WASTED MONEY

Gisborne Times, 13 October 1932, Page 7

WASTED MONEY

RAILWAY RIVALRY IN CANADA.

ROYAL COMMISSION'S E IN DING-

COMPETITION MUST CEASI

MOTORS SHOULD ACT AS FEEDERS TO TRAINS.

i LLP.A. by Elec. Tel. Copyright OTTAWA. Oct. 11

The report of the Royal Commission on I ransportaliun. tabled in the House to-day. reveals further recommendations than those announced in ilm recent summary.

The capital of the Canadian National Railways, amounting to 2.669,1)26.371 dollars, should he very heavily written down, but now is riot an opportune time. There must be a cessation of aggressive and uncontrolled competition between the Canadian National and the Canadian Pacific. Money lias been wasted by the railways in the construction and operation of hotels. While finding no direct political a’Ul public pressure in respect to the Canadian National. the commission states that : L was the sphere of political consideration that Jed to unwise and unnecessary capita] expenditures. The board of directors and tlie management of the Canadian National were amenable to political influence which it would have been in tie public interest to have withstood. The private automobile was chiefly responsible for the. diversion, of traffic from the railway to the highway, '.Motor coach traffic was not yet of very large dimensions. A failbasis of competition between railways and highways must be found. The true function of road transport was that of auxiliary railway jransportation. The railways should he empowered to provide and operate services of road vehicles, and licenses should be issued to highway common carriers only where it was shown that it was 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 inp.o the question of tariffs and tolls.