CANADIAN RAILWAY.

Manawatu Standard, Volume LII, Issue 268, 12 October 1932, Page 7

CANADIAN RAILWAY.

REPORT OF ROYAL COMMISSION. DRASTIC RECOMMENDATIONS. Received October 12, 12.20 p.m. OTTAWA, Oct. 11. The report of the Royal Commission on transportation, tabled in tho House of Commons to-day, reveals further recommendations than those announced in the recent summary. Tho capital of the Canadian National railways, amounting to 2,669,926,371 dollars, should bo very heavily written down, but now is not tho opportune time, the report says. There must be a cessation of aggressive and uncontrolled competition between the Canadian National and the Canadian Pacific railways. Money lias been wasted by the railways in the construction and operation of the hotels, it says. While finding no direct political and public pressure in respect of the Canadian National, the Commission states that political consideration has led to unwise and unnecessary capital expenditures. The hoard of directors and management of the Canadian National were amenable to political influence and pressure which it would have been in the public interest to have withstood. Private automobiles were chiefly responsible for the diversion of traffic from the railway to the highway. The motor coach traffic was not yet of very large dimensions. A fair basis of competition between the railways and the highways must be found, adds the report. The true function of road transportation is' that of an auxiliary to railway transportation. The 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 that it is in the public interest. At the moment any adjustment of freight tolls and tariffs would be inadvisable. Tlie financial position of the railways may require a special investigation into the question of tariffs and tolls, adds the report.