The arrival of World War I saw railway investment cease in Canada and those industries spiralled toward bankruptcy which resulted in the federal government nationalizing several insolvent companies to which it had lent financial support, resulting in the creation of the Canadian National Railways in 1918. Although a large part of SCOTIA's customer base was lost, the war had other opportunities and SCOTIA established a shipyard on part of its Trenton property fronting the East River of Pictou, constructing 6 steam-powered cargo ships as part of the war effort, totalling 10,395 tons. The factories were re-tooled and soon began producing artillery and naval shells.