CANADIAN RAILWAYS

New Zealand Herald, Volume LXIX, Issue 21295, 23 September 1932, Page 9

CANADIAN RAILWAYS

UNPROFITABLE RUNNING PROPOSED REMEDIAL STEPS OVERLAPPING TO BE STOPPED By Telegraph—Press Association—Copyright OTTAWA, Sept. 21 The appointment of a commission of three trustees in whom should bo vested all the powers of the present board of directors of the Canadian National Kailways is one of the outstanding recommendations of tho Commission dn Railways and Transportation, a summary of whose report was made public to-day by the Prime Minister, Mr. R. B. Bennett. The annual budget of the Canadian National Railways would be under the control of these trustees, the appointment of whom would be? made by the Gover-nor-in-Council, and vacancies would be filled from a panel of eight to be named by the remaining trustees. It is suggested that the statutory duty should be imposed upon the board of directors of the Canadian Pacific Railway, also upon the trustees of the Canadian National Railways to adopt, as soon as practicable, such co-operative measures, plans and arrangements as would be consistent with the proper handling of traffic, and best adapted to the removal of unnecessary or wasteful services or practices. Co-operation in Services It is also recommended that unwarranted duplication in the two services or facilities should be eliminated, and the joint operation of all such properties which conveniently, and without undue detriment to either party, might be so operated is urged. It is recommended that tho board of trustees of the Canadian National Railways and an equal number of directors of the Canadian Pacific Railway should meet at regular intervals for the purpose • of . discussing and agreeing upon co-operative measures for services. In tho event of failure to agree, and for the purpose of settling disputes or details of any scheme, it is recommended that an arbitral tribunal bo set. up for each occasion composed of the chief member 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 should be adopted in the national interest," Mr. Bennett said, commenting on the report. " The Government .will invite Parliament to pass legislation which will ensure the physical integrity of the Canadian National Railways and their complete freedom from political interference and community pressure. ' Elimination of Competition " It is the termination of the era of financial irresponsibility on the part of the management of the Canadian National Railways which should make it possible for tho inauguration of measures which will at onco reduce and, I believe, in time wholly eliminate the operating deficits on the national lines, while preserving and increasing the effectiveness of their services to the country as a whole," continued the Prime Minister.

" It is, further, the termination of the era of aggressive and unprofitable competition between the Canadian National and the Canadian Pacific Railways 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 unquestionably have aggravated an always difficult problem. " However, it is the intention of the Government to give those in charge of the transportation systems an opportunity to adequately discharge the functions for which those systems were created, and I believe that when we have secured the necessary measure of reorganisation of the national system, and a real and effective co-operation between the natioiial. and private systems, Canadian railway transportation will be upon that basis of fair and profitable competition so vital to the welfare of the country."