized CN. Over the next decade, the company expanded significantly in the United
States, purchasing Illinois Central Railroad and Wisconsin Central Railway, among others. Now primarily a freight railway,
CN also operated passenger services until 1978, when they were assumed by VIA Rail. The only passenger services
run by CN after 1978 were several mixed trains (freight and passenger) in Newfoundland, and a couple of commuter
trains on CN's electrified routes in the Montreal area. The Newfoundland mixed trains lasted until 1988, while the
Montreal commuter trains ran until 1995.
In response to public concerns fearing loss of key transportation links, the Government of Canada assumed majority
ownership of the near bankrupt Canadian Northern Railway (CNoR) on September 6, 1918, and appointed a "Board of
Management" to oversee the company. At the same time, CNoR was also directed to assume management of Canadian
Government Railways (CGR), a system comprised of the Intercolonial Railway of Canada (IRC), National Transcontinental
Railway (NTR), and the Prince Edward Island Railway (PEIR), among others. On December 20, 1918, the federal
government created the Canadian National Railways (CNR) through a Privy Council order as a means to simplify the
funding and operation of the various railway companies. The absorption of the Intercolonial Railway would see CNR
adopt that system's slogan The People's Railway.
Another Canadian railway, the Grand Trunk Pacific Railway (GTPR), encountered financial difficulty on March 7, 1919,
when its parent company Grand Trunk Railway (GTR) defaulted on repayment of construction loans to the federal
government. The federal government's Department of Railways and Canals took over operation of the GTPR until
July 12, 1920, when it too was placed under the CNR.
Finally, the bankrupt Grand Trunk Railroad itself was placed under the care of a federal government
"Board of Management" on May 21, 1920, while GTR management and shareholders opposed to nationalization took legal
action. After several years of arbitration, the GTR was absorbed into CNR on January 30, 1923.
In subsequent years, several smaller independent railways would be added to the CNR as they went bankrupt, or
it became politically expedient to do so, however the system was more or less finalized following the addition of the GTR.
Canadian National Railways was born out of both wartime and domestic urgency. Railways, until the rise of the
personal automobile and creation of taxpayer-funded all-weather highways, were the only viable long-distance land
transportation available in Canada for many years. As such, their operation consumed a great deal of public and
political attention. Many countries regard railway networks as critical infrastructure and at the time of the
creation of CNR during the continuing threat of the First World War, Canada was one of the many countries
to engage in railway nationalization.
In the early 20th century, many governments were taking a more interventionist role in the economy, foreshadowing
the influence of economists like John Maynard Keynes. This political trend, combined with broader geo-political events,
made nationalization an appealing choice for Canada. The Winnipeg General Strike of 1919 and allied involvement
in the Russian Revolution seemed to validate the continuing process. The need for a viable rail system was
paramountin a time of civil unrest and foreign military intervention.
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