TO CO-OPERATE.

Auckland Star, Volume LXIII, Issue 225, 22 September 1932, Page 7

TO CO-OPERATE.

CANADA'S RAILWAYS. Aggressive and Unprofitable Competition to End. NATIONAL AND O.P.R. (United P.A.—Electric Telegraph—Copyright) (Received 11.30 a.m.) OTTAWA, September 21. The appointment of a commission of three trustees in whom shall be vested all the powers of the present board of directors of the Canadian National Railways is one of the outstanding recommendations of the Commission of Railways and Transportation, a summary of whose report was made public on Wednesday by Mr. R. B. Bennett, Prime Minister. The annual Budget of the Canadian National would be under control of these trustees, the appointment of whom would be made iby the Governor-iu-. Council, and vacancies would be filled from a panel of eight named by the remaining trustees. An imposition of a statutory duty upon the board of directors of the Canadian Pacific Railway, also upon the trustees of the Canadian National is that they adopt, as soon as practicable, such co-operative measures, plans and arrangements a« shall be consistent with the proper handling of traffic, and will be best adapted to the removal of unnecessary or wasteful services or practices. It is also recommended that the unwarranted duplication in the services or facilities must be eliminated, and the joint operation of all such properties which may conveniently, and without undue detriment to either party, be so operated is urged. It is recommended that the board of trustees of the Canadian National and an equal number of directors of the Canadian Pacific meet at regular intervals for the purpose of discussing and agreeing upon co-operative measures for services. In the event of failure to agree, and for the purpose of settling disputes or details of any scheme, it is recommended that an arbitral tribunal be set up for each occasion composed of the Chief Commissioner of the Railway Commission and one representative from each of the railways.

"It is the intention of the Government to introduce legislation that will give effect to those recommendations of the commission, which it is considered in the national interest should be adopted," Mr. Bennett said, commenting on the report. "Following the recommendations of the commission the Government will invite Parliament to pass legislation, which will ensure the physical (integrity of the Canadian National and its complete freedom from political interference and community pressure. "It is the . termination of the era of financial irresponsibility on the part of the' management of the Canadian National, which should make it possible for the inauguration of measures which will at once reduce and, I believe, in time, wholly eliminate the operatiug deficits on the national lines while preserving and increasing the effectiveness of their services to the country as a whole.

"It is, further, the termination of the era of aggressive and unprofitable competition between the Canadian National and the Canadian Pacific by the provision of a plan of co-operation designed to avoid •unnecessary and wasteful duplication of service. The Canadian railway situation is a grave one. It is not the desire of this Government to apportion responsibility or blame for actions which have unquestionably aggravated an always difficult problem.

"It is, however, the intention of the Government to give transportation systems an opportunity to adequately discharge the functions for which they were created, and I believe that when we shall have secured the necessary measure of reorganisation of the national system, and a real and effective cooperation 'between the national and private eystems, Canadian railway transportation will be upon that basis of fair and' profitable competition so vital to the welfare of the country."