time the Canadian economy entered adownturn that lasted into the mid-1920s.The railways re<strong>du</strong>ced some rates of theirown accord and the railway commissionlowered some more.In 1922, the government appointed aspecial committee to study the CrowsnestPass Agreement of 1897, in which theCPR had agreed to certain rate re<strong>du</strong>ctions.The committee restored some partsof the original Crow agreement—whichhad been lifted <strong>du</strong>ring the war—tore<strong>du</strong>ce rates for shippers. 15In 1923 the Board, at the request ofcabinet, re<strong>du</strong>ced railway rates on grainexports from Vancouver.In October, after a seven-day hearing, theBoard decided to help the railways bydispensing with the Crowsnest PassAgreement, <strong>des</strong>pite the 1922 statute thathad reinstated the relatively low Crowrate on grain.An appeal to the Supreme Court by theWestern provinces resulted in a ruling in1925 that the Board couldn’t drop theCrow rate. The railways could, however,use the narrow interpretation of theagreement as set in 1897. In response,King’s government stepped in to cancelthe Crow-based rates, except those ongrain and flour. Parliament also orderedthe Board to hold a general inquiry intoother rate issues. 16On August 9, 1924, Frank Carvell diedamid a clamour for an investigation ofthe Crow rate.Prime Minister Mackenzie Kingappointed Harrison A. McKeown, thechief justice of New Brunswick’s SupremeCourt, to replace Carvell. McKeown hadserved in the New Brunswick legislatureas Solicitor General and AttorneyGeneral. In 1908, he was appointed ajustice of the province’s Supreme Courtand later Chief Justice. He had alsotaught law, and had been dean of thelaw faculty at the University of NewBrunswick from 1922 to 1924. McKeownwas 61 when he joined the Board and hesoon found problems of his own.On September 2, McKeown andCommissioner Frank Oliver, a Westernerwho had founded the EdmontonBulletin, approved fixing the grain ratesto Vancouver based on the Crow rate.They did this <strong>des</strong>pite the opposition ofthree other Board members, who hadmade a decision on the same issue in1923. Simon J. McLean, who had beenwith the Board for 17 years, A.C. Boyceand Calvin Lawrence, were concerned,in fact, by the lack of impartiality inMcKeown’s decision. McLean summe<strong>du</strong>p their objection “that fairness andreasonableness of the rate is to bedetermined on the facts after <strong>du</strong>eenquiry; that the order was issued on arecord partially heard and incomplete”. 1722Canadian Transportation Agency — 100 Years at the Heart of Transportation
A new method of answering the needs ofthe shippers and the railway companieswas found in the Maritime Freight RatesAct that was adopted in 1927. The Actre<strong>du</strong>ced by 20 per cent the local tariffsand rates on freight originating in theMaritimes and bound for other parts of<strong>Canada</strong>. The Act also allowed for thecompensation of railways for any lossesresulting from the re<strong>du</strong>ctions. The Boardwas given the task of determining theannual compensation for the railways.Also in 1927, the Railway Board issued adecision in the General Rates Investigation bywhich it maintained the higher mountaintariff and transcontinental rates to interiorpoints; it also ordered a lower rate on grainover the Canadian National route fromthe West to Québec City, and requiredrailways to adopt a more liberal interpretationof the 1925 grain legislation.In 1929, approval of tolls for internationalbridges and tunnels was addedto the Board’s jurisdiction.In the Annual Report for that year, theBoard stated that the fire season wasone of the worst seen in 40 years in thePrairie provinces. What the report<strong>des</strong>cribed as a “long period of extremedrought and high winds in the West”resulted in a poor grain crop that fall.There was more bad news to come.At the end of October, the Wall Streetstock market suffered a drastic fall invalues. On the same day, the WinnipegGrain Exchange was hit by falling prices.The Great Depression had arrived.Hundreds of thousands of Canadianswere unemployed, some starved, otherslost their homes, and families werebroken apart.The government looked for ways to offerassistance. By 1933, more than a millionCanadians were on government-fundedrelief. Make-work projects were establishedto give jobs to the unemployed.Among the projects were severalsupported by the Railway Grade CrossingFund. From 1930 to 1938, the governmentincreased its financial allotment tothe Fund, which had been administeredby the Board since 1909, to contributeto safety improvements at highwaycrossings, now with the added objectiveof providing work.The railways also made use of governmentrelief funds to clear the railwayrights of way. A huge clearing effort in1936 led to this report from the Board’sfire inspector: “During the season of1936 the railways… carried out a largeamount of right-of-way clearing withspecial gangs recruited from the ranks ofthe unemployed who had heretoforebeen domiciled in labour campsthroughout the country. This work willhave beneficial results in greatly re<strong>du</strong>cingthe fire hazard.”23Chapter One — ALL A BOARD 1904 TO 1938
- Page 1 and 2: A Centennial Historical Perspective
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CHAPTER FOURShifting GearsThe Natio
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for a maximum of nine full-time Mem
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compensatory to cover the actual co
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the newspaper report, CNR and CPRwe
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more quickly. The committee alsorec
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Review also noted an increase inint
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Notes for Chapter FourThis chapter
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The Canadian Transportation Agency1
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to make transportation accessible t
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would be responsible for investigat
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The Commissioner was required to ma
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In another obesity case, also invol
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Washington and a field in ruralPenn
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AppendixMembers’ ListBOARD OF RAI
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CANADIAN MARITIME COMMISSIONNAME PO
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B. Keith Penner Member January 1, 1
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Books and ArticlesBercuson, David J