CANADIAN NAVY • 121
Canadian National’s passenger services were taken over by VIA
Rail Canada, a crown corporation established to operate all Canadian
passenger services. Canadian National came to control the Central
Vermont Railway; the Duluth, Winnipeg, and Pacific Railway; and
the Grand Trunk Western Railway Company. After privatization,
CNRail acquired the Illinois Central Railroad (chartered 1851) in
1998, enhancing it as a continental powerhouse in transportation,
with portals on the Pacific (Vancouver, Prince Rupert), the Atlantic
(Montréal, Halifax, Saint John), and the Gulf of Mexico (New Or-
leans). It operates 20,300 route miles, 14,000 of which are in Canada.
See also CANADIAN NORTHERN RAILWAY.
CANADIAN NAVY. An outgrowth of its parent, the Royal Navy,
Canada’s navy was created by the Naval Service Act of 1910 (effec-
tive 10 May). The Royal Canadian Navy (RCN) was to be managed
by the Ministry of the Naval Service, a department of the Ministry
of Marine and Fisheries, and be under the command of a naval staff
officer not less in rank than rear admiral. The RCN was to fall under
the command of the Admiralty in London upon declaration of war
but would be administered from Ottawa. During war, the Royal
Navy was to use the main bases at Halifax, Nova Scotia, and Esqui-
malt, British Columbia. Two cruisers were acquired from the Royal
Navy—HMCS Niobe for the Atlantic coast and HMCS Rainbow on
the Pacific—principally for training purposes. The naval question of
the era contributed to the fall of the government of Prime Minister
Wilfrid Laurier in 1911.
The RCN formed coastal patrols against U-boats during World
War I, but most naval personnel—an estimated 10,000—served with
its parent service, the Royal Navy. After 1918, the navy faced severe
fiscal restraints and was forced to fight for its existence. Despite cut-
backs, Comm. Walter Hose established the Royal Canadian Naval
Volunteer Reserve, which was to prove vital during the subsequent
wartime expansion. Also in the 1930s, modern destroyers were pur-
chased. In 1939, when World War II broke out, the RCN possessed
11 warships and 3,000 personnel; by 1945, the navy had 365 ships
in commission and 100,000 personnel. Canadian corvettes, such as
HMCS Sackville, now a Canadian national naval memorial in Hali-
fax, played a heroic, legendary role in convoy protection in the Battle
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