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RAILWAY TRANSPORTATION RATES. Copy of a Report presented to the House by Permission of His Honour the… British Columbia. Legislative Assembly [1922]

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 RAILWAY TRANSPORTATION RATES.
Copy of a Report presented to the House by Permission of
His Honour the Administrator.
Victoria, B.C., October 24th, 1922.
His Honour the Administrator, ,
Victoria, B.C.
May it please Your Honor :
I beg leave to report that early in January, 1921, your Government instructed Mr. G. G.
MeGeer, K.C., to make an application to the Board of Railway Commissioners for the removal
of what is known as the mountain scale rates of transportation within the Province of British
Columbia. (This mountain scale rate is 50 per cent, advance on Prairie rates applicable in
Alberta, Saskatchewan, and Manitoba.)
In support of this application, Mr. MeGeer engaged expert assistance and attended many
meetings of the Board of Railway Commissioners; the first of which meetings was held in
Vancouver on April 7th, 1921, and the last in Ottawa in February and March of the present year.
Subsequent to the sittings of the Board in March last and precedent to judgment being given
by the Board, a Parliamentary Committee was appointed at Ottawa to inquire into and consider
railway transportation costs. This Committee sat in Ottawa in May last, Mr. MeGeer with
myself attending before them. As one result of the report of the Committee herein referred to,
the Crow's Nest Pass agreement rates on grain, which had been suspended in 1918, were again
re-established by Parliament.
As to the net results of your Government's application, and the judgment of the Board of
Railway Commissioners, made after Parliament had restored the Crow's Nest Pass agreement
rates, I quote from advice received from Mr. MeGeer as follows:—
" Summing up, British Columbia received:—
"(1.) The full measure of benefit of 7% per cent, reduction on lumber, coal, ores, and other
basic commodities, hereinbefore mentioned, that is extended to the rest of the Dominion—namely,
a reduction in rates of 7% per cent.
"(2.) A full measure of benefit included in the reduction on the rates on grain as provided
for in the Crow's Nest Pass Railway agreement, plus whatever further reductions will be made
owing to the reduction in the differentials contained in the mountain scale. (This is still
subject to confirmation.)
"(3.) The benefit of a reduction of 50 per cent, of the excess formerly charged in Pacific
rates over and above the Prairies—namely, differential as reduced from 1% to 1; to 1Y± to 1;
and this latter reduction is carried through all commodity rates and all terminal and distributing
tariffs so as to bring them in the same relationship to present standard tariffs as they had to
the former.
" An approximate estimate of the total represented by these rate reductions, and which
could be considered as relieving in a measure the trade of British Columbia and the interprovincial trade originating or destined to points in British Columbia, on the' three railway-lines,
at between two and one-half and three million dollars per annum."
At its last session the Legislature voted (No. 80 (a)) $40,000 to cover the cost of the
application made to the Board of Railway Commissioners, which costs were as follows:—
Disbursements     $21,886 09
Counsel fees allowed :     22,000 00
Total    $43,886 09
The cost of attendance before the Parliamentary Committee was:—
Disbursements     $ 1,759 35
Counsel fees allowed   3,000 00
Total    $ 4,759 35 M 2
Bailway Transportation Rates.
1922
I feel quite sure that the claim of the Province for a complete removal of the excess rates
in British Columbia caused by the mountain scale was injuriously affected by the action of
Parliament in restoring the Crow's Nest Pass agreement grain rates, and the Government has
instructed Mr. MeGeer to give notice of and to prepare an appeal to His Excellency the Governor-
General in Council, such appeal claiming a total removal of the mountain scale rates.
Your Government appreciates very highly the assistance of merchants, manufacturers, Boards
of Trade, and many others, more particularly all those persons who, at great cost and inconvenience to themselves, accompanied Mr. MeGeer and myself to Ottawa, and there attended the
last sittings of the Board of Railway Commissioners.
I attach hereto as an Appendix certain figures showing the difference between old rates and
new, as applied in British Columbia and in the Prairie Provinces. It will be noted that the
removal of one-half of the excess, caused by the operation of the mountain scale, makes the
reduction in British Columbia much greater than in the Prairie Provinces.
I am of the opinion that the results obtained amply justify the expenditures made and the
efforts put forward by your Government.
All of which is respectfully submitted.
Very truly yours,
JOHN OLIVER,
Premier.
APPENDIX.
Statement of Rates charged at the Present Time on the Pacific Standard Tariff and the
Rates charged on the Peaieie Standard Tariff, showing the Difference in the Rates,
and also a comparison of the same rates, showing the difference at the time of
British Columbia's Application.
(Note.—Even numbered columns represent approximately the gain made by the reduction
of the mountain scale rates in British Columbia.)
Rate in Cents per 100 lb.
OW rates-
Pacific .
Prairie
Miles.
50
50
Difference
New rates—
Pacific
Prairie   . . .
60
60
Difference
Old rates—
Pacific     100
Prairie       100
Differen ce
New rates—
Pacific     100
Prairie      100
Difference   	
Old rates.—•
Pacific     200
Prairie      200
Difference    	
62
49
52
41
42%
3'2y3
32%
24%
29%
23
10.
13
11
10
8
6%
53
46
44
38
315
30
27
23
24
21
8
5
6
5
5
5
4
4
3
3%
07%
75
SI
62
65
50%
49
37%
42%     ..
34'%     . .
22%
19
14%
11%
6
81
69
68
67
54
47
39
35
36
32
12
10%
11
8
7
6%
4
7%
4
1.41%
1.10i%
1.17
93
94%
75
70
56 %
63%     . .
50 %     ..
31
24
10%
14%
13 12 Geo. 5
Railway Transportation Rates.
M 3
Statement of Rates, etc.—Continued.
Rate in Cents per 100 lb.—Continued.
Miles
1.
New rates—■
Pacific     200        1.19
Prairie      200        1.02
Difference    	
Old rates—■
Pacific      300
Prairie       300
Difference. 	
New rates—•
Pacific     300
Prairie    '300
Difference    	
Old rates—■
Pacific     400
Prairie       400
Difference    	
New rates—
Pacific     400
Prairie      400
Difference   	
Old rates—■
Pacific    500
Prairie       500
Difference  	
New rates—
Pacific      500
Prairie      500
Difference  	
Old rates—
Pacific      600
Prairie       000
Difference   	
New rates—
Pacific     000
Prairie       COO
Difference  	
Old rates—
Pacific      700
Prairie       700
Difference  	
New rates—
Pacific     700
Prairie       700
Difference  	
3.
98
SO
4.
78
69
59
51
58
47
10.
17
14
12
12
9
10%
8
6%
6
7
1.84
1.41%
1.53
1.17
1.23%
94%
93
70    .
83
63
42%
36
27
23
19%
1.52
1.31
1.26
1.08
1.02
87
77
65
69
59
21
21%
18
18
15
12
la
11
10
9%
-2.27:%
1.71
1.90%
1.43
1.51%
1.14
1.14
816%
1.01
78
56%
47%
37%
27%
23
1.83
1.58
1.62
1.32
1.22
1.05
92    "
SO
S3
72
25
31%
20
27%
17
20%
12
15%
11
12
2.65
1.98 %
2.21
1.64%
1.77%
1.32
1.33%
99%
1.17
89%
00%
56%
45%
34
27%
2.19
1.83
1.83
1.52
1.45
1.22
1.10
92
98
S3
36
30%
31
26%
23
'22%
18
16
15
12%
2.94%
2.24%
2.45%
1.87
1.97
1.49%
1.46%
1.12%
1.17
S9%
70
58 %
47V2
34
2'7%
■2.42
2.07
2.01
1.73
1.61
1.38
1.20
1.04
1.08
93
35
35
28
30%
2®
24%
16
18
15
12%
3.27
2.49
2.71%
2.08
2.16%
1.66
1.62i%
1.25%
1.46%
1-12%
7S
63%
50%
37
34
2.67
2.30
2.22
1.92
1.79
1.53
1.32
1.16
1.20
1.04
37
41
30
33%
26
24%
16
21
16
18
VICTORIA,  B.C.:
Printed by William H. Ol'llin, Printer to the King's Most Excellent Majesty.
1922.

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