The Board of
Railway Commissioners for Canada.

Order no. G.O. 448

Friday, the 26th of
August, A.D. 1927

In the matter of the Order in Council, P.C. No. 886, of June 5, 1925, requiring the Board of Railway Commissioners for Canada to make a full and complete investigation into the whole subject of railivay freight rates in the Dominion of Canada.

34123

H. A. McKeown
Chief Commissioner

S. J. McLean
Asst. Chief Commissioner

Thomas Vien
Deputy Chief Commissioner

A. C. Boyce
Commissioner

C. Lawrence
Commissioner

Frank Oliver
Commissioner

Whereas by Order in Council, P.C. No. 886, dated the 5th day of June, 1925, this Board was directed to make a thorough investigation into the rate structures of railways and railway companies subject to the jurisdiction of Parliament, with a view to the establishment of a fair and reasonable rate structure which will in substantially similar circumstances and conditions be equal in its application to all persons and localities, so as to permit of the freest possible interchange of commodities between the various provinces and territories of the Dominion, and the expansion of its trade, both foreign and domestic, having due regard to,—

  1. the claim asserted on behalf of the Maritime Provinces that they are entitled to the restoration of the rate basis which they enjoyed prior to 1919;
  2. the encouragement of the movement of traffic through Canadian ports;
  3. the increased traffic westward and eastward through Pacific Coast ports owing to the expansion of trade with the Orient and to the transportation of products through the Panama Canal.

And whereas by Order in Council, P.C. 24, dated the 7th day of January, 1926, the Board was directed, as a part of the general rate investigation above referred to, especially to inquire into the causes of Canadian grain and other products being routed or diverted to other than Canadian ports, and to take such effective action under the Railway Act, 1919, as the Board may deem necessary to ensure, as far as possible, the routing of Canadian grain and other products through Canadian ports.

Upon hearing the matter at the sittings of the Board held in Ottawa, Montréal, Windsor, Toronto, Moncton, St. John, Winnipeg, Regina, Saskatoon, Edmonton, Calgary, Kelowna, Vernon, K'amloops, Vancouver, New Westminster, Chilliwack, Victoria, and Prince Rupert, in the presence of counsel and representatives of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, and the Maritime Provinces, and the Canadian Pacific and Canadian National Railway Companies, the following among other associations and Boards of Trade were represented at various sittings of the Board or submitted their representations in writing, namely: The Boards of Trade of New Westminster, Prince Rupert, Chilliwack and district, Kamloops, Calgary, Moosejaw, Saskatoon, Prince xlbert, Estevan, Regina, Brandon, Yorkton, Winnipeg, Toronto; Ontario Associated Boards of Trade, Cochrane, Montréal, St. John, Halifax, Charlottetown, Moncton and Sydney; the Victoria Chamber of Commerce, Western Canada Fruit & Produce Exchange, Canadian Council of Agriculture, Retail Merchants' Association, Canadian Manufacturers Association, Hamilton Chamber of Commerce, Canadian National Millers' Association, Canadian Lumbermens' Association, National Dairy Council of Canada, Fruit Branch, Department of Agriculture of Canada, Livestock Producers of Canada, Live Stock Exchange of Toronto, Québec Harbour Commissioners, Chamber of- Commerce, Joliette, Québec, Canadian Pulp and Paper Association and Canadian Freight Association.

The Board Orders as follows, namely:

  1. That the rates on grain and flour from all points on Canadian Pacific branch lines west of Fort William to Fort William, Port Arthur and Westfort be equalized to the present Canadian Pacific main line basis of rates of equivalent mileage groupings (the rates governed by the Crow's Nest Pass agreement not to be exceeded) : that the Canadian Pacific Railway Company publish rates in accordance with the above direction, and that all other railway companies adjust their rates on grain and flour to Fort William, Port Arthur, Westfort and Armstrong to the rates so put into effect by the Canadian Pacific Railway Company, such changes to become effective on the twelfth day of September, 1927.
  2. That the rates on grain and flour from prairie points to Vancouver and Prince Rupert for export shall be on the same basis as the rates to Fort William, but in computing such rates, the distance from Calgary to Vancouver via the Canadian Pacific Railway shall be assumed to be the same as from Edmonton to Vancouver via the Canadian National Railway, namely 766 miles.
  3. That the provisions as to distributing tariffs, set out in section XVII of the judgment in the Western Rates Case, shall, instead of being limited to the Canadian Pacific Railway, as provided therein, be extended so as to apply to the Canadian National Railway as well; the necessary amending tariffs to be effective on the twelfth day of September, 1927.
  4. That the rate of 34^> cents per 100 pounds on wheat and 33 cents per 100 pounds on other grain for export from Port Arthur, Fort William, Westfort and Armstrong, Ont., to Québec as shown in supplement No. 32 to Canadian National Railway Tariff C.R.C. No. E447 be, and they are hereby disallowed; and the Canadian National Railway Company is hereby directed to publish and file in substitution thereof a tariff showing a rate of 18.34 cents per 100 pounds on all grain for export from Port Arthur, Fort William, Westfort and Armstrong, Ont., to Québec. Such changes to become effective on or before, but not later than, the 12th day of September, 1927.
  5. 5. The Board further orders that all railway companies subject to its jurisdiction be, and they are hereby required to publish and file tariffs showing the same rate to Québec as to Montréal on,—
    1. Grain from bay ports for export;
    2. All traffic from Toronto and points west thereof for export.

    Such changes to become effective on or before, but not later than the twelfth day of September, 1927.