PAGE EIGHT

THE CHARLOTTETOWN GUARDIAN

Transportation Commission Delays Deci ion Re Appeal

At A Meeting In Moncton It \Vas Decided T0 Delay Appealing To The Privy Council Until Further Consideration

The annual meeting of the Maritime Transportation was held in Moncton on Tuesday. attended by Mr. R. E Mulch. M!‘- J- 0- I-Iyndman, Mr. Alfred Pickard and Dr. J. A. Clark. Accompanied by Mrs. Mutch and Mrs. Clark, the party left by special airplane at 2.35 pm and arrived in time for the meeting at Moncton at half- past three. After the meetingthe Charlottetovmians returned by plane which was under the charge of Pilot Folwer. in time for tea.

There was a full attendance of

members of the COiILifllSSlOIl with the exception of the Chairman. Mr. J. D. McKenna. President and the secretary .Mr. F. McLure Sclanders. While en route, Mr. Sclanders was taken seriously ill on the train and had to stop-off at Sussex and return home accom- pained by Mr. McKenna. Vice- President ‘Ilirnbull, Halifax. pre- sided, and after the managers re- port had been submitted, a dis- cussion took place on the advisabil- ity of an appcal from the judg- ment oi the Supreme Court on the Board of Railway Comrs de- cislon on Maritime rates. It was decided to dc‘.a,v coming to a decision until the President and Secretary could be present.

The following is the report of Mr. Rand H. Matheson. Transport- ation Manager .

During thc last year the activities of the Commission increased sub- stantially over that of the previ- ous your. There were a. number 0i’ matters on the agenda successful- ly concluded with resultant bene- fits to persons and industries. Thcrc were several others. how- ever, that did not materialize suc- rr-ssfullv. 1n addition, a number of iicw cases of general and spe- rific significance were added from time to time. The breadth and scope of the activities can be ap- preciated from the fact. that en- quiries for advice, information and assistance were received from the following places: Summerside. P. El’, Charlottetown. PEI. Sydney, NS, and other Cape Breton points, New Glasgow’. ‘NS, Halifax, NS, Kentville, NS. ‘Pruro, NS. Fred-

ericton. N.B. Perth. N.B.. Monc- tnn, NB, Saint John. N.B., St. Stephen. NB, Sackville. N.B.,

Bathurst. NB. and. other points in the Maritime-s. Enquiries were received also from a number of points in Ontario and Quebec per- tinent to transportation and in- dustries in the Maritime Provinces. The transportation matters on which advice and information were submitted or which were investi- gated or negotiated on behalf of shippers and consignees include: domestic freight rates (competitive and otherwise). export and im- port. freight rates, express rates. preheating and demurrage of freight cars. switching. rail vs wat- er nnd truck rates, claims. etc.

As the more important cases and nmcotiatlons have been reported in detail, from time to time, it is nnlv necessary now to submit. an epitome of those cases. However. there are some important matters that have developed since the last report ‘which are being submitted more or loss: in detail for the con- sideration and comments of the members.

Extension of Zone Express lulu in New Brunswick

‘Thc limited application of the zone express rates on the Cana- dian National Railways in New Brunswick gave rise t.o the com- plaint that distributors in some localities had an advantage over distributors located in other sec- tions of the Province. The Com- inis>ion was asked to assist in the ncgotiation with ihc Express Com- pnnv for the extension of the basis to include competitive points. As a resul‘ of these negotiations the basis " c t XiilllfiFd to include prac- ' . points on the Canadian lialiivays within the Pro- Vince of New Brunswick.

Westbound Rates to British Columbia (‘oust Points

A‘. the request of the Commis- sion on different occasions a num- bcr of reductions were made on various commodities from points in thr- Mnritimcs to British Colum- bia (‘oust points The requests wvrv made whrn it was noticed that ri-uuctlons were effected from On- tario and Quebec points without corrospondinil adjustments from ‘the Maritlmcs.

(‘oal Rate- Adjustments

The Commission assisted in negotiating several coal rate ad- justments. The Commission also stipplled coal rate data. and in- formation to various concerns and parties on request.

Reduced Katee on Livestock Between Points in the Maritime Provinces

The Commission was instru- mental in obtaining a lower car- load minimum and other privileges on livestock between points in the Maritime Provinces. on the Can- adian National Railways. on the Canadian Pacific Railway and on the Dominion Atlantic Railway. The lower carload minimum resulted in substantial reductions and were to terminate with April l5, 1937 but the railways have re-established the rates for another year.

Tumlp Rafe: to Specified United Staten Points

The special rates on turnips from specified points to New York. Bos- ton and intermediate points tor- mimitcd on June 30. i996. The Commission applied for s renewal

on behalf of the shippers. Th1 railways were willing to re-estabc lish the rates immediately but perv mission had to be obtained first from the Interstate Commerce Cmnmlssion. The application wal delayed with the result that. per- mission. was not obtained until late in the Fall of 1936 and the rates did not become effective until Dec. 9, 1938. No expiry date is attached to the present rates but at th same time the permission grants is only temporary pending further representations.

Reductions in Express Rates on Oysters

As a result of negotiations of the Commission the Dfpress Depart- ment. oi the Canadian National Railways reduced the express rates on oysters. generally, from produc- ing sections of the Provinces of Nova Scotia, New Brunswick and Prince Edward Island to stations throughout. the Dominion of Can- ada. The Coiiunission intends to apply for a corresponding adjust- ment on scallops in the near future. Representations in connection with that commodity were asked to be held in abeyance for fear of reper- cussions that would interfere with the negotiations on oysters.

Potato Rate Adjustment to Western Canada

Reports emanating from the Wes- tern Provinces liist summer in- dicated a probable scarcity of pota- toes in that section. As a result of the reports, the Commission com- municated with potato shippers for their opinions as to market possi- bilities. etc. providing that. rates corresponding to the seasonal rates first effected in 1929 were estab- lished. In reply, the Commission was requested to commence negoti- ations for adjustments even though it. was too early then for shippers to make any predictions as to the availability oi a market. Subse- quently, an application was made to the Canadian National Railways and Canadian Pacific Railways Co. for the rte-establishment of the special rates. In September the Railways advised that they would effect the special rates as soon as market conditions indicated. It. was not until March that shippiers received any worth while inquiries from the Western Provinces. What

.movemenia took place then. how-

ever. obtained the benefit of the special rates through the issue of

so-called “rate advices". Later the

rallrwaya published the reduced rates m specified points effective on April 1st and to tennlnate on July 31st.

Apple Rate Adjustments

last August the Commission ap- plied for the re-establishment of the special rates on apples, in ef- fect in previous years, from speci- fied Dominion Atlantic Railway points to Ontario and Quebec. At the same time. the Commission also asked for a corresponding ad- justment in rates from New Bruns- wick points. Thr- ratrs were re- established from the Dominion At- lantic Railway points and were pre- dicated on the class rates for a. single line movement. The rail- ways refused a cor-reqsondlng ad- justment from Saint John Valley points for the following reasons. l. The reductions effected were competitive.

2. The reduced rates from An- napolis Valley points were sub- stantially higher than the rates in effect from thc Saint John Valley. 3. The rcducctl rat-cs were only the approximnte rates that would apply on a single line movement and that in effect the reduced rates were only an extension of the Canadian National Railways class; rates tn points on the Dom- inion Atlantic Railway in the An- napolis Valley that did not enjoy the benefits of the single line class rates.

l-‘rlt Rates Front Ottawa. Ont. to Maritime Points

Thc Commission assisted inter- ested industrlcs ill the Maritime Provinces to secure ihc 6th class rates on frit from Ottawa. Ont. Rates corresponding to this class 118d bccn in cffcct fmm Ottawa. Ont.. to points in Ontario and Quebec for some time whereas con- signees in the Marltimes were as- sessed the regular 5th class rates. The adjustment became effective on April l3th.

Meals For Fox Feeding

A renewed application for a re- duction on meats for fox feeding was refused. This application was under consideration by the Can- adian Freight Association for six months before the final decision was reached. Thc Commission spent considerable time on this ap- plication and submitted a com- prehcnslvebricf indicating, among other things ,ihe condition of the industry. the effects of foreign competition. cost of fox production, the value of moat for fox feeding in relation to the average value of meat for human consumption and other facts t.o facilitate the. As- sociation's consideration of the case. It is to be noted at this point that. this case ls an old issue which had been previously turned down by the Board of Railway Commissioners. Some of the lend- ing fox breeders Associations are considering further representations and if unsuccessful to seek foreign sources of supply.

Export Rain on flay

(at The assistance of the Com- mission was requested in ileum!

§ i

in an application for a reduction in the export rates on hay from points in the Maritlmes. The re- duction was asked by the shippers in order to facilitate the move- ment of surplus hay to the United Kingdom market in competition with Scandinavian hay. This ap- plication. from the first. did not appear very hopeful. Yet. the Manager when en route to Ottawa in January stopped off at Mon- treal in order to accompany Mr. G. LeLacheur (representing the hay producers) to several confer- enoes with Railway and Steamship lOfficinls. The Manager also inter- viewed Officiais of the Department ‘of Agriculture. Ottawa. As ex- pected the application was refus- ed on the following grounds:

1. Export rates on hay from Maritime points are relatively low.

2. Reductions from Maritime points would necessitate corres- ponding reductlous from other hay producing sections of Canada. which would result in h. substantial loss of revenue to the railways without any apparent gain to the shippers. 3. Ocean rates were being in- creased and reductions in rail rates might be off-set, at any time, by an increase in ocean rates.

It is believed. however, that the representations had the effect of curtailing further increases in the ocean rates although shippers ex- perienced considerable difficulty in booking space.

Domestic Hay. Rates to Eastern United States Points

(b) Hay rates from the prin- cipal hay producing points of Que- bec to Eastern United States points were found to be predicated on p, lower basis than the rates from some sections of the Maritime Pro- vinces. ‘Ilie rates from Quebec mints ito Boston. Mass, for ex- ample. approximate 6th class whereas the rates from Sackville. N.B., are 5th clas. The hay ship-

These rates of course are only “n. tative and may not be the final rates published by United States roads. The rates from Maritime Provinces points will have to clear the above border rates and will be higher in direct proportion to dis- tance. This will probabiy mean increases, generally. unless the Canadian railways will be able to secure so-called Fourth Section Re- lief which would enable them to publish lower competitive rates from varlpus points. The Manager interviewed railway officials in Montreal on this matter and point- ed out to them that increases would have the effect of removing the advantages effected through the trade agreement witih the Uh- ited States. Moreover. increases in rail rates on lumber would un- doubtedly force a large movement of lumber by water.

Further developments are being followed closely.

Transport Bill '12" - An Act. to Establish a Board of Transport Commissioners for Caruda, With Authority in Respect of Trans- port by Railways, Ships, Air- craft and Motor Vehicles.

The amendment to this Bill b the effect that the provisions therein would not apply to water transport between the Maritimes and Great Lakes-St. Lawrence ports was probably the outstanding success of the Commislon during the last year.

As the details of the representa- tions have been reported from time to time it is unnecessary to out- line them again. Suffice it to state, however. that. the Commission fol- lowed developments closely from the first intimation that such a Bill would be introduced. Conse- quently, when the time came t0 Lake a stand on the matter the Commission was in a position to act effectively. It is true the Bill was defeated by the Senate but the Minister of Transport. the Hon. Mr. Howe intends to revive it. at. the next Session of Parlia- ment. It- is likely that the amend- mcnts will stand in any redraft. Yet, at the same time. the Mari- times should follow future events closely.

As to regulations. generally it would alipcfll‘ that the Maritime Provinces would gain from the stabilization of rates in other sec- tions of Canada. It is a. recogniz- ed fact that the present competi- tive condition in the Central Provinces has to a. large degree dls- rupted the relationships granted under the Maritime Freight Rates Act. However, the competitive con- dltions that exist in Ontario and Quebec do not prevail to the same degree in respect to traflic be- tween the Maritimes and Central Canada. Water transport has sl- leviated our transportation diffi- culties and if the regulations that were contemplated were applied to wafer transport. from. to and with- in the Maritimes it. would tend to restrict the further propagation of our industries.

Preheufing of Refrigerator Cunt And the Extension of Free Time For the Loading of Poistoel.

On March 4th the Manager nt- tcnded a meeting of the Associated Potato Growers and Shippers of New Brunswick held at Woodstock N.B. The meeting was called to discuss. among other things, seve- ral transportation problems pecul- iar to the induct. y. The principal P15519111 ‘ ., ‘ to the attention 0f the Mmnm Dertained u» em difficulties incurred by the shippers in preheating within the free time prescribed by the denim-rage rules.

poi-s contendedthat if they were granted rates approximating 6th class that they might be able to do business in Lhe Eastern United Slates. The granting of a corres- ponding basis of rates from the Msrltlmes to Eastern United States points appears reasonable provid- ing Maritime producers can com- pete by means of reductions in the Eastern United States markets. The (Icimmission applied to the railways for special commodity rates to correspond with the rates from Quebec. However. about that. time the railways had decided to proceed with the publication oi the new basis of international class rates that had- been under consideration for some years. ‘This new development has precluded the chances of effecting any ad- justment of the hay rates at this time. Meanwhile, the railways con- tend that Maritime hay can com- pete in the Eastern United States markets only under exceptional cir- cumstances and that any adjust- ment in rates may only become so-called "paper rates". The Man- ager is of the opinion that a cor- responding adjustment should be made in the event such circum- stance may arise in the future.

Iiumber Nata Adjustments to Eastern United States Points

1h different reports the mem- bers were informed of the develop- ments in connection with the pro- posed revision of lumber rates to Eastern United States points (Of- ficial Territory). The proposed changes were to go into effect on May 15th but due to difficulties arising in the United States the revisiomhas been postponed again.

The Commission has been furn- ished. however, with some tenta- tive figures as to the present and proposed rates from Vanceboro and Van Buren. Me. to destina- tions in New England and Trunk

Line Territories:

From

To

Vanceboro Van Buren

Present Proposed Present Proposed

BWOQ- Mflal- 21's 2s 2a 2s Providence. R. I. 23% 26 a; m New Haven, Conn. 31% g3 m 33 Hartford .Conn. 331,5 29 291% 39 Brwklyn- N-Y- 2a 3-1 ' so». s1 Harlem River, N. Y. 33 33 331.; 3g Albany. N- Y. as so a5 so Buffalo. N.‘ Y. 3g 37 361,; 37 Rochester, N. Y. 36 35 361: 35 Syracuse. N. Y. :46 33 36.2 33 Philadelphia. .P. .19 .14 4112 34 sci-anion, Pa. so s4 419s a4

extra twenty-four hours should be granted during cold weathen. The shippers also stated that the rail- ways‘ heaters were unsuitable for preheating purposes. In this re- specigthey contended that therall- ways should ‘provide facilities for that purpose and failing to do so to make recompense to the ship- pers when they performed the ser- vice. These matters were then embodied in a. resolution which re- quested the intervention of the Commission to assist in adjusting the present arrangements.

The Manager made a thorough investigation and found that the issue in general had been before the railways on several occasions in the pest. In fact. the Federal Department of Agriculture had been active on the matter all to no av- ail. However, arising out of the investigation the Manager made several recommendations to the railways which appeared reason- able and which, if eflectcd. should tend to rectify. in some measure. the present difficulties.

Elihu‘! and Import Rates to and From Atlantic and Gulf Ports l. C. C. Docket. No. 27366

Developments in nnection with this case and related cases have been explained in various periodic reports. The railways recently rc- quested the Manager to assist in securing data pertaining tothehis- torical dev lopment of exportrates through the ports of Halifax. NS. and Saint John, N.B. In this con- nectlon, the Manager has compiled a brief resume of the development of these rates in relation to the Government policy thereon. The material prepared to date has been sent to the railways as requested. There are one or two important documents pertaining to the rates which evidently have been lost. or destroyed. The Manager is mak- ing a further effort to secure those documents in order to complete the record.

The railways were desirous to obtain this historical data in order to indicate to the complainants in the United States. if necessary. that the export and import rate equalization with the North Atlan- tic ports hns been a policy funda- mental to the development and construction of the railroads in the Maritime Provinces.

The Canadian railroads are meeting with representatives ofthe Eastern United States railroads in Montreal this week to consider their future course of action. The Manager will be advised as to what cventuates at the meeting in addition to other future plans and developments. So far the Canad- ian railways are doing everything in their power to maintainthcport differential relationship which has been incffect for a number of years. Intervention by the Com- mission would probably be in cf. feet prlma facie evidence as toour concern about the loss of United 51B!“ export and import trsflie lhmllkh our Dflrts. 0n the other hand. cognizance should be taken of the fact that the volume of Canadian traffic through United States ports greatly exceeds United States traffic through Canadian Doris. In this regard, it. is inter- esting to note that the brief of the Canadian railroads in the unboxed automobile case. 1. s; s, Dock“, No. 4H0. contains the following statement: "The Record indicates that. all traffic considered, the vol- ume of Canadian traffic moving through Ilriiiicd Stains ports grggt. 1y exceeds that flowing from Unit- ed States origins through Canad- ian ports".

It wu contended that at least. n4

A finding of undue preference to ports and undo: pleb-

dice to Southern United Stains

ris would result in the cancella- tion of export and import m» through Halifax and Saint. Johaor a lowering of the rates from so- calied dlflerential territory tn Sou- theni ports. The so-called trunk line railroads in all likelihood would continue to object. to u. rel- ative equalization of New Orleans and other Southern ports with New York. Baltimore and Phila- delphia. In the event. of the can- cellation of the export and import rates from and to United States differential territory on the one hand, and Halifax and Saint John on the other, the question arises what will be the outcome in re- gards w ewnort 1nd import rates from and to Canada and the Un- iicd States ports? It is to be re- membered that a number of Unit- ed States railroads enter Canada and they will be in a position to control the rates to and from Un- ited States North Atlantic ports and some of the more important parts of Ontario and Quebec. Cm- adim traffic, therefore, would con- tinue to flow through United Stat- us ports without one iota of a ton of United States traffic going through the Canadian ports of ffalifsx and Saint John.

Export Bates via. Montreal. P.Q.

It will be remembered that at the lust annual meeting the ques- tion of export rates via Montreal was discussed by a umber of the members. Pursuant to the meet- ing the Manager made a study of the rate situation and discussed the matter with some of the rail- way oflicinls.