A new subsidiary company, the St. Lawrence and Hudson Railway, was created to operate its money-losing lines in eastern North America, covering Quebec, Southern and Eastern Ontario, trackage rights to Chicago, Illinois, (on Norfolk Southern lines from Detroit) as well as the Delaware and Hudson Railway in the northeastern United States. However, the new subsidiary, threatened with being sold off and free to innovate, quickly spun off money-losing track to short lines, instituted scheduled freight service, and produced an unexpected turn-around in profitability. On 1 January 2001 the StL&H was formally amalgamated with the CP Rail system.
a new subSidiaRy cOmpANy the sT. lawrencE and huDsoN raiLway, WaS CreAted to oPErate itS mOney-losing liNes in eastErN noRth america, coverinG QuEbec, souThErN aNd easTeRn ontaRIo, trackAGe rights tO cHicAGo, ILlInois, (on norfolK soUtHern liNes froM DetroIT) as weLL as ThE delawAre aNd HUdSoN railwAy In thE nOrThEAsTern uniTed statEs. however, THe neW subsidiary, ThReAteNeD wIth bEinG Sold off and Free To innOvatE, quIckly spun off mOney-losInG track To shOrt lineS, iNstiTuted scheduLed fREIght serviCe, and prOduced an unExpeCTEd tUrn-aRouND in pRofiTabiliTY. On 1 january 2001 the sTl&h waS FOrmaLly amalgamateD with thE cp rAil System.