4.17 Fees under Article 8.1(c) of the Agreement. (Royalties paid under a franchise agreement) (Adopted, 44th Session, 12 May 2017, VT1098E1c) Although CN suffered a loss of CAD 1.08 billion in 1995, due to special expenses of CAD 1.45 billion – which mainly corresponds to a depreciation of the value of assets, particularly in the turbulent part of its eastern Canadian network – 1996 was the first full year of the investor-owned business, the most profitable year in history. CN was responsible for operating income of CAD 610 million and net profit of CAD 142 million on revenue of CAD 4.16 billion, despite a special charge of CAD 381 million in the fourth quarter. The charge was brought in connection with plans to lay off an additional 2,250 workers in 1996 and 1997. A €95 million reduction in the cost of CAD labour helped to lower its operating rate to 85.3% in 1996 from 89.3% the previous year. Tellier had focused on reducing CN`s operating ratio, a key measure of a railway`s efficiency and profitability that compared expenses to revenues (the smaller the number, the better). 2.1 Acceptance of a price below the prevailing market prices for identical products. (Adopted at its second session, on 2 October 1981, 27.960) Dorin, Patrick C., The Canadian National Railways` Story, Seattle: Supérieur Publishing, 1975, 206 p. 2.1 Products subject to export subsidies or premiums. (Adopted at the 3rd session, on 23 March 1982, 28.560) (Amended and approved, sixth session, 1 May 1998, 42.359). . 5.1 Processing of accounts under the contract. (The case where payment for the goods was made before the valuation date.) (Adopted at the 3rd session, on the 23rd In addition to the financial difficulties encountered by CN, growing problems arose on the labour front.
Technological advances in the railway industry reduced the need for personnel: the automation of control and office operation reduced the need for office staff, while diesel locomotives and larger freight wagons allowed carriers to operate longer and heavier trains and extend the distance between stops, this has had an impact on train and repair personnel. While railway management has worked to maximize productivity gains, railway unions have fought to save their members` jobs. In July 2004, CN completed the purchase of BC Rail Ltd. of the Government of British Columbia for CAD 1 billion. The agreement gave CN ownership of the BC Rail franchise and the right to operate its more than 1,400-mile line under a long-term lease. The province retained ownership of the line itself, but CN assumed responsibility for the maintenance of the line. BC Rail ran from North Vancouver to Fort Nelson in the far north of the province. CN immediately announced plans to reduce BC Rail`s workforce from 1,380 to 950 employees, prompting widespread criticism.
This acquisition strengthened CN`s position in forest products shipping and also improved access to the west coast of the United States. Industry observers indicated that additional acquisitions were possible due to CN`s success in integrating agreements, significant profits and cash flows and remaining positioned as the most efficient railway among North American majors. However, railway and government officials imagined different goals for GT – benefits for their British shareholders on the one hand, and the colonization of huge Western territories on the other. The public and private interests of the railways collided before the end of the decade. In 1858, British Columbia became a crown colony and the western colony became government policy. A transcontinental railway would connect the colonies and prevent American squatters from seizing the territory before Canadians had a chance, and as the Dominion`s largest railway, the GT would obviously have been the vehicle of choice for this Western movement. However, expensive construction projects had weighed on finances to the point that the company could not pay interest on its loans and the shareholders – who had not yet received the dividends promised when the company was founded – would not accept what they considered a loss-making business. . . .