AGENT:

k subseri - tlo -

fir,» Baker .

unrdlon ' G; at u

MW"- "room.

n“ reserved for nun

u M“ rntertest, but. sdvicrtlnl III

1322.3‘ rtniliii. atrium metre

h ldvlnllde _ extra auto or truck tire

B . raIEe-157-l2-9-2i

______. LIGHTEBB for your at Taylor Drug Co,

column is

“PER _ in $100k Bil

l

_|1,0NSON r friend nutrition-

t ni ht _ U! rink opens o g . gfigyésating Tuesday and Fri- ‘. this week. 110-343

BORDEN

Nun-hr; an endemic of measles ch vmwd many hzmes in Bor- ., me cold weather or last week in have brought I very u, cold or ‘flu which is quite v.1‘... now, gipetllfllly among , working men, many or whmn ennflned to their homes.

, J rd‘ f Charlottetown ifilsit; fieézflldfll on Satur- y, m. guest of his sister Mrs. i .. ~_. Jay-

r

iirs. John J. Macfsaac and miter Jean of Borden were vis- io Charlottetown on Satur-

,_ . atherine Rodgers of D - wrisfhas arrived in Bordenlio ‘my some time with her son. nald and Mrs. Rsdgcrs. Mrs. .393 has many friends in Bor- .. who are always glad t0 wel- ... her here.

r 'm sthy is extended to slggfkieiirizep and Mrs. Cvaudet of .. . n on the death of their in-

rdaughter Bert-ha R'ta which ... place at Summerside last k.

lirs Reginald Rodgers. who hrs . n visiting relatives at Mtncton. a, returned to her hcme here , Thursday evening.

Congratulations to Mr- 511d Ml‘!- n MacPherson of Borden 0h t!!! iof a daughter in the P-ihice n t l-lcspltal on Friday Decem- ltt .

.A. Ch ll i Borden was gill)!‘ to Mtggton? N.B.. on Sat- dry.

llr. Gordon Jay, R.C.N.V.'R.. is lng leave at the home c! hi3 rents. Mr. and Mrs. Albert Jay. - Borden. Cordon. who has illit- tilrned from Great Britain ls elving a heart-y welcome from - lids hree.

The regular auction party of the

. en Wcnienls Insftute was held

. Thursday evening in the town

Ill With rein tablcs playing. Lad-

tprzc was won by Mrs-

. reccnd prize. ivitrs. G.

. rpe. Gents first p428. Vi‘. Ralph

second Mr. Emery 3343115"!-

u"\ rerun-ed frr the

. ui. which was w:n by Mrs. W. wing.

Mrlviliarn White. qurrrtsr- mas- rrii the S“. (‘harlrttetovvn who rihggvi crpflped f0 We 11'1"" f0!‘ l-cert wto wreks with a. severe .ll‘d. returned to wrrk on MOT‘- iiv. A.

lensington and Vicinity

lirs. John S. has returned borne from an enjoyable holiday in Charlottetown.

Min Marion Colder, of Brattle- bio. v... a spending the winter rlrrilhs w.th her parents Mr. and “it A F. Golder. Kensington. _

l siicczssful bazaar and sale of i-me cccsing was held in the base- lllilll oi ti: ffznmngton Presbyteri- llichllrc cn Satutd v Hie » . and ii an. n. lie... warmly a preciated and en- Mla! Marv Power s ant a pleasant fill-ind with irlen in Charlotte-

lier many fronds ‘ c‘ t see lilo Giad"s Leanne tiieeezifzéinoeut lrtiinzi, after her recent liness.

“Amflhg the many recertt vlsltrrs "l de ivere Mrs, J. B Benjamin Champion. t V A Jélm T. Cclefilrlfr. an:

- . icmpson. . an w,‘ ‘Wm Hllfllbhrev. Miss Annie "m. lsr Kathleen Ready: Miss cri Kennedy. Miss Mamie Con-

liell. hmum-nqlflauvton Rogers and Mr.

A llltcesriiil_~fi_t; 5m", ~ can .y tale and “M” wli-ril-tlaleasatliiixicegncdatrt-rif

i1 i . ugiltlimirauikizrtn at Mr. Keir Clarks

will! the ther p;

gain... c.3333 .'....’il‘".‘l.’“ili mchtsfibovc. with a warm rain. m‘ ‘Nev taken practically all tt-e MUM‘, (‘n Saturday night. th- em, rhatelljts are now going around inn 0,. W}, i016 you so" expres- lrrgrn that-m faces proving once

Hr w gr. pwp u A3.“ w‘.

tether predictions.

h tli Co‘. O g blqbinviurnllp. of the P Ilhiand s- ti" d

h3g3‘; "Iii-Ni hginemcr? Iv?»- wgflmllh. and is receiving e tilting "mi? from hts many

Boa-key and T $11131! etrkgtvéliittgl fans of Ken- "! b! out lu

l ""’_'—~W .

THE WhSTERN ’iifnifn"§e%‘i'in'i $508.. tbiiivfi. ""°"' "° Gurdlsn may be bonlhst epuy of the following stores |||

will be delivered to- per day. or 10o per ‘n, M!" h

n w; order to the bo res rulble for deliveries on your mule,

e'.'i'.‘i‘n§e.‘i"?§§ Werltiop. it is hoped eetlv

.___-____..___..__..

GUARDIAN

Ilmrld be ion with Mrl. Pond.

Gourlles Drngsw Mort Gouda e1 ‘calm: SL1:

Bummerslds by

week. Phone 289 for this service,

flflihliqua ri n - div evening. oecnlo. taeltit-igilffi

—BUBBEB ndl u. , M“ ‘rivet? gtciolseirslduilct L-l57-l3-9-2i.

—FOR SALE - Estate of 1 t4: Piggy Clark. Augustine Cove. cogn- Ecresmianguwnbam’ shed and 3% Carleton Siding.

Dgly Fred beard. 413-11-26- 12-10.

SIROIS REPORT

(Continued from

918i 1)

other hand, the so-callod ‘Ir r- - "um Problem. as it conceriirslsgtt-alli-e relations between the Canadian Na- tional Railways anti tho Canadian Pacific Railway Company, was n mitt“ Mtllaliy outside their lemis of reference. Most of the presenta- tions involved complaints of non- fulfllment. of the originally intend- ed purposes of transportation poli- cies and the incidence of freight rates in hindering the development. of the country as a whole.

Sectional Incidence

The Commission stated that the sectional incidence of freight rates commanded their careful attention. However, their surveys and stugiieg necessitated an approach to the whole question as the growing divis- ion of responsibilities and functions as between the Dominion, Provin- cial and Municipal Governments 1n- volves a development in transpor-

ntation facilities creating duplications

in services, destruction of capital and "threatens a repetition o! the inordinate expenditures ivlilch marked the climax of railway build- ing ln the second decade of this century."

The Commission, Mr. lvfivheson said. was somewhat surprised that in the many references to highways in the submissions made to it the financial consequences of the pres- ent lack of co-operaticn and co-or- dlnation between the various Gov- ernments in regard to railway and highway competition did not receive any recognition whatsoever.

The first chapter of the Commis- sion's recommendations on Trans- portation dealt with the freight Rate Structure. In this connection, the Commission had the benefit of a voluminous study prepared under the direction of Mr. R. A. C. Hen- ry,» a former Deputy Minister of Railways and Canals.

Its approach to this phase of the

further than Order in Council P.C. 8B6 of 1925 and the directions as contained therein to the Board of ‘Transport Commissioners in the matter of rail rat-es.

The Salient Darts of. the transpor- tation representations heard by the Commission were then summarised.

Maritime Transportation Brief

The brief of the Transportation Ctmmission of the Maritime Board of Trade and the Province of Nova

cotia was first given consideration The contention of the Transporta- tion Ccmmision was briefly that the twenty per cent reduction of freight rates as effected by the Maritime Freight Rates Act had been partially nullified by trans- portation reductions resulting in competition between motor trucks and the railways in the Centra‘ Provinces. It was reriucsted that the relationships established by the Maritime Freight Rates Act should be restored and maintained l: ironi- ter. Ori making this ritquest, it was however acknowledged that ‘here existed difficulties because of the lack of federal control over alterna- tive systems of transportation

The Commission did not accept the argument that the relationship should be maintained against all forms of competition, but did ad- mit that this particular problem could "cnly be dealt with as p-arf of the wider problems of transpor- taticn which are discussed in the following chapter."

Submissions on transportation matters by the governments of Cn- tarlo. Saskatchewan. Alberta and British Columbia were briefly sum- marized.

'I'hs various complaints and sug- gestions arising frum the different sutcnissioiis were the subject of a general discussion on the who.e in- cidence of freight rates and the jur- isdiction of the Bsard of Trims- poct Commissioners thereon. Refer- ences were made to julgmezits of the Board of Transport Commis- sioners en similar or identical com- plaints. In this connection. the Corn- mission stated that "it is not b?) 0.111 the scope of its duties to consider what contribution these disputes about railway rates make to fric- tion between the Dcmlniou and the Jh-cvinces and whether the tenden- cy of our national rate polity i5 to moderate or increase this fric- tion." That policy is defined m ihe Order in Council of 1925 as one "of equalization of freight ra es to the furthest ptxssible extent as be- ing the only means of dealin; Oqj uitably with all parts of Canodai The question is t:en asked a

for sChrlstmas eve skate. Alinouah many of the boys have 1W1" l"

jest ‘s Forces and are now away.

kc .

r g , and ri igrs rgltnremfill}. folks. tile element are on the wav “l! ‘luvcnnflfl. prwlnc u; yggr, proved ln a mos

g manner and although SEVEN‘ CY

m boys have also 161K196 Mgjesty’! liorces. with a ‘flown ‘m; placements which are ava a a gum; the ubllc mav rest assured the boys wil once again make ether Island teams do some fast stelmina

, they hon- to-taléadaway tilrgltyiixnlut

problem, however, did not go back-

uiltne other hand. bulky

Pmzress being made toward the fulfilment. of the purpose thus a- vowed‘; ‘rhe Commission answers

"lit ve special difficul- ties due to condi one of geography and terrain, the tendency of rate mil-km! has been and still in to lessen the regional differences and what is also very important, to keep‘ for Canada a. position of relative- lY 1°“! TBUWI-y rates." In this regard, however. it is noted that “the only "lIPtut em of disturbing establish- ed differentials to the injury of a "(Ion was the equalhlu of Morl- tlme rates with those o the Cen- tral division In 1912." _

The study of the Commlmicin supported by special surveys pre- pared at. its instance indicated def- lflliflly a general trend towards u modification of transportation chi-mes "to the advantages of those lesions least favoured by competi- tive influences.” It is exceedingly interesting said Mr. Matheson to note the references to the one im- portant exception to that trend:- the rate changes in the M-aritlmm from 1912 to 1925. In that. connec- tion. Dr. W. A. MacKlntosh in his study makes the following observa- tion: “The chief, and important. exception was in the period 1913 to 1923 when rate changes were distinctly adverse to the Maritime Provinces." (Chap. VII. 5 B).

Reference was also made to the study prepared by Mr. R. A. C. Henry and Associates in connection with the freight rate structure in the Maritimesv

Changes Necessltated

The Commission's Report calls attention to the conclusions of Dr. W. A. MacKintosh on the variations in regional freight rates which brief- ly are to the effect that the differ- ences cannot be eradicated without involving changes of great mom- ent. such as:

“l. (a) Complete jurisdiction by a single authority of all altemar tive means of transport. and,

(b) The raising of rates on ba- sic commoditles and of rates gener- ally imtheregiozis most subject to ivaier and highway competition, or.

2. The meeting of a part of rail- way costs out of taxation through payment of railway deflci-ts by the Government."

The. proposal of the Saskatche- wan Government and the Maritime Transportation Commission to en- large thescopc of tlte Board's pow- ers in line with the recommenda- tion cf the Duncan Commission was not colintenanced by the Sirois Commission. They argued in this regard that should the Board be given the power to make a respon- sible review of railway rate policy in relation to such factors as geog- raphy, transportation charges in relation to other costs. and general commercial conditions, it would clearly involve the Government of Canada for responsibility in the fl- nancial consequences arising from the exercise of the suggested addi- tional powers.

While not making any recommen- dations on the question of the pre- vailing rate structure, the Commis- sion suggests that in view of the el- apsed time since the last rate inves- tigation and the fact that. there ex- ist increasing signs of "a. revival in questioning as to the justice of the existing rri-te structure." the present time might be opportune for an- other general review of the rate structure in Canada.

Railway and highway competi- tion the Ccmmission considers to be a prolfem of paramount impor- tance. Tllc situation briefly is that “an exclusive transportation system in the Dominion field established at great cost" has beer-i effectively chal- lenged by motor truck transport falling inmost exclusively within the Jurisdiction nf the Provinces. Con- sequcnfly, lliere has developed "a most serious case of overlapping, and one which constitutes a. menace to the financial solvency and to the ecsnomk: well being of Canada"

The basic prcberrl. in the opinion of the Commie-on, "is how to as- sur-e to the public a. national trans- portation system in which all the parts will function smoothly ln their proper sphere so as to furnish the best service at the lowest overall costs."

The Report then discusses the location of jurlsdlcfion of the Dom- inion and Provincial Governments over the different forms cf trans- portation. 7t is acknowledged that the Provinces have almost complete cmitrcl over motor truck transpor- tation, although it is stated that main motor hiohways might possib- lv he brought under Dominion juris- diction tinder Section 92, Sub-sec- tion 10 of the British North Amer- ica Act. "which provides that lo- cal works and undertakings wholly situated wltTin a Province may be declared by Parliament to be for the general advantage of_ Canada or for the two or more Provinces."

n

Effects of Competition

The effects on the railways of competition and other influencing factors, such as nationalization of industry. elimination of cross shipments and industrial self-suf- ficiency. are indicated in the fact that rail movements have decreas- ed since i924 from an average in- dex twenty oints higher than in- dustrial pro uction to thirty points below the industrial production figure or. as expressed in another way. the volume of freight increas- ed about 6 per cent per annum between 1990 and 1920. but only rose two per cent per annum be- tween 1920 and i929. a period of great economic expansion and de- velopment. -

The studies of the Commission estimate an annual loss to the railways from highway competition of from $75,000,000 t0 800000000 of

which saooooooo represénti lost structure is

passenger traffic. The railway rate

discussed to some length. and ref- erence is made to the inroads of the motor truck on the tter classes of freight and the methods adopted to meet the conrpet“ . Briefly. the Commission observes to the effect that it is a well known fact that rail rates are predicated on the principle of "what the traf- fic will bear" with "cost of ser- vice" as the possible minimum. In this connection. it is pointed out that goods of high value are and have been assessed rates relative- ly higher than the cost of per-

e SUMMIr-Ta. .8 * I “G11

tlvely cheap‘ articles take very low rates, whic . in some cases, just cover estimated out-of-pocket costs. Iznphnis is placed on the fact that the loss c! hilh cl ng goods eoneo

with reductions to meet competi- tion is reflected in the total rev- enue of the carriers. and e -' - ers the whole rate structure on which the trade and commerce of Canada hu been developed.

Illlllflftlllt To Maritime:

The situation is of vital impor-

tance to the Maritimes in that the production of this section of Can- ada consists principally of bulky and low valued commodities which. because or their very nature, cm. not bear high freight rates. General increases in the rates of these low valued commodities would have serious consequences on the Marl- times’ economy. Indeed. the Com- mission takes cognizance "f this fact tn the following statement. The shippers and consumers of heavy and bulk commodities are oi great importance in the Cana- dian economy and a rate structure which curtailed the movement of these goods would involve a serious dislocation of that economy." The representations of the Maritime Transportation Commission were intended, among other things, to convey to the Sirols Commission that there existed a fear regard- ing the consequence on the whole rate structure under prevailing competitive circumstances. In fact, the Maritime Freight Rates Act appeared to offer the only possible sheet anchor or protection on that point, and it was on that Act in relation to the existing ef- fects on established relationships that the Transportation Commis- slon concentrated attention. It is cf interest to note that the Report quotes that part of the brief of the Maritime ‘Transporta- tion Commisslon in which it was stated that “industries outside the pale of the competitive area are at a distinct disadvantage because of destroyed paritles and also cause cf the conveniences their competitors enjoy through the greater flexibility of truck trans- portation" in connection with which the Commission observes that “the tendency towards equal- ization of sectional freight rates is thus being checked and may in effect be reversed. This would be a definite departure from a policy a’ r"""~d as desirable in the in- terests of national unity."

Railway Deficits While calling attention to the

various aspects of the rate prob- lem and discussing the status of the shippers of light and costly

goods. on the one hand. and the shippers of heavy and bulky, on the other, in addition to the tax payers in relation to the general public interest. the Commission states that “it is not the body which must define this general public interest. It is concerned rather with the question of where it is desirable that the responsib- ility for defining this interest and power should lie." The Report goes on to say that "the tax payers ought certainly to be spared the misfortune. which may easily arise from the present system of divid- ed jurisdiction, of having to sub- sidlze both classes of shipper and consumer—by absorbing railway deficits through the Dominion Treasury, and providing roads at the public expense through Prov- lncia treasuries."

It is the_ Commission's belief that the situation is one which necessi- tates "gradual adjustment based on intelligent and generous com- promise." Presumably, what be aimed at will be a revision of the rate structures both of rall- ways and of highway carriers. At the same time the taxation of trucks might be put in a basis that would protect their competi- tors against any danger of sub- sidized competition."

Whatever the form of com- promise that may be adopted in- volvlnq also the allocation of jur- isdiction. the Commission con- siders that “the present division of power may easily lead to chaos. unless the policies of the Domin- ion and the Provinces are co-ur- dinated. But. elven a disposition on the part of the various gov- ernments to cc-ordinate their cori- trols over transportation and their financial aid. so as to leave each type cf transport a chance to per- form on remuneratlve terms those classes of service which it is best. adapted to perform. the Canadian transportation problem may not be insoluble."

The Commission found that “neither the British nor the Uni- ted States experience in dealing with modern transportation prob- lems can afford a clear guide for Canadian action." The existence of one jurisdiction in Great Bri- tain simplifies their problem re- latively, although the competition is more intense because of a more concentrated population and con- siderably shorter mileages. On the other hand. ln the United States the Interstate Commerce Com- mislcm has and exerts power over interstate motor traffic. which in- cldentally constitutes a consider- able movement. The United Rtates Government also has some meas- ure of control over intro-state roads built and developed by its system of conditional grants.

by the commission. is briefly: In what manner and by what means can co-operation be established

forming such service. whereas, on and relu-

The problem ln Canada. as. seen.

CHRONICL

and maintained "between the Do- t of its railway services. and t e Provinces in re- spect of their road construction?"

-n1lnion. in res

Two Approaches

The Commission

approaches that could result

transportation; firstly. that "m; are constipated. don't be satisfied Provinces might adopt substan- g§“;;;';rg;"{,g', Fm‘ tiai uniform voile!» with or n would be easy u Olll‘ diet. to e control of highway c ers. like that of most poops ll un- and oo-ordinate this control with- hIlenegd-no doubt_ it iaeles

bulk. And "bulk' doesn t

Dominion control over railways";

or secondly. that transferred to the Dominion".

The first method-that of uni- regulation-the s on to state, was re- commen ed by the Duff Commis- involves the is- suance of certificates of necessity and convenience. the regulation of rates and services, hours of labour. schedules of pay. weight of ve- hicles, statistical returns. Indigen- een made in that direction by some of