[27] NOTE--The _Montreal Gazette_, 1st April, 1886, writes thus on
the subject of the Railway Commission Bill:--“These rates are fixed
and determined by the Great American Trunk Lines, in competition
with which the Tariff of the Canadian roads is necessarily
regulated; to interfere with these rates would be to take away
from the Canadian Companies a large amount of the gross earnings
derived from a source which increases the volume of business in
Canada.... The discrimination which is complained of in particular
localities arises wholly out of an established competition between
lines reaching a favoured point. Destroy the natural consequences
and natural advantages of competition--lower rates--and you remove
all inducement to the provision of rival routes; put an end to
competition, and at once an increase in rates all round will
be established. The Railway Act prohibits interference by the
Government in the regulation of rates until a Company is proved to
earn 15 per cent. upon its invested capital. What Railway Company in
the Dominion to-day is earning that profit?... If competition is to
be made a positive disadvantage, if every inducement to particular
localities to promote rival enterprises is to be swept away, the
rates of existing lines will be run up in all directions to the
injury not only of every locality now favoured by competition, but
of those localities which consider themselves aggrieved by reason of
the absence of the low rates which competition enforces.”
It may be mentioned that one of the fiercest enemies of differential
rates, in a work recently published, declares that the only remedy
is to “restore the character of public highways to the railways by
securing to all persons the right to run trains over their tracks
under proper regulation!” “The Railways and the Republic” (1886), p.
372, by James T. Hudson.
SECTION VIII.
THE INTEREST OF CONSUMERS IN RATES.
Of the causes which have prevented progress in the public discussion
of rates, chief has been the fact that the subject has been regarded
too exclusively from the point of view of a limited number of
traders or producers. The general interests of the country have
been overlooked, or it has been assumed that they are identical
with those of particular traders. Once the question is looked at
from several sides--as it appears to those who buy as well as to
those who sell, and to producers in different places--many of the
complaints made against the companies as to the existing system of
fixing rates are seen to be unfounded.
Public-domain text, read in full here on John Shaqi.
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