4.17 The royalties and royalties covered by Article 8.1, point (c) of the agreement. (Redevances paid under a franchise agreement) (Adopted, 44th session, May 12, 2017, VT1098E1c) Although CN suffered a loss of CAD 1.08 billion in 1995 due to exceptional charges of CAD 1.45 billion – which was primarily an asset impairment, especially in the troubled eastern part of Canada – 1996 was the company`s first full year as an investor, the most profitable year in history. CN reported operating income of CAD 610 million and net income of CAD 142 million for revenue of CAD 4.16 billion, despite an exceptional charge of CAD 381 million in the fourth quarter. The charge was filed in connection with plans to lay off an additional 2,250 workers in 1996 and 1997. A reduction of CAD of 95 million in labour costs allowed CN to decrease 85.3% in 1996, compared to 89.3% the previous year. Tellier had focused on reducing CN`s operating rate, an important measure of the efficiency and profitability of a railway that compared expenses to revenues (the lower the value, the better). 22.1 Evaluation of the technical documentation introduced concerning the design and development of an industrial facility. (28th session, April 3, 2009, VT0686e1c) In the 1970s, CN`s management focused on increasing autonomy and profitability. The organization of profit centres has improved the accountability of leaders and focused on areas of state losses. CN also focused on diversification and divided the company`s interests in telecommunications, hotels and oil exploration. This has decontaminated the weakening of the company`s rail operations. CN began competing with the Canadian Pacific Railway in 1925 for the silk trade between Asia and New York. Competition between the two was fierce – every hour saved between the two coasts meant higher earnings, because insurance on raw bristles, a perishable asset, reached up to 6 percent per hour.
CN`s Silkers, trains carrying valuable cargo, were travelling at speeds of up to 90 miles per hour and were premium on all other trains, including express passenger lines. On average, they are only four days to cross the continent. The largest CN Seidener ran in October 1927. The 21-part train was carrying 7,200 silk bales worth CAD 7 million. The success of CN`s Asian freight service was encouraging, but the global depression, which began in 1929, put an end to this optimism. Grand Trunk Corporation (USA); Illinois Central Corporation (USA); Illinois Central Railroad Company (U.S.A.). In 1987, Ronald Lawless, a 46-year-old CN veteran, was appointed president and CEO of the carrier. During his five-year term, the executive oversaw a series of massive cuts that reduced employment from 100,000 to 40,000; Elimination of more than 40 per cent of the 3.4 billion CAD debts of the railways and divestment (at the order of the government of 1988) of the company in hotels, telecommunications and trucks. 7.1 Application of the price actually paid or payable. (26th session, 8 October 1993, 38,480) . In the 1880s, Tyler oversaw the inclusion of 16 railroads and expanded freight transportation to the United States. Its focus on U.S.
markets was rewarded – 25 percent of railway revenues came from meat and grain transportation between Chicago and New England. In 1882 GT took over its biggest competitor, the Great Western, and in 1888 it took control of The Northern Railway of Ontario. The early 1990s were less stable for Canadian National than in the previous decade. A recession reduced traffic, which had already been operated by competitors in the U.S. heavy-duty and railroad industries. Persistent regulatory constraints and high taxes have also hampered the company`s tax performance. To improve profitability, Canadian National`s oil and gas subsidiary, CN Exploration, was privatized in 1991 and the proceeds of the sale were used to reduce the public deficit.