RAILWAYS IN CANADA

Hawera Star, Volume LII, 28 January 1933, Page 9

RAILWAYS IN CANADA

THREAT TO ECONOMIC LIFE. SERIOUS- PROBLEM PRESENTED. (United Pros* Association —By Electric Telegraph Copyright.) OTTAWA, Jan. 26. “The railway problem in Canada is threatening the very- economic life of the country,” the Prime Minister (Mr R. B. Bcnuett) told a deputation of railwaymeii on Thursday. “No language would -be too extravagant to describe tlie seriousness of Canada’s railway problem,” the Prime Minister said. Railwaymeii submitted that too much emphasis had been placed on the financial end of the problem and not enough on the human end, as reprejvsented by the men and their families, •who would be affected by any steps taken.

“But if these enterprises stop- altogether there would be no -work at all,” -said Mr Bennett. “Our effort is to maintain, as a going concern these enterprises, but if this country continues as it- has done in the past we cannot continue long. We must stop incurring fresh responsibilities oi* we cannot pay on tlie past, and if we cannot pay on the past responsibilities we cannot borrow more.

“The Dutff Roval Commission advised paying the Canadian national deficit each year. The deficit in 1932 was 70,000,000 dollars. This yogy jt looks as if it might be well within that.

“This country has- only 10,000,000 people and they find it exceedingly difficult to pay the present taxes’. We know there is a breaking point. Every day gets us closer to it.

“The Government and 1 the Canadian National Railways Board of Trustees were recommended by the _ Du-ff Commission to maintain the railways as agoing concern which is giving employment. Sacrifices have to be made. We may as well face that. It will he a common sacrifice and everyone will have to suffer.

“Under normal conditions the Canadian National Railways at the present time would be considered as in the hands of a receiver, hut a receivership is impossible because tlie bonds arc guaranteed' by the Government and the hoard of trustees for the railway would be considered as receivers to maintain the property and provide work for the railwaymen.”