Canadian Motorways Ltd. - Past & Present

Canadian Motorways Ltd. is owned by Federal Industries Ltd. and operates as a Division of Federal Industries Transport Group. Winnipeg based Federal is a publicly traded diversified management company with interests in steel, consumer goods, industrial products, transportation and distribution. With Federal's recent acquisition of C.F Kingsway Inc., a major Canadian road carrier and pool car company, Federal is now the largest truck transportation company in Canada and the seventh largest in North America. Besides being the largest overall trucking firm in Canada, Federal is the Canadian leader in three distinct market segments less than truckload (LTL), truckload and pool car operations. Other members of the Transport Group include Thunder Bay Terminals Ltd. of Thunder Bay, The White Pass and Yukon Corp. Ltd. of Whitehorse, and White Pass Systems Ltd. of Edmonton. In 1987 Federal Industries, the 59th largest company in Canada, posted earnings, before interest and taxes of $108 million on sales totaling $1.6 billion. The acquisition of C.F. Kingsway is part of Federal’s long-range plan to achieve sales of $4 billion-by the year 1995, with half of those sales and earnings to come from outside Canada. C.F. Kingsway, which was purchased by Federal for some $70 million, posted net earnings of $6.9 million on revenue of $330.6 million in the fiscal year ending March 31, 1988. Motorways has an annual business volume of about $175 million employs approximately 2,200 people and owns some 3,900 pieces of equipment. Combining C.F. Kingsway and Motorways resources means that Federal will command a total of some 7,000 trucks, tractors and trailers operating out of 173 terminals that will move about 3 billion pounds of freight over 100 million miles throughout North America. Federal Industries Transport Group employs more than 6,000 people.

The Motorways name dates back to the year 1929 when the Company was incorporated by George and J.S. Hall to transport goods between Ottawa and Toronto. The Halls operated a fuel supply and delivery business within Ottawa and surrounding area. Not many records exist about those early days in the truck freight industry but a copy of a Company staff publication suggests that in spite of some difficult times on and off the road, there was then as there is today, a lot of camaraderie in the business. The Company had several Company songs sung to the tune of other standard versions. Here’s one coined by the Fuel Division to the tune of Home On The Range:

Coal, coal for the range,

And coal for the furnace to run,

It burns clean and bright,

It's the best anthracite,

Call Hall - Carling 2361.

The boys in the Freight Division got their licks in too. Here's a poem tendered by some anonymous writer:

I live in a house by the side of the road,

Where Motorways goes by

From evening to dawn they plug along,

Bringing goods to you and I.

And I've often thought, what a sturdy lot

Of men that mount their trucks.

In rain and storm they fight on through,

In sleet and snow and muck

And strike me pink, if I don’t think

It's a mans' job - not for the weak,

To bring them through - never overdue

The motto of "Motorways Fleet"

A chain is as strong as its weakest link,

But you'll find no weak links there

So I doff my hat to those sturdy chaps

The men of "Motorways Fleet."

It seems some things never change at least in the minds of those who operate the equipment!

Other names are part of Motorways' history but it wasn't until J.M. (Joe) Atwell of Hamilton began to put several companies together in the early 50’s that Canadian Motorways come into being. Mr. Atwell, an associate of White Motor Company, became a major force in Canadian truck transportation during that period and an active participant in the Canadian Football League a decade later (managed and owned the Montreal Alouettes 1966 through 1969). He passed away in December 1988 at his home in Boca Raton, Fla.

Hill The Mover, a Hamilton based household goods carrier founded in 1890, was acquired by J.M. Atwell in 1950. This was soon followed by other acquisitions in Eastern Canada, which included Motorways (Halls) Ottawa, Corney Transport Hamilton (Stan Corney subsequently worked for Motorways Ont. Ltd. as a marketing rep for many years), Motorways Depot Ltd. Toronto, Jackson Transport Hamilton, Mason Transport St Catherines, Beatty Bros. Transport Peterborough, Eamer Day Cornwall (later sold to Direct Systems) and Marcoux Transport of Montreal (forerunner to Motorways (Quebec) Ltd.). The Company then operated under the name of Hill Motorways.

At the same time that Mr. Atwell was purchasing freight companies, the British Electric Traction Company of London, England began investing in the Company. By 1956 B.E.T. held controlling interest and in 1957 the name of the Company was changed to Canadian Motorways Ltd. B.E.T. a privately held company, operated the public transit system in London for a period of some 55 years until the Government nationalized the service soon after the end of World War II. In 1951 the one remaining B.E.T. street car route was closed down bringing to an end an era which had lasted more than half a century. By this time B.E.T. had expanded their interests to other areas which included the first television service in a British Colony (Rediffusion of Hong Kong), Wembley Stadium and Convention Centre, London, England and offshore interests in Australia and South Africa.

It was Joe Atwell's dream to see a road freight company established that could rival the powerful railways in terms of L.T.L. carriage between major points across Canada. He successfully convinced the shareholders at B.E.T. that such a project was viable and with their growing interest in the Company he was commissioned to extend the business west of the Ontario border. Security Storage Company Limited of Winnipeg was a household name in the moving and storage business at the time B.E.T. and Joe Atwell cast their eyes in a Westerly direction. Atwell recognized Security as the major link required to bring East and West together. During the period 1950 to 1955 Security Storage purchased a number of Companies in Western Canada to broaden the firms operating base. These included Johnston Terminals Limited of Vancouver, Pacific Cartage and Storage Ltd. Calgary, Smeeds Security Storage Regina, James Moving and Storage Calgary and Big 4 Van Lines Edmonton. Security's primary household goods business would provide natural extension for Hill the Mover which was concentrated in Eastern Canada. Security was also involved in Highway Freight, an offshoot of the household goods business. The freight company, which began operating in the early 40's, provided service within Manitoba and to points in neighboring Saskatchewan. Under the direction of owner and patriarch G.H. McKeag, the company rapidly expanded this side of the business along with the household goods operation. Jack Scarfe joined the company in 1944 and guided development of the long distance business. He subsequently became President of C.M.L., assuming the post of Deputy Chairman before retiring in 1981. Soo Freight Lines, which served every major Centre in Alberta and Saskatchewan, was acquired in 1956 from owner Ted Gibbs who later served on the Motorways Board of Directors; the name of the freight operation was promptly changed to Soo Security Ltd. Lewis and Sons Transport of Saskatoon was purchased in 1958. Reg Lewis Sr., a partner in the business and well known for his involvement in Saskatchewan Trucking, joined the Soo Security management team. He went on to become President of Soo Security Motorways.

In 1955, George McKeag received an offer from Joe Atwell to purchase the company for three million dollars. The time seemed right to strike a deal and within a year the sale was completed. Security Storage and Soo Security were now part of the Motorways group of companies. There followed a period during which the Company operated under various names; Motorways Van Lines, Hill Security Van Lines, Capital Storage Holdings Ltd., Motorways (Ont.) Limited, Wilson (Northern) Limited Motorways (Que.) Limited, Motorways (West) Ltd., Demenagement Hill Securite etc.

Acquisition was a never ending process during the 50's and on into the 60's. Other western Canadian firms acquired during this period were: Central Transfer Victoria, Johnston Storage and Cartage Calgary, Red Deer Cartage, Patricia Transportation Wpg., Skingle & Sons Moose Jaw, Prairie Pacific Transport Edmonton and Peacock Van and Storage Regina. In Eastern Canada, growth through acquisition continued to match expansion in the West. Maritime based Barnhill Transfer and Moffat and Sons joined the group as did Capital Storage Ottawa and Wilson Transport Toronto. Later acquisitions included Carson Northern (purchased from All Trans in March 1976) and Chapman Transport (purchased from CNR in July, 1977), both headquartered in B.C. One of the last purchases made under B.E.T. ownership was that of MacArthur and Son Ltd., Brandon, acquired in January of 1978. In total more than thirty separate companies were purchased to make up Canadian Motorways Ltd. This resulted in the company having extensive operating authorities covering the transportation of a vast array of commodities within Canada as well as to and from the United States.

Under B.E.T. ownership, the Company consolidated its holdings disposing of units that were found to be unprofitable and strengthening those that were retained. The wide array of operating names created confusion and so it was decided to eliminate or moth ball many in favour of basically two. Household Goods operations would be conducted under the name Hill Security Van Lines while freight operations would be designated Motorways. The latter operated as Motorways (Ont.) Ltd. and Motorways (West) Ltd., for a number of years with each division having its own management structure. Cougar Freight Systems a truck load operation became operational in May of 1979 and High-Tech Express and Distribution which specializes in transporting time sensitive, high value cargo was formed in 1983. Both are an important part of Motorways operations today.

Canadian Motorways Ltd. remained under B.E.T. ownership until July of 1983 when Federal Industries Ltd. of Winnipeg through its subsidiary White Pass and Yukon Corporation, concluded a deal to purchase the Company. Federal's acquisition criteria included two key considerations - beyond fundamental financial soundness and good future prospects - the company must complement existing operations and enable them to reduce the overall dependence on the natural resource sector. The Motorways acquisition met both criteria. Soon after the acquisition, Federal Industries Ltd. sold Hill Security Van Lines, the household goods division, because of poor operating results recorded during the previous three or four years. Efforts would be concentrated on developing a reliable and profitable freight operation to serve the needs of Canadian shippers.

As a further convenience to shippers, Motorways introduced "MOTOPAK" in February of 1985. MOTOPAK, a small package courier service, is presently available between Motorways points in Alberta, Saskatchewan, Manitoba and North West Ontario. Plans are in place to serve other points within the Motorways system as demand for the service continues to grow.

Under Federal’s ownership, Canadian Motorways nearly doubled in size through the acquisition of Direct Transportation System Limited of Toronto. On Friday, September 27, 1985 officials of Federal Industries, Canadian Motorways Ltd., and Direct Transportation System signed papers that would create Canada’s 4th or 5th largest road transportation company. The merge went off without a hitch and the new combined company emerged as Motorways Direct. As an immediate result of the merge and following rationalization of plant and equipment, the new company had 2,550 employees, 91 terminals, agencies and satellites plus some 4,500 pieces of equipment. Company equipment traveled approximately 150,000 highway miles per day or 55 million miles per year which is about equal to 116 round trips to the moon or 19,000 trips from Montreal to Vancouver.

The name Direct was dropped in the latter part of 1986 and the Motorways name and corporate colours of yellow and black became the standard for all locations. While the Direct name is widely known throughout Eastern Canada, it was felt that one name and one color scheme offered a great many advantages in terms of cost effectiveness and corporate identification and promotion. The past 18 months has involved a general sprucing up of all Motorways locations including new signage and identification where required. Equipment has generally undergone the same attention either through replacement or modification. The Company's fleet of power units and trailers is second to none in the industry.

Today Motorways (as at January 1, 1989) operates 3,950 pieces of equipment, has 97 terminals, agencies and satellites with nine in the continental United States plus 87 in Canada and employs more than 2,200 people. Operationally, C.M.L. Companies run in excess of 55 million miles per year but the installation of on-board computers makes the running of those miles more efficient than ever before. In terms of information services the Company has invested more than $3.8 million on computer hardware and software to give better costing information and improve productivity and customer service. In 1988, 99.25% of all Motorways shipments traveled claims free and the on-time average for shipment deliveries varied between 90% and 91%. Even these impressive numbers leave room for some improvement and the goal is to see them reflect this in the months ahead.

The past year (1988) was not an easy one for many in truck transportation and conditions are likely to remain intensely competitive for some time to come. There is a sense of solidarity and permanence that goes with large size. Generally it means that the company is able to solve more of the client’s traffic problems and do it better because it has more equipment, more specialists and more resources to get the job done.

But being big is not enough; todays business climate requires knowledge, dedication and a commitment to excellence. The facts show that Canadian Motorways Ltd. has a history of achievement, a record of steady growth and a philosophy that puts the customer where he should be the number one priority.

Motorways is proud to be part of the Federal Industries Transport Group and we look forward to the opportunity of working closely with our sister company C.F. Kingsway Inc., in those areas where we can complement one another. Whatever the future brings in terms of potential opportunity in either a regulated, de-regulated or re-regulated environment, Motorways will compete and compete aggressively!