Evening star., 1932-09-22
An obi.c, Lesson Prom Canada.


eolicv that reveals q drastic departure
from the previous proy-Rm az cnnpe'
tirion between the government -cvnec
Canadian National ard the rrlvster-
owned Canadian Pacific RAILWAYS ans
denotes novel step In the nsio o.
public utilities Instead Of co-n2stiiior
between the two great parallel trans
continental svsierns ii il planned unde'
recommends tions Of the Rcvsl Ccnms-
sion on Railways te Coordinate them
through Joint ope-sticn q. terminals
and lines snd II wipe cui ''wsste,G!
duplcstinns Of se-viet Zach system
would retain It's loentitr. nus they woule
function Jointly unde- o-s cras-nl- con-
.istire Of THREE Cam eisn NsiIonsl trsis-
tees. who are to renlsct the existing
seventeen directions. aas ar seual mum
Der Of Canadian Pacific oi-ecto-S
The significant feature q. tness pre'
possls. which vii n-oss hv atfst
eractnsr; ~ the oouanlon Parliament
~ the lnstiEstIar n the Bennett gov
eminent Is thai thar fundsrasnts. euf-
nnss 70 c-ctec1 The investment o'
the p-.vsfe,y-ovre6 Canadian Sstiors,
system ano is StacSAoloe-s Whsi
csrscs- e,untly : shout - O. : to
ru-sii. 0. anolish, government oVasl-
ship se,suse II has s.eor,. S menace
10 thf taancis, stability o. p-1vsts.F-
owned competing property -ha, r
form @. reverse english which =
bound IT challenge The stock theories
Of publ. ownership advocates al over
the world. notably II the United stars
Thes. hole thai government should step
II snd OWE aoo ops-sue public utilities
when necessary 10 obtain gooc service
sno ta.- -zJes L = precisely such
economies that vas espouSec only last
night q; Portland Sy Gov. Roosevelt
with respect 10 power utilities. Canada
now proposes - curb public utility
because i Ia. become . pe-l 70 private
enterprise
The decision o. the Dominion su-
Ute 10 the Arne-irsn-horn late prcsioen;
q. the Canadian National Railways.
S!- Henry n Thornton. who recently
resigned from once obviously IN an
tictpstion Of current developments
When Str Henry took charge q the
NR. IN 1879 the government road
~s consistent breeder Of dehcits.
As a result Of improved service. entry
.nto new competitive channels and az
g-.ssive innovations II many directions,
n. conr-ivec within fewer than 1--WE
year,, 70 bring II out Of the red.
To oo 50 Sr Henry was required to
oEer the powerful and vell-intrenchec
Canadian Pscinr system the hercest
Ead o. competition. The decision TO
e-d tnst rivalry. on the Acknowledged
ground That the C. P r. can no longer
stand the strain. IS tantamount to say
tng that the pare set by the govern
rnent system during the past ten years
was TOO not for the private company 8
gpoo
The Canadian National owes the
government some 81 400 900 -ooe and
the pubic ABOUT $1,000, ,ooe. 900. II
would be logical next step, follow
ing the tsr-reschine scheme TO co-or-
tnnste us activities With those OF the
private system, 10 merge the two lines
winch serve virtually the identical ter
rtto-y al the way from Montresl to
Vancouver y that comes 70 pass, II
vii marx g milestone in the annals OF
eove-nmen, ownership. II Will set uI
che novel principle And one OF which
not much IL ssie by exponenu OF na-
tionslIzed utilities. that the usefulness
O, such esa ablIEh-nents comes to an enc
when they play havoc with private en-
krp-ise. Csnadss railway program II
of special interest because public util-
ity policy n the Dominion, especially II
the domain o. power. Is constantly held
UP in this country by the progressive
group as . modl.