Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 13, 1954, Winnipeg, Manitoba Winnipeg free press wednesday. January 13, 1954 pc is More about sask. Stand continued from Page 1 out statutory directive and is not manifestly unfair to any Tea of Western Dean or Onkle declared. Delivered the final argument fit Saskatchewan at the Board s lie rings Here to try and develop equalized scale of rates for the various regions of Canada. Five proposed uniform Scales of class rates have Ceen under examination. Five Scales the five Scales include the Board s own suggested scale two Scales advanced by the Canadian National railways one suggested by the Canadian Pacific railway and a Compromise scale submitted a the province of Alberta. Saskatchewan has decided to support the Board s original scale because it was calculated by an Independent tribunal fully in formed of the situation and with trained and experienced personnel at its disposal. The technical advisers to be the Best scale having in mind the whole territory to be by refitted. No satisfactory alternative to the Board scale had been suggested Dean Cronkite contended. He noted that the chief com missioner or. Justice j. D. Kear Ney had asked the provinces to designate their first and second choices in the Scales before the Board. For second Choice the Best Dean Cronkite could do was to give a vote to each of the rail Way s Scales. I have no doubt whatever that the Board has endeavoured Toi interpret the statutory direction in such a Way As to be of advantage to Western Canada As a whole. It seems to me that an Earnest of the approach of the Board is to be found in the recent five per cent reduction. This was in the nature of a horizontal decrease and since All recent increases have been of a horizontal nature it seems to me that the five per cent Relief must be considered As Abund Antly fair to All said Dean Cronkite. Not too critical unless some feature of the Alberta Compromise wed Dean Cronkite. the Alberta proposal does not make even mathematical sense As a the so called Compromise proposal was bound to draw Sharp protests from Manitoba he said. The situation is Inch that not All parts of the West will get equal benefits if the terms of the statute Ere to be respected but surely the facts such that an approach can be made to Equality of treat ment or at any rate to Board s scale be shown to be manifestly unfair to some area he would not be disposed to be too critical of its application across Canada. Dean Cronkite believed that All mini of dissatisfaction for All Dean Cronkite commented. In committing Saskatchewan to support the Board scale Dean Cronkite made it Plain that the province was supporting the scale As originally issued. That was the scale to which tentative approval was Given in Regina at the time of the regional hearings. Raise scale a car estimate would raise the scale by 8.2 per cent he noted. Dean Cronkite said he was astonished by the haste with which Many parties had followed that estimate. He protested against this and Siad he did not subscribe to the notion that the Board scale should automatically be increased by the percentage designated. His reasons he gave As follows 1 he did riot agree that car estimates of Revenue should be accepted. 2 the estimate we made on the basis of 1952 traffic and there was no reason to suppose the situation was the same today. Studies for 1949 and 1951 should have equal Validity. 3 he suggested that a four Day traffic study was poor Evi Dence on which to base such an important conclusion. 4 the 1952 evidence even if accurate might be a poor Index for 1955. 5 the changes themselves might induce changed traffic Pat terns which might considerably affect both volume and income. Dean Cronkite was not suggest ing that the level of the Board scale should remain As originally published. He believed that some changes would be necessary. How Ever he did urge that the level should not be substantially altered without serious investigations. Referring to arguments and adjustments Only when it is Absolor utely unavoidable or where it has been clearly demonstrated that some unfair discrimination statistical data compiled by the Manitoba transportation commis Sion clearly indicated that the pro posed Scales before the Board would provide maximum Benefit to Alberta a lesser Benefit to Brit ish Columbia and practically no Relief to Saskatchewan. They would Load a Large share of the Cost of these benefits on the pro Vince of Manitoba. This indicated a serious and unwarranted detrimental disturbance of Manitoba s Trade and Market patterns said or. Mccormick. On the question of recognizing water Competition in the proposed Scales of rates or. Mccormick said that the scale suggested by the Board did not reflect the fac Tor of water Competition in any Way. Lip service the railways while claiming that water Competition was real and Ressing paid no More than lip ervice to meeting it in their pro posed Scales. The Commerce had teen for years what it considered to be efforts to title or confine the water com petition on the great lakes. The motive which inspires such representations from Winnipeg business men is the desire to keep the water carriers As free agents of rating independently under the on Trot and supervision of the Ransport Board and to keep them rom degenerating into Mere appendages of the railway systems. Or. Mccormick said the Applina Ion of rate Scales proposed by he Board by the railways or by Alberta would produce pronounce anomalies in the application of water and rail rates. The chamber in its submission made no criticism of the a and b groups. It had no quarrel with them and did not suggest they be changed it knew of no one who had been Hurt by them and suggested that there had been Somi advantage in having petition from Toronto and Mon real. Lamps the alternative proposals whether by a province or by a railway contained a Large element of Spe Cial pleading. His objection to the car scale was the very pronounced taper in the Long hauls with the consequently disadvantage in the Case of in order to keep the Revenue position intact. Referring to the Board scale Dean Cronkite said that scale indicated a 5.5 per cent reduction for Regina from the present rate on the Toronto Regina haul. It showed a 7.3 per cent reduction to Edmonton on the same haul. This was a variation of some significance but he suspected that it represented the dwindling significance of the constructive mileage Between fort William and win Tii Peg As one proceeded from Winnipeg Westward. Short hauls Saskatchewan s objection to the car scale a was that the Long haul traffic to Regina got very Little advantage and on the whole the Revenue studies indicated that the Short hauls rather than the Long hauls benefited under that scale. Regarding the Alberta Corr pro was not a True Compromise. It was a variety of mathematical com promises and on principle mathematical compromises did not appear to him. The Alberta proposal was i Compromise for Man Vance last december by counsel for Manitoba Dean Cronkite said that Manitoba s representatives had suggested that equalization primarily connoted an equalizing of the internal rates of Westen Canada with the internal rates of Eastern Canada. He did not know whether this suggestion would be urged by Manitoba in its final argument. More about c. If c Brief continued from Page 1 out that the Winnipeg chamber in examining any plan to adjust freight rate Scales had two major concerns. First was the level of rates consistent with supplying sufficient revenues for the railways As might be determined from time to time by the Board the Winni Peg chamber was anxious to see that All Rales were kept As Low As possible. Secondly the chamber was concerned with the relationship o rates. Business interests of Winnipeg competed in various Mark ets in Canada both East and West Cronkite said it any disturbance of rate relation Tion of agriculture went on record As favouring the Board s scale but1 with modifications. Or. Shepard pointed out wednesday that throughout the whole history of freight rate proceedings Manitoba had actively and vigorously participated. Manitoba s Basic and consistent position and concern lad always been to ensure that every Effort was made to distribute equitably the total Cost of rail transportation Over All areas of Canada. Traditional position the traditional position of Manl Oba had been that it was Funda mentally unsound that rates in the Prairie provinces should be allowed o continue at a higher level than n other parts of Canada at the same time that operating costs and capital investment in the Prairie area substantially lower than n other areas. The primary concern of Mani Toba had always been and remained the removal of disparities n rate Levels within Eastern can Ada and within Western Canada or. said. He added that notwithstanding the fact that there not unanimity in views on How equalization was to be effected in Canada the differences in viewpoint were not As great As might appear on the surface. The position of Al Berta for example was not in principle far removed from that of Manitoba. So far As the position of the railways was concerned Manitoba Side red by the Board without the retention of the Basing arbitrary on inter territorial movements Manitoba s position would be worsened. 8. The rate penalty inflicted on Manitoba was aggravated by the fact that 75 per cent of it s class rated traffic would affected by whatever decision was reached. 9. The Board scale More clearly reflected the Cost of service principle. 10. The Board s used 25 mile blocks for the main ranges which Manitoba endorsed. Get 8 frs. Sleep a Tram m in. Mrm Doriu the. Maui pc. Scordi via More about . Opposes continued from Page 1 in no sense Ito a. The position of the Winnipeg area would be worsened under the ships with the competing centres in the markets where Winnipeg firms competed was of vital con Cern to Winnipeg businessmen. Vital concern or. Mccormick urged upon the Board that these rate relation ships of vital concern and they should be disturbed by rate Promise scale As the Best solution for establishing fair and reason Able Rale Structure across the country. For its second Choice Alberta picked the Board of trans port s proposed scale but Only if the Board s scale was revised to show come taper beyond Miles. J. J. Frawley counsel for Alberta said. Surprise move British Columbia s abandonment of the Alberta Compromise pro posed scale came As a Surprise or. Brazier explained that origin ally . Had agreed with Alberta that the solution in establishing a fair freight rate Structure might be a Compromise or arithmetical average. Accordingly . Had collaborated with Alberta in seeking Compromise scale. However it had just recently completed studies on the Compromise scale and tuesday served notice that it is now con Vinced that the car proposed scale should be adopted under the Board s proposed scale and under existing Scales the rates on very Long mileages were too High to move traffic said or Brazier. However if . Was required to make a second Choice it would select the Board s proposed scale. He urged the Board to state that the class rate scale finally decided upon should be the Maxi mum rates that Uay be charged by the railways. Arbitrary judgment or. Frawley said the Board s proposed scale was not acceptable acknowledged the necessity of protecting railway revenues in order to cover their costs provid ing the province was satisfied that the costs were no greater than necessary. The province also wanted Assurance at All times that All possible economies had been effected and fully reflected in the railway operating costs. Benefit All. Manitoba s government did not fully accept any of the plans presently before the Board said or. Shepard. However if the Board s scale was implemented so that it applied to All traffic except that moving Between Eastern and West Canada the Board would in Jact have achieved equalization. It will have benefited All parts of Western Canada and will have re moved Many of the disparities which have caused sectional Fric Tion Over a Long period of years said the provincial counsel. Manitoba was convinced that its solution to the equalization prob Lem was both feasible and prac tical. What Manitoba was propos ing to the Board was in essence in no Way different from what was proposed by the province of Quebec the City of Montreal the Montreal Board of Trade the District of Montreal chamber of Commerce the Canadian Pacific railway and the Canadian nation Al railways said or. Shepard. Possible alternative having made its main submission Manitoba had concerning a possible alternative. The first alternative which Manitoba would agree to if its main submission was not acceptable to the Board would be the use of the Board s scale within Eastern and Western Canada the use of the present Basing arbitrary plus the Board s scale West of fort William on inter territorial move ments together with the use of the Board scale As a ceiling on such inter territorial rates to apply in the event that Tion of the Basing arbitrary and the Board scale beyond fort Wil Liam should exceed the level of rate determined on a straight mileage basis. In other words he shipper be Woen East and West would have a Choice of using the lower of the uniform mileage rate applied to the entire haul or the rate derived from a combination of the Basing arbitrary East of fort William and distinguished Low boy styling. 7-tube super Heterodyne radio receiver with transformer. Pm 3-Speed changer plays records of All types and Intermix. Walnut mahogany or limed Oak veneer finish mo4al classic simplicity of Cabinet design. 8-Tubelong and Short wave radio with transformer. All the very latest developments in radio engineering. Pm 3-Speed automatic record changer in lighted compartment. Equipped with casters for easy moving. Walnut mahogany or limed Oak veneer. In Canada by cr05ley radio and ref vision oms of Toronto Montroal 1 to Alberta because it was dependent upon weighted averages of existing data. Beyond the Lile Point it represented the arbitrary judgment of those who com piled the scale and had no actual data foundation. Alberta s Compromise scale was an average Over its entire length said the province s counsel. He urged the Board not to forget that its hearings were in the nature of a general freight rate investigation not simply an equal nation inquiry. It was seeking to develop a fair and reasonable rate Structure. Or. Frawley said there appeared to be a dangerous tendency among representatives attending the Board s hearings to want to pre serve existing advantages. Such a proposition has frus rated any move to make changes n Canada s freight rate Structure or years. That intolerable Situa Ion brought about the Royal com Mission. The Royal commission in to findings rejected the idea that any change must be avoided that would work to the disadvantage of existing industries and remove advantages enjoyed by certain said or. Frawley. Referring to the disagreement Between Alberta and Manitoba Over Alberta s Compromise scale or. Frawley said it would be deplorable if the present proceedings had any semblance of even a skirmish Between Alberta and Manitoba. We Don t want to gain Equality at the expense of he said if it appears that there is disagreement it is the result of hard facts. Manitoba must be pre pared to lose some of its existing advantages and Alberta must lose some of its 3iore about Manitoba govt continued from Page 1 Ava Laili at at Edmonton St. 93-m74 1st. Available at 1jhm1ean at Harg Fivi ice us 863 main St. Pm. 59-4174 in that scale it would like to see altered. For its second Choice Dean f. C. Cronkite speaking for Saskatchewan said it would give half a vote to each of the railways Scales. The Winnipeg chamber of com Merce and the Manitoba federa Chester s radio and electric service 579 Selkirk . Pm. 52-5429 Crosley dealers now. She the mileage rate taken from Board s scale West of fort William or. Shepard said. Outlines advantages he outlined the advantages of Manitoba s main proposal and the alternative put Forward by the province As follows 1. The Board s scale is More realistic than any of the alter native scale proposed particularly in respect of the lower and higher mileages although it As Well As the other Scales failed to properly reflect the relatively Low costs which should tend to reduce the rates for Middle distance hauls Between and Miles. 2. Manitoba s s u b m i s Sion minimizes the disturbances to existing Trade patterns and rate relationships. 3. Manitoba s s u b m i s Sion minimizes the Dollar penalty against Manitoba. 4. The Basing arbitrary properly reflected the Geo Graphy of the great lakes. Unless it was maintained our geographic proximity to the great lakes was being ignored to Manitoba s substantial Dis advantage. 5. Manitoba supported the maintenance of the a and b groupings. If under the Law the a and b groups or the railway modification of either the Toronto or average mile could be maintained Manitoba submitted that the Basing arbitrary took care of the problem fully and More realistically than applying any scale which ignored the pre sence of the great lakes. 6. Manitoba s proposals Ben fitted the whole of the West. 7. If effect was Given to any of the Scales now being con Lafayette radio Salis and service 150 main St. Pm. 52-6914 or so told from wow Iron what it change from the worn tired won run the to Iron starved blood now full of Young vibrant and lit fun thinks to the ration of of new redder or blood with or Pink Pun. Tha Mundi Al once faded women wary from blood Iron poverty have bloomed anew with the help of or. Williams Pink often in Only 30days Siart today get Pink with or. 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