Evening star., 1932-09-08
RAIL MERGER HELD
UNW|SE IN CANADA
Report Is Said to Oppose
Pleas for One Large
Public System.
Special Dispatch to The Star.

Special Dispatch to The Star
OTTAWA, September S.-After nine
months Of work a royal commission ap-
pointed by the Canadian government
to investigate Canada's transportation
problems has completed its task, and
its findings will be presented to Pre-
mier Richard B. Bennett either Friday
or Saturday.
This report Is Of tremendous interest
to financial and railway circles Of Can
ada, the United States and Great Brit
ain. While its contents are said TO be
unknown even to members of the gov
ernment, it is understood that the re-
port will recommend the following
l. A further economy in the operation
of the Canadian National Railways, saw
ing from SIS, 100000 to $40, 900, 900 a
year. This would be effected by the
elimination Of duplicate lines and par
ticularly branch lines In Western
Canada.
Identities Protected,
2. Identity Of neither the Canadian
Pacific Railway (Canada's privately
owned railroad) nor the Canadian Ma
tional (the publicly owned road) will
be disturbed. Closer cooperation and
amalgamation Of their services will be
urged
3. Appointment Of a board Of arbi-
tration to settle disputes between the
two roads will be recommended These
disputes would arise over the elimina-
ton of services proposed.
4. Board of directors of the Cana
dian National would be reduced to three
members. Power would be given the
Canadian Board of Railway Commits
sioners over capital expenditures by that
system
S. S. j. Hungerford, acting president
since Sir Henry Thornton resigned from
! the Canadian National, Is likely to re-
main as operating manager, but an
eminent 1nancier would become presi-
dent.
6. It is believed here that the royal
commission will not urge an increase in
freight or passenger rates, but will sug-
gest some concrete methods Of meeting
the truck and bus competition now felt
by the railways.
will further recommend the dismissal
of high-Salaried "supernumeraries" in
the employ of the Canadian National.
Already a number Of officials receiving
salaries Of $4,000 a year and over have
been dismissed This means q saving
of Sl500000 a year to the Canadian
National.
Economy Stressed.
Thus the whole feature of the report
will be emphasis on economy in opera
ton and curtailment of unnecessary
duplicating services.
As a matter of fact. the Bennett
government already has anticipated the
report. for by determined action of
Robert j. Manion, minister of railways,
it has succeeded in drastically reducing
operating costs of the publicly owned
railway
In 1881 the deficit of the Canadian
National totaled S112 OO0, 900, made up
Of $4,000 900 in interest due the public
on bond Indebtedness and $4,000, 900 in
operating losses Despite terrific oppo-
sition, Manion abandoned unnecessary
terminals, branch lines and curtailed
large expenditures in the systems chain
of hotels stretching from coast to coast.
Justice L. P. Duff of the Canadian
Supreme Court headed the royal COM
mission on the railway problem. He
was assisted by Lord Ashfield of Great
Britain chairman Of the London Under
ground Railway; Sir Joseph T. Lavelle.
Railway: Beaudry Leman, president, the
Banque Canadienne National (the
French Canadian representative; L. +.
Loree, president Of the Delaware &
Hudson Railway; DR.. j. A. Webster Of
Shediac, New Brunswick, and Dr. w. A.
Murray president of the University Of
Saskatchewan. These commissioners
visited every province of Canada and
held public sittings in all of the larger
cities.
1t is expected that Bennett will pos
sibly hold up publication Of the report
for Parliament, which meets in the mid
die of October Very little legislation
would be necessary to implement the
report, but there will be much debate
over it, as the railway question Is most
controversial in Canada.
That the identities of the two roads
will not be disturbed is significant. 1t
means that the proponents OF public
ownership in Canada were powerful:
enough to withstand the opportunities
of the privately owned Canadian Pacific,
which sought control of transportation
in this country. This would have given
it monopoly for generations to come.
(Copyright, 1922