CANADIAN RAILWAYS

Otago Daily Times, Issue 21774, 13 October 1932, Page 9

CANADIAN RAILWAYS

HEAVY LOSS OF TRAFFIC DIVERTED TO THE HIGHWAY THE COMMISSION’S REPORT (United Press Association.) (By Electrla Telegraph—Copyright.) OTTAWA, October 11. The report of the Royal Commission on Transportation, which was tabled in the House on Tuesday, reveals further recommendations than those announced in the recent summary. . The capital of the Canadian National Railways, amounting to 2,069,926,371 dollars, should be very heavily written down, but the present is an inopportune 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 to the Canadian National Railways, the commission states, that in the sphere of policies, political consideration had led to unwise and unnecessary capital expenditure. The Board of Directors and the management of the Canadian National Railways, were amenable to political influence and pressure, which should have been withstood in the public interest. 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 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 ertipowerhd to provide and operate services of road vehicles. Licenses should be issued to highway common carriers only where it was shown that it was in ,the public interest. , , 1 . At this moment any adjustment of freight, tolls, and tariffs would be inadvisable.’ The financial position of the railways might require a special investigation into the question of tariffs and tolls.