RAILWAY LOSSES

Hokitika Guardian, 13 October 1932, Page 5

RAILWAY LOSSES

CANADIAN REPORT WASTE AND COMPETITION. (United Press Association—3y Electric Telegraph —Copyright.) OTTAWA, Octcbe** 11. The report of the Royal Commission on Transportation, tabled in the I House, reveals further recomendations than those announced in the recent summary. The capital of the Canadian National Railways, amounting to 2,669,926,371 dollars, should be very heavily written down, but now is not an opportune time. There must be a cessation of the aggressive and ilneontrolled competition between the Canadian National and Canadian Pacific. Money has been wasted by the .railways in the construction and operation cf hotels. While finding no direct political and public pressure in respect of the Canadian National, the Commission states that ih the sphere of politics, political consideration led to uhwise and unnecessary capital expenditures. The Board of * Directors and the management of the Canadian National were amenable to political influence and pressure, which would have been in the public interests to have withstood. Private automobiles are chiefly responsible for the diversion of traffic from the railway to the highway. Motor coach traffic was net yet of very large dimensions. A fair basis of competition between the railways and highways must he found. The true function of road transportation was that of an auxiliary to the railway transportation. Railways should be empowered to provide and operate services of. road vehicles. Licenses should' be issued to highway common carriers only where it is shown it is in the public interests. At the moment, any adjustment of freight tolls and tariffs would be inadvisable. The financial position of the railways may require special investigation into the question of tariffs and tolls.