TRAFFIC DIVERSION

Dominion, Volume 26, Issue 16, 13 October 1932, Page 9

TRAFFIC DIVERSION

Railways Lose to Road CANADA’S PROBLEM Commission’s Findings By Telegraph—Press Assn. —Copyright. Ottawa, Oct. 11. The report of the Royal Commission on transportation tabled in the House of Commons to-duy reveals further recommendations beyond those announced in the recent summary. It states that 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 aggressive and uncontrolled competition between the Canadian National and the Canadian Pacific Railways. Money has been wasted by the railways in the construction and operation of hotels.While finding no direct political and public pressure in respect of the Canadian National Railways, the Commissiou states that in the sphere of policies political consideration led to unwise and unnecessary capital expenditures. The Board of Directors and management of the Canadian National Railways were amenable to political influence and pressure which it would have been in the public interest to withstand.

The private automobile was chiefly responsible for the diversion of traffic from the railway to the highway. Motorcoach traffic was not yet of very large dimensions. A fair basis of competition between the railways and highways must be found. The true function of road transportation was that of an auxiliary to railway transportation. The railways should be empowered to provide and operate services of road vehicles, and licenses should be issued to highway common carriers “only where it is shown it is in the public interest,” At the moment any adjustment of freight tolls and tariffs would be inadvisable.

“The financial position of the railways may require a special investigation into the question of tariffs and tolls,” the report adds.