AT the HEART of TRANSPORTATION: a MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 2 Continuing to Do Soformanyyearsto Come

Home , Andrew George Blair, George Hees, Hugh Guthrie, Jack Pickersgill, Jean Marchand, John Crosbie

C O M P E T I T I V C O E E F F M P I C I E N E T I T A T I V C C E E T I T I V E E F F I C I E N T A C C E E S S E F O M P S S I B L E I B F I C I M L E C I P A R I E N T I A M P T L A I N R T A C N I A C O V L E C O A T S M P I V I N S I E T I E N B T I V O L E E N T A C C E E X V E F F I C I E S S I B L E E P A I T I V E I M P F F E T I M P E T A R T I C R T I V T O M I A L I E E P N C I N M A E N N T O E R R O V A X T I A C E - B A S E D P R O F E S S A C D P A P I D E N I O N A T I C E E L S E V L D V E E R R T E D E D S N T N R A I C A E S I A T E G T E D X P I B E N R I N E L E N M N T T R G O O G C O M P E T I T I V E R A T I N E F F I N I A D V D V C I E S P M M G E L N T A O P E R A E O A R D A N T T E V C C E N E R D I A E S T R T V T E D E V I D E N C S I N I E C T D E G R A E - B A B L C A E E I E I N T S E D E L V N D N G G P O E O E E A I N R O I M M N G E R G L V F E P L X D O S S P A E G I N V A A N E V I O R T A P P E N T I N I G S D A I A T I G O N E E L N E L L V E G D R N G P E T I T I D V T A A R A C O M V E E F D E E G D F I C I E I A N R D N G E E N D N T T E G A T I C N E E I E O O E N A C A O F I V N M I C F V V M N N E S T E V I O E T O O S D D E R E R S I B L E I M P A R T S I D A C E S E E D C E S I A L B L G L D T T T D O A C I N L E T I E V E O M T N O T I V E R V E F A R A E N V R N I E R M T C I A T I M A E T N X A I R C P R F I I V P N N OI G E F E P A N G T R X E T P E E E G D T E T R X E R S E A R P N E E I C I E N T X T P X D E N E V E F F C P I A A C T E I P T I E O E P I E D I T I V M P R L R E C N R E X E T T I E T I T I N E V E P E T I E R E T E N D A V I P M V M I N T E M I G T M O E N S V T G LE P T C O T G A O E N S O E A AS S N E F D I A I V C T F E O M I R D G V N I C B D G NA N V V I O E R V A L T R V A T I V E E X P E R I E N A O L E E R B A N A N O T N E T N E O O A N P I N M O T T D R A I - R O D C E D T N V I S A L E R E I E N C S E V N T I N V O D T N R A N E R I E E S E O A A C C I L R P E N G M N M E N T M G C - D D A I A P E B E F N I T A C C E S S I A E E P E E N I E N B L E G S G E N A V E L D I T E I C X A V O T R D L F F I M E S E T E E E E P D I P G S O R D A B A D I R I E A A T I E R B T N I I G S V T L E T D E V P T L P A S T I I A E R I G A L C A E I L V E V I E D V R A C T T A G I V I M I C E O E A N D E I I P I E G C O M P E T I N V L I T D A T D C M T I V L I G E D E N V C E N N E A O M O E P R E O M D P N E D C F I E E N E F I V N P G D A E C L O E R E S M T I A G A V D I - C D I L E F N R P N T B O A E B N R I D L T I F E I E V T N N A E A B T N M A I N G I N T E G E I F L I S D L V I R A E I I C V - - E O T A N G R E I P E R N C V E D C A O S E B A A S I S E V N E L T N I S S E E F E C L E O A R O A D V E E E V N B I F E I E O D S T C D E B D S X G N L N I C E G I A S E G S - E I O L A N S P L V N E R I N O E A I S O C S N G M O D E C I E E T T G E B T R N B A N V E S E C R N E R E E R T N I I D R T S I A P N L M E E X G - N P N N R E F E E E T T E I V T D S S N A B V D G E G G N R I N E A O A E A A E S O I E E G I C N D O V D S A G O T T D I I R C V F T E R R T E M V L P T I I M C M E A D A G E E N P T E A F D R C V O C R O D V V P A E E E E E T E D E E O O A T E I O R C I O D E X G P T N L P V E I S N D T P I D P R S N R M N V R E V F A D D S C I P E D N X M I I T T A I E O R D S T E I E D N E T I I E E D E E E F O P A N I E O S E T G F E S C T N L B R G V T A E F X I E N C C E I V I T R N G T D T C I C E L E S E A A S T N C L T F V A E E F S S L E I R I I I E A E B E I D C V N N B T L S E R E P I A D R N E O A O O R E X A E S - N I E C E R E I E I A E X V O N I V I L E E I T N P D L I M T G V G E I T N R I A - D A I E E T M F E G M T I V E N P E T N B E E E M N E E I T C C E V P O T I T B V P E A C C G O A F V E I I D T T E A A R D A A N I P - I C I M O D

P E A N T P D F E R R N L T F E I F T D L N E N L G S A E C F E V S V F I I A M T A I F V D I G E I E E C A D E R C E T D I O A E E - T A D N E V S I T O D E I R E E T E E D T B E C L E M - E D N N A D R T N I V A O L N N D B I P V B V A A V I C E E A E G G - T A O G B O I R I V I E E N A N V D I D E S I E I I N M D D A T P N A T N L I N D N E E D I V D N S S I C E S I I A I V O I R T E O I E T I N C V E S E E C G S T I E E S N D V V C E

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Catalogue No. TT4-2/2017E ISBN 978-0-660-08588-3 Available in multiple formats BIBLIOGRAPHY______MEMBERS’ LIST______APPENDIX: AGENCY, 2014 TO2017______THE CANADIANTRANSPORTATION ON THEMOVE AGENCY, 2004TO2014______THE CANADIANTRANSPORTATION CHANGES ANDCHALLENGES AGENCY, 1996 TO2004______THE CANADIANTRANSPORTATION REACHING OURCENTENARY AGENCY, 1988 TO1996______THE NATIONAL TRANSPORTATION SHIFTING GEARS COMMISSION, 1967 TO1988______THE CANADIANTRANSPORT TAKING CONTROL COMMISSIONERS, 1938 TO1967______THE BOARDOFTRANSPORTATION ENGINES OFCHANGE COMMISSIONERS, 1904 TO1938______THE BOARDOFRAILWAY ALL ABOARD THE CHAIRANDCEO______FROM MESSAGE CONTENTS TABLE OF

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1 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 2 continuing to do soformanyyearsto come. transportation systemandlooksforward to accessiblenationala competitive, efficient, has played anintegral role inhelpingto foster Chair andChiefExecutive Officer Streiner Scott mark Canada’s150 to prepared This updatedhasbeen version in2004. centenary sion oftheAgency’s history wasfirstreleased ontheocca- Agency’s oftheCanadianTransportationThis overview June 2017 MESSAGE FROMTHE

th anniversary. TheAgency + + + + + + times. difficultexperience many Canadians hits—Depression 1930s, theGreat in thewareffort. Canada joinsBritain August 4, 1914, inaugurated. wasCommissioners the Board ofRailway February 1, 1904,

T stories about the record snowfall in the Dominion’s capitalthatFebruary,stories intheDominion’s abouttherecord snowfall ran Nature Board.Even Localnewspapers conspired againstthenew to bepassedmakingtheappointments.” inCouncil willhavelaunch wouldbedelayed Orders because“new force oftheActwhichestablished commission.”Theofficial inCouncil andgazettedbefore thedate ofthecominginto Order “by in aprocedural glitch,to made theappointments Board hadbeen February 1, 1904. However, noted Citizen onFebruary astheOttawa 2, According to the From thebeginning, theRailway facedobstacles. Commissioners February onasnowbound inOttawa Commissioners day in1904. story oftheBoard ofRailway beganwiththeestablishment The Agency’s today.Canada weknow THE BOARDOFRAILWAY COMMISSIONERS, ALL 1904 TO 1938 emerged as a vital though largely low-key player inshapingthe player asavitalthoughlargelylow-key emerged competition.It ofintensecommercial hasago inanatmosphere 100yearshe CanadianTransportation haditsoriginsover Agency Railway Act of 1903,theBoard wastoon beinaugurated

3 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 4 3 2 1 a monthshortofhis60 was animposingfigure, alarge,dour-looking man, railway executives andbusinessluminaries. He as chairmanoftheBoard, addressed agroup of Februaryplunged ahead.On G.Blair, 9,Andrew appointednewly Railway Commissioners It wasnotanauspicious beginning, butthe gliblyreported. Citizen thiswinter,”be theprincipalindustryinOttawa the making itdifficult to travel. clearingseems “Snow to establishing a permanent and independent regu- andindependent establishing apermanent thenecessityof farbackas1896,hehadseen As years andwasanxiousto seeitaccomplished. workingtoward thisgoalforseveral had been onwhining,Blairverged hecouldbeforgiven. or three applicationsatthisdate.” unequipped, wethoughtwouldtake uptwo our business [...]Althoughweare quite without a staffandwithoutquarters to transact Moments later, however, headded,“We are on theother.” always interests oftherailway growing interests country ontheonehand,andgreat and constantly increasing businessinterests ofthe touch and atavital pointthealready immense far-reaching will intheireffectsandthey this Board intheirscope, are comprehensive upon andjurisdictionconferred “The powers hespoke:But hisvoicedidnotwaver when political fighting,lately, andthen, by inertia. a heavy white thetensemonthsof beard, wornby of Transportation inCanada , Volumes IandII. after Confederation are OscarD.Skelton’sTheRailwayBuilders , andG.P. deT. Glazebrook’s AHistory historiesthatdescribetheearlytransportation systeminBritishNorthAmericaandthefirstyearsTwo Railway Commisioners, andtheBoard of Railways,Government, Transportation , p.659-660,andKenCruikshank’sCloseTies: The limitationsofthePrivyCouncil’s RailwayCommitteeare discussedinW.T. Jackman’sEconomicsof The Ottawa Citizen,February 11,1904,reported onthefirsthearingofBoard ofRailwayCommissioners. th birthday, hisface,beneath 1851–1933,p.57-64. 1 If his comments Ifhiscomments industrial growth. the country, vitalto andwere theDominion’s across of goodsandpassengers the movement Railwaysettled. companiesalsocontrolled they largelyresponsiblegrants, forwhere were ports, andtherailways, withtheirhugeland pouringintoimmigrants were thecountry’s At thedawn ofthe20 the unionin1873. link to into themainland, lured thatprovince Island’s debt-ridden railway, andayear-round Pacific Railways (CP). Edward AidforPrince railway,nental completed Canadian in1885 by wasCanada’sfirsttransconti- of thatprovision of arail linkto therest of Canada.Theresult was drawn into withthepromise Confederation InBrunswick to1871,BritishColumbia Québec.) completed in1876, linkingNova ScotiaandNew Intercolonialto Railway joinaswell. (The was the decisionofNova ScotiaandNew Brunswick The promise ofarailway in wasinstrumental for Confederation. andhelpedto layand Québec), thegroundwork Canada West Ontario withCanadaEast(now Torontobetween andMontréal in1856,linked Canada. TheGrand Trunk Railway, completed had played adramatic role inthecreation of inCanadasincethe1850s.growth In fact,they Railways ofeconomic atthecentre hadbeen served intherace toserved expandCanada’srailways. latory bodyto thatthepublicinterest was ensure 3

th century, shiploadsof

a solution to thedebate. railway constructionacross Canada,sought which hadheavily subsidizedmuchofthe inOttawa, since 1885.Successivegovernments railway, CP,ental had heldavirtualmonopoly Western theonlytranscontin where provinces Some oftheloudestcomplaintscamefrom the thepoliticiansinOttawa. heard by plaints were rates.charged thehigher Inevitably thecom- tobutnotbeingness sense them, theshippers the more competitiveregions. It madegoodbusi- hadshavedrecouping theprofits thatthey offin railway were companiesreasoned thatthey non-existent, freight rates sethigher. were The or competitionwaslow But inregions where customers.special dealsto andbetter theirbigger to rates, setcompetitively low oftenoffering forcustomers.the border Therailways had railwaysation and withAmerican southof ies viedwithoneanother, withwatertransport railway compan several Canada,where Central Freight-rate competitionwashealthy in 6 5 4 the cruxof theproblem. thesamerate, andthatwascharging everyone not were did.Butthey costs, whichindeedthey neededtothey chargerates thatwouldpay their transportation. Railway companiesarguedthat and abouttherailways’ nearmonopolieson begantoshippers complainaboutfreight prices onrail travel forsuppliesandmarkets,dependent But asCanada’sbusinessinterests becamemore life. Mrs.Blair’ssocial skillsare mentionedinSandra Gwyn’s ThePrivateCapital. The , p.48. Ken Cruikshank,CloseTies andW.T.of CanadianTransportation, KenCruikshank’sCloseTies Jackman’sEconomicsofTransportation. Accounts ofthedevelopment Canada’sfreight ratestructure canbefound in A.W. Currie’sEconomics Dictionary ofCanadian Biography,Volume XIII,(1901-1910) describesA.G.Blair’spolitical and personal 4

set their own rates.)set theirown railway and companieshad largelyignored them Neither oftheseacts hadanyreal force, andthe The Railway ClausesConsolidation Act of1851. whichitselfwasdrawnConfederation, from Canada of 1868,thefirstrailway legislationafter Railway Actof ofthe General Act wasarevision created the Railwaybeen by Act of1888.(This which hebecamechairman.TheCommitteehad a Railway Council,of CommitteeofthePrivy of Railways wasalready andCanalsin1896, there G.BlairbecameCanada’sMinister Andrew When work to findsolutionsto thefreight-rates ofRailways Minister As andCanals,hesetto still livingathome. whowerecircle, andthoseofhisten children Anne, awelcomeadditionto thecapital’ssocial old. He hiswife, brought withhimto Ottawa hewas52 years government, Laurier’s Sir Wilfrid 14 years ofthattimeaspremier. hejoined When 18 years intheNew Brunswicklegislature, unwavering determination. He hadsatfor forhiscannypoliticalmindand known A lawyerandaseasonedpolitician,Blairwas staff. wasnopermanent nical training; andthere didnothavetravel; anytech - committeemembers anddidnotunbiased; itwasbasedinOttawa made upofpoliticianswhocouldnotbecalled defects:itwas thatithadserious discovered hear complaintsasajudicialbody. ButBlairsoon intended to regulate railway freight rates andto The Railway Councilwas ofthePrivy Committee 6 5

5 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 6 7 railway commissionsinBritainandtheUnited noted politicaleconomistofthetime,to study In 1899,BlaircommissionedSimonJ. McLean, a to theLakehead andto manywestboundroutes. rates rate — theso-called Crow — on grain going Pass lineinreturn forthecompanyreducing CP a subsidyforconstructionofitsCrowsnest gave inwhichthe government Pass Agreement Inproblem. 1897, Blairworked ontheCrowsnest , p.65. Ken Cruikshank, Close Ties went backtowent workto proposal. draft another a railway board. Thatbillwasrejected, soBlair Blairintroduced abillin1902 toreports, establish theresultsin Canada.With ofMcLean’s two States, in1901,to andthen, examinerailway rates over railways.over Thatbillpassed,and withthe bodywithregulatory powers an independent to establishaBoard ofRailway Commissioners, bill heintroduced arevised March 20, 1903, On GRAND TRUNKRAILWAY “TENWHEELER”STEAM LOCOMOTIVE NO.986,1900,CSTM/CN003833 7

Trunk- andproposed adealinwhichthegov railway.transcontinental He favoured theGrand determinedto remained haveLaurier asecond 8 couldnotbereached.an agreement efforts into network,but onetranscontinental the tworailway companieswouldcombinetheir attemptedtoLaurier workoutadealinwhich first, extending eastandwestto bothcoasts. At Bay), Thunder proposed branchesArthur (now Railway (CN), withlinksfrom Edmonton to Port Coast. oftheCanadianNorthern Promoters at North Bay to Winnipeg, andonto theWest terminusa westernsystemfrom itsnorthern support, to buildproposed, withgovernment andtoMidwest, Portland, intheEast— Maine inthenorth,to ChicagointheU.S.Ontario Canadathatreached fromCentral North Bay, The Grand Trunk Railway —withlineswithin burgeoning wealth. railway wouldbeneeded to accommodate this industry.and new He reasoned thatasecond grain-rich West settlers expandingwithnew would flourish.He alsohadvisionsofthe would behappy, andthecompetingrailways freight rates, westernshippersCP would lower that,withcompetition, heldtheview Laurier the West. fundsto expandtheirlinesinfor government companies months had forseveral lobbying been intohands.the matter hisown Two railway hadtaken Laurier competition. AndSirWilfrid solutiontoanother thefreight rates issue— wasconsideringMeanwhile, thegovernment it would becomelaw. inOctober 24, 1903, assent General’s Governor Joseph Schull,Laurier:TheFirstCanadian , p.422. 8

cause trouble. from theHouse hecould ofCommonswhere himand appreciated theadvantageofremoving put to Board, gooduseaschairmanofthenew abilities wouldbe sawLaurier thatBlair’sproven choices.veteran politicianshadmadeexpedient butthe hadnotresolved theirdifferences, men Board ofRailwaynew Commissioners. Thetwo In December,appointed Laurier Blairto headthe third reading. 29,thebillpassedits September the plan.On stirring bitofrhetoric,effecton butithadlittle theGrand Trunkcondemning plan.It wasa Commons onAugust 11, 1903, to aspeech deliver Blair stood intheHouse asa private of member go-ahead fortheGrand Trunk Pacific Railway. Julypresented hisbillgivingthe 30,Laurier On ofRailwaysMinister andCanals. discussions. July 13, 1903, Blairresigned as On ignore Blair, excluding himfrom therailway In decidedto theresulting impasse, Laurier plan.Blairwouldnotsupporthim.developing wouldnotbedeflectedLaurier from hisown to Halifax. which wouldtake traffic through theMaritimes City, Intercolonial atQuébec government-owned sion to theWest Coast,wouldhookupwiththe posal — theCanadianNorthern, withanexten- the Maritime provinces. pro- Blairhadhisown at Portland, completely bypassing Maine, Trunk already hadaneasternterminus Blair objected, chiefly becausetheGrand western portion. lineandtheGrand Trunknew wouldbuildthe ernment wouldbuildtheeasternsectionof

7 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 8 in Canada. methodofpublic regulationgroundwork foranew would lay They the government. the Dominion regulatory bodyestablishedbyindependent had nomodelsto follow. Theirs wasthefirst body.rules andregulations forthenew They Together setto thethree men workto establish tural CollegeinGuelph,Ontario. Ontario Agricul- ofthe post asthefirstpresident was Jamescalledfrom his whohadbeen Mills, Commissioner. oftheBoard member Theother CouncilwithBlair,Privy wasappointed theDeputy and whohadsatontheRailway Committeeofthe ofInland cabinetasMinister Revenue in Laurier’s E.Bernier,a ten-yearterm.Michel whohadbeen eachappointedconsist ofthree commissioners, for According to the Railway Act , theBoard wasto charges. andother fares, demurrage asfreight rates, andonsuchmatters ment), thegovern of railways by (exceptthose owned andsafety construction,operation over powers decisions hadtheforce oflaw. It hadregulatory Court to hearall railway complaintsandits ofaSuperioron theBoard. It hadthefull powers bestowed authoritythathadbeen tremendous in Canadianregulation. No onecoulddoubtthe realm, anuncharted awholenew courseentered But, despite the familiarsurroundings, Blairhad the ParliamentBuildings. Committee’s oldoffices,intheWest Blockof temporary quartersintheRailway given been wellasacabinetminister.known TheBoard had frosty February day in1904, inanofficehehad route forretreat. hesatonthat Andsothere through itsfirstfalteringstepswasanopportune Board, hisbrainchild,The taskofleadingthenew Trunk billandwasshortofalliesintheHouse. Blair, forhispart,hadfailedto stop theGrand

paign with promises of a bigger and better Canada. andbetter paign withpromises of abigger toand fresh battles befought. ledhiscam- Laurier 1904 brought election theexcitement ofafederal inthepoliticalring.hung uphisgloves Thefallof the Board through itsformativedays, hadnot But the60-year-old Blair, busy ashewasmarshalling railway between companies.” differences settling a safeguard to thepublicandaspeedymethodof willbeboth atribunalofcompetentmembers, by sesses, andwhichjurisdiction,ifwiselyexercised of suchextendedjurisdictionasthisBoard pos- Board, hasyetrealized thatithascreated aCourt whichconstituted the Government, Dominion Journal the reported that“wedoubtifeven with theCanadianpublic.In July 1904, theLaw The Board wasalsoestablishingitscredentials Branch investigatedThe Accident railway accidents. onrailwaysconstruction andrepairs andcrossings. inspected andapproved Department Engineering dealt withtariffsandfreight classifications. The as investigationscarriedout. TheTrafficDepartment aswell theCommissioners and decisionsissuedby theBoard, orderswork — complaintsreceived by dealtwiththepaper The Records Department to handleroutine work. up fourdepartments BlairJr.,A.G. astheBoard’s law —andset clerk beingBlair’ssonandnamesake,one ofthem employees —The Board alsohired 19 permanent andVictoria.Winnipeg locationsbetween 18 days in15 different ofsittings 18,itheld August and, between 8 andSeptember travelled to Toronto forsixdays ofhearingsinJune theBoard inOttawa, 38 of thosedays spent were the Board held62 days ofpublicsittings. Although deal ofenergy. February Between 9 andOctober 18, tookthe commissioners uptheirtaskswithagreat thatThe firstAnnualoftheBoard shows Report - would provide. his dealwiththeGrand Trunk Railway Company railwayises wasthesecondtranscontinental that prom- declared. AmongLaurier’s Laurier ment,” - ofCanadaandCanadiandevelop the century point thisway, shallbe century thatthetwentieth thatallthesignstell countrymen, you,myfellow for Laurier, HallinToronto. atMassey “Letme reported onanelectionrallyGlobe newspaper Canadian politicalhistory. 15,The October On often repeated —andmisquoted —phrases in The electionwouldyieldoneofthemost COMPANY, 1905,CSTM/CN002380 RAILWAYWINNIPEG, CANADIANNORTHERN FIRST PASSENGER TRAINTOEDMONTONFROM present intention of re-entering publiclife.” intentionofre-entering present to theGrand Trunk Pacific Ihave scheme, no re-affirming mystrong objectionthat, beyond mission andhave Minister notifiedthePrime my positionasChairmanoftheRailway Com- that Ihave resignedauthorize theannouncement telegram thefollowing tohad sent itseditor: “I SCHEME.” According to TheTelegraph, Blair COUNTRYAND WILLSTUMP AGAINST G.T.P. RESIGNS carried ablaringheadline,“BLAIR TelegraphDaily inSaintJohn, New Brunswick Four days later, 19 editionofthe theOctober

9 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 10 9 for it.” Blairagaintrumpeted theadvantageof themoney,spending nothing andweare getting traffic willgothrough aCanadianoutlet. We are wayin noother canyouguarantee thatthe butoperate therailway,not onlyown because shouldgraph: “It isvitalthattheGovernment 22 intheSaintJohnrepeated onOctober Tele- Blair’s warningabouttheGrand Trunk was might have jobopportunities. other to “prospects” inhisfuture, suggestingthathe institutions inthecountry.” He alsoalluded regarded asoneofthemostimportantanduseful andusefulnesscometo instrength begrow in favour. thatthiscommissionwill Ibelieve it willbeableto alongandthatitwillgrow move gotfairlywellonitsfeet,thatI think ithasnow I possess haveappliedinthatdirection. been and vigour. abilitiesandenergies little What thistimeintonursed by somedegree ofstrength hasbeenchild, atwhosebirthIcloselyattended, Railway Commissioners. “Ifeelthatthisinfant Blair’s lastaddress aschairmanto theBoard of storyAnother intheTelegraph thatday carried it already hadoneinPortland, Maine. would useMoncton asitseasternterminuswhen raised doubtsthattheGrand Trunkmany others, in BritishColumbia.However, Blair, alongwith toRupertacross thePrairies theportofPrince the Grand Trunk Pacific, whichwouldextend the Grand Trunk’s still-to-be-built subsidiary, wouldleasethatsectiontothe government the National Transcontinental. After completion, nipeg to Moncton, New Brunswick,to becalled build theeasternhalfofsystem,from- Win would government stipulated thattheDominion dealwiththeGrand TrunkLaurier’s Railway had Ibid, p.441-444. Montréal to root outthesuspected perpetrators. scurryingto Minister thePrime sent Laurier to, intoconspiracy turnLaPresse aweapon against inMontréal. newspaper ArumouredLa Presse thepromoters behindCN,Mann, hadbought A weekearlier, andDonald Mackenzie William Saint John Telegraph. of Blair’stelegram quoted that hadbeen inthe questionedtheauthenticityopposition andeven minimizedtheimpactofBlair’s papers Other defeatwasimminent.Parliament, thatLaurier’s speculated that BlairwouldrunasaMember of if theGrand Trunk ahead.Reports project went wouldbethrustoutinthecoldfretted thatthey theriver.Eastern Canadadown TheMaritimes Grand Trunkthat Laurier’s dealwasselling to somemaintaining theirpolitical alignment, variedaccording papers expressed by The views system through theMaritimes. Intercolonial Railwaythe government-owned the stump against this outrageous expenditure ofthe stumpagainstthisoutrageous expenditure Mr. Blair’s himfrom taking familythatprevented 1904)illnessin inNovember thesudden (now But, thefront-page story continued,“And itisonly great wastheswindleofpublicmoney.” wearing amaskandcarryingdarklantern,so through theGrand Trunk Pacific billwithout tonot standupinParliamentandattempt steer resigned from thatpostin1903),hecould ofRailwaysbefore heresigned asMinister (hehad the ONTHERAILWAYthe headline“BLAIR JOB”, the politicalcampaignwasannounced.Under 1,Blair’swithdrawal onNovember fromThen, Telegraph Blairstated, reported: “Hon. A.G.

9 10 chairman’s spotonFebruary 7, 1905. C.into Albert Killammoved theCommissioners, Back attheofficesofBoard ofRailway great expansefrom seato sea. railways,but three transcontinental to cross its Intercolonial line.Canada wouldhave nottwo, routetranscontinental thatwouldlinkwiththe financialbackingtoenough buildtheirown of the CN expansionmanagedto begandborrow was completed. thepromoters And,as ithappened, yearsbefore therailwayseveral construction Pacific ahead,thoughitwouldbe dealwent re-elected were andtheGrandment Trunk - andhisgovern November 3, 1904,Laurier On onthepoliticalstage. performance from the electioncampaign.He hisfinal hadgiven But themessagewasclear. Blairhadwithdrawn the people’smoney.” explanation. wasnoother There the use of the “mountain scale”, a higher tariffthe useof“mountainscale”, ahigher according to region. In 1906,theBoard allowed rates ofthe principleofdifferent acceptance regarding freight rates thatillustrate theearly madetwomajordecisionsCommissioners business athand.In thenexttwoyears, aside whiletheBoard turnedto thepressing pushed Killamincharge,politicswere With Court ofCanada. In 1903,hehadbecomeajusticeoftheSupreme in1899. Bench Justice oftheCourtQueen’s to hehadrisen thepositionofChiefwhere to studyandpractise law, onto andthen Winnipeg the sonofaseacaptain,hehadgoneto Ontario in theManitobalegislature. BorninNova Scotia, abrieftime jurist,althoughhehadspent career can befoundin Annual Reportsandinvariouseditions ofWho’sWhoinCanada. aboutAlbertC.KillamandhissuccessorsontheBoard ofRailwayCommissionersBiographical information 10 He wasa Association expressing concerns aboutsafety expressing concerns Association Trainmen’sreceived apetitionfrom theOntario Board wasrailway safety. In 1907, theBoard majorarea ofregulation fortheAnother content-basedfrom providing services. poly inalargepartofCanada,wasprohibited BellTelephone,used when whichhadamono In thetelephone industry, asimilarprinciplewas of messagecontentfrom control oftransmission. telecommunications ofcontrol —theseparation ruling establishedabasicprincipleofCanadian services.originated news TheBoard’s withother messagesthat pricefordelivering a higher was usingdiscriminatorycharging pricingby atelegraph service,which wasoperating news transmit news. In 1910,theBoard ruledthatCP, Newspapers alsorelied onthetelegraph to therailwaysby forsignalling. therailways’followed rightsofway andwasused munications andtherailway. Thetelegraph system telecom thelinkbetween - alsounderscored they intheBoard, but confidence dutiesrepresent new disagreements. Noties, andsettled onlydidthe compan ofnew tariffsandthelicensing approved express, telephone andtelegraph tolls. TheBoard In 1908,theBoard assumed jurisdictionover tariffssouthoftheborder.response to lower in andQuébec on freight carriedinOntario on internationalrates, theBoard reduced tariffs In 1907,than elsewhere. ataToronto hearing freight through theRockiesmoving wasgreater ratehigher wasjustifiedbecausethecostof Columbia. TheBoard haddecidedthatthe CP onfreight goingthrough Britishcharged by

11 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 12 on July 29, the Railway to Act wasamended chiefcommissioner,new the andthenbecame judge High CourtofJustice, from Ontario’s Jamesa March 28, 1908, Mabee, Pitt On priety andcorrectness ofsuchaction.” inregard toas possible,nouncertainty thepro shouldbe,as far theBoard, there was takenby carefully andcautiously. Heaction feltthatwhen Act was ‘ontrial’andthatitwaswellto proceed created. ...Mr. Killam realized thatthe Railway effect thepurposesforwhichthisBoard was he wasindefatigableinhiseffortsto carryinto year: “Mr. spared himselfand.... Killamnever Board asdescribedintheAnnualReport ofthat Itdied ofpneumonia. wasagreat lossto the Killam ChiefCommissioner March 1, 1908, On Uniform Code was adopted. ties to respond and, onJuly 12, 1909, thenew railway interested companiesand other par eliminated.practices were TheBoard invited equippedandhazardous properly trains were welltrained, were thatemployees would ensure Code ofTrain Rules forCanadianRailways that proposed aUniformbut therailway employees andSafetyApplianceDepartment, Equipment The Board hadalready created the Railway Board’s immediate attention.” added, “Thisisastate ofaffairsthatcallsforthe ofthecasualtiesand cent for about40 per andhead-oncollisionsaccountedderailments Branch reportedBoard’s thatyear Accident injured. Thealarming 806 rail workers hadbeen 246 employees.injured. Amongthedeadwere An in railway was529 with1,309 people accidents thedeathtoll inMarch 31, 1908, ending period reason to In beconcerned. thetwelve-month regulations forrailway workers. Theworkers had - been fortheunfortunate atSpanishRiver.”been accident haditnot wouldbe arecordMarch 31, 1910, (low) Branch stated: “Accidents ending fortheperiod In theAnnualReportof1910,Accident railway crossings. tolights andfencing protect thepublicat like devices signs,which wouldhelpprovide annual injectionof$200,000 from government, in 1909,to theBoard withan beadministered by A Railway Grade Crossing Fund wasintroduced Street inOttawa.) room at64-66 Queen (Since itsearlydays, ithadofficesandacourt quarters. staff,begantoforlarger growing lobby The Board, withitsincreasing workloadand rates. electricpower jurisdictionover missioners the Railway Act gave theBoard ofRailway Com- toIn amendment May 19, 1909, afurther ontheBoard. sitting ever anddiedwithouttook illuponarrival inOttawa to railway rates. Greenway, however, was70; he oftheWest’shad firsthandknowledge attitude and foratimeitsAgriculture Minister, andwho ofManitobafrom 1887 to 1900, Premier been ment. Thethird was Thomas Greenway, whohad the Railway worthy appoint Board, wasanother that hadformedthebasisforBlair’sbillto create therailwayeconomist whohadwritten reports of theBoard. SimonJ. McLean, thepolitical wasappointedChief theAssistant of Ottawa, lawyerandthemayor aprominent Scott, D’Arcy years’ standingatthebarofanyprovince.” or whoisabarristeradvocate ofatleastten CourtofCanadaoranyprovince,Superior ajudgeofthe whoisorhasbeen commissioner appointed orassistantchief chiefcommissioner stated, “Any requirement A new may person be from three. theBoard toenlarge sixmembers

- - passing onrailway property. Companiesare doing killedand69 injured whiletres were - 140 persons 1911, ofthenineprovinces. “During general 1911,itissueda circular toMarch theattorneys safetyconcerns.The Board dealtwithother In theimpact. nosurvivors.turned by were There onthetracks, wasover sitting train’s engine, feethigh.The more thantwenty in snowbanks thenextday. report Province buried were They avalanche,an earlier according to aVancouver from clearingthetracks ofsnow hadbeen ers 62 CP workers westofRogersPass. Thework avalanche 4,asudden killed March accident. On Six weekslater, dreadful wasanother there ice-bound river. injured. Twentypeoplewere from the berecovered some bodieswouldnever speculated reports thatat 42,thoughnewspaper the edgeofice.”Thedeathtoll wasreported onitssideat feethigh,andturnedover twenty anembankment plungeddown following sleeper into onthenorthsideofbridge.The theriver and thefirst-class car, whichplungeddownward flames. “Following these(cars)camethediner swung around to hit thebridgeandburstinto spread.” However, thenextsecond-classcar therails escapedgoingoffwhere car narrowly ontherails andthesecond-classcars remained tender,“The engine, mail,express andbaggage the SpanishRiver.” straight pieceoftrack justeastofthebridgeover a train, calledtheSooExpress, lefttherails ona diate deathoralmost immediate destructionwhen hurledtohundred humanbeingshadbeen imme- , “atleasthalfanewspaper, Mercury theRenfrew of Sudbury, Ontario.According to theweekly west onJanuaryderailed 21,1910,about37 miles A CP train travelling from Montréal to Minneapolis - - up andadecision wasissuedonApril 6, 1914. wrapped hearingswere case. ByNovember 24, 1913, Drayton quicklysetto workonthefreight rates made animpression inCanada’slegal community. onJuneMabee 29.He wasjust43,butalready had job ascounselfortheCityofToronto to replace Henry L.Drayton, adistinguishedlawyer, lefthis anddiedonMay6. attack anappendicitis suffered Chief Commissioner of theBoard inToronto, therobust 52-year-old asitting April 29, 1912,whilepresiding over On didnotgetachancetoMabee finishhistask. the rates andtheso-calledmountainscale.But begananinvestigation into Mabee missioner “discriminatory freight rates” andChiefCom- had raised anoutcrycalled againstwhatthey In 1910,boards oftrade in thewestern provinces was continuingto operate ataprofit. while CanadianPacific, withgoodmanagement, oftheirexpansionprojects,the financialburden Canadian Northern bothstrugglingunder were the imbalance in rates. TheGrand Trunk and railwaycontinental companieswouldeliminate trans- Hopes diminishingthatthetwonew were commodities. regions andfordifferent in different ued to bickerabout thevariousfreight rates charged Meanwhile, and railway shippers companiescontin- ofRideauandElginStreets.building atthecorner constructedthe newly Grand Trunk Railway Station 63,moved to numbering anditsstaff,now sioners In 1911,theBoard ofRailway November Commis- thisdeathrate.”lessen are prosecuted, itwillbeimpossibletooffenders found mostdifficultto obtainconvictions. Unless assotrivialthatithasbeenlook uponthematter prosecute they ...manymagistrates... butwhen thisunnecessarykillingtheir utmostto prevent

13 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 14 standard tariff, will apply toapply will tariff, thestandard other two Prairie scale intheWest,“The lowest namelytheManitoba CANADA”WITH EASTERN onto explain: andwent WESTERN DEMANDFOREQUALITY OFRATES line onApril8,“RAILWAY COMMISSION REFUSES The in fact, reasonable. andthattheratesin theeasternprovinces were, competition thattherailway companiesfaced discriminatory, thegreater justifiedby were they freight rates inWestern Canadamightbe The Board foundthatalthoughthehigher Manitoba FreeManitoba ran inWinnipeg thishead- Press a complicated The anddifficultproblem. havewhich they dealtwithwhatwas admittedly in manner ing ofcredit forthecomprehensive larly itschairman,Mr.- H.L.Drayton, are deserv Board ofRailway andparticu- Commissioners, The intheWestothers gavereception. itawarmer withthedecision,Although Manitobawasunhappy apply to thePacific section.” butdecreased standard is to higher A somewhat section. lake andtheBritishColumbia provinces Regina SAINT-HUBERT, QUÉBEC,AUGUST1930, PEOPLE, AIRPLANESANDTHER.100 AT Leader-Post wasfullofpraise: “The CSTM/CN000246 cially and made repeated pleas for government aid. cially andmade repeated pleasforgovernment strugglingfinan- until 1915.Bothcompanieswere routefinish constructionofitstranscontinental April 7, 1914. TheCanadianNorthern wouldnot Ruperttotracks from on Prince Winnipeg The Grand Trunk Pacific hadcompleted its lesslikelywere tosparks. emit of coal.It suggested thatoil-burningengines types certain the sparkinghazards presented by install fireguards. TheBoard alsobeganto study toorders clearbrushfrom rightsofway, andto railways.have causedby been TheBoard issued timber.” the1,346 fires, Of 904 were reported to ...and107,496 wereforest growth merchantable 191,770 acres, ofwhich49,326 acres young were atotal area ofof 1914.Thesefires burnedover duringthefire seasonthroughout theDominion, started within 300 feet oftherailway track, “A total of1,346 fires are reported ashaving of 1914,”theAnnualReport forthatyearstated. seasonobtained duringthespringandsummer “A drought conditionofunusuallysevere appointed afull-time fire inspector. forested areas, andonJanuary 1, 1913, theBoard hazard alongtherailway lines,especially in matters. urgent Firesother apersistent hadbeen Meanwhile, theBoard’s staffwasdealingwith ofgratitude. deserving made thedecision,”asifhewasparticularly caption thatexplained,“Thisisthemanwho Drayton wascarriedonthefront page,witha A largephotograph ofthe handsome Chairman onthejob.” Board ofexperts having apermanent The railway inCanada.” revolutionized matters It government. hasthe bestactsofLaurier creation oftheRailway Commissionwasoneof Calgary Herald noted “thegreat advantage of wages andpricescontinuedto climb. the reduction inmanpower, higher demanded atanadvantagewithhome, seeingthemselves andpricesrose. Workersshortages developed at peacetime-styleproduction,industries slowed Canada’s workforce shrank; atthesametime, the CanadianExpeditionaryForces Overseas. whohad joinedhonour roll, listingemployees of Railway carrieditsown Commissioners Annual Reportsduringthewaryears,Board In signedupforservice. itsand more soldiers asmoreThe humansacrificewastremendous the wartook its toll andshortagesdeveloped. theyearsdragged on,thecostofsupportingAs clothing tospecialregulation. fuel —fellunder of Canadianindustryandtrade —from foodand directed to thewareffort,andgradually allfacets was ofgovernment The wholemachinery cabinet. onthefederal powers The War emergency Act of1914 conferred Measures evaporated withtheonsetofwar.investment supportorforforeign CN for more government The hopesofthedebt-laden Grand Trunk and aside. shoved werenight — thecountry’sdomesticproblems —almostover suit,andsuddenly followed on August 4, Britain declared itselfatwar. Canada theultimatum’sdeadlineexpiredBelgium. When toan ultimatumforGermany withdraw from in theiradvanceonFrance. Great Britainissued Belgium chargingthroughtroops neutral were could beheard from across theAtlantic.German days of1914,anominousrumble ofthesummer through thesultry asCanadiansmoved Then, -

15 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 16 11 with rail-car shortages. ing to avoidandto duplicationofservices deal formed, andrailway companiesbegancooperat wasRailway forNational Association Defence financial woes.October 23, 1917, On theCanadian to soughtremedies theircompanies themselves Board granted theirdemands. Therailway increases inEasternCanada,and1916 the In 1915,therailway companiesappliedforrate nationwide railway rate increases in1917. Butthe Board ofRailway granted Commissioners further thepriceof FirstAs World War mounted, the , p.135. Ken Cruikshank, Close Ties FEDERAL CABINET. POWERS ONTHE FERRED EMERGENCY ACT OF 1914CON- THE THE ONSETOFWAR. EVAPORATED WITH FOREIGN INVESTMENT ORFORSUPPORT MORE GOVERNMENT TRUNK AND CNFOR DEBT-LADEN GRAND T HE HOPESOFTHE WAR MEASURES 11

- united into asinglenationalrailway withother Trunk andthe Grand Trunk Pacific shouldbe agreed that CN,Drayton andAcworth theGrand released inMay 1917. AlthoughSmithdissented, New York Railway. Central Theirfindingswere ofthe Smith, president economist, andA.M. sion alongwithW. aBritishrailway M.Acworth, commis- toontheroyal Commissioners serve Drayton from theBoardmissioner ofRailway sion onRailways. He chosetheChiefCom- In appointed May1916,Borden aRoyal Commis- to the government. its westernsubsidiary, theGrand Trunk Pacific, funds. It togovernment alsooffered handover completedwhich hadbeen onJune 1, 1915, with to theNational take Transcontinental, over adecadeearlier over deal madewithLaurier In 1915,theGrand Trunk onthe hadreneged railway companiesteetered nearbankruptcy. Grand Trunk andtheCanadianNorthern. Both The increases cametoo late, however, forthe upon theBoard’s recommendation. government Borden’s the increase wasissuedby threatening toterparts were strike. Thistime, cant increase inwagesandtheirCanadiancoun- because U.S. railway workershadwonasignifi- nies askedrate for another increase, thistime monthslater,A few inJuly, therailway compa- intoThe increase went effectinMarch 1918. still managingto keepitsaccountsintheblack. war, imposingawartaxon CP, andby whichwas the increase effectiveforonlyoneyearafter the making responded by RobertBorden Minister appealed thedecisionto Prime thegovernment. andagricultural organizationswestern provinces August 1, 1919, helefttheBoard to becomefinance grantedbeen aknighthoodforhiswareffort.On afoot.were Drayton had ChiefCommissioner At theBoard ofRailway changes Commissioners, strikes broke outacross thecountrythatsummer. injured andonedied.OtherThirty peoplewere with theRoyalNorthWest Mounted Police. 30,000 workers, andresulted clash inaviolent from May 15 to June 25,involvedmore than Strike, in1919,lasted General The Winnipeg maimedinbodyandspirit.came homewere force onEurope’s battlefields.Manyofthosewho indisarray.were It hadlostalargepartofitswork staples.shortages infoodandother Its industries debt,highinflationand withenormous down peace finallyarrived,thecountrywasweighed The warhadtaken aterribletoll onCanada.When thewar,by ashadindustrialdevelopment. not materialized.Immigration curtailed hadbeen cipated intheWest had attheturnofcentury anti debt. thathadbeen growth Theenormous with hadcrippledthem and duplicationofservices of thecompetingrailway companies. Over-building The waralonecouldnotbeblamedforthefailure National Railways systemwasinoperation. amalgamation wascompleted andtheCanadian the Grand Trunk andGrand Trunk Pacific, the its management.By1923,withtheadditionof Company withaboard oftrustees to oversee incorporation oftheCanadianNational Railways Railway fortheA revised Act of1919 provided 12 including theIntercolonial. already owned,railways thatthegovernment William T.William Jackman,EconomicsofTransportation, p.688-9. 12

- rates increases are disposedof,andcharging the Railway Commissionbefore applicationsfor ofCalgary board oftrade forawestern sitting “Curtly decliningtothe request ofthe consider somereaction tooffered Carvell’sdecision: Freein theManitoba onAugust 6, 1920, Press around thecountryonissue.Anarticle August 10.He refused requests to holdhearings forCarvell calledforaBoard hearinginOttawa regional interests. and shippers raised by But objectionshadbeen before theBoard ofRailway Commissioners. advancethe railway cent companiesfora35 per on July 20, 1920, wasanapplicationfrom there ArthurMeighen thegovernment tookWhen over and fuelwashurtingalltherailway companies. costoflabour intheblack,higher operating increases to theirrates. AlthoughCP wasstill The railway companies continuedto seek not idealforajudicialposition. outspoken andfeisty. His character wasperhaps forbeingCanadian militia,andhadareputation demeanor, from hisearlytraining inthe alegacy Carvellwasbrusqueinissue andjoinedBorden. theconscriptionHe broke over then withLaurier won in1904 andgovernment. satwithLaurier’s run federally. He lostintheelectionof1900,but Brunswick legislature in1899,hadresigned to politician who,afterabriefexcursion to theNew polish orcharm.At57, hewasalawyerand Fighting Frank Carvell.He hadnoneofDrayton’s as chairmanwaspopularlyknown The new Worksship from hispostasPublic Minister. Frank by was replaced Carvell,whohadjustjumped Thenextday government. he minister inBorden’s

17 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 18 13 widespread comment.” of prepaying messagesofthischaracter, cause businesspractice from theuniversal departure story continued,“His lackofcourtesy, and his TheFree aswellintheWest.’” PressOttawa setforthcanbearguedinAll principlestherein Board yesterday ‘Telegram asfollows, received. chairman oftheRailway Commission,wired the his telegram ‘collect,’Hon. Frank B.Carvell, length withvariousfreight ratedecisions. Both A.W. dealatsome Currie’sEconomicsofCanadianTransportation andKenCruikshank’sCloseTies FIRST TRAININTOTHEPAS- RAILROADEMPLOYEESANDPASSENGERS WITH LUGGAGE,THEPAS, MANITOBA,1908,CSTM/CN002526 response, but the shippers were notappeased. were response, buttheshippers andresistance todence politicalpressure, alaudable - its decision.TheBoard wasdisplaying itsindepen real objectionsto it. Upon review, theBoard restated itsdecision,althoughhedidnotraise any review Meighenment. Minister asked Prime theBoard to appealedto thegovern and shippingrepresentatives municipal cent. 35 and40 per Provincial, between onAugustand issuedajudgment 27, raising rates Carvell wrapped uptherates August hearingby 21, 13

16 15 14 for shippers. liftedhad been duringthewar—to reduce rates which agreement — parts oftheoriginalCrow rate reductions. Thecommitteerestored some of1897,ment inwhichCP had agreed to certain committee to Pass studytheCrowsnest Agree- appointed aspecialIn 1922,thegovernment some more. accord andtherailwayown commissionlowered railway companiesreduced somerates oftheir thatlasteda downturn into themid-1920s. The At thesametime,Canadianeconomyentered to grapple withtheequalization offreight rates. cessor, Lyon William King, Mackenzie continued ofArthurMeighen andhissuc- The governments impartiality required inhisposition. opinions soopenly. He wasstraying from the decisions, andwascriticizedforexpressing his some public Board previous speeches defending railway companies. Carvell,forhispart,made regional interests andtheprofit objectivesofthe toBoard’s regulatory thedivergent powers, would benosatisfactory solution,withinthe It thatthere wasbecoming painfullyobvious regional interests.country withsomanydiverse wouldbeinaimpossible anequalizationscheme justhow revealed The hearingsthatfollowed shipped.did businessorwhatcommoditythey rates inwhatpartofthecountrythey nomatter thesameequalization, thatis,chargingshippers to holdhearingsinWestern Canadaonrate Boyce A.C. Carvell setoutwithCommissioner In thespringof1921,atrequest ofCabinet, Cruikshank, p.186-9. Cruikshank, p.164. Cruikshank, p.151-3. 15

14 hold a general inquiryinto rate other issues.hold ageneral and flour. theBoard Parliament alsoordered to rates,cel theCrow-based exceptthoseongrain steppedinto can- response, King’sgovernment assetin1897.interpretation oftheagreement In companies could,however, usethenarrow Board rate. couldnotdrop theCrow Railway resultedprovinces inaruling1925 thatthe thewesternAn appealto Courtby theSupreme rateCrow ongrain. 1922 statute that hadreinstated therelatively low despite Pass thewith theCrowsnest Agreement, decided to help railway dispensing companiesby In October, hearing, afteraseven-day theBoard ofhisown. problems hejoinedtheBoard andhesoonfound61 when Brunswick from 1922 to 1924.McKeown was dean ofthelaw faculty attheUniversity ofNew Justice. He hadalsotaughtlaw, andhadbeen CourtandlaterChief Supreme the province’s In 1908, hewasappointedGeneral. ajusticeof andAttorneylegislature asSolicitor General McKeown intheNew hadserved Brunswick Brunswick’s Court,to Carvell. Supreme replace McKeown,Harrison A. thechiefjusticeofNew Kingappointed Mackenzie Minister Prime rate.clamour foraninvestigationoftheCrow August 9, 1924, FrankOn Carvelldiedamida railway rates ongrain exportsfrom Vancouver. In 1923 theBoard, attherequest ofcabinet,reduced 16

19 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 20 liberal interpretation ofthe 1925 grainliberal legislation. and required railway companiesto adoptamore National route from theWest City, to Québec theCanadian rate ongrain over alower ordered ratestranscontinental to interior points;italso mountaintariffandit maintainedthehigher Ratesin theGeneral Investigationwhich by Also in1927, theRailway Board issuedadecision railway companies. forthedetermining theannualcompensation the reductions. thetaskof TheBoard wasgiven railway companiesfor anylossesresulting from of forthecompensation The Actalsoallowed partsofCanada. andboundforother Maritimes tariffs andrates onfreight originatinginthe in 1927. thelocal cent 20 per TheActreduced by Freightthe Maritime Rates Act thatwasadopted andtherailwayshippers companieswasfoundin theneedsof methodofanswering A new 17 and incomplete.” wasissuedonarecordthe order partiallyheard thatdetermined onthefactsafterdueenquiry; oftheratefairness andreasonableness isto be sion. McLean summeduptheirobjection“that thelackofimpartialityinMcKeown’sby deci- infact, concerned, and CalvinLawrence, were Boyce withtheBoard for17 years,A.C. had been the sameissuein1923.SimonJ. McLean, who whohadmadeadecisiononBoard members, did thisdespite theoppositionofthree other rates to Vancouver rate. basedontheCrow They fixingthegrainEdmonton Bulletin,approved Frank Oliver, aWesterner whohadfoundedthe 2,McKeown September andCommissionerOn Board ofRailway Commissioners’AnnualReport,1925. 17

season of1936 therailways ...carriedoutalarge from the theBoard’s fire inspector: “During A hugeclearingeffortin1936 ledto thisreport relief fundsto cleartherailway rightsofway. Railway companiesalsomadeuseofgovernment work. providing withtheaddedobjectiveofcrossings, now athighwaycontribute to safetyimprovements theBoard since1909, to administered by been toits financialallotment theFund, whichhad From increased 1930 to 1938,thegovernment supported theRailway by Grade Crossing Fund. several Amongtheprojects were unemployed. establishedtoprojects were givejobsto the relief. ongovernment-funded were Make-work tance. By1933,more thana millionCanadians looked forways toassis- The government offer broken apart.were losttheirhomes,andfamiliesstarved, others some unemployed, thousands ofCanadianswere hadarrived.Hundreds ofThe Great Depression nipeg Grain Exchangefallingprices. washitby drastic fallinvalues. thesameday, On - theWin October, theWall Street stock market a suffered to of wasmore badnews come.Attheend There a poorgrain crop thatfall. drought andhighwindsintheWest” resulted in ofextreme describedasa“longperiod the report provinces. in40 yearsthePrairie Whatseen stated thatthe fire season wasoneoftheworst In theAnnualReport forthatyear, theBoard and tunnelswasaddedto theBoard’s jurisdiction. In oftolls 1929,approval forinternationalbridges 18 along railway lineswasgreatly reduced thatyear. tracks.” To offires noone’ssurprise,thenumber accounted for1,700 miles, onbothsidesofthe carried onduring1937. Work year intheprevious minimum ofmajorclearingrightsway was The nextyear, thefire inspector reported, “A the fire hazard.” will have results ingreatly reducing beneficial labour campsthroughout thecountry. Thiswork domiciledin whohadheretofore been ployed gangs recruited- from theranks oftheunem amount ofright-of-way clearingwithspecial A.W. Currie,p.448-9. ANNUAL COMPENSATION FORTHERAILWAY COMPANIES. THE BOARDWAS GIVENTHETASK OFDETERMININGTHE NIES FORANYLOSSESRESULTING FROMTHEREDUCTIONS. ALLOWED FORTHECOMPENSATION OFRAILWAY COMPA- BOUND FOROTHERPARTS OFCANADA.THEACTALSO RATES ONFREIGHTORIGINATING INTHEMARITIMESAND ACT REDUCED BY20 PERCENTTHELOCALTARIFFS AND TIME FREIGHTRATES ACT THAT WAS ADOPTEDIN1927.THE AND THERAILWAY COMPANIES WAS FOUNDINTHE MARI- A NEWMETHODOFANSWERINGTHENEEDSSHIPPERS to thepublicrailway’s problems. soughtasolution financially andthegovernment of thecommission.TheCNsystem wassuffering CourtofCanada,wasnamedheadthe Supreme transportation system.Mr. Justice Lymanof Duff, commission to lookinto theconditionofCanada’s appointed aroyal government Bennett’s sion, R.B. In November,- oftheGreat Depres inthedepth appointed onAugust 13, 1931 to him. replace a justiceoftheManitobaCourtAppeal,was chief oftheRailway Board. CharlesP. Fullerton, Meanwhile, McKeown retired as onMarch 1, 1931, 18

21 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 22 19 Fullerton to headtheboard. trustees CN, to govern andasked the64-year-old board of setupathree-member the government amid rumoursoflavish spending.Thenextyear, CN, apositionhehadheldfor closeto tenyears, In 1932,SirHenryThornton resigned asheadof Chief Commissioner SimonJ.Chief Commissioner McLean, whohad Assistantposition wastemporarily filledby was appointed to theRailway Board, andthe 1934 andthefirsthalfof1935,nochiefDuring transportation needs.sibilities againsttheusers’ weigh therailways companies’ financialrespon- discretion to given were rail lines,inwhichthey of theabandonment assumed jurisdictionover In 1933,theBoard of Railway Commissioners eliminate unprofitable duplicationofservices. and services, agree to passenger poolcertain nomic standstillandlossofcustomers, would two railway theeco- companies, crippledby of therailway system.In thecomingyears, andcoordination1933 to cooperation encourage the Canadian National-Canadian Pacific Act of adoptedAt thesametime,government Donald MacKay,ThePeople’sRailway:AHistoryofCanadianNational , p.114. 19

In 1935,aplanfornationalairlinewasbeing inCanada. airline companiesoperating smallbecoming more commonwithseveral was available. Bythe mid-1930s, airtravel was Canada’s North transportation noother where andgoodsto areas ofof carryingpassengers anacceptedmethodBush-flying hadlongbeen inCanadasinceWorlddeveloping War I. The civilianaviation industryhadalsobeen viable source ofcompetition. makingmotorlogical advanceswere vehiclesa like theTrans-Canada Highway —andtechno- Road construction —includingmajorprojects across thecountry.porting freight orpassengers Railways theonlymeansoftrans- nolonger were itsfourthdecade. and theBoard hadentered of Commonsin1900.Guthriewas69yearsold, theHouse inpolitics,entering had alongcareer GuthrieBennett. Alawyerfrom Guelph,Ontario, R.B. Minister Prime by as ChiefCommissioner August 12,1935,HughOn Guthriewasappointed onitformore than25 years. hadserved and now oftheBoard, oneoftheoriginaldesigners been and the Marine Department. and theMarine theumbrella ofNational under Defence, been and Canals,theCivilAviation sectionwhichhad Railwaysthe functionsofthree departments: consolidatedHowe atitshelm.Thedepartment ofTransport with Department the firstfederal tation system.The Transport Act of1936 created hesetaboutreforming Canada’stranspor Then the Board ofRailway Commissioners. Fullerton, Chiefof theformer dismissed and CN, board of trusteesoverseeing thathadbeen the ofRailways, theMinister As Howedisbanded a successfulbusinessofbuildinggrain elevators. trained asanengineer. In Canada,hehadmade bornintheUnitedHowe hadbeen States and Howe. Decatur Clarence entrusted totransportation portfoliowasthen asprimeminister,zie Kingto power andthe a fallelectionbroughtLyon William - Macken However, government. Bennett’s by considered - been withtheBoard since1904.been Heas legalcounselonNovember 28, 1938. had andfirstchairmanoftheBoard, retiredfounder nical adviser. BlairJr., AndA.G. thesonof to ChiefCommissioner becomeatechAssistant - in designingthe Railway Act of 1903,retired as Blair thathadassistedturn ofthecentury A.G. McLean, atthe thereports whohadwritten Board ofRailway SimonJ. Commissioners: announced inthefinalAnnualReportof tworetirementsSymbolic ofthatchangewere time toon. move It hadended. was ofrailwayThe era supremacy the old Board ofRailway Commissioners. the Board ofTransport from Commissioners In 1938,the Transport was passed,creating Act

23 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 24 + + + + after ninedays. back to work the strikers passed to send legislation was Canada — strike in nationwide held thefirst railway unions August 1950, operations. Lines started Pacific Air Canadian July 1, 1942, A THE BOARDOFTRANSPORTATION ENGINES OF rushed so thatthe runways June.” will beready by preparatory to laying tworunways. ...Work ontheairportisbeing ongrading Uplands AirportforTrans-Canadamorning AirLines, of ConstructionCompany started work thisschedule, the Dibblee daysA few later, reported that“three days Citizen ahead theOttawa lastyear.”than inthesameperiod thisyear, have taken outinOntario vehicle licences been 61,000 more May 17,On reported that“more theCanadian Press than585,000 motor gripped itforalmostadecadeintheGreat Depression. At home,thenationaleconomywasshakingofflethargy thathad ominouslyacross Europe. crept Adolf Hitler’sshadow COMMISSIONERS, 1938 TO1967 in Spain’s civil war and of the growing menace offascismas menace in Spain’scivilwarandofthegrowing ofthelatest daily reports skirmishes delivered newspapers s Canadaapproached its71 st birthday inthespringof1938,

NORTH STARA TCACANADAIRDC-4MNORTH FLYING OVER KINLEY AIRPORT, BERMUDA,1950, CSTM/CN000261

25 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 26 21 20 cabinet.new tough-minded businessman,pulledhiminto his King,Mackenzie recognizing himasashrewd, the Port ArthurridinginNorthwestern Ontario. Howe was49 years hewon oldin1935 when transportation policy. overC.D. andofhispower Howe’spresence wouldconstantlybeawaremissioners of of itsexistence,theBoard ofTransport Com- the Board’s creation. Butforthenext19 years formative days, ofthemanwhohaddirected duringthose mention, The press madelittle Railway Commissioners. inherited from itspredecessor, theBoard of telegraphs, telephones, andexpress companies, railways,and airlines,alongwithjurisdictionover inlandwaterways withauthorityover missioners Act, whichcreated theBoard of Transport Com- ofthebillspassedwasthe Transportbreak. One billsinitslastdays before thesummerof several The Houseoccupiedwiththepassage had been session at3:40 p.m. (onJuly 1).” prorogued the General, todeputy theGovernor trip to England... Mr. Justice Cannon,actingas King advisedhimnotto postponehisvacation Mackenzie Minister thattime,Prime business by itwasfoundimpossibletobut when windup atmidnightThursday night(Juneceremony 30) Tweedsmuir was onhandfortheprorogation holiday. LordDominion General “Governor prorogued thedayhad been before, onthe cabinet wasstillworking, althoughParliament Julyreported that thefederal 2,theCitizen On John RobertColumbo, Columbo’sCanadian Quotations,p.269. 1958, p.88 andp.180. Reginald Whitaker, andFinancingtheLiberalParty ofCanada,1930- Party:Organizing TheGovernment 20

to approve agreed-upon charges between carriersto agreed-upon chargesbetween approve The Transport Act alsogave theBoard thepower cabinet.its jurisdictionwouldbedeterminedby and outside,buttheactualpointsplacesof specifiedpointsinCanadain Canada,orbetween specifiedpointsand rates between forairservice forlicensing ofapproval the Board hadpower matters. other In theaviationbut notover sector, andrates, licensing Board hadjurisdictionover instance, withinlandwater transportation, the railways.more limited inscopethanover For much thesetwomodeswere over its powers airandwatertransport, but authorityover given According to the Transport Act , theBoard was Howe’s favouriteremain project. Throughout hispoliticalcareer, TCAwould airmailservice. routes,transcontinental andover theinternationalandand withamonopolyover airline, asasubsidiaryofthepubliclyowned CN, Air Lines,thecountry’sfirstpubliclyowned thecreation ofTrans-CanadaHe oversaw then airsystem.for Canada’sfirsttranscontinental andground servicesthe organizationofoperating cabinet ministers. In 1937, hehadspearheaded King’smostsuccessfulwas oneofMackenzie hisshortcomingsDespite indiplomacy, Howe to that’sbeingtalked thekindofblather here.” IsitintheHouseanything usefulwhen andlisten was:“IdonotthinkI’mdoingtypical remark political lifeandhemadenobonesaboutit. A industry. He however, hadnopatience, forthe changestomade majorpolicy thetransportation ofTransport,By 1938,astheMinister Howehad 21

22 war onGermany. Canada declared September 10, 1939, back. On Poland wasnoturning inthefallof1939,there Hitlerinvadedto besetupinCanada.When British CommonwealthAirTraining program countries. plansafootfora In were 1938,there campaign ofaggression againstneighbouring Hitlerledabuilding inEurope asGermany’s world war. For years,tensionshadbeen several 1939 that wouldtake Canadainto another ofthelate of summer cataclysmic events oftheThe AnnualReportmadenomention intheAct.”down the necessityto complywiththeprincipleslaid various companies,andagreater appreciation of extraordinary amongthe lackofcooperation suchanhave avoided notbeen been hadthere tariffs,etc.,of licences, muchwhichmight necessarytobeen investigate allegedviolations andthefilingoftariffs;also,ithaspreparation necessaryintheeducational workhasbeen of theTraffic “A Department. largeamountof to aviation,” wrote W.E. Campbell,director of theTransport Act,particularlysoinrespect essary inrespect to provisions the licensing nec- discussion anddetailedworkhasbeen workload: “A great dealofcorrespondence, The AnnualReport of1939 describestheadded Board, andwiththesamestaff.previous appointed to whohadbeen thecommissioners Board continuedwiththesameThe new quantity offreight. rates foraminimum withlarge-volume shippers forspecial makingagreements for instance,by in specificareas withtheunregulated truckers, heavily regulated railway companiesto compete and shippers.the ThissectionoftheActallowed G.R. Stevens,HistoryoftheCanadian NationalRailways , p.383.

“Order inCouncilP.C.“Order 1 8527 ofNovember the war. noted As intheAnnualReportof1941, from theBoard’s jurisdictionduringremoved Meanwhile, offreight rates theapproval was dependent onthepublicpurse. dependent and, forthefirsttimeinmanyyears,itwasnot war, CN reported $300 million ofover revenues portation industry. Bythesecondyearof World War IIcreated aboominCanada’strans- involve examination,inspectionandapproval.” Theseincreased facilities consideration. under additionsare further transportation services, to war-time meetgrowing forrailway demands additions to existing railway track facilitiesand, increased traffic ontherailways brought about Theconsequentand existingplantsenlarged. plants andairfieldshaveconstructed been additional duties.industrialwar new Many “warconditionshave imposedthe department, Kilburn wrote thatbesidesthenormalworkof In D.G. the1940 AnnualReport,ChiefEngineer and Trade Board.” oftheWartimewithout theconcurrence Prices [...]for transportation ofgoodsorpassengers canbenoincrease inanyrates“There orcharges theBoard reiteratedAs inlaterwar-time reports, 1941. and October September between wages to prevailing thelevel froze pricesandCouncil.” Thegovernment in oftheOrder in carryingouttheprovisions to assisttheWartime andTrade Prices Board are being utilizedfacilities ofthisdepartment transportation andcommunicationservices. The imposed restrictions upontherates chargedfor 22

st , 1941,

27 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 28 Howe’s control. Themotionwasvoted down.) to the Transportturned over Minister, andoutof House TCA ofCommonsto have jurisdictionover passedamotioninthe GeorgeDrew Leader ofTrade, HowewasMinister when Opposition the airindustry. (In factaslate asJune 20, 1950, watched closelyanyBoard decisionsthataffected creation, andHe theairlinehisown considered tective interest inTrans-Canada AirLines(TCA). Throughout hiscareer, Howemaintainedapro- ofTransport.post ofMinister industry duringthewaryears. He alsokeptthe control overcreated to givethegovernment Munitions and Supply, specifically adepartment April9,C.D. ofOn HowebecameMinister good tenyearsyounger.” making asinglespeech”and“at63,helooks elected to theSaskatchewan legislature without Cross as“amodestsoldier-lawyer, whooncewas Journal April 1, 1940,theOttawa describedOn Service Order. of theDistinguished 23 28 World War withthe asanofficer I,hehadserved from 1922 to 1927,general twopremiers. In under Saskatchewan’sattorneyCross whohadbeen 73. Guthrie’ssuccessorwasColonelJames Albert Board’s chief commissioner, diedattheageof Hugh November 3, 1939, Guthrie,theOn railway andfires. accidents the Railway Grade Crossing Fund, andinvestigating and constructionofrailway lines,administering abandonment approving duties ofissuinglicenses, Meanwhile, theBoard carriedonwithitsregular th A.W. Currie,EconomicsofCanadianTransportation, p.544. Battalion and had been madeacompanion andhadbeen Battalion “unnamed” placenearthenamedplace. theairoperator flyingtocircumvented by an cabinet,therulingcouldbe namedby been an airoperator to fly to aplacewhichhad for alicence Also, iftheBoard turneddown itfrom theBoard’s jurisdiction. removing “unnaming”theroute,the Board by andthus regar the Board madeadecision instances,when eral specifi that were pointsandplacesBoard hadjurisdictionover the first. The Transport Act stipulated thatthe The Board’s role inaviation wasunclearfrom the publicly owned TCA from fulfillingitsthe publiclyowned handblock andontheother tion ofservices, theduplica- that would,ontheonehandallow The Board wasfacedwithadifficultdecision to service Victoria. passenger provide to mailand foralicence deliver Commissioners TCA coulduse,itappliedto theBoard ofTransport planes.larger anairportwasbuiltthat Butwhen landingsitewas notaproper atVictoria forits thetwocitiesbecausethere did notflybetween Victoriabetween andVancouver. Atthetime,TCA ofitspurchases wasanaircompany thatflew One expanded itsterritory markets. into several that hadairlicences tions, andwithBoard approval airroutes- opera frombought upseveral smaller Canadian Pacific AirLinesstarted operations. It had July 1, 1942,to On create airservice. itsown proposal to create thenationalairline,decided Railways, includedina whichbrieflyhadbeen Soon afterTCAwascreated, CanadianPacific ding an air licence, thecabinetoverruledding anairlicence, cally named by cabinet.cally namedby In- sev 23

24 the traffic, to CanadianPacific AirLines. themajorityof whichrepresented service, senger route.transcontinental Thatleftthelocalpas- butonlyasacontinuationofits service, senger Victoria airpas- andalsothatitcouldprovide Vancouver mailbetween TCA coulddeliver and mandate.transcontinental TheBoard ruledthat Ibid, p.549. JURISDICTION. FROM THEBOARD’S THUS REMOVINGIT ING” THEROUTE,AND BOARD BY“UNNAM- NET OVERRULEDTHE LICENCE, THECABI- REGAR MADE ADECISION WHEN THE BOARD ERAL INSTANCES, BY CABINET. INSEV- NAMED SPECIFICALLY PLACES THAT WERE OVER POINTSAND HAD JURISDICTION THAT THEBOARD ACT PORT FIRST. THE TRANS- UNCLEAR FROMTHE IN AVIATION WAS THE BOARD’SROLE DING ANAIR STIPULATED 24

supremacy ofParliament isbeing adopted.” supremacy method, amethodmore inkeeping with the Act: “A as wellasafairer muchmore scientific AeronauticsCommons, Howeexplainedthe new and regulatory functions. In theHouse of AirTransporta new Board to licensing provide Act,atthesametime,createdThe Aeronautics Board ofTransport Commissioners.” from thejurisdictionof airservices mercial ofcom- to for“theremoval amended provide the Transport September 11, 1944, Act wasOn carry thetraffic didnotweighwiththeBoard.” totraffic, andcouldnotobtainplanessufficient andcouldnotbegin to handletheovercrowded wascentres. operation Thefactthat theother connectingthetwo airoperation another wasVictoria seats,becausethere withempty Air Linesmustoperate from Vancouver to Howe said:“TheBoard ruledthatTrans-Canada oftheVictoria-Vancouver thematter On route, the domesticairservices. to allowed purchase suchalargeshare ofbeen thattheprivateconcerned railway companyhad inthoseyears.than 40 airoperations Howewas hadboughtmorePacific, Board approval, under therailwayoperated by companies.” Canadian and wasowned intheDominion air operation other Every airoperation. only oneindependent tions inthiscountry. Four yearslater, was there - airopera ofindependent agreat number were this. In theActwaspassed,there 1938,when effect oftheadministration oftheBoard was chieflywithrailwayconcerned problems. The the Transport isboundby missioners and is Act “TheBoard ofTransportperformance: Com - Howe expressed hisopinionoftheBoard’s In theHouse ofCommons,on June 11, 1944,

29 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 30 private enterprise. the railway atthe handsof industryhadsuffered avoiding theproblems itsdevelopment, ensure wanted to control theairindustryandgovernment tional airservices.” ofWorld Attheend War II,the theexistence ofprivateby interests ininterna- international relations becauseitwasnotlimited was to effectforCanada“afreedom ofactionin airpolicy made itclearthatthegovernment’s wouldparticipate, Kingenterprise Mackenzie private wouldbeareas where had addedthatthere of CommonsonApril 2, 1943.Andalthoughhe hehadbaldlystatedbe permitted,” intheHouse thesameroute willnot over airservices between abouttheairlineindustry.statement “Competition policy Kinghadmadeanearlier Mackenzie A TCACREWABOARDCANADAIRDC-4M of railway competitioninto air, transport by our competing railway systemsimplies extension ofairways by thatownership becoming obvious companies. March 17, 1944, On Howestated: “It is therailway oftheairlinesby involved ownership C.D. changeintroduced by policy HoweAnother Board ofTransport Commissioners. ofthe In effect,ithadnoneoftheindependence changesto policy theMinister.recommending Also, theAirTransport Board wasresponsible for ofTransport.subject to oftheMinister theapproval andregulations, butonlycould issuelicences close ministerialcontrol. TheAirTransport Board in theActasanadministrative body, subjectto The AirTransport Board’s role wasclearlylaidout NORTH STAR,NORTH 1950,CSTM/CN000256 25 and government. theBoardalready closerelationship between Thispractice reinforcedthe civil service. the to theAirTransport drawn Board were from appointedIn future years,manyofthemembers engineering. and aeronautical inbothflyingaviation industrywithexperience (Roméo) Vachon, intheCanadian apioneer Air Force, engineer, anaeronautical andJ.P.R. AlanFerrierVice Marshall oftheRoyalCanadian and Supply. Air were members Thetwoother ofMunitions oftheDepartment development in 1929 to 1930.In 1940,hehadassisted inthe minister ofRailways deputy had been andCanals Henry, whohadworked for CN andwas R.A.C. The firstchairmanoftheAirTransport Board its airline.) however, in1946 and CP was to allowed keep wasreversed, divestiture policy (The enterprise. Trans-Canada ofprivate AirLinesattheexpense to advancethe causeofthepubliclyowned Howewasdetermined statements, policy other inthisand wasapparent reorganization. As onthe andtimespent expense considerable of theCanadianPacific AirLineswouldbe The effectofrequiring CP to divestitself separate from surfacetransportation.” the European war, airwillbeentirely transport by of ofoneyearfrom theending that, withinaperiod ofairlinesto theend ofownership themselves taken to require ourrailway companiesto divest exercise anymonopolyofairservices. Steps willbe has decidedthattherailway companiesshallnot airservices. Thegovernment between competition desire to avoidregardless ofthegovernment’s senior civilservants intheDepartmentofTransport. Air Transport oftheAirTransport chairmen Board. Board, Two J.R.BaldwinandW.J. Matthews,were both Services, forCarletonCollege, Ottawa,April1955,commented thatcivilservantswere posted tothe Fred PaulGosse,inhisunpublished thesis,TheAirTransport Board andRegulation ofCommercial Air 25

crossing eliminations at certain prioritypointscrossing eliminationsatcertain struction to makeofpossiblerailway asurvey ofRecon- wasasked theDepartment ers by the year, theBoard ofTransport Commission- of1945, stated: theperiod “During covering of Transport AnnualReport, Commissioners’ afterthewar.transportation policy TheBoard Howe wasalsostillinapositionto direct to ofEverything.” earningthesobriquet“Minister lio forMunitions andSupply, andwasonhisway industries andmanpower. He stillheldtheportfo- mandate to direct thepost-war reorganization of ofReconstruction, Minister HowehadaAs toconsidered beagainstthepublicinterest.” timeitwouldbedisastrous andisthe present ofcompetitionmightbejustified,ata policy two ormore carriers. atsomelaterdate While to dividethesmall available businessbetween uneconomicalto anditisconsidered tryservices isnotroom forcompetingis suchthatthere transportation inCanada,thevolumeoftraffic ofair stageinthedevelopment at thepresent ted onscheduled airroutes. Thereason isthat, policy,down direct competitionisnotpermit thinking:“In accordance withlaidgovernment’s was publishedin1947, clearlyadvancedthe That AirTransport Board AnnualReport, which created forC.D. Howeinlate 1944. of Reconstruction andSupply, position anew wasdirectedThat document to theMinister December 31, 1946. September 11, 1944 and ever, fortheperiod itdidissueonereport indication ofitslackautonomy. How- to AnnualReports, another submititsown The AirTransport Board wasnotrequired -

31 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 32 increase from theBoard. centRailway 20 per soughtanother Association freight rateseral investigation.Meanwhile, the the Board onApril 7, 1948, to- conductagen thedecision,itasked reviewed the government itsmethodology. by public’s confidence While cabinet, claimingthattheBoard hadlostthe appealedthedecisionto orQuébec) Ontario methodology. (not ofthenineprovinces Seven usingacost-revenue cent, increase of21 per onan theBoard settled March 30, 1948, On increase. application fora30 per cent the Board rejected therailway companies’ post-war traffic. After150 days ofhearings, costsanddecliningvolumeofoperating increase infreight rates to offsettheincreased representing CN and CP, appliedforageneral Inevitably, theRailway ofCanada, Association 27 26 their wagesinresponse to union agitation. and CanadianPacific railway companiesraised was heard. In 1946, boththeCanadianNational of thewar, wages andsoonaclamourforhigher Wage dropped andpricecontrols attheend were andtheAirTransportCommissioners Board. tistical studiesforboththeBoard ofTransport created in1946 to economicandsta- provide A Bureau ofTransportation Economicswas post-war employment.” andnecessity,venience together withpossible throughout Canada,having inmindpubliccon- contentious freight rates issue,resigned. There the by 72,inpoor health andworndown now June 30, 1948,Cross, ChiefCommissioner On 1946 and 1951. Ibid. p.101-152. Currie givesagoodexplanation of theseriesfreight ratecasesheard between A.W. Currie,p.403. 27

transportation policy. commission thatwouldstudy freight rates and Saskatchewan, wasappointed to headaroyal ary 1949, W.F.A. Turgeon, ajudgein formerly commission to studytransportation. In Janu- alsodecided to setup aroyalThe government and asked itsdecision. theBoard to review 1948, theBoard inMarch by originally approved case,therate cent increase asthe21 per known inwhatcame to theprovinces beappeal by rejected the 1948,thegovernment In October ruled thattheBoard shouldmake a finaldecision. to Courtandthe theSupreme CP appealed interim onJuly 27, 1948. cent increase of8 per rate increase. TheBoard decidedto givean Railway secondrequest forafreight Association’s Meanwhile, theBoard continuedto hearthe theFederal(now Court). wouldbeajudgeoftheExchequer Courtsioners the ChiefofBoard ofTransport Commis- to the Railwayment that Act that yearprovided - Annual Reportfor1948 explainedthatanamend Board ofTransport Commissioners. TheBoard’s on thesameday thathewasappointed to the appointed to theExchequer CourtofCanada CourtofNovaSupreme Scotiain1937, andwas Justice appointed Archibald had been to the Commons thathewouldberetiring. intheHouse of King’sannouncement Mackenzie onthatdayMinisterThe bignews wasPrime Justice Archibald. Maynard Brown replacement, about Cross’s resignation —orabouthis onJuly 1, 1948,was nothinginthelocalpapers which were already shackled by stiffregulations. already shackled by which were pressure extreme onrailwayputting companies, costswas operating higher tions exacerbatedby - competitionfrom trucking andairopera fierce Transport Commissioners. Thecombination of extensionfortheBoard ofcompanies andby It wasatumultuoustimefortherailway application from BritishColumbia. rate fortraffic intheRockies) inresponse to an railwaytain scale(establishedin1914 asahigher In 1948,theBoard hadalsodropped themoun- increase announcedonJuly 27, 1949. cent 20 per shortfalls. TheBoard’s finaldecisionwasa claiming thattheBoard hadmiscalculated the butagaintheRailwaycent, returned, Association order, authorizedafreight-rate increase of16 per Court theSupreme And theBoard, following TRANSPORTATION POLICY. COMMISSION THAT WOULDSTUDYFREIGHTRATES AND SASKATCHEWAN, WAS APPOINTEDTOHEADAROYAL 1949, W.F.A. TURGEON,FORMERLY AJUDGEIN COMMISSION TOSTUDYTRANSPORTATION. INJANUARY THE GOVERNMENTALSODECIDEDTOSETUPAROYAL 1948, ANDASKEDTHEBOARDTOREVIEWITSDECISION. ORIGINALLY APPROVEDBYTHEBOARDINMARCH KNOWN ASTHE21 PERCENTCASE,RATE INCREASE APPEAL BYTHEPROVINCESINWHAT CAMETO BE IN OCTOBER1948,THEGOVERNMENTREJECTED wages and better benefits heldanationwide benefits wages andbetter In August 1950,railway unionsseekinghigher railwayBoard’s workloadremained regulation. of oilandgaspipelines. Butthemajorityof In licensing 1949, jurisdictionover itwasgiven telegraph, telephone andexpress companies. water transport, andstillhadjurisdictionover andratestinued to licences forinland approve The Board ofTransport con- Commissioners policies toofTransport. theMinister administering subsidiesandrecommending The Commission’sresponsibilities included created Commission. theCanadianMaritime post-war declineintheindustry, thegovernment In 1947,government. inaneffortto stem the war years,mostofitcreated thefederal by ahugeburstofexpansionintheexperienced Meanwhile, theshippingindustryhad

33 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 34 29 28 railway companiesto increase theirrates. This ultimately wouldputmore pressure onthe week shouldbeinstituted asofJune 1, 1951. increase anddirected thata40-hour, five-day After hearingbothsides,Kellock granted awage Canada, asanarbitrator tothedispute. settle Kellock, CourtofJustice oftheSupreme R.L. after ninedays.appointed Mr. Thegovernment was passedto thestrikersbackto send work strike, thefirstinCanadianhistory. Legislation March 15, 1951. It an equalizationMarch 15, 1951. recommended sion wastabledintheHouse ofCommonson from theTurgeonThe report RoyalCommis- Chief Commissioner, was“gravely ill.” in theHouse thatJustice Archibald, theBoard’s ated. In response to thecriticism,itwasnoted board becreBoard- bedisbandedandthatanew thatthe“incompetent”, andrecommended lacedwiththeworda longdiatribeliberally freight rate helaunchedinto hearings).”Then (of actionsduringthisextendedperiod its own had demonstrated itselfto beincompetentby of Transport saying Commissioners, that“it oftheBoard beganwithadenunciation Drew for twoofthoseyears. Louis St. theprimeminister had been Laurent for15consecutiveyearsand inOttawa in power Drew. Atthispoint, the samepartyhadremained George Leader June 21, 1950, Opposition by intheHousewas delivered ofCommonson againsttheBoardA particularlyscathingattack quarters foritshandlingoftherailway problems. while, wasthetargetofcriticismfrom various The Board ofTransport mean- Commissioners, biographical information about theBoard chairmen. biographical information Who’s WhoinCanada , 1957.TheBoard ofTransport CommissionersAnnualReportsalso carriedsome Ibid, p.405. 28

Kearney, diplomat. alawyerand career was John ChiefCommissioner The new D. impossible to findinthiscountry.” that itshouldhave. ...Traffic are almost experts “The Board hasnottherequired traffic advisers told theHousefact,” Chevrier ofCommons. staff.“The Board islackinginexpert Thatisa onstaffshortages.blamed theproblems Chevrier In theBoard’s members, defending took theopportunity to theBoard again. attack set forthenextday, members andOpposition nation ofthe60-year-old Justice Archibald was Board ofTransport Commissioners. Theresi dealtwithmore criticismabouttheChevrier Transport October 30, 1951, Lionel Minister On rate.a speedier thattheBoard dealwithapplicationsatmended of1897 continue.It alsorecom- Agreement Passgrain andflourassetoutintheCrowsnest ratesrailway on companies; and thatthelower forthea uniformsystem ofaccountsandreports excluding thattheBoard establish theMaritimes; of classificationrates throughout Canada, establishauniformsystemCommissioners of freight rates; thattheBoard ofTransport of Canada. An amendment to the Railwayof Canada.Anamendment Act in as a Justiceappointment ofthe ExchequerCourt toappointment theBoard coincided withhis Kearney’s independence. that countryachieved Canadian Highto Commissioner India after from 1941 to 1945,and,in1947, becamethefirst He hadheadedtheCanadianmissioninDublin asanincisiveandastutea reputation arbitrator. foreign poststhathadearnedhimheld several 29 He had g issues fellwithintheBoard’s jurisdiction. freight ratesthe province’s railway andother decisionsaboutthe CN system, andeventually railways province’s becamepartofThe new In 1949, Newfoundland joinedConfederation. brewing. issueswere applications, other theBoardWhile continuedto dealwithfreight-rate tion ofrates andassociated accountingsystems. theBoard toset upby handletheuniformclassifica- ofAccountsandCostFinding department was A new 1955.effect inMarch equalization onclassrates into finallywent ofconsultations,equalization. Afteralongseries In January 1952,theBoard beganhearingsonrate Court oftheExchequer. anautomatictoCommissioner appointment the 1952 would make ofChief theappointment PHOTOGRAPHER: W. ATKINS, CSTM/CN000238 SOUTHEAST, BRITISHCOLUMBIA,1947, VICTORIA INNERHARBOURLOOKING ment, to commissiononCanada’sment, headaroyal the BankofCanadaandFinance Depart Gordon, anaccountantwhohadworked for in1955, commissionedWalterThe government, 20 days priorto theirtakingeffect. being thatthechargesbefiledwithBoard oncharges,theonlyrequirementagreements gave greater freedom toto carriers make specific foragreed charges.approval The amendment thenecessityofBoard’s1955 removed to the TransportAn amendment Act in crossing problems. a Canada-wideinvestigationofrailway-highway ted onMay 10, 1954, after theBoard carriedout submit wasbasedonareport The amendment the Railway Grade Crossing Fund to $5 million. Parliament’s annualappropriation offundsto In 1955, the Railwayto Act wasamended increase

- -

35 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 36 30 years. thenextfew construction over forpipelinesion ofapplicationsandapprovals asucces- The Board’s AnnualReports document the Leducfindsetoffaburstofoildevelopment. years,but upinCanadaprevious opened been oilfieldshadinternational boundaries. Other orand gaspipelinescrossing interprovincial jurisdiction—oilwhich theBoard wasgiven February 13, 1947, hadcreated domainover anew on ofoilinLeduc,Alberta, The discovery Bay.Thunder from Montréal through theGreat Lakes asfar Seaway, shipsto larger travel whichallowed lines andtheconstructionofSt. Lawrence companies, theintroduction ofgasandoilpipe- ition withtheexpansionoflong-haultrucking Similarly, the1950ssawfreight compet widened cent.1953 and airplanes3 per travel in ofpassenger sented closetocent 7 per railway. by cent 10 per just over - Busesrepre private wasby carand1953, closetocent 80 per usedrail transport.while closetocent 40 per In private travel by automobile hadbeen passenger from 1928 toof 1953.In cent 1928,almost60 per and freight transportation inthe25-yearperiod highlighted inpassenger the changingtrends minister oftransport. issuedin1956, Thereport, ofJ.C.supervision deputy Lessard, aformer was dedicated to the transportation, under economic prospects. sectionofthatstudy One Robert Bothwell and William Killbourn, andSeeingCanadaWhole,AMemoir,byJ.W. Killbourn, Robert BothwellandWilliam Pickersgill. sourcesTwo discussC.D.Howe’srole intheTransCanada PipeLinedebate:C.D.Howe:ABiography by Pacific Railway in1885. endeavours, liketranscontinental theCanadian ofpreviousas anationalproject reminiscent thecross-Canada pipelineHowe envisioned andQuébec. to pipeline from Alberta Ontario TransCanadaforth by PipeLines,to buildagas put portfolio,seizeduponascheme Commerce In 1953,C.D. intheTrade Howe, now and of constructingthelines. dian markets alone couldnotsupportthecosts can andCanadiandestinationsbecauseCana- to allowed buildpipelinesto- were bothAmeri markets first. In practice, however, companies Canadian ofserving expoundedapolicy Ottawa border, southern Alberta’s easily bereached over kets way. gotunder AlthoughU.S. markets could thesearch forprofitablebecame apparent, mar oilandgasresources thewealthofAlberta’s As applied to Ottawa forfinancialaid,butwasapplied to Ottawa company, whichwaspartlyAmerican-owned, itsmeans.cost ofconstructionwasbeyond The TransCanada soonrealized, however, thatthe date ofDecember 31, 1957. andthat ithadacompletionDecember 31, 1954, the Board thatithadfinancingfortheproject by application subjectto thecompanysatisfying Board ofTransport granted Commissioners the asfarMontréal.Manitoba andOntario The through border from theAlberta-Saskatchewan toa permit constructthe2,188-milepipeline In 1954, TransCanada PipeLinesappliedfor 30

- line legislationinshortorder.” planned to useclosure “to ram through itspipe- announcedthatthegovernment Globe andMail the House ofCommons.May14,theToronto On to buildingin Howe’s planhadbeen Opposition away, onJune 7. the TransCanada PipeLinesbillwasamonth thedeadlineforpassageofWinnipeg. Bythen, and Alberta ofthecostlinebetween cent toposed lending TransCanada PipeLines90 per pro- May 8, 1956, theCanadiangovernment On can financialhelpto buildtherest oftheline. - nesota. Thisrejection dissolvedhopesforAmeri would seeabranch pipelinecrossing into- Min of gasto thatcountry, that partofthescheme the United States import stillhadnotapproved 1956. ByMay, theFederal PowerCommissionin Corporation inMarch PipeLineCrown Ontario introduced legislationto setuptheNorthern Howe there. didnotend Construction problems pipe wouldexpire onJune 7, 1956. forthealong withastipulationthattheorder cross-Canada pipelineto more than75 percent, ofthe ownership That dealbrought American supply thepipeinreturn forpartownership. the project. companyagreed to AnAmerican backing to buy theactualpipeneededfor TransCanada soughtfinancial PipeLinesthen company, outright. withoutgivingitmoney Howe’s planwasacircuitous way ofhelpingthe leasethepipelinebacktothen TransCanada. Corporation would PipeLineCrown Ontario to Kapuskasing, Ontario.Northern innorthern section ofthepipelinefrom theManitobaborder corporation thatwouldbuildtheunprofitable refused. In August 1955, Howeproposed aCrown of thepipewouldhave expired. six hours before theoptionforpurchase onJune assent 7,Senate. Itroyal wasgiven quicklypassedintheof Commons,andthen Canada PipeLinesbillwaspassedintheHouse In theearlymorningofJune 6, 1956, theTrans debate.without further todevice putthebillto avote atvariousstages retaliated withclosure, ararely usedgovernment the tablingofbillandto stallvoting. The andobjectionstotions, pointsoforder prevent with longspeeches,asteady barrage ofques- conductedfront ofparliamentarians afilibuster interests. American largelyby Aunitedowned wassubsidizingapipelinethat government 1950s. Theoppositionpartiesclaimedthatthe ofthemons wasoneofthemostferocious intheHouse thatensued ofCom- The battle supportingthepermit.read astatement thehearingonbehalfofHowe.Sharpeattended minister ofTradeassistant deputy andCommerce, toAlberta Winnipeg. Mitchell Sharpe,thethen for constructionofthewesternsectionfrom gave tosioners permission TransCanada PipeLines May 24,theBoard ofTransportOn Commis Canadian statesman.” revolutionary,banana republic butnotfrom any as words that“onemightexpectto hearfrom a legislation wasa“sellout,”Howe dismissedit criedthatthepipeline theOpposition When produce aworkablecourseofaction.’” or theeasyirresponsibility ofthosewhoneednot ofmind,arefusal towith ‘avacancy facethefacts, “Howe sprang tocharginghisopponents theattack complained,theGlobewrote: theOpposition When

37 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 38 his staffahead.TheGlobereported: “Thenext hadto send andDiefenbaker staff members In TCAcouldnotaccommodate theend, ontheall-nightflight.”least onestaffmember to dickeringwith TCAinanattempt getatbeen havereported onJune 14:“TheDiefenbakers flight from Saskatoon. ButastheGlobeandMail TCA onanovernight fly withhisstaffto Ottawa arrangements. Hewanted to andhiswife,Olive, minister, wasoccupiedwithtravel Diefenbaker awaitedeagerly prime thearrivalofnew In days, thenextfew however, whileOttawa a tough intheHouse opponent ofCommons. whohadalready establishedhimselfasPrairies John Diefenbaker, afirebrand lawyer from the party. wouldbeformedby government Thenew thesame more than20yearsofruleby and ended toThe countrywent thepollsonJune 10, 1957, ofhisyouth. energy majorcompanies,andhadthevigour several of World War II.He on theboards of hadserved appointed 53years before, andthefirstveteran sincethefirstBoard wasChief Commissioner distinction ofbeingtheyoungestmantoas serve chaironthesameday.sioner’s hadthe Shepard corporate lawyer, into moved theChiefCommis- a42-year-oldCourt. Shepard, Day Clarence toAt theageof63,hewent sitontheExchequer oftheBoard.resigned asChiefCommissioner January 15, 1957,On Justice John D. Kearney through Parliament. with regard to thepipelinebill havingpushed been ment.” Thatvote waslost,butcriticism persisted the rightsofHouse- to thewill ofthegovern SpeakerRenéBeaudoinfor“subordinatingcensure calledforavote to GeorgeDrew Leader Opposition regional routes. onplace, butthatcompetitionwould beallowed routeon thetranscontinental in would remain hadannouncedthatTCA’sChevrier monopoly Transport.) In 1952,Transport Lionel Minister of theauthorityofMinister under remained to initiate thepower hearings,butitstillgiven courtandin1950,ithadbeenof asuperior jurisdiction to hearcomplaintswiththepowers 1945, theAirTransport given Board hadbeen to ithaddied.(Inthe matter cabinet,where hadpassedheld cross-country hearings,butthen services. TheBoard hadfreight andpassenger to theAirTransport Board fortranscontinental airline, Pacific Western, hadmadeapplications Pacific Western-based AirLines andanother threatened. Inbeen theearly1950s,Canadian It wasnotthefirst timethatTCA’s routes had in jeopardy. election promises, TCA’s monopolypositionwas inbusiness. tointerference Ifhewere keephis calls formore competitionandlessgovernment campaignplatformhadincludedDiefenbaker’s retired from politics. Port Arthurseatintheelectionandsubsequently from theHouse ofCommons. Howehadlosthis position, withitsmainally, C.D. Howe, gone beinapreca The airlinewouldnow airlinetoprimeminister.licly owned thenew route. Butitcouldnot have thepub- endeared air competitiononthetranscontinental allow thatitwould laterannouncement government’s hadnothingtoThe TCAepisode dowiththenew andhiswife’sbaggagetonight.”own telephone today, andto carryandcheckhis lefttohisownprime ministerhasbeen answer rious 31 routesLisbon andMadrid earlyin1957. flight to Amsterdam in1955, the andwasgiven Mexi Pacific routes, and andhadwonSouthAmerican CanadianPacificalready beingeroded. heldthe trans- Although TCAcontinuedto holdthe Peter Pigott,NationalTreasure: TheHistoryofTrans-Canada Air Lines,p.382-385. can routes in1952.It wasgranted apolar Atlantic routes in1957, itsmonopolywas CN PASSENGER TRAINNEWFIEBULLETENROUTETO ST. AUXBASQUES,NEWFOUNDLAND JOHN’S,PORT 31

PHOTOGRAPHER: G.RICHARD,CSTM/CN001777 AND LABRADOR,11 SEPTEMBER1967, competition inCanada. British economist,to conductastudyofairline routes.nental Hees Wheatcroft, hired Stephen a tions to theAirTransport Board fortransconti- and Pacific Western workingonapplica- were Transportnew Minister, bothCanadianPacific installedGeorgeHees asthe Diefenbaker When

39 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 40 daily CanadianPacific inthe flightsputadent TCA’s routes, monopoly ontranscontinental the with wassomediscontentment Although there but notnecessarilycompetition.’” appearstopolicy be‘Competitionifnecessary, theTCAmonopoly.about ending TheBoard’s said didnotmeanwhatthey opposition, they in were (of government) members its present suggestingthatwhen by adisservice government Transport donethe Board. ThatBoard hasnow Air the with introducing competitionwouldrest for re-election) thattheprimeresponsibility for erated lastFebruary (whilehewascampai The befuddlement,” “The Board’s logicissurrounded by in the skies. inintroducing competitiongone farenough that theAirTransport Board decisionhadnot A 34 33 32 tional service. Toronto andMontréal to connectwithitsinterna- for CanadianPacific from Vancouver to Winnipeg, asingledailyreturn serviceBut itdidrecommend airservices.against additionaltranscontinental on January 21, 1959. TheBoard hadrecommended Transport Hees Minister announcedthedecision andTransport inDecember Board issueditsreport route.application foratranscontinental TheAir country-wide hearingsinto theCanadianPacific’s 6,theAirTransport October Board beganOn route wouldbehealthy. limited competitiononthetranscontinental onFebruary 7, 1958.delivered It suggested that The Wheatcroft meanwhile,hadbeen report, Globe editorial onJanuary 23, 1959, suggested Board ofTransport Commissioners,Annual Report,1959. Ibid, p.382. Ibid, p.387. Globe stated. “Transport Hees Minister reit 32

gning - reimbursement fund. reimbursement measure. TheBoard wasputinchargeofthe Thelegislationwouldbeatemporaryin revenue. reimburse therailway companies fortheirloss would whilethegovernment to cent, 10 per ratethe Board to cent increase reduce the17 per passed the Freight Rates Reduction Act , directing In response to complaints,Parliament shippers’ increase. cent 12 per afurther demanded In April1959, therailway companies effectiveDecember 15, 1958. cent of 17 per hadgrantedCommissioners arate increase freight rates.higher TheBoard ofTransport travel. Meanwhile, continuedto they seek wages,anddecliningpassengerfor higher continued to deal withuniondemands much better. Through thelate 1950s,they The railway notfaring companieswere reported its first deficit — others wouldfollow.reported itsfirstdeficit—others airlines’budget.publicly owned In 1960,TCA board was ill. Then late resignedboard wasill.Then in1958,Shepard Air Transport Board, whilethechairman ofthat wassecondedto Shepard theCommissioner Chiefnormal proceedings arose in1958 when tinued itsregular business. Aninterruptionto The Board ofTransport con- Commissioners held hearings. MacPherson, M.A. sion, headedby Reduction Act wasextended,astheRoyalCommis- In May1960,andagainin1961,the Freight Rates all aspectsoftransportation inCanada. look, notonlyattherailway freight rates, butat Royal CommissiononTransportation thatwould establisheda At thesametime,government 34

35 approach forthepast60 years.ment’s - than regulation, aradical shiftfrom thegovern through competitionrather beachieved policy thatthetransportationmission recommended the humanandmaterialresources.” TheCom- ongoods andpeoplewithminimumdemands ofCanadian as“themovement portation policy defined theobjectiveofCanada’snationaltrans- in three volumesin1961-1962.TheCommission CommissionissueditsfindingsThe MacPherson National Board. Energy 1959, legislationwaspassedto when create the gasandoilpipelinesinof jurisdictionover changefortheBoard involveditslossAnother position. theChief’s took over ChiefCommissioner, brieflyasAssistant then counseland yearsassenior forseveral sioners theBoard ofTransportwho hadserved Commis RoderickKerr,In aquicksuccession ofevents, of familyillness,resigned before takingoffice. an Edmonton lawyer, wasappointed, butbecause Corporation. Mr. Oil American S.BruceSmith, to take oftheBritish apositionasvice-president transportation shouldbetreated equally, andthat thatallmodesof alsorecommended The report portation privileges. branch lines, grain ratesservices, andfree trans- according to theCommis areas in whichrailway hindered, companieswere Four ofservice. compensated fortheexpense not belifted, therailway companiesshouldbe lation waslifted.theobligationscould Where ofregumodes of transportation- iftheburden companies couldonlycompete withother thatrailwaycompanies, andrecommended foresawThe report areduced role forrailway John Saywell,editor, CanadianAnnual Review,1962,p.209. sion, were passenger sion, were 35

the sidelines, they had not been forgotten inthe forgotten hadnotbeen the sidelines,they to shoved Commissionhadbeen MacPherson andtheAlthough transportation policy aminority.remained called, andagaintheminoritygovernment three yearswasthe third electioninjustover of theNobel8,1965, November Peace On Prize. Lester B.Pearson, andwinner civilservant aformer primeminister, andanew minority government, returned witha inpower The partypreviously the pollsonApril8,1963—andlost. returned to withthesmallwin,they But, unhappy wasformedinJune 1962.A minoritygovernment It wastimeto campaignforre-election. reconstruction” intransportation policy.mental time to or“afunda- start“a radical departure” anelectionintheoffing,With itwasnotthe the financialandregulatory side.” much ofourrailway legislation, particularlyon reconstruction ofwould involveafundamental ofthe Railwayprovisions Act.Thetwovolumes of rate-making forinthepresent asprovided template from aradical thebasis departure con- said,“Therecommendations Fleming April 12, 1962,Finance DonaldOn Minister would be“thoroughly examined.” saying second volumeofthereport, thatdocuments Januarymandate. 23,Diefenbaker, On tabledthe ofitsfour-year wasnearingtheend the government released in1962,atatimewhen Commission were MacPherson ofthe The final recommendations not bedisguisedastransportation subsidies. and thatfinancialaidtoshould particularshippers toeach modebeallowed compete withanother,

41 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 42 reported, “A massivetransportation billthat January 27, 1967,On Press theWinnipeg to create abillthatwouldstandthetest oftime. of transportation policy, andhewasdetermined Now hewasready to take onthereconstruction bill through Parliament. closure tacticsusedin1956 to getthepipeline In involvedinplanningthe fact,hehadbeen debate. inparliamentary Pickersgill revelled of Commons. Unlike hispredecessor, C.D. Howe, popped upfrom hisseatsooftenintheHouse earned thenicknameJumping Jack becausehe 36 “ClearitwithJack.”been to had theprimeministers,apopularcomment did notknow. hehadworked assecretary When or theworkingsofParliamentthatPickersgill was nothingabouttherunningofgovern and becameamajorplayerinpolitics. There In 1952,hewon aseatintheHouse ofCommons Council andSecretary ofState. Laurent’s. ofthePrivy Heas Clerk hadserved secretary andconfidant,laterSt.personal King.the officeofMackenzie He becameKing’s in thelate 1930s andwasquicklypromoted to of history, Pickersgill hadjoinedthecivilservice inFebruarypolicy aprofessor 1964.Originally transportationthe Hill thetimehetook by over Jack stature on Pickersgillhadearnedlegendary Pickersgill inchargeoftheTransport portfolio. acabinetshuffleputJohn1963. Then, Whitney freight rates policy. Abillwasintroduced in continued to work onlegislationto changethe being doledout. governments Thetwo following Act in 1959 as atemporary still measure, were panies, initiatedthe Freight by Rates Reduction years.intervening Subsidiesto railway com- John RobertColumbo. Columbo’sCanadian Quotations,p.475. 36 As apolitician,he As ment later date. Thatwassoundlydefeated. foracoststudyofitat the billthatwouldallow into toPickersgill didattempt putan amendment rate, the Crow was nopoliticaldesire to remove reduced freight rate inperpetuity. Althoughthere Passfor Crowsnest constructioninreturn fora passedin1897,had been givingCP a subsidy G.Blair,from thetimeofAndrew rate theCrow Passthat wastheCrowsnest Agreement. Alegacy manage to changetransportation policy, and wasonepointinwhichPickersgilldidnotThere paidtheirdeficits.interest, andthen inthepublic otherwise specificallyordered ment - unlessthegovern services lines andpassenger would beableto abandonuneconomicbranch without regulation; andthatrailway companies would have the freedom to setfreight rates trucking;thatrailwayinterprovincial companies control —railways,federal shipping, airlines and to direct allformsof transportation under oftheCanadianTransportment Commission theestablish- The mainpointsofthebillwere: mostlyintact. butremained had 60 amendments, tee fortwomonths ofstudy. The30,000-word bill to 1966,before itwassent commit in September years before. Itintroduced intheHouse hadbeen RoyalCommissioncompleted fiveMacPherson The National Transportation Act wasbasedonthe goes to assent.” royal before thebill remain ing andSenateapproval study.clause-by-clause routine third read- Only as thefinalvote wastakento 15 days end of of applausefrom bothsidesofthechamber Transport Pickersgillwonaround Minister its finaldebatinghurdle onThursday night. Canadianrailroadingwill revolutionize passed - TARY OFSTATE. COUNCIL ANDSECRE- CLERK OFTHEPRIVY HE HADSERVED AS LATER ST. LAURENT’S. AND CONFIDANT, AND PERSONAL SECRETARY HE BECAMEKING’S MACKENZIE KING. TO THEOFFICEOF QUICKLY PROMOTED LATE 1930SANDWAS CIVIL SERVICE INTHE GILL HADJOINEDTHE OF HISTORY, PICKERS- INALLY APROFESSOR FEBRUARY 1964.ORIG- PORTATION POLICYIN TOOK OVERTRANS- HILL BYTHETIMEHE ARY STATURE ONTHE HAD EARNEDLEGEND- J ACK PICKERSGILL to celebrate. year.centennial ready Thenationwasgetting passed andbecamelaw. AnditwasCanada’s reached. The National Transportation Act was A historic turningpointhadindeedbeen into CanadianTransport anew Commission.” CommissionBoard andtheCanadianMaritime withtheAirTransportfor Canadawillbemerged enacted, theBoard ofTransport Commissioners theBoard. ...Iflegislation(BillC-231)ismitted by lation inCanadaandmay sub- bethelastreport turning pointinthefieldoftransportation regu- in1904,establishment itmay wellmarkahistoric work oftheBoard duringthe62 yearssinceits dealswiththe thisreport “While announcement: ope Report for1966,publishedearlyin1967. The Transport cameintheAnnual Commissioners The firstintimationsofchangeattheBoard of in1958. service continental first expansionofCanadianPacific into trans- theBritish economistwhohadrecommended Wheatcroft, Stephen thebased onastudyby Toronto andMontréal.) decisionwas Thepolicy route Vancouver, hadbeen (The Winnipeg, to route.ton itstranscontinental andOttawa day. to It alsowasallowed addCalgary, Edmon- to service tworeturn flightsatranscontinental Canadian Pacificto wasallowed doubleits was announced,thistimeregarding airlines. March 27, 1967,On shift majorpolicy another ning pages of the report containedthisning pagesofthereport

43 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 44 + + + + + + 1983, the the Pilotage Act. proclamation of February 1, 1972, huge success. wasaQuébec, held inMontréal, ExpoCentennial 1967, the Agreement. PassCrowsnest theAct replaced Transportation Western Grain

C (from 1966)atMontréal’s airportalone. Dorval riseintraffic aspikecent in business aswell,witha20 per experienced services thatyear, year.services theprevious increase over cent a25 per industry. CN reported rail that18 millionpeopleuseditspassenger The influxof tourists brought heightenedactivity to thetransportation to thesite 27. from April28 to October success. Expoofficialsclocked more than50 millionpaidadmissions wasahugeExpo 67 inMontréal, oftheCentennial, thecentrepiece costume parties. in 1965 —andexpressed theirnationalpridewithcountlessparades and 39 38 37 COMMISSION,THE CANADIANTRANSPORT TAKING flights at selected Canadian international airports, 1960 to1975.” flights at selectedCanadian international section, CivilAviation: Table T240-246,titled “Arrivinganddepartingcivil for Dorvalairport comesfrom theTransportation andCommunications tistics Canada(previously theDominionBureau ofStatistics). Thefigure F.H. Leacy,HistoricalStatistics ofCanada,acollectiondata from Sta- Donald MacKay,ThePeople’sRailway,AHistoryofCanadian National,p.246. James H.Marsh,TheCanadianEncyclopedia , p.738. 1967 TO 1988 flag — the new maple leaf that had been adoptedby mapleleafthathadbeen Parliament flag —thenew of1967,and summer waved Canadiansenthusiastically their Throughout thespring yearwasatimeofeuphoria. entennial 37

38 Airlines

40 created CanadianTransport Commission. hetook thetopSeptember 20, spotatthenewly cabinet andtheHouse ofCommons. on Then LesterPearson,Minister Pickersgillresigned from retirement. AftersomediscussionwithPrime At theageof62,however, hewasnotready for intheHousesitting ofCommonsfor14 years. saw aheadforhimselfinpolitics,after little related inhismemoir,, he SeeingCanadaWhole he change.As decided itwastimeforacareer future andPickersgill hadassessedhisown Since passageofthelegislationinJanuary, tion Act through Parliament. escortedNationalpersonally thenew Transporta- ofTransport theMinister most recently whohad wasJohn president new W. (Jack) Pickersgill, Commission (CTC) metforthefirsttime.The September 20, 1967,On theCanadianTransport stuffed into boxes todustinpatrioticattics. gather colonial-style dresses withmatching bonnetswere wouldstay,to they thebackofclosets where and jackets relegated —justslightlygarishwere tartansportsfrom dance-hall floors,Centennial mood drifted away. swept Party were streamers In thecoolingwindsofautumn,celebratory or draft the bill for his own finalhavenofrest.”or draft thebillforhisown whocanwrite ticket hisown member not every Pickersgill hasmanagedto findathird way. It is added:“Mr.second sohumiliating.” ButDouglas beingdefeated. Thefirstissofinal,andtheby dyingorpolitics inoneoftwoways, by either said “aMember ofParliamentcouldgetout Tommy commented thatithadbeen Douglas 25,in theHouse ofCommons. September On jobdidnotgounremarkedPickersgill’s new Canadian Transport Commission. on hisearliercareer, thelaterchapters discusshistimeasTransport Minister andtheearlydaysof J.W. part ofPickersgill’smemoirfocuses Pickersgill, SeeingCanada Whole, AMemoir.Althoughalarge 40

fair distribution of costs of services providedfair distributionofcostsservices among themodesoftransportation; to ensure vide regulation withoutrestricting competition To that,the CTCwasinstructed achieve to pro- andadequate”efficient transportation system. The ultimate aimoftheActwas“aneconomic, motor vehicletransport andcommoditypipelines.” railways,transport by water, aircraft,in extra-provincial engaged ofallcarriers harmonizing theoperations petitive whole“withtheobjectofco-ordinating and to dealwithallmodesoftransportation asacom- The CanadianTransport Commission’smandate was in Ottawa. the CTC set upheadquartersat275 Slater Street 377 in1967.boards, whichnumbered In late 1968, The CTC also absorbedthestaffsofprevious research. toother oversee theto legalandadministrative matters, supervise one andtwovice-presidents, would beapresident a maximumageof70. According to theAct,there for10 yearsandto whowouldserve 17 members Transportation foramaximumof Act hadprovided tomoved theExchequer Court.) The National man oftheBoard ofTransport Commis Commission. (RoderickKerr, chair whohadbeen Transport Board, andtheCanadianMaritime the Board ofTransport theAir Commissioners, boards — from theprevious most ofthemembers The CanadianTransport Commissionabsorbed less, atanearnestandsteady pace. - some time,butthe CTC setto work,neverthe hearted conjecture intheHouse ofCommonsfor oflight amatter formed commissionremained Pickersgill gotanyrest atthenewlyWhether sioners, - -

45 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 46 QUÉBEC 1967,PHOTOGRAPHER:J.FAMERY, CSTM/CN000564 THE TURBOTRAINUNDERTESTINGINSAINT-HYACINTHE,

Motor Vehicle inthe Motor the provinces Transport Act of truckingto commercial control ofinterprovincial hadhandedunregulated. government Thefederal largely were petition forfreight traffic, butthey had becometherailway companies’maincom- trucking andbusindustries. Truck companies commercial theextra-provincial authority over Committee withtheintention ofassumingsome The CTC also created aMotor Vehicle Transport AirCanada. renamed the newly airline,the privileged statusofthepubliclyowned competitionwithoutendangering for broader andnecessity.”public convenience Theaimwas was instructed andfuture to“present consider tariffs. In conside andcompetition, forregulating airlicencing ofrestricted policy new thegovernment’s under The AirTransport Committeeheldresponsibility, make applications. decisions onabandonment interest. TheRailway Transport Committeewould unlessrequired inthepublic services, passenger toallowed abandonuneconomicbranch linesand wouldbe andthey PassCrowsnest Agreement), the by rates thanongrain covered own (other railway companieswould beableto settheir NationalUnder thenew Transportation, Act strikingdifferences. committees, withafew thenew assumedby of rail, airandmarinewere the CTC’spredecessors intheareaslities heldby products). Most oftheauthorityandresponsibi motor vehicleand commoditypipeline(exceptoil dle thefivemodesoftransportation: rail, air, water, The CTC established separate committeesto han- shouldnotbeunfair. carriers by the publicinterest; andto thatrates ensure set required were to in thatcarriers provide services for to compensation at publicexpense; provide ring licences, thecommitteering licences,

until 1970,wasseldomputto and then use. powers. Part IIIofthe Actwasnotproclaimed vinces, however, reluctant to were giveuptheir the CTC jurisdiction inspecificareas. Thepro make exemptions to the1954 Act thatwouldgive Transportation forthecabinetto Act allowed ornon-existent.uneven Part IIIofthe National 1954. were Regulationstheprovinces between AIR CANADA. THE NEWLY RENAMED OWNED AIRLINE, TUS OFTHEPUBLICLY THE PRIVILEGED STA- OUT ENDANGERING COMPETITION WITH- WAS FOR BROADER NECESSITY.” THEAIM CONVENIENCE AND AND FUTUREPUBLIC CONSIDER “PRESENT WAS INSTRUCTEDTO THE COMMITTEE RING LICENCES, TARIFFS. INCONSIDE AIR LICENCINGAND TION, FORREGULATING RESTRICTED COMPETI- NEW POLICYOF THE GOVERNMENT’S RESPONSIBILITY, UNDER COMMITTEE HELD T HE AIRTRANSPORT

47 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 48 determine priorities forstudy. itturnedout, As established tointerested hadbeen help citizens the Research Branch andanadvisoryboard of inof 1968,afull-timestaff23 was employed policy.studies andrecommending Bytheend prioritiesfortransportation assetting envisioned for aResearch Branch, whichPickersgillhad The National Transportation Act hadalsoprovided oil andgaspipelinesin1959. National Board hadassumedcontrol of Energy pipelines to regulate in1967, however. The or itsproducts. noactualcommodity were There thanoiltion —pipelinesforcommoditiesother jurisdic- thenew CTC’s of transportation under mittee wasalsocreated to handlethefifthmode In 1967, theCommodityPipelineTransport Com- companies couldbeexempted aswell. companies. Now, uponapplication,trucking it hadspecificallyexempted railway andshipping prohibited workon Sunday, wasdrafted in1906, theAct,whichbasically Act.When the Lord’s Day exemptionsfortruckingcompaniesfromallow itbegantostep inequalityofregulation” when Vehicle Transport Committee made“another According to the1969 Annual Report,theMotor Atlantic Region. or Western Canada,ortopartswithinthe other outoftheregion totheir goodseither Central formoving intheAtlanticprovinces on shippers intendedtosubsidies were reduce theburden 1927, Freight the Maritimes under Rates. The Act that railway companies hadreceived since thesamesubsidiesin theAtlanticprovinces Freight Act,whichextendedto Assistance truckers the AtlanticRegionthe CTC began to implement however, responsibilities. assumeother In 1969, The Motor Vehicle Transport Committeedid, ing to competition;andto railways allow to railway companiestorates settheirown accord- gradual reduction withineight years;toby allow The CTC’s goalwasto eliminate thesubsidies $500 million. out over their losses. By1967, hadpaid thegovernment paying annualsubsidiesto railway companiesfor hadbeen andthegovernment frozen had been enacted asatemporary measure, freight rates 1959 when the Railway Reductions Act hadbeen andbranch lines. rail service Sincepassenger was to forrationalizing setouttheframework The Railway Transport Committee’s firstpriority concentrated ontherail andairmodes. The majorityofthe CTC’swork,however, was themodalcommittees. madeby that hadbeen appealsofdecisionsCommittee, setupto review committeewasformed,theReviewyet another modalcommittees.for thedifferent Andin1970, bility formonitoring international agreements responsi- Committee in1968,whichtook over The CTC set uptheInternational Transport Policy research staff. Agency,ment and recruited someofthe CTC’s facility, theCanadianTransportation- Develop of Transport research establisheditsown opportunities fadedaway.” In 1970, theMinistry able forresearch into and transport problems avail entity - andpermanent of anindependent adequately explained.” He continued,“My hope planned scopeoftheResearch Branch wasnot largelybecausetheof frustration developed Pickersgill wrote, “Unfortunately agooddeal In Pickersgill hadintended. however, functionedas theResearch Branch never , written manyyearslater,, written Seeing CanadaWhole of service. late to lossesinorder applyfordiscontinuance determine railway costsandto operating calcu- the CostingOrder, whichoutlinedthemethodto months ofhearingsandconsultations, issued In 1969,theRailway Transport Committee,after thatyear.Commissioners the Newfoundland Utility Board ofPublic waspassedtothe CN-operated busservice andfastbuses.”clean, modern Jurisdiction of of“unquestionably fortheprovince service its own based on CN’sassurance thatitwouldestablish Bullet.Thedecisionwas astheNewfie known rail service,its trans-Newfoundland passenger In 1968,the CTC allowed CN todiscontinue compensate therailway companies. interest, at would which timethegovernment unlessrequired inthepublicservice, passenger abandon theuneconomicbranch linesand FREIGHT TRAIN TRANSPORTING POTASH FREIGHTTRAINTRANSPORTING INYARD, PHOTOGRAPHER: G.RICHARD.CSTM/CN000543

MELVILLE, SASKATCHEWAN, 1967. hearings, the CTC rejected CP’s application to June 18, 1970,On aftertherequired public economic andadequate” service. as laidoutintheAct,ithadto “efficient, ensure discontinuance,andthe publicinterest inevery of hearing. The CTC wasrequired to consider days partiesandseveral submissions from several publichearing couldinvolvetask sinceevery discontinuation. Thatinitselfwasamammoth begin publichearingsinto eachapplicationfor statute, asrequired to by actual losses,andthen, $11 million. TheCTC setto workto determine claiminglossesofmore thantions for13 services, $30 million inlosses1968. CN filedapplica- except commuterlines. CP claimed more than service, from CP to discontinue allofitspassenger train discontinuance,including18 applications the CTC received 31 applicationsforpassenger- wasissued, soonastheCostingOrder As

49 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 50 aimed at discontinuing those services, nolongeraimed atdiscontinuing thoseservices, Commission’s rationalization program whichis theimportanceof ($108 million) emphasize might haveapleaforhelp: “Thefigures been sation to bepaidoutforuneconomicservices, - theescalatingcompen sage that,considering The CTC’s AnnualReportfor1971 carriedames- was $108 million. lines,The total, includingsomesmallpassenger in 1970. CP’S annual setat$31 million. losseswere reported from CN were at$76.3 millionservices significance inCanada.Annuallossesforpassenger ofany rail service tinuance ofallthepassenger the CTChadreceived applicationsfordiscon- services. the CN filings, With of allitspassenger of1971, CN hadfiledfordiscontinuanceBy theend to theMaritimes. from Montréal service set upto examine passenger studywas plan.Another service passenger tinental would conductastudyofanintegrated transcon- April14 ofthatyear,On the CTC announcedthat it set CN losses for1969 at$14 million. and service, passenger tal, itstranscontinental - Continen tion fordiscontinuanceoftheSuper In February 1971,the CTC rejected CN’s applica- was considered. —asthatmonthlysum and thegovernment almost hear anintake ofbreath from the CTC — can produce aplanofrationalization.” One $1 million amonth—the CTC directed CP to required to continuetheCanadian —more than ofsubsidy“Because oftheprobable annuallevel the CTC’sAnnualReport for1970 stated,As setatmore than$15 million. losses in1968 were TheCanadian’s train service. passenger nental discontinue theCanadian,itsdailytransconti-

payments plan. Only too quickly,payments plan.Only however, the thenormal already receiving were under they those claimsexceeded theamountofsubsidy orbranch lines—until service nomic passenger subsidy— forinstance,runninguneco- other 1974.by No railway companywouldreceive any $14 millionayeartodecline by reach $12 million thattotalledments $110 millionin1967 would prior to 1967. Aschedulewassetupsothatpay- agreed upon“normal payments,” whichhadbeen railwaywas to subsidies,or phaseoutgeneral Under the National Transportation Act,theplan on branch lines. cent linesand100 per forpassenger cent 80 per continue inthepublicinterest —to thetuneof to thatthe CTChadordered nomic services to foruneco- bepaidfrom thepubliccoffers However, asubstantialamountwouldstillhave panies to cutsome costs. centres. Allthesefactors helpedtherailway com- from thesmaller localstationagents to remove the early1970s, themajorrailway companiesbegan ofcommunications.centralization Gradually in ogy hadintroduced theuseofcomputersand inlocaltrain stations.cost cutting New technol- companies hadalsostarted to introduce some subsidy chargeonthetaxpayers.” Therailway of thatamountwouldhave becomearecurring stated.1971 CTC report suchsteps most “Without the lastthree yearsare $17.5 million,” the rationalization effectedbytheCN and CP during costs onthoselines. “Thetotal annualsavings from The railway workingto companies were reduce inthepublicinterest.”continue operating that mayare required existonservices to duplication andeliminatinganyover-capacity unnecessary publicneed,ending required by segment ofthetransportation industry.”segment Thatyear, costs for“every the sharpincreases inoperating The CTC’s AnnualReport for1974 remarked on for theirlosses. uneconomic branch lineswouldbecompensated 1974. In turn,therailway companiesrunningthe protected of untiltheend from abandonment shouldbethat allbranch linesinthePrairies Similarly, of1973,the CTC haddecided theend by thediscontinuanceof11. approved 59 servicescontinuedandthose, ithadordered ithadreceived since1967.train service Of 70 applications fordiscontinuanceofpassenger- By 1973,the CTC hadissueddecisionsonall subsidypayments.receiving inprevious losses exceededwere theamountsthatthey railway their companiesreached thepointwhere IN SERVICES FROM CANCE INCANADA.ANNUALLOSSESFORPASSENGER ALL THEPASSENGER RAILSERVICE OFANYSIGNIFI- RECEIVED APPLICATIONS FORDISCONTINUANCE OF SERVICES. WITHTHE CNFILINGS,CTCHAD DISCONTINUANCE OF ALLOFITSPASSENGER BY THEENDOF1971, CNHADFILEDFOR WAS $108 MILLION. THE TOTAL, INCLUDING SOMESMALLPASSENGER LINES,

1970.

CP’S

ANNUAL LOSSES WERESETAT $31 MILLION.ANNUAL CN WEREAT REPORTED $76.3 from abandonment untiltheyear2000.Anotherfrom abandonment network of12,413 milestrack to beprotected designatesprovinces. policy abasic Thenew “railway branch-line freeze inthethree Prairie That sameAnnualReportannounced anew from 1969-1972. ous process ofverifications $26 million waspaidinclaimsthrough acontinu- interest amounted to $160.4 million.”Another inthepublic runninguneconomicservices by claims from railway companiesforlossescaused Furthermore, theAnnualReportstated, “Total to inthepublicinterest during1973.” provide required were they tion foruneconomicservices payments to therailway- companiesascompensa $52 million from 1973.Themajoroutlay wasin air transport rose to more than$232 million, up the CTC forrail, water,administered by road and “the total payments forvariousstatutory subsidies

MILLION

51 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 52 increased —from 377 in1967 to 695 in1974. andnecessity.ence Thevolumeofapplications to andfuture publicconveni determinepresent casebasis, applications on acaseby licencing the AirTransport the Committee considered sions onthediscontinuanceofrail service, airlicences. with CTC deci- for commercial As occupied withthesteady stream ofapplications Meanwhile, theAirTransport Committeewas and sodiditscommittees. Now ithadeight. issues. The CTC’sworkloadcontinuedto grow tions Committeeto dealwiththeincreasing rate 1971, the CTC setupaseparate Telecommunica - private companies.charges by wire-service In 1970, regulation of theCommittee took over Board ofTransport Commissioners. In August of themandate passedonfrom theprevious applications fortelephonesandtelegraphs, part The Committeealsocontinuedto hearrate Committee wasestablishedin1973. rail. ARailwaycommodities by SafetyAdvisory ofdangeroussafety measures forthemovement later theformationofataskforce to establish Montréal andToronto ledto aninquiryand in1970 onof accidents themainlinesbetween railway amongthem safety.concerns, Arash The Railway Transport Committeehadother constantly mounting. taxpayers wasinterest, but thepricepaidby tothat the CTC deemed beinthepublic huge lossesforrunninguneconomicservices ofThe railway relieved companies hadbeen toprocedures.”in use,isopen abandonment 1975. Atotal of525 milestrack, notcurrently 6,283 miles willbeprotected of untiltheend

for thecountry’sfourpilo tariffsofpilotagecharges jurisdiction over new Act of February 1, 1972 gave Committee the Marine salvage anddrilling. ofthe Pilotage Proclamation tobe broadened offshore activitieslike dredging, forCanadianvesselsandthatrestrictionsreserved Canadian portsbe thattraffic between mended conducted astudyoncoastingtrade andrecom- In Transport 1971,the CTC’sMarine Committee formedin1967.industry sincetheCTC hadbeen inthetransportationfast paceofdevelopments Successive AnnualReportsinthe1970s hintatthe in 1975.” plans to addthesame route to itsscheduleearly Bayder duringwhichAirCanadaannounced publichearingsatSudburyandThun- followed Bay.Sudbury andThunder TheNordair decision authority foraroute linkingMontréal, Ottawa, in its1974 Annual Report. “Nordair wasdenied inthisregard isillustratedThe CTC’s policy airlinewasstillgrantedpublicly owned priority. intheairmode,Canada’stion wasbeingallowed portation wasavailable. Althoughmore competi- transsupply uneconomicroutes,- noother where fortheregional airlinestoused asencouragement chose to withdraw theirservices. Subsidieswere routes, thelargecarriers ofteninareas where more alsotakingover Regional were carriers cent.By 1970, CP Air 25 per wasproviding of1967. airpolicy outlined inthegovernment’s ashadbeen route cent, continental — 20 per share ofthetrans - alarger Airlines) wasallowed In CanadianPacific 1969, CP Air(formerly Pacific, Atlantic,Great Lakes and Laurentian. tage authorities— Committee hadestablishedan International the CTC’s International Transport Policy The AnnualReportfor1974 announced that the total to 81.” Canadian andU.S. scheduled airroutes, bringing negotiations withtheUnited States gave 46 new In 1973,the CTC reported that“amajorround of FERRY MVFEDERALAVALON, ST. JOHN’S,NEWFOUNDLANDAND LABRADOR, 1975PHOTOGRAPHER:M.SEGAL,CSTM/CN001689 the point oforiginto thedestination. intermodaltransport ofgoodsfromfor entire of studywouldbeasinglethrough bill-of-lading andbreak-bulkof containerized cargo.”area One tional multimodaltransport, including movement oneconomicregulation ofinterna- policy develop The branch would“co-ordinate, harmonizeand Intermodal Transport andFacilitation Branch.

53 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 54 41 ‘You are theminister;youdoit.’ It istruethat this situation?Honourable Members mightsay, intheeconomy.growth So,whatdowein wasmadeforanymeans thatnoprovision are available thisyearaswehadlastyear. This Commons: “About ofboxcars thesamenumber his quandaryonMarch 7, 1974, intheHouse of Transport Jean Minister described Marchand markets. ofgrain to exportincluding themovement offreight traffic intheWest,caused aslowdown A shortage ofrailway cars that winterhad Transport surfacedintheHouse ofCommons. ofdispute the CTC andtheMinistry between In theearlymonths of1974, ajurisdictional the CTC.to overseeing young —only49 — heturnedhisenergies when Canadian taxlaws inthelate 1960sandwasstill achartered accountant,hadoverhauledBenson, Trudeau’s Pierre Minister firstterminoffice. asfinanceminister duringPrimewho hadserved Transport. EdgarJ. He by Benson, wasreplaced to oflittle deflecttherivalrywithMinistry onAugust 31, 1972, didPickersgill’s retirement dictator to ofthe CTC (referring Pickersgill)?” ation? Ischief itthe minister orisitthenew isreallyCommons: “Who thebossintransport MP ThomasBellhadasked intheHouse of ontheproblem.of Parliament hadputhisfinger Member anOpposition November 22,1968, Transport earlyas policy-making.As over of strugglewiththeMinistry apower been Since the CTC’searlydays, had there based onasix-monthresearch project in1974-1975. CommissionofCanada,givesalengthyanalysistheworkings oftheCTCprepared forthe LawReform H.N. Janisch,TheRegulatoryProcess oftheCanadian Transport Commission , p.16.Thisdocument,astudy an Interim Reporton Freight Transportation. Inter-City inCanadaand Movement Passenger Canada, alongwithanInterim Reporton Policy — AFramework forTransportation in calledTransportationhe tabledadocument proposals.policy Ayearlater, onJune 16, 1975, settoMarchand workonhistransportation A July electionreturned Trudeau and to power ontransportation. paper apolicy he waspreparing reported to April8,Marchand theHouse thatOn to take into hands. policy-making hisown reasontional equipment. hadfurther Marchand therailwayorder companiesto purchase addi- it wasnotwithinthe CTC’sresponsibilities to Committee onTransportation, saidthat Benson Under questioningfrom theHouse Standing possible to have suchapolicy.” I hopethatsooner, thanlater, rather itwillbe Something wedonothave and isareal policy tohave everything funintransportation. ice, wehaveand snow distance—we Canada. We have water, air, surface—wehave manner, concluded:“We in have everything forhisblunt whowaswellknown Marchand, foranappealtoprovision theminister.” is there thing, caseswhere exceptinafew - almostevery “which hasfinalauthorityover “We have the CTC,” continued, Marchand all inmanyinstances.’ ” minister, forgotto butthey giveanyauthorityat Honourable Members gave responsibilities to the 41

shuffle. from theTransportremoved postinacabinet 25,hewasway September withthe CTC. On didnotgetachancetoMarchand have his it.” willfollow they say andthat topolicy the CTC thatthisisanew Canada to things,Iwantto docertain beableto mind isthatifwethinkitintheinterests of (the CTC) have alotofauthoritybutwhatIdo continued,“IdonotmindiftheyMarchand making thepolicy, atall.” notthedepartment itisthe CTC that are manyfieldswhere there Transport the CTC. andappliedby Rightnow, oflike theMinistry to madeby seethepolicy an organizationsuchasthe CTC. Butwewould in Canadaistoo bigabusinesstowith dispense Commission’s role inthisway: “Transportation definedtheCanadianTransportMarchand tobeing service Canadians. and backto regulation withthetop priority —directing itawaytion policy from competition was changingthecourseofnationaltransporta- exclusively on competition.” In effect,Marchand thanrelying almost rather conditions permitted, economicandtechnicalcompetition where alsostressed thatitwould“rely onThe paper to isonservice Canadians.”but theemphasis isnotlost,adequate. The notion ofefficiency and thaneconomic,efficient rather efficient, system shouldbeaccessible,equitableand It explained“thatthetransportation further thanasapassivesupportservice.” rather policy ofnationalof transportation asaninstrument “theuse envisaged paper policy Marchand’s The Montreal GazetteexplainedthenextThe Montreal fall within federal jurisdiction.” fall withinfederal of transportation andtelecommunications that rate increases andprofit marginsinthoseareas responsibility onthe CTCto regulate ormonitor the anti-inflationprogram “placedanincreased the CTC’s1975 AnnualAs Reportexplained, life, includingtransportation policy. measures wouldbefeltinallareas ofCanadian belt-tighteningoil crisis. Thegovernment’s with spiralling costsinthefaceofaworld-wide months strugglingforseveral country hadbeen program to tacklerocketing inflation.The duced wageandpricecontrols, athree-year 1975,In Trudeau’s intro- October government istrative costsandpostponingcapitalprojects.” storing locomotives andboxcars, reducing admin- ing inavarietyofways, besideslayoffs, including ing costs. CP reported- thatitwascurtailingspend offreight trafficin response andris- to levels “low part oftherailway company’s austeritymeasures round oflayoffsthat CP had announcedanew as The Gazettehadreported onSeptember 16 measures are necessarytopositiveresults.” achieve prime ministerwas“determined to take whatever situation.”Andtheeconomy was“inaserious According to Trudeau, TheGazettereported, the to theTransport job. Langwasappointedwhile JusticeOtto Minister withoutportfolio, becameaMinister Marchand given.”needed thelighterloadhehasbeen negotiating skills,cameto he thepointwhere for hishumanqualities,frankness andhis day that“Mr. Marchand, popular deservedly

55 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 56 improved as users oftransportation facethe asusers improved tives beingselected. will alsobe Productivity to costalterna - transportation andthelowest therational approach by try willbeimproved ontoLang went say: in thiscoun- “Productivity whoshouldpaythen —thenon-user?” whoshouldpay,response, “Ifitisn’ttheuser to controlling costsintransportation withthe criticsofhis“user-pay”Lang answered approach non-productive expenditures.” tions, thathave costsand builtinto ittremendous the yearsisfullofinconsistenciesandcontradic- over transportation inCanadawhichhasdeveloped ofapproaches to “Theconglomeration problems: mons hisinterpretation ofCanada’stransportation June 11,LangdescribedintheHouseOn ofCom- network.” service at anationalpassenger be determinedandtakeninto accountinarriving ofCanadianscontinueto thattheviews ensure asked “to ofpublichearingsto conductaseries “avoiding duplication ofservices.” The CTC was across Canada”withtheexpressed purposeof servicesbasic singlenetworkofrail passenger of“aLang issuedadirective fordevelopment In January 29, 1976, Transport Otto Minister of unprotected trackage to Prairie beabandoned. 362 ofthe525 miles the CTC allowed provinces, sion heldhearingsthroughout thefourwestern theHallCommis- year toof1976.While theend wasextendedforanother provinces in thePrairie of6,283 milesbranch lineson abandonment tors andrelated businesses. Meanwhile, thefreeze - elevatoropera ofgrain producers, requirements was appointed in1975 to investigate therailway a retired Justice CourtofCanada, oftheSupreme A commissionofinquiry, Hall, Emmett headedby from 1977 to 1981 —of2,165 milesgrain-related —instagesIt theabandonment recommended called Grain andRail inWestern Canada. report Handling andTransportation released its In May1977, theHallCommission onGrain telecommunications from the CTC.authority over Canadian Radio-Television Commissionassumed In jurisdictionalchangethatyear, another the the National Transportation Act. Vehicle Transport Act,according to Part IIIof to makeled Ottawa anexemptionto the Motor regulator itsprovincial hadbetween CN and the CTC’sjurisdiction.Adisputeput under inNewfoundland, service waspublic passenger In theonly 1976, CN’sRoadcruiser busservice, in Manitoba. Brandon andWinnipegkatchewan to Dauphin, linkingSaskatoonservice andYorkton inSas- Regina, Brandon and Toronto, andjetornon-jet received.” between Theroutes jetservice were ofthesubmissionswith adetailedassessment ofspecificroutesoperation andto him provide directed the CTC to invite proposals onthe in ManitobaandSaskatchewan. TheMinister to points ofairservices certain establishment to $2 millionfor start-up costsinvolvedinthe waswillingto up provide that thegovernment Langannouncedinmid-year Otto Minister the CTC’s 1976 AnnualReport. “Transport in planwasmentioned government Another discover, to waseasier say thando. to were be ourtask.”That,asLangandothers andthatwillsubsidies wewillwantto remove Band-Aid, politicalopportunitysubsidy. Those to doandnottheartificialrates basedonsome real cost to thiscountryofwhatweare trying eligible branch lines. oftheto applicationsforabandonment consider beganAction Committee.The CTC subsequently Rail ofaPrairie theestablishment recommended also branch linesuntil2000.Thereport other branch linesandtheretentionPrairie ofthe CALLED VIARAIL. CORPORATION A NEWCROWN ABSORBED INTO CP ANDCNWERE SERVICES OFBOTH TINENTAL PASSENGER EASTERN TRANSCON- THE WESTERNAND AND OCTOBER1979, BETWEEN APRIL1978

panel. Among its recommendations were changes were panel. Amongitsrecommendations with disabilities,andcreated aspecialadvisory meeting aboutpublictransportation for people onaIn 1979,the CTC issuedareport March corporation calledVIARail. Crown a new absorbed into ofboth CP andCN were services passengerwestern andeastern transcontinental 1979,the April1978 andOctober Between lines to fare discounts. introduce avarietyofnew its competitors. Intheair 1978,the CTC allowed the CTC and subjectto thesameregulations as thejurisdictionof corporation, under Crown line from CN control andmadeitaseparate theair The Air CanadaAct of1977 removed directed were in transportation elsewhere. policy for thebillgradually wanedaseffortsforchange House ofCommons inJanuary 1977. Enthusiasm portation Act,wasstalledinitsfirstreading inthe planto the Nationaland’s policy amend Trans- Meanwhile,- BillC-31,thebillbasedonMarch and rates in1977.” for increases ininternationalanddomesticfares toincreases infuelprices,causedaircarriers file “Continued costpressures, includingworld-wide The AirTransport Committee alsowarned, any twopointsnamedintheconsolidated licence. theairlinetowould allow operate flightsbetween consolidate into all of itslicences one,which to airservices Saskatchewan, andalsotoprovide to wouldallow CP Air that thegovernment thanVancouver.points other The CTC alsonoted routesnental toturnarounds atwestern allow easedon CP Air’stransconti- restrictions hadbeen The CTC Annual Reportfor1977 reported that - -

57 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 58 LAUNCHING OFTHELABRADORCOASTAL SHIPMVTAVERNER, COLLINGWOOD,ONTARIO, MAY 1962,CSTM/CN001653 possibilities of the derailment alertedthenationtopossibilities ofthe derailment reported, the catastrophicAlthough nodeaths were from thearea. of230,000 citizens the removal west ofToronto. Araging fire resulted, forcing asuburbancommunity inMississauga, derailed flammablecompressed gaseschlorine andother 24 CP carscarryingliquified November 10, 1979, On to hit closer home. inthefallof1979,danger Then no protection intheskies. againstviolence in which peacetimewas era achillingnew entered return hijacked aircraft. Theairlineindustryhad refused to extradite orprosecute hijackers,orto —wouldbedirectedservices atanycountrythat that sanctions—intheformofcancellingair western nations,includingCanada,hadagreed Terrorism. In thedeclaration madein1978,seven onEngland, to discuss theBonnDeclaration ameetinginLondon,port Commissionattended Also inMay, oftheCanadianTrans amember - and airdivisions.” atthistimeare therailmodes, itsprimaryconcerns The CTC pointed out,“Although itisinchargeofall applications. branch-line abandonment Prairie branch-line rehabilitationthe Prairie program, and It responsibility for tookwestern Division. over commis toborder Pacificmodes.” Coastforother Two Coast forrail andfrom theOntario-Manitoba Baymodal committees: from Thunder to Pacific functions ofthe CTC thatare delegated to the Report stated, “Its mandate istoallthose perform the CTC 1979 Annual need forawesternpresence, thatenunciated a policy response to agovernment inSaskatoon onMay1.Ina westernDivision The CanadianTransport Commissionopened fortheirassistance. to liftingdevices provide wheelchairs to travel aloneandto require VIARail to tariffstoself-reliant with allow passengers sioners were appointed were tosioners theCTC’s

nearly 50 per cent.”nearly 50 per innovatefare reductions of cannow carriers competition inairfares: “For scheduledflights, more things, the CTC wasallowing Among other competition andlessregulatorycarrier burden.” ing procedures establishedto greater were permit “more flexibleregulations andsimplifiedaccoun The CTC reported in1980 thattheairsector incorporated intoRegulations theAirCarrier .” December 21, 1979 and approved rules were domesticandinternationalcharterliberalizing the CTC reported, “Regulatory amendments Regulatory way. reform wasalready under As tory agencies.” to themyriadofother, regula- federal smaller bepassedon willthen workable andbeneficial be tested. Thosepolicieswhichare foundto be ofregulation uponsociety, theburden ening will policies,aimedatlight uponwhichnew agency regulatory the CTC willbethetrial agencies, regulatory thelargestoffederal reform. As has animportantrole to play intherealm of andfinancialcontrols, theCommissionment “In additionto itsinternalmanage- improving operations.” aspectoftheCommission’sorganizationandevery willtouchresulting uponalmost from thisreview year. “Thereforms as thatcanalready beforeseen oftheand controls,” the CTC reported attheend practices ofitsmanagement in anintensivereview e fed Commission, incommonwithsome30 other Auditor’sfocus ofthefederal Report in1979.“The The CanadianTransport Commissionbecamethe Samuel Grange, to investigate thederailment. AppealCourtJusticeappointed, Ontario under potential disastersahead.ABoard ofInquiry was ral government departments, is currently engaged iscurrently departments, ral government t -

59 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 60 42 Trudeau Minister Prime hisonly quicklymoved of anuproar amongwesternfarmgroups that thebill wasreleased, itcausedenoughBut when Transportwho hadbeen since1980. Minister Jean-Luc outby itwashammered Pépin,replace grain that CP hadagreed to in1897. TheActto wasareduced freight rate westernfarmers, by on Pass rate, Agreement. TheCrow sacred considered CrowsnestAct was passedto thevenerable replace In late 1983,the Western Grain Transportation services. oneoftwotranscontinental Continental, year, VIAhad cutninetrains, includingtheSuper ofthe Bytheend tinuances onSeptember 28, 1981. services.thediscon- The CTC allowed passenger applied to ofits theCTC to cent abandon20 per withadeficitandhadVIA Rail was weigheddown In created, 1981,justthree yearsafter ithadbeen oftrains.speed andinthelength additional hotbox detectors, andareduction in cations oftankcarsto increase safety, theuseof to bearings,modifi- conversion roller speedier includinga recommendations tation ofseveral - implemen 30,the CTC ordered September On InquiryAccident wasreleased onJanuary 19, 1981. RailwayThe Grange ReportontheMississauga and 14-day advance booking. suchasround-trip travelincluded requirements which cent, on discountsofmore than25 per airline system.”The CTC imposedrestrictions threaten thestabilityofdomesticscheduled losseshadbegunto revenue a pointwhere thatfare-discounting hadreachedit known hadmade ofcarriers in 1982,“afteranumber wassidetrackedThat laissez-faire experiment , VolumeStephen Clarkson andChristinaMcCall,Trudeau andOurTimes 1, p.292,andVolume 2,p.327-328. port portfolio. cabinet ministerfrom theWest into theTrans- flurry ofmore changes. time tointo was a settle hischairbefore there president. The65-year-old hardly had Marchand John T. Gray, vice-president-law, hadfilledinas theinterim, the CTC’s During rial postinDublin. on August 31, 1982, andhadtakenanambassado- Edgar J. hadcompleted Benson his10-yearterm 16. to onDecember becomethe CTC president years, thepastseven hehadspent Senate, where into itsfold.Jean resigned from Marchand the port Commissionwelcomedanoldopponent In theclosingdays of1983,theCanadianTrans- limits foritselfinissuingdecisions. the CanadianTransport time Commissionsetnew Rules,services. ofitsGeneral Andin arevision into intermodal andmultimodaltransportation Axworthy’s request. It alsoannouncedaninquiry atTransportdiscuss airfare policy Minister ofpublichearingstoseries beheldinearly1984 to The CTC Annual Reportof1983 announceda sion andhighunemployment. dissatisfaction inthemidstofeconomicreces- facedincreasing public1980s. Thegovernment changesafootintheearly other were There toment railway at$650 million. companies, now commit rates, andpaymentof thegovernment’s costforecasting, determininggrain movements, responsibilities forthecostingofCTC took over 17.for losses,waspassedonNovember The to compensation railwayand federal companies ontheworldgrain price)maximum of10 percent forafreight priceincrease (toAct, allowing a Pépinreplaced onAugust 12, 1983. Thenew 42 Lloyd Axworthy, Lloyd from Winnipeg, - nomic regulation andgreater reliance onmarket that involvedreduced eco- transportation policy to revisions Reform. outlinedsweeping Thepaper to Move —AFramework forTransportation in theHouse ofCommons. It wascalledFreedom ontransportationski introduced apositionpaper In July- 1985,Transport Mazankow Don Minister reform. tion policy team in itscampaignplatformwastransporta- theMulroney by of theprioritiesidentified One BrianMulroney. under government in anew brought electiononSeptember 4, 1984, A federal pricing harmony.” legislative changesto restore railway trans-border compatibleandsuggestedofno longer anumber rail regulatory systemsofthe twocountriesare the CTC reported, theinquiryfoundthat“theAs thewayregulation andopened to competition. railwaythe American industryfrom economic Act, passedintheUnited States in1980,freed of $100 millionto U.S. competitors.” The Staggers major Canadianrailways losses reported revenue requested Axworthy “aftertwostudy hadbeen by the effectsinCanadaofU.S. The rail deregulation. In thefallof1984, the CTC heldaninquiryinto suggestions from the CTC hearings. thatyear, Canadianairpolicy new implementing Yukon. Transport Axworthy introduced a Minister Labrador inremote andthe areas between service July, air better stressed thenecessityofproviding regions, basedonhearingsheldinJuneern and innorth- onairservices suggested. report Another international advancebookingchartershadbeen domesticand RegulationsAir Carrier governing airpolicy.need foranew to the Amendments wasand domesticchartersdeterminedthatthere The 1984 CTC hearings onCanadianairfare issues Mazankowski hadaskedMazankowski the CTC’sWestern Commission continuedwithits dailyworkload. legislation wasdrawn thenew While up,the the House ofCommonsto headthe CTC. ernment. In January 1987, hehadresigned from - cabinetpostsintheMulroney gov held several in1979-1980 andthenshort-lived government Parliament since1957. He inJoe served Clark’s in early1987. aMember of hadbeen Nielsen was appointed chairuntilErikNielsen sident’s the CTC’s vice-president-law, satinthe pre wasreleased. J. Thompson, paper David policy on July 31, 1985, soonafter Mazankowski’s rity. Jean resigned as president Marchand withlessregulatory autho agency another by decided.Itsion hadbeen wouldbereplaced The fate ofthe CanadianTransport Commis- Transport Commission.” asasuccessortotory theCanadian agency regula- ofanew requires theestablishment inthemarketplace, interference government coupled withthedeterminationto reduce ofregulatory adminis environment thatthechanging view government’s federal The Transport continued,“It Minister isthe transportation system.” more efficient inalargemeasure onaproductive andwill depend economicprogress inthe1980sand1990sachieve meet international competition.Canada’sabilityto to andgrowth it istoeconomicrenewal achieve reform intransportation isneededinCanadaif speech:“EconomicregulatoryMazankowski’s The AnnualReportquoted thesewords from sion willbedramatic.” “the effects ontheCanadianTransport Commis- forces. the CTC AnnualReportannounced, As tration,

61 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 62 through Parliament. VehicleMotor Bill C-19,thenew Transport Act, He guided Bill C-18 andtheaccompanying the National Transportation Act wastabled. on June 30, 1986, acoupleofdays after John Crosbie becameTransport Minister of theNorth’s airandmarinetransportation. andprotectionand carriers; oftheuniquenature cial airlinesector; rate arbitration forshippers thecommer tion; reduced regulation governing railway increased intramodal competi- shippers; contracts for forconfidential provisions were Among changesto theoriginalActof1967, there legislation. drafting thenew making, hadassisted team theMazankowski in in ofpolicy- 1967 to asaninstrument serve Research Branch, created Pickersgill back by Transport Commission.Ironically, theCTC’s to theCanadianwould create replace anagency It National wasthenew Transportation Act that introduced BillC-18 intheHouse ofCommons. June 26, 1986, TransportOn Mazankowski Minister ofrailway acomplete costing.mended review modesoftransport.other recom- Thereport to given competitionfrom hadnotbeen eration $322 million in1982.It alsofoundthatconsid from $37.1 millionsidies hadgrown in1971 to lines. found thatbranch-line sub- Thereport June 28, 1985, on alternativesto railway branch cost. TheWestern on issuedareport Division reliability oftherailway system at aminimum and efficiency to theeffectiveness, improve according to the CTC, wastoways findbetter to railway branch linesinCanada.Theobjective, to inquire intoDivision possiblealternatives

almost 1,000 people. in1986 torelocation ofstaff,whichhadgrown transitional team wassetupto accommodate the commission beganto phaseoutitsactivities.” A portation Act becominglaw onJanuary 1, 1988, the National“and inanticipationofthenew Trans- the CTC reported inthe1987 AnnualReport, thelate passageofBillC-18,”“With summer PORT COMMISSION.” PORT CANADIAN TRANS- SUCCESSOR TOTHE TORY AGENCYASA OF ANEWREGULA- ESTABLISHMENT REQUIRES THE IN THEMARKETPLACE, MENT INTERFERENCE REDUCE GOVERN- DETERMINATION TO COUPLED WITHTHE ADMINISTRATION, REGULATORY ENVIRONMENT OF THAT THECHANGING GOVERNMENT’S VIEW “IT ISTHEFEDERAL MINISTER CONTINUED, THE TRANSPORT

portation system wouldhave “freedom to move.” obsolete. agency, Under anew Canada’strans- meet asimilarfate. After20 years,ithadbecome The CanadianTransport Commissionwould soon forgotten. in thosedays. were Butoncediscarded, they strangetrains runningwithoutcaboosesseemed their trains withoutcabooses. Theprospect of for CN and CP to1987 was theapproval operate Among the CTC’sfinaldecisionsinDecember AERIAL VIEWOFAWESTBOUNDTRAINNEARKAMLOOPS, BRITISH COLUMBIA,1975,CSTM/CN000559

63 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 64 + + + + + + United States. withtheagreement Skies”an “Open Canada signed February 24, 1995, disabilities. to with persons portation accessible trans- the federal respect to making withof the Agency expand therole towas amended Transportation Act 1992, theNational Canada. divestedment Air - 1988, thegovern

T Minister JohnMinister Crosbie saidhewasfedup withregulations sosevere reported onNovember 28, 1987, Citizen theOttawa As “Transport in aregulatory viable. systemthatwasnolonger decidedhadbecomeentrenched a guard thattheMulroney government Whitehorse, Yukon. His signalledachangingoftheguard, appointment for inthe Housea 30-yearcareer of Commonsastherepresentative World War II. He asascrapper, alsohadareputation picked upduring FlyingCross earnedin hadalawNielsen degree andaDistinguished wasappointedment, toNational headthenew Transportation Agency. - Cabinetminister inBrianMulroney’s govern aformer Erik Nielsen, visionfortransportation policy. new ment’s - thegovern organization thatwouldhave to toimplement beoverhauled 15 Eddy Street. In its20 yearsofexistence,the CTC hadamassedalarge THE NATIONAL TRANSPORTATION AGENCY, SHIFTING 1988 TO 1996 occupied thetop fivefloorsofthefortress-like brickbuilding at toRiver Hull inthelate 1970s. More now than800 employees he CanadianTransport across theOttawa Commissionhadmoved

43 positions,” placedinnew were employees did notskimponstafftraining. “AsAgency The 1988 AnnualReportindicates thatthe appointed astemporary Members. terms. ofthe CTC were Two members former appointedfull-time Members were to five-year tion, wasappointed Vice-Chairman.Sixother andtransporta- inenergy experience gement Beaudry,Micheline aMontréaler withmana Atlantic Region. and Québec, dian regions: Pacific, Ontario, Prairie, beoneMember from eachoffiveCana- that there theActrequiredsome regional representation, terms, andsixpart-time Members. To provide be appointed Cabinetforfive-yearrenewable by includingaChairmanandVice-Chairman,tobers, Act calledforamaximumofninefull-timeMem - Thenew intherestructuring thatfollowed. papers Transport theirwalking given Commissionwere intheCanadian ofthe13 incumbents Eleven of goodsandpeople.” thefree movement andithinders of producers of transportation, itreduces thecompetitiveness itstiflescompetitioninallmodesdevelopment, and thansupportsgrowth it impedesrather time aresult, atthepresent not keep pace.As significantly. Theregulatory regime simplydid Canada’s transportation industryhave changed world economy, theCanadianeconomyand regime wasputinplace1967. the Sincethen, veinonJune 17, 1987:more serious “Thecurrent forchangeinaCrosbie hadoutlinedtheagenda the bathroom.’ Sohehired ErikNielsen.” required airlinestothey fillinaform‘to goto phlet subtitledtheNationalTransportation Actandthe Motor Vehicle Transport . Act 1988 when JohnCrosbie wasTransport Minister. quoted inthetextcomesfrom thepam - Theinformation Freedom toMoveinCanada’s NewTransportation Environment, aseriesofpamphlets publishedin tation firms.” andtranspor resolve disputesshippers between publiccomplaintsandhelp review licences, hasauthorityto grant transportationThe Agency direction from thegovernment.needs andpolicy to responsiveness publicinterest,ensure industry are designedto Agency ofthenew “The powers role:published in1988,explainedtheAgency’s booklet,Freedom, A government toMove responsibilities.”understood theirnew placed ontraining to thatallemployees ensure was stated, emphasis the report “considerable was responsible for licensing within allmodes;was responsible forlicensing panies; theMarket EntryandAnalysis Branch oftransportation com- acquisitions andmergers rate disputessettled orservice andmonitored Resolution TheDispute Branchperformed. divided into branches according to theduties wasto Agency transportation mode,thenew which hadseparate divisionssetupaccording to reflect theAct’sphilosophy. Unlike the CTC, restructured were operations Agency’s The new atthepublic’sexpense. provided treated fairly, shouldpay andcarriers forfacilities was anexpressed goal.Also,allmodesshouldbe particular mode).Regional economicdevelopment withina carriers but alsointramodal (between modesoftransportation), different (between that competitionshouldbenotonlyintermodal ations inestablishingpolicy. TheActalsodirected andtravellers shouldbethechiefconsider pers Canadian transportation industry, andthatship- competition shouldbetheprimeforce to drivethe ActstatedThe new thatsafetywasapriority, that 43

- -

65 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 66 other branches.other Regional setupin officeswere andsupportto expertise the relevant provided Human Resources andtheSecretariat branches and CorporateThe LegalServices, Management grain rates andrailway rationalization proposals. subsidy payments, determinationofwestern the Transportation SubsidiesBranch dealtwith SUNSET, STOCK PHOTOGRAPHYHELDBYTHECANADIANTRANSPORTATION A SHADOWYVIEWOFTHEBACKFREIGHTBOAT SAILINGAWAY INTO complaints or at the government’s request. Thecomplaints oratthegovernment’s onlyinresponse to but now specificand carriers, disputesshippers and settle between tion matters continue to holdpublichearingsinto transporta- The National Transportation would Agency Region.for thePrairie Moncton fortheAtlanticRegion, andSaskatoon AGENCY, ©DIGITAL VISION confidential contracts and they neededto contracts andthey giveconfidential negotiate couldnow Air services removed. hadalsobeenschedules, fares andequipment conditions regarding routes, Earlier coverage. insurance withproper operate asafeairservice only to be“fit,willingandable,”thatis,ableto In needed therest ofCanada,anairservice fragile. was stillconsidered in Northern theairlineindustry Canada,where andnecessity,”future publicconvenience except required and to nolonger “present were prove in1984,airservicesthy’s Canadianairpolicy Transport laidoutby Axwor As Lloyd Minister regulatory alsoredefined. dutieswere theAgency’s toward deregulation, amove With theAgency.” orregulation madeby decision, order andmaybinding directions toalterany theAgency orother policy may issuegeneral government andfortheactionsofAgency.policy The able to Parliament fornationaltransportation ofTransportexplained, “theMinister isaccount thebooklet As directives ofgovernment. policy policy-making, butwasboundtothe follow hadaproactive role in nolonger The Agency Move out,” thegovern to respond thanseekthem to rather problems onminimalregulation, itisintendedemphasis action upon request. In keepingwiththe canonlytake“In mostcases, theAgency onlyuponrequest.offered wouldbealong withmediation,buttheservices arbitration finaloffer wouldalsoprovide Agency , explained. ment booklet,Freedomment to

hearings inresponse to complaints. the St. SeawayAct,andwouldhold Lawrence the PilotageAct andin thefilingoftariffs,under administrative duties continued itsother Agency existingservices. Thearea thatwouldendanger toanNo wouldbeallowed enter service new tected inthesamewayairservices. asnorthern transportation intheNorthMarine waspro- a decision withinsixmonths. hadto60 days then make to appeal.TheAgency duringwhichtimethepublichadabandonment, railway companieshadto give90 days’ noticeof basis. Ifthelinewasfoundto beuneconomic,the railway companyto onasubsidy continueservice the couldorder economic potential,theAgency necessary.portation where Ifalinehadfuture to thepublicto meansoftrans- establishother subsidy agovernment itable line,andensured forrailwayit easier companiesto sellanunprof NationalThe new Transportation also made Act on request, wouldsettherate. rate. Ifarate couldnotbeagreed upon,theAgency, foracompetitivelinecould asktheirlocalcarrier the30-kilometre limit beyond Captive shippers miles) setin1908 to 30 kilometres (18 miles). limit wasalsoextended,from 6.4 kilometres (four the actualcostofshipping. Theinterswitching required onlythatrates becompensatory to cover withtheAgency. Actfile theagreements Thenew contracts withindividualrailway companies, and couldnegotiateso thatshippers confidential Actreduced regulations intherailThe new sector could appealfares to theAgency. In thepublic instancesofmonopoliesinservice, only 120 days’ noticeto reduce orstop service. -

67 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 68 in the 1980s has been thecreation of two largein the1980shas been ofCanada’s airtransport industrythe deregulation associated with developments most prominent remarked that“one oftheThe AnnualReview hadsoldAirCanada.In 1988,thegovernment reported. profits,” theAgency andward withcorresponding effectsoncashflow farther,- butfare competitionforced yieldsdown and transported more more cargo passengers flew out theyearinairindustry. “Themajorairlines It alsoreported thatfare warscontinuedthrough- in therailway industryin1988. ing wastheprincipalcompetitivemechanismused contract reported thatconfidential tation Agency In itsfirstAnnual Review, theNational Transpor ofwesterngrain. for themovement distribute subsidies andsettheannualrate scale railway continuedto accidents. ButtheAgency role ininvestigating theAgency’s 1989 removed InvestigationAccident andSafetyBoard in The creation oftheCanadianTransportation ties forallofthemodestransportation. withdisabili- accessibility standards ofpersons regulationsprescribe, for administerandenforce to empowered wasfurther July 1988,theAgency investigate any complaintsinthatregard. In with disabilities.wasinstructed to TheAgency cles to publicmobility, particularlyfortravellers withoutundueobsta- mustbeoffered services legislationstatedThe new thattransportation the Actwasrequired inthefifthyearofoperation. the National Transportation of Act.Amajorreview was alsorequired of to conductannualreviews in allmodesoftransportation. TheAgency andacquisitionsing ofmajorcompanymergers wasthemonitor fortheAgency assignment A new

- - for themajorairlinesthatfare warspersisted. and leave themarket, competition creating enough to bewrong. continuedto Charterairservices enter to belessfrequent.” Butthatprediction turnedout “air fares are boundto riseand fare warsare likely Montreal Gazettereported onJanuary 20, 1989 that close to bankruptcy, to PWA, bepurchased by the Wardair, allowed theAgency When hurtingand out CP Air in1987. calledPacificformerly Western, whichhadbought Calgary-basedPWA,International by wasowned dian AirlinesInternational.” CanadianAirlines AirCanadaandCana- familiesheadedby carrier OF OPERATION. IN THEFIFTHYEAR THE ACTWAS REQUIRED A MAJORREVIEWOF TRANSPORTATION ACT. OF THE NATIONAL DUCT ANNUALREVIEWS REQUIRED TOCON- THE AGENCYWAS ALSO OF TRANSPORTATION. SITIONS INALLMODES MERGERS ANDACQUI- MAJOR COMPANY THE MONITORINGOF FOR THEAGENCYWAS A NEWASSIGNMENT A PASSENGER INFORMATION REPRESENTATIVE ASSISTSTRAVELLERS AT TORONTO PEARSONINTERNATIONAL AIRPORT, ONTARIO

69 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 70 1989 from all15 railway companies.” “more thandoubletheapplications fieldedin 1,306 milesin1989,65 freight linescovering planningto closereport, CN and CP were out Canada.”According to thenewspaper for closingfreight railway linesthrough- afloodofapplications besieged by has been that “theNational Transportation Agency treal Gazette reported onOctober 18, 1989, continued to rationalize theirlines.- TheMon Meanwhile, themajorrailway companies Cabinetminister.Lou Hyndman,Alberta aformer Transportation,Commission onPassenger under Atlantic provinces. Bouchard alsosetupaRoyal inhalf,mainlythe service cut VIApassenger five-yearplan wouldVIA Rail. Thegovernment’s Bouchard announcedaplanto slashfundsto Transportin April1989 when Benoit Minister inquiryinto VIApricingwashaltedAn Agency beestablished. policy Cabi to to thepublicinterest, and recommended prejudicialdecided thatthediscountfares were funding. TheAgency poration withgovernment cor an unfairadvantagebecauseitwasaCrown hurt itsbusiness,chargingthatVIAalready had The buscompanyclaimedthatthefares would counts intheMontréal-Ottawa-Toronto corridor. company complainedaboutVIA’s proposed dis- hearings.the focusofAgency TheVoyageur bus In 1988,VIARail’s discountfares hadbecome adequatelywere protected. to thattheadvancepaymentsair carriers ensure also conducted fieldauditsoftour operators and consumers.advance payments by TheAgency Transportation Regulations in1991 to protect to maderevisions theAir theAgency services, In ofcharterair response to therapid turnover net thataninquiryinto VIARail’s pricing - released inMay 1993. on accessibility ofmotorwas coach services ofthatyearandareport issued inDecember ground transportation atCanadianairports was ferries. ontheaccessibility of Aninterimreport ontheaccessibility offederally-regulatedreport In January released aninterim 1992, theAgency jurisdiction. part oftheAgency’s needs oftravellers withdisabilitiesanintegral madethedeclaratory clause.Theamendment withdisabilities”initssible” and“persons to1987 was amended includethewords “acces In 1992,the National Transportation Act of dominant carriers.” and nomonopolizationofkeyhubairportsby marketcarriers’ share onmostCanadianroutes, asignificantreduction ofthedominantbeen hasdecreased considerably.level has There industry, ofdominationattheroute thelevel inthethat “inspite concentration of apparent stated inits1992 AnnualReviewBut theAgency air industrya“duopoly.” dubbedtheCanadiantrol.” TheSouthamreport Corp., and11 regional airlineswithintheircon- Airlines International, aunitofCalgary’sPWA is clearlydominatedAirCanada,Canadian by quite theopposite. Canada’smarket Thissummer Canada’s skiestoairlines,theeffecthasbeen new deregu “While iscostly.”this summer continued, Thereport gasoline pricesandtaxes higher, touring Canada and airlinelossesup,competitiondown “With tioned thesuccessoftransportation deregulation. A any railway lineseastof Québec. Edward Island had in1992.By1993, CP nolonger inPrinceland in1988 anddiscontinuedservice CN had ceasedrailway inNewfound operations - report onJuly 23, 1991, report ques - Southam News lation wassupposedto open research supported itsstand. funded and federally ground onderegulation, However, heldits theMulroney government Canadian airspacewillbe geese.” regulation, theonlythingwe’llhave flyingover wars, assaying: “ifwedonothave somekindof a debate airfare intheHouse ofCommonsover , afterMcLaughlin, wasquoted SouthamNews by Audrey NDPLeader September 12, 1992, On Airlines.U.S.-owned American Air Canadafailed,PWA started talkswiththe for abuyer. with negotiationsforamerger When was infinancialtrouble andthatitwaslooking PWA hadannouncedin1992 thatCanadianAirlines makingsomepeoplenervous.Canadian skieswere Meanwhile, thefare warsbeingfoughtinthe OF QUÉBEC. RAILWAY LINESEAST LONGER HADANY BY 1993, CPNO ISLAND IN1992. PRINCE EDWARD TINUED SERVICE IN 1988 AND DISCON- FOUNDLAND IN ATIONS INNEW- RAILWAY OPER- CN HAD CEASED travellers are benefiting.” necessary.painful, were and Canadianshippers wasworking: “Thechanges,whilederegulation Rivard 9 that told onMarch TheCanadianPress portation sector to more competition. Canada’s trans- opening by toward deregulation further toeven move thegovernment encouraged of whatithadsetoutto do. Butthecommittee portation Act of1987 hadaccomplishedmuch foundthatthe Nationalon March 9, 1993, Trans- Agency. released TheRivard committeereport, ofthe oftheoperations would beanassessment oftheAct.five-year review Included inthereview committee wouldconductthemandatory the National Transportation Act.GillesRivard’s committeeof Cityto headareview from Québec meanwhile,appointed alawyerThe government, acting Chairman. BeaudrybecametheVice-Chairman Micheline departure, Nielsen’s 31.With on November hisfive-yeartermfinished when Nielsen toMeanwhile, saidgoodbye Erik theAgency tation to policy-making. role intranspor restriction ofthegovernment’s the applicationofauser-pay anda concept, transportation subsidies, withdrawal ofgovernment The Hyndman the Commission recommended taxpayers.”supported travellers andnotby by “It recommended. mustbesystem,” thereport maintain oroperate Canada’stransportation finance, own, shouldnolonger departments Lou Hyndman, released itsreport. “Government National Transportation, Passenger chaired by theRoyal Commissionon November 19, 1992, On -

71 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 72 44 andabudgetof$35 million. 508 employees operated withBy 1992-1993,theAgency and anadministrative budgetof$43 million. 1986, the CTC hadmore than800 employees the CanadianTransport Commission.In greatly reduced sincethedayshad been of financial resources. ThestaffoftheAgency ination ofitsorganization,andhuman anexam- committeerecommended the review For theNational Transportation itself, Agency tobe encouraged share trackage. that CP and CN shouldmittee alsorecommended nies couldreduce costsmore quickly. Thecom- rationalization rulessothatrailwayeral compa- privatizationof CN andmore lib- recommended to enter. In therailway sector, thecommittee tic market, shouldbeallowed foreign carriers inthedomes- and thatifamonopolydeveloped air sectorto beopened more foreign investment thatthe committeerecommended The review the Secretariat andCommunications Services Branch. Legal Services,Regulatory Operations Truckingportation Branch andtheMarine, and the Rail Branch, theAirandAccessibleTrans - alongmodallinesthatincludeddepartments wasreorganized thatyear to createThe Agency held. consultationswere and further Parliamentary StandingCommittee onTransport, to wassent thethe Rivard committee’sreport appointed chairmanoftheAgency. Meanwhile, Report wasreleased to thepublic,Rivard was Transportation Committee Review Agency aweekafter theNational March 16, 1993, On for cost-effectiveness andefficiency. the committeesuggested thatitbeassessed reduced regulatory role,But withtheAgency’s , G. Bruce Doern, editor,in thebook,ChangingRules: CanadianRegulatoryRegimes and Institutions,G.BruceDoern, p. 57. Margaret M.Hill, “RecastingtheFederalTransport Regulator: TheThirtyYears’ War, 1967-1997”,anessaycontained 44

overbuilt and we can no longer afford it.” andwecannolonger overbuilt quickly.must modernize Much ofoursystemis to Canadianbusinessesandconsumers. We thananadvantageis becomingahandicaprather transportation systemof Commons:“Thecurrent Young intheHouse statement apolicy delivered June 3, 1994, TransportOn Douglas Minister available.Canadian vesselswere Canadian waters, takinginto accountwhether forworkinshould receive temporary licences foreign vessels whether to Minister theRevenue would recommendenacted, inwhichtheAgency the CoastingTrade Act was December 1, 1993, On the busbusiness. time thatVIA’s discountfares didnotendanger bus company’sbusiness. decidedthis TheAgency VIAdamagedthe andQuébec, fares inOntario cuttingtion hadanunfairadvantageandthatby continued to corpora- complain thattheCrown pany aboutVIARail’s discountfares. Voyageur complaintfrom theVoyageuranother buscom- wasconductinghearingsintowork, theAgency into settled power. government thenew While A fallelectionin1993 brought Jean to Chrétien AirCanada. an appealby Cabinetupheldthedecision,dismissingfederal June 24,the andcontrolled. On Canadian owned Airlines, rulingthattheairlinewouldremain stakeAirlines, to cent inCanadian buy a33 per ofAmerican AMRLtd.,decision allowing owner May 27, 1993,On issuedamajor theAgency Audit branches. andInternal Management andQuality Review rate wascombinedwiththePlanning, Services into branch, whileCorpo- merged another were being subsidized by taxpayers.- being subsidizedby Theenvironmen are beingshieldedfrom thereal coststhat are ofoursystemspreached aboutthanused.Clients Intermodalindustry are inperil. links are more ofthelong-term viabilityofmanysegments and forthewrong reasons. Theprofitability and being heavily are now subsidized services Many too cars’thatare notbeingutilized. many‘empty in thepast. “We have too muchspare capacity— raised thathadbeen system, echoingconcerns Young pointed outtheflaws inthetransportation A PASSENGER WITHVISUALIMPAIRMENT ANDGUIDEDOGABOARD A VIARAILTRAIN©CANADIANTRANSPORTATION AGENCY and oftenstifling regulations.” “We intendto eliminate outdated, unnecessary the National Transportation Agency.” He added, including ofboards andagencies, review overall Young alsosaid,“We supportthegovernment’s to thetuneof$700 million inindirect subsidies. portation systemto thetuneof$1.6 billion,and trans directly- subsidizingthefederal 1994 were Young pointed outthatCanadian taxpayersin in urban areas, are becomingmore acute.” oftransportation, especiallytal consequences

73 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 74 and CanadianPacificMarch 1995. boughtCastin decided,however,Agency infavour ofthepurchase portinCanada.Thewhich wasthelargestcontainer businessattheport ofMontréal, ofcontainer cent thetwocompanieswouldinvolve80 per merging from North to America Europe. CN claimed that competition onthemaintransportation route CanadianPacificshipping companyby wouldhurt purchase ofMontréal’s troubled Castcontainer earlyin1994. CN claimedthattheattention An intermodalcomplainthadcometo theAgency’s mode oftransportation togoods. deliver usedmore thanonetransportation asshippers alsonotedReview anincrease inintermodal traffic inallmodesoftransportation. TheAnnual ofhigher recession amidreports from alingering optimism thatCanada’seconomywasrecovering expressed some 1994 AnnualReview The Agency’s privatizing CN. YoungMinister setupataskforce to consider In government. September,by the Transport ations eastofWinnipeg. Thatbidwasrejected toJuly 1994. CP then offered buy CN’srail oper Chicago. Theirnegotiationsbroke in down and eastofWinnipeg their freight services of negotiatingamerger CP and CN had been them. successful itwouldbeinimplementing tion policy. how Thecomingmonthswouldreveal hadsetitsgoalsfortransporta- The government - Ocean generated 80 per cent of CP’srevenue. cent 80 per generated Ocean Bay Thunder andthePacificthe area between created 127 yearsago.” explainedthat TheCitizen relocation to Calgaryfrom Montréal itwas where reported that“hard economiesdictated CP’s Citizen the Ottawa November 2, 1995, On offices. government inother work foritsemployees 18 months.” to wasattempting find TheAgency thenext“has to cut200 of its500 jobsover reported thattheNational Transportation Agency aweeklater, Citizen A story intheOttawa onJune 28, Transportation Agency. National Transportation astheCanadian Agency Transportation Act,thatwouldcontinuethe tabled Bill C-101,other June 20, 1995, TransportOn Young Minister Act would becutinthesummer. Rates Act andthe Atlantic Region Freight Assistance Grain Transportation Freight Act,the Maritimes the Westernsubsidy programs establishedunder budgetthatrailwayannounced inthefederal chopping block.Finance Paul Minister Martin putonthe were theAgency administered by February 27, 1995,On three subsidy programs thetwocountries.access ofairlinesbetween on February 24, 1995, unlimited thatallowed withtheUnited Skies”agreement States“Open signedanMeanwhile, theCanadiangovernment wise known astheCanadawise known

the privatizationof CN;andelimination withtheUnited Skies”agreement States;“Open allotted;thesigningof the routes were they madeuseofto thatCanadiancarriers ensure system; aninternationalairtransportation policy Canada to Canada’sairnavigation commercialize withNAV inthearea: anagreement ments Young- achieve recent listed thegovernment’s mood aboutCanada’stransportation system. House ofCommons, hewasinanoptimistic in the Act Marine announced plansforanew theTransport 14,when Minister December On the railway company’smainsource ofrevenue. become hadnow many yearsinitsfirstcentury so unprofitable fortherailway companyforso Ironically, thewesternrail linethathadbeen AS THECANADIANTRANSPORTATION AGENCY. CONTINUE THENATIONAL TRANSPORTATION AGENCY CANADA TRANSPORTATION ACT,THAT WOULD TABLED BILL C-101,OTHER MINISTERYOUNGON JUNE 20,1995,TRANSPORT WISE KNOWNASTHE tional wasthemagnitudeoftheirimpact.” for 1996 related, “what madethesechangesexcep- AnnualReport itself. theAgency’s the Agency As Act introduced regulations thatwouldtransform Nationalin theearlier Transportation. Butthe Act declaredreiterated thathadbeen thesamepolicy Canada TransportationThe new Act essentially May 29. on ItMarch 25, 1996. assent received royal on to C-101),went third readingBill C-14 (formerly The Canada Transportation Act,alsocalled Atlantic Region Freight program. Assistance the Western Grain Transportation Act andthe of $700 million insubsidypayments under

75 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 76 + + + + + + + + travel forever. airlines changesair highjacked commercial United States using intheterrorist attacks September 11, 2001, of CanadianAirlines. toallowed take control Air Canadawas December 21, 2000, was appointed. plaints Commissioner first Air Travel Com- August 2000,Canada’s mandate. from theAgency’s pipelines wasremoved port andcommodity of motor vehicletrans- July 1, 1996, regulation T THE CANADIANTRANSPORTATION AGENCY, OUR REACHING revellers whopacked ParliamentHillrevellers to markthenation’s129 program, beingterminated.” whiletheirjobswere in Moncton taskofclosingthebookson subsidy had thedemanding tered theAtlanticRegion’s transportation assistanceprogram. Employees Moncton asthisofficeadminis - office presented aparticularchallenge, almosthalf.500 by “Theclosure oftheNational Transportation Agency’s wasdealingwiththeupheaval involvedinreducing astaffofAgency theAnnualReportforthatyearrelated,As theNational Transportation intolingered summer. thecool,wetweather incoming andthen slow Spring hadbeen 1996 TO 2004 clouds in the sky and few in the minds of 140,000 Canada Day inthemindsof140,000 Canada Day clouds intheskyandfew reported, “For Citizen as theOttawa one sweet day, no were there he Canada Transportation Act wasproclaimed onJuly 1, 1996, when,

th birthday.”

lator withresponsibilities thatincludedissuing quasi-judicial tribunalandaneconomic regu- wouldcontinueinitsrole asaThe Agency Canada anditsregions.” ofmaintain theeconomicwell-being andgrowth withdisabilities, andto includingpersons lers, andtraveltransportation needsofshippers - to the total costisessential serve at thelowest best useofallavailable modesoftransportation withdisabilitiesandthatmakespersons the accessibletoeffective transportation services andadequateefficient networkofviableand portation Act:namely, that“asafe,economic, largelyintactinthe CanadaTransremained - hadThe existingnationaltransportation policy to thenew.the oldAgency as Vice-Chairman.Twofrom Membersmoved Transport Canada,wasappointed to theAgency Lang. JeanOtto at Patenaude,adviser apolicy 1970s, asspecial assistantto Transport Minister for CN and,intheport system,asamanager including executive positionsintheCanadian inthetransportation field,of experience appointed Chairman. Mrs. Robson had25 years Transportation onMarch 27, 1995, Agency was Robson,Marian whohadjoinedtheNational the regional offices. alongwith tation amongtheMembers wasremoved of Transport.- ofregional represen Therequirement three part-time Members appointedtheMinister by maximum term offiveyears,andamaximum appointed Cabinetfora by Members full-time seven of maximum membership was a reduced to incarnation.TheAgency ofitsformer version onJulyoperations 2,wouldbeastreamlined began which Canadian Transportation Agency, According to the CanadaTransportation Act,the ious legislation. theprev the Atlanticsubsidiesprogram under thecasein intheAct, ashadbeen encountered to loopholes report checkpoint fortheAgency a provided its administration. Thisrequirement inAct andto onanydifficultiesobserved report to ofthe conductanannualassessment Agency The Canada Transportation Act required the non-compliance withregulatory provisions. was alsogranted theauthoritytofinesfor levy of anapplicationoracomplaint. TheAgency nomore than120 daysallowing from thereceipt to makeAgency adecisionintimelymanner, didnothave TheActrequired thethey alicence. prohibited were if fromair services advertising forairservices.Act, Underthenew requirement protectionconsumer withafinancialfitness role in anew wasgiven mandate. TheAgency from theAgency’s modity pipelineswasremoved Regulation ofmotor vehicletransport andcom- regime. thesamelicensing under wasput sothatalldomesticairservice services restrictions forNorthern entry airremoved and service; uneconomic freight andpassenger railway subsidiesforcontinuingremoved andairlines;and acquisitionsofrail carriers role inmonitoringnated mergers theAgency’s railway linesorto elimi- discontinueservice; process forrailwayan easier companiesto sell The Canada Transportation for Act provided mobility oftravellers withdisabilities. undueobstaclesto to the remove had powers for Western also TheAgency grain movements. determination oftheannualmaximumrate scale andthetransportation rate matters, andservice variousair,resolving disputes over rail andmarine toandrailwaylicences aircarriers companies,

77 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 78 a two-month Agency hearingbeganinSaskatoona two-monthAgency than $50 millionthatwinter. delays, After several incurred transportation-related lossesofmore had obligations andthatfarmers their service CP and CN, hadnotfulfilled claimingthatthey againstfiled acomplaintwiththeAgency April 14, 1997,On Board theCanadianWheat to theAct. leadto someamendmentswould alsoeventually ofgrain forexportmarkets.ment Thatcomplaint involvedtherailway- companies’move Agency of thefirstmajorcomplaintsaddressed to the almost100 yearsbefore. OneCommissioners about thecreation ofthefirstBoard ofRailway thathadbroughtmany ofthesameconcerns itstillwasoccupiedwith challenges, these new wasadaptingto meet astheAgency But even in largenumbers. short-line railway springingup were operations panies, CP and CN, soldofftheirbranch lines, while, asthetwomajorfreight railways com- traffic. Mean inintermodal container frontiers - exploringnewRail were andmarine carriers Canadian interests. competitionandprotectingtives ofencouraging have to thetwinobjec- bemaintainedbetween market Abalancewould thatsaw growth. little a in themajorplayers Canadian Airlineswere whileonthedomesticsideAirlevel, Canada and competitivemarketa fiercely attheinternational disabilities. airtravel Passenger wasexpanding in to make transportation accessibleto peoplewith abouttheneedlation raised increasing concern Canada’s transportation system.Anagingpopu- array inpresented a whole new ofchallenges millenniumits doors,theapproach ofthenew theCanadianTransportationAs opened Agency that noreliefBoard. wasnecessaryfortheWheat in thewestboundcorridor. concluded TheAgency weather-related traffic disruptionshadhampered alsofoundthatfor eastboundtraffic. TheAgency obligationsbound traffic, buthadmetitsservice had breached someaspectsinregards to U.S. obligationsforwestboundtraffic,met itsservice decidedthat CP hadnot theAgency ber 30, 1998, - Septem On undisclosed figure incompensation. Board, withtheWheat paying earlier ansettled with CPinvolved. CN hadon March 30, 1998, LARGE NUMBERS. SPRINGING UPIN OPERATIONS WERE RAILWAYSHORT-LINE BRANCH LINES, SOLD OFFTHEIR NIES, CP ANDCN, RAILWAYS COMPA- MAJOR FREIGHT WHILE, ASTHETWO TRAFFIC. MEAN- MODAL CONTAINER FRONTIERS ININTER- EXPLORING NEW CARRIERS WERE R AIL ANDMARINE grain-transportation reforms. soughtthe Kroeger appointed inMay 1999 to asystemof develop minister ofTransport, deputy a former was to protect the publicinterest. ArthurKroeger, system thatcontinued grain-delivery commercial 1998 calledforamore inDecember report transportation andhandlingsystem.Estey’s ofthegrainWillard Esteyto undertakeareview hadappointed CourtJusticeCollenette Supreme 1997,In December ofTransport Minister David maximum rates for the movement ofgrain withmaximum rates forthemovement theregulation ofBill C-34, which replaced passed August 1, 2000, thegovernment On was a caponrailway grain revenues. to theTransport 1999, inSeptember Minister submitted recommendations, Among Kroeger’s companies shared theirprofits withshippers. and to determinetheextent to whichtherailway helpinestimatingtransportation costsAgency’s AIRPLANE PARKED AT TERMINAL3 OFTHETORONTO PEARSON INTERNATIONAL AIRPORT, ONTARIO

79 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 80 established new port Act established new the Canada Marine changes.sector other hadundergone In 1998, Meanwhile, role inthemarine theAgency’s parties. andother request, tocarriers shippers, train mediators,available andmadethem upon cost ofpublichearings. beganto TheAgency twoparties,withoutthetimeandbetween mediation wasusedtodisagreements settle started intheRail Branch, inwhich andMarine deal withdisputes. In 2000,apilotproject was to lookforspeedier, ways more efficient to hearings into avarietyofcomplaints,itbegan continued to holdformalAlthough theAgency about theirspecificareas ofexpertise. listofarbitrators includeinformationAgency’s than $750,000. Thebillalsorequired thatthe a streamlined process fordisputes valuedatless theoptionofusingthree arbitrators,offers, and forsimultaneoussubmissionofalso provisions ofanarbitrator.the appointment were There coulddefer theAgency on procedural matters, railway Inties andto service. ruling passenger extending itto designated commuterauthori- arbitration and process, makingitmore efficient thefinaloffer legislationalsoimproved The new running rightsinlevel-of-servicecomplaints. to grant thepower The Billalsogave theAgency for level-of-service complaintsonbranch lines. andincludedprovisions ofservice and transfers fordiscontinuancenotice andnegotiationperiods forlongeroriginating onbranch lines,provided Bill C-34 alsoputalimitonthetariff rates forgrain capeachyear.ity forestablishingtherevenue responsibil- wasgiven ofgrain. TheAgency ment - cap, that CN and CP couldearnforthemove orarevenuea regulation ofmaximumrevenues, of thatto pointsoutsideCanada,withlessgrowth travel since1987,sharp riseinairpassenger most Transport a Canadastatistics in1999 showed tariffs available to thepublicelectronically. the Agency, onlyto requiring them make their filetariffswith thatshippingconferences ment therequire- removed carriage. Theamendment tothem setcommontariffsandconditionsof from the CompetitionAct and allowsconferences role inthatarea. TheActexemptsshipping Act changedtheAgency’s Exemption Conferences to the ShippingIn 2001,anamendment November allfourauthorities.applied consistentlyby Methodology,Risk Management whichcouldbe Transport thePilotage developed Canadathen 1999.and tabledinParliamentNovember adopted were recommendations The Agency’s to establishcriteria forcompulsorypilotage. age authoritiesusearisk-based methodology suggested thatpilot things,theAgency other in August 1999 with 21 recommendations. Among issuedareportand costreduction. TheAgency and measures related to financialself-sufficiency pilots; compulsorypilotagearea designations; cifically looked of atthetraining andlicensing conducted thereview,the Agency whichspe- system. Attherequest oftheTransport Minister, ofthepilotageAct called foraministerialreview inthe CanadaMarine provision Another facilities.changes intariffsorfeesatthenew for investigating anycomplaintsregarding The Agency, foritspart,wouldberesponsible Bridge Corporation to bridges. managefederal the St. Lawrence Seaway andcreated theFederal commercializedharbours to localgovernments, someportsandauthorities, handedover - 45 in thedomesticmarket. 46 Air Lines. tion forAirCanada’spredecessor, Trans-Canada putinplacetoregulations were detercompeti- was afarcryfrom thedays ofC.D. Howewhen to competition.It ensure fortheAgency powers makingitnecessarytonow increase regulatory The return to adominant-carrier situationwas onmonopolydomesticroutes.services riage andto require noticeofdiscontinuance domestictermsandconditionsofcar review fares andcargorates onmonopoly routes, to passenger increased authorityto review Agency things,givetheBill C-26 would, amongother intheHouse policy ofCommons.the new February 17, 2000,On tabled Collenette control ofCanadianAirlines. to AirCanadawasallowed takeDecember 21, dian Airlines’routes for atleastthree years. On required AirCanadato continue allofCana- toincludingonethat bepermitted, agreement necessary fortheAirCanada-CanadianAirlines ofconditions laidoutaseries The policy line Restructuring inCanadaonOctober 26, 1999. introduced APolicyCollenette Framework forAir- monopoly inCanada,Transport David Minister In ofanair anticipation ofthere-establishment withAirCanada. merger thatCanadianAirlinesmightnegotiateapparent a parties,itbecameof negotiationswithdifferent tering closeto bankruptcythatyear. Afteraseries in airtravel, however, CanadianAirlineswastee- the obtainedfrom TransportStatistical information andBalance, Reportof Canada charts,printedinVision Montreal Gazette,August 2, 2000. Canadian Transportation ActReviewPanel,publishedin2001, pp.114-5. 45 Despite theexpansion Despite - with their treatment by airlinecompanies. by with theirtreatment whoare dissatisfiedchampion forconsumers to actasthe ofgovernment machinery federal neededtoagreed thatthere besomeoneinthe of CommonsStandingCommitteeonTransport oftheHouse andthemembers “The government TransportAs explained, Collenette Minister League referee for21 years.League referee asaNational career Hockeyfrom hisformer theterm borrowing as beingan“airlinereferee,” cil ofOntario.Mr. Hoodtask explainedhisnew withtheTravela board member Industry Coun- of CanadianTravel (Ontario Agents branch) and owner,travel agency oftheAssociation president position, onAugust 1, 2000, wasBruceHood, a of airlinecustomers. Thefirstappointee to the to andattempt resolve complaintsto review wascreatedsioner to work withintheAgency position ofanAirTravel ComplaintsCommis- increasingly frustrated airlineproblems. by The some assistanceto airlinecustomerswhowere Bill C-26 had,luckily, theneedfor foreseen of Herculean.” integrate are nothingshort theairlines’operations that“effortsto told thenewspaper employee over-booking.”meals andfrequent AnAirCanada lost luggage,more delays, decliningqualityof more lineups, chaotic conditionsincluded“longer hatenow to fly.” TheGazette’sdescriptionofthe “A service: the new ofpeople number growing the July 9, 2000,toward asmooth transition. On despite causedsometurbulence, effortsinevitably ofCanadianAirlinesAir Canada’stakeover Montreal GazettedescribedtheearlydaysMontreal of 46

81 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 82 47 of theyear, theAirTravel ComplaintsCommis- detectedlems intheairlineindustry. Bythe end involved, andhighlightinganysystemicprob- listing thecomplaintsreceived andthecarriers to reports theTransportsemi-annual Minister, wasrequired toThe Commissioner make andtheairline.” the consumer priate, to mediate anoutcome thatsatisfiesboth solutions haveexhausted appro- been and,where complaints, to thatallalternative ensure review willbetoThe keydutiesoftheCommissioner Montreal Gazette , December 22,2000. VICTORIA, BRITISHCOLUMBIA,2003 A COASTAL PILOTDISEMBARKING A VESSELAT BROTCHIELEDGE,

regulations were followed. regulations were facilities across thecountryto that the ensure ties. inspectors monitored and Agency carriers withdisabili- conditions forcarryingpersons tation Regulations alsoaddressed termsand Regulations. TheAirTransporwith Disabilities - Personnel Training ofPersons fortheAssistance abilities. hadestablishedthe In 1995,theAgency the transportation systemforpeoplewithdis- noundue obstacles in were thatthere ensure mandate wastoA majorpartoftheAgency’s Canada washaving problems. cash-flow the scheduledandcharter airbusinesses,butAir wasaliveandwell,bothinthe domesticscene was managingto make aprofit. Competitionon had better news. had better inWesternoperations CanadainFebruary 1996, WestJet, thathadstarted adiscountcarrier announced plansto cutjobsandraise airfares. feeling thestrains ofitsexpansionandhad Air Canada,intheclosingdays of2000,was use forunrulypassengers. wouldestablish intheirtariffsthesanctionsthey However,them. required theairlineswere to couldrefuse to infact,they carrypassengers; Airlines hadtherightto imposesanctionson airlineshandledunrulypassengers.about how plaint, so-calledairrage, arose from disputes their substancewouldvary. kindofcom- One complaintswouldincrease andwidely known, officebecamemore timepassedandthenew As luggage andschedulingproblems. lost aboutqualityofservice, many ofthem hadreceived more than1,200 complaints,sioner 47 It hadexpanded eastward and its firstcodeofpractice, Aircraft Accessibilityfor launchedapproach. In1996,theAgency November thanusingaregulatorywithin theindustryrather intended to voluntarycompliance encourage for thetransportation industry. Thecodeswere wasalsoworkingon codes ofpracticeThe Agency A CANINEFROMGREATER AUTHORITY TORONTO AIRPORTS CANINE SERVICE UNITINSPECTS LUGGAGEAT TORONTO PEARSON INTERNATIONAL AIRPORT, ONTARIO, 2002 for Ferry AccessibilityforPersons withDisabilities February 1998,andinJune 1999 theCodeofPractice and rail sectors. TheRail Codewasintroduced in inthemarine CodesofPractice by was followed usingaircraftoperations withmore than30 seats, Persons. TheAirCode,applicableto withDisabilities

83 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 84 addressed an increasing number of complaintsaddressed anincreasing number transportation network, theAgencythe federal to with disabilitiesin themobilityofpersons practice designedto address systemicbarriers In additionto theregulations andcodesof it regularly onregulatory projects. meets annuallywiththeCommittee andconsults industry guidelinesonaccessibility. TheAgency regulations, codesofpractice, anddeveloping in guidancetoCommittee offers theAgency AccessibilityCommittee.Thethe Equipment originally establishedonJanuary 30, 1990, as interestedtion industryandother people,was thetransporta- agencies, groups, government from disabilityCommittee, withrepresentatives increase awareness. AnAccessibilityAdvisory and reading material onanongoingbasisto workshops withdisabilitiesandprovides mers for thetransportation industryandforconsu aneducationprogram developed The Agency andterminals. providers transportation service disabilities. It wouldapplyto air, rail andferry and accessto information fortravellers with communicationsCode setcriteriaforimproving (Communication Code).TheCommunication forTravellerscation Barriers withDisabilities - Communi calledRemoving Code ofPractice finishedworkonanewIn 2002,theAgency to assessindustry compliance. carriedoutmonitoring surveyseffect, theAgency sions forwheelchairs. into theCodeswent As - elevators, lighting,onsignsandprovi lettering includingfeatures suchashandrails,improved, shouldbetransportation facilitiesandequipment came into effect. TheCodesoutlinedareas where

McKay-Panos appeal. not beheard untiltheFederal Courtruled onthe Air CanadaandVIARail, butthosecaseswould obesitycomplaintsagainstbothreceived other cle tomobility. theperson’s had TheAgency the passenger, wasnotanobsta- andsothere seat for another found thatAirCanadaprovided the purposesofAct. However, theAgency ber 17, 2002 hadadisabilityfor thattheperson - decidedon Decem on AirCanada,theAgency In obesitycase,alsoinvol another Federal Court. The complainantappealedthatdecisionto the not have adisability forthepurposesofAct. did thattheCalgaryresident October 23, 2002, ruled,inasplitdecisiononcase, theAgency casebasis.on acaseby In theMcKay-Panos decidedto ruleonobesitycomplaintsAgency have adisability forthepurposesofAct. The mightbeindividualswhoare obeseandthere disability forthepurposesofAct,butthat 2001 thatobesityinitselfisnota in December Transportation issuedadecision Act.TheAgency fact adisabilityforthepurposesofthe Canada neededto determinethatobesitywasinAgency obesity. thecomplaint, Before considering foradditionalseatingbecauseofpassengers ofcharging policy Air Canadaandthecarrier’s tobythe seatingaccommodationprovided her In 1997, LindaMcKay-Panos complainedabout Transportation Act. disabilities forthepurposesofthe Canada healthconditionsconstituteto certain whether complaints raised jurisdictionalquestionsas withdisabilities.from persons Someofthese ving seating VIEW OFCONTAINER SHIPFROMPILOTBOAT NEARBROTCHIE, VICTORIA, BRITISHCOLUMBIA,2003

85 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 86 determined that,onapreliminary basis, there In aMarch 27, 2003 decision, theAgency withdisabilities.the mobilityofpersons the Renaissance carscreated undueobstaclesto features onThe Councilcomplainedthatseveral VIARail carspurchased by in2000. of passenger regarding theaccessibilityfeatureswith theAgency filed an application Canadians withDisabilities In precedent-setting case,theCouncilof another casebasis. applicationsonacaseby allergy words, to decided,inother consider The Agency gies, have adisability forthepurposesofAct. mightbepeoplewho,becauseofaller that there not adisabilityforthepurposesofAct,but initselfis complaints,thatanallergy to several decidedonMay 10, 2002,inresponseThe Agency OF THEACT. FOR THEPURPOSES HAD ADISABILITY THAT THEPERSON DECEMBER 17,2002 AGENCY DECIDEDON AIR CANADA,THE VING SEATING ON CASE, ALSOINVOL IN ANOTHEROBESITY - ment inboththeprivatement andpublic sectors. manage- insenior than 20 yearsofexperience Trudeau andan executive atVIA Rail, hadmore toMinister an adviser Prime who hadbeen the area ofairtravel complaints. Mr. Dufault, Vice-Chairman withspecialresponsibilities in in1998, was appointedhad joinedtheAgency who panel.GillesDufault, to sitonthereview Vice-Chairman Jean Patenaude lefttheAgency studies onspecifictransportation issues. active website. It alsocommissioned50 research hearings across thecountryandsetupaninter submissions from interested parties,heldpublic Elliot Trudeau, received more than200 written Pierre to Minister adviser Prime policy former BrianFlemming, alawyerandpanel, headedby ofthe CanadaTransportationreview Act.The nette establishedapanelto carryoutafive-year In June 2000,Transport Colle David Minister processmore offormalhearings. lengthy parties directly, avoidingcostand thepaperwork, andMembersquestionedtheoral presentations, hearing process. Bothpartiesofadispute gave thanthetraditionalin amore informalsetting hearings, inwhichMembersmetdisputingparties withmodified alsobegananexperiment Agency Accessible Transportation Branch in2002.The rail andmarinesectors, wasintroduced to the mediation pilotproject, startedinthe earlier years. inrecent The theAgency introduced by New methodsof dealingwithcomplaintswere appealed thedecisionto theFederal Court. final decision,finding14undueobstacles. VIA issuedits theAgency October 29, 2003, On before finalizingthedeterminations.evidence opportunityto VIAafurther submitoffer 14 “undue”obstacles,butthatitwouldwere - included removing the onus on a shipper of theonusonashipper included removing In therail sector, panelrecommendations cent.25 per toship beallowed increase to 49 per from cent including, intheairsector, thatforeign owner industry, toward greater competition andamove ofthetransportation deregulation further thatrecommendedwas awide-ranging report intheHousethe panel’sreport ofCommons. It July 18, 2001, theTransportOn tabled Minister - STOCK PHOTOHELDBYTHECANADIANTRANSPORTATION commercial, cost-recovery basis.commercial, toward to amore move of VIAandbeallowed beseparated frompart oftheoperation, therest Québec-Windsor corridor, themostprofitable panel suggested,things, thatthe amongother capongrain rates.the revenue For VIARail, the basis,whichmightincluderemovingcommercial and transportation systembeputonamore case ofacomplaint,andthatthegrain handling harm”inthe “substantialcommercial proving AGENCY ©DIGITAL VISION

87 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 88 industry continuedtoIn evolve. thefinaldays of celebrated year, itscentennial thetransportation In 2004, astheCanadianTransportation Agency costs.” operating andhigher demand lower troubled airindustrycontinuedto besqueezedby in2002,asthe huge financiallossesandinsolvency “major airlinesaround theworldstruggledwith AnnualReportof2002 stated thatThe Agency’s Canada, addedto therecessionary atmosphere. aWesternof Afghanistanby coalitionincluding involving majorU.S. corporations. Theinvasion acrash inthehigh-techby industryandscandals through theworld’sfinancialmarkets, already hit shudders 11tragedy hadsent The September inCanada,declared bankruptcy.carrier asthelargestcharter panel’sreport in thereview spin. Two monthslater, Canada3000,described theglobalairlineindustryinto atailnia, sending near Washington andafieldinrural Pennsylva- Trade inNew Center York City, thePentagon hijacked terrorists crashed into by theWorld jets passenger after therelease ofthereport, lessthantwomonths September 11, 2001, On policies to sustain rural communities.” use, co-ordination andintegration ofmodes,and energy in efficiency goals, sustainabledevelopment, “environmental to importantconsiderations: other Besides safetyandeconomics,thepanelpointed could promote more deregulation. policy in therightdirection, butthatgovernment movingCanada’s transportation networkswere wasthatThe mainthrustofthepanelreview relied onit. and theCanadiantravellers andbusinessesthat the needsofnationaltransportation system started determined to itssecond century adaptto thefuture wastoBut whatever bring, theAgency 21 It wasclearthat regulating transportation inthe one ofCanada’slargestrailway companies. tection inApril.Also,CNhadpurchased BCRail, grantedunresolved afterithadbeen creditor pro - 2003, AirCanada’sfinancialsituationwasstill st century wasgoingtochallenges. century involvenew DEREGULATION. PROMOTE MORE MENT POLICYCOULD BUT THAT GOVERN- RIGHT DIRECTION, MOVING INTHE NETWORKS WERE TRANSPORTATION WAS THAT CANADA’S THE PANEL REVIEW THE MAINTHRUSTOF + + + + + + + + delivery todelivery exportports. a significantbacklogingrain Grain Farmers Actresponds to May 29,2014,Fair Rail for onrail safety.attention disaster focusesnational Lac-Mégantic derailment gottougher.tion policy of creating transporta - June 6,2013,thechallenge accessibilitymandate.cy’s - rights” nature oftheAgen and confirmsthe“human to make itstrains accessible VIARaildecision ordering upholds theAgency’s Court ofCanadaSupreme 23,2007,March the rights.light onairpassenger collapse putsnationalspot 2005, abruptJetsgo airline - lowing AirCanada’s acquisitionofCanadianAirlinesInternational.lowing Commissioner, created toduring the transition fol- helpconsumers plaints aboutairlinesfrom theoffice oftheAirTravel Complaints inheritedresponsibility forprocessing hadrecently com- The Agency individuals whofiledcomplaints. to oremail nearly800 letter by months,staffreplied in thefollowing alternativeairlinestoallow transport stranded Jetsgo passengers.And onaprioritybasisto issuedcharter permits All weekend,theAgency public withtimelyadviceabouttheiroptions,rightsandrecourse. staffkickedday into —andAgency highgear. the provided They —closeto 140,000 inoneCalls beganpouringinto theAgency break, oneofthebusiesttravel seasonsoftheyear. holiday oftheMarch stranded ontheeve were of passengers sands Montréal-based airlineJetsgo abruptlyceasedoperations. Thou- In theweehours ofthemorningonFriday, 11,2005, March THE CANADIANTRANSPORTATION AGENCY, CHANGES AND 2004 TO2014

89 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 90 of senior management experience. management of senior public-sector executive withabroad range February 12, 2007. He wasaseasoned onChair andChiefExecutive Officer C. Hare wasappointed (Geoff) Geoffrey a fresh slate ofmembers. appointedone-year terms. government Thenew to for five,plusupto twotemporary members reduced fromfor five-yearterms,were seven appointed members, permanent The Agency’s inJuneand ChiefExecutive 2006. Officer Robson completedten-yeartermasChair her Agency, slate anew ofexecutives. amongthem alsointheworksfor since 1996.Changeswere principles prefacing theCanadaTransportation Act National Transportation Policy of —thestatement It wastimeto andsimplifythe modernize Canada Transportation Act. ofthe from the2001review recommendations andmany proposals governments from previous incorporatingtion backonParliament’sagenda, puttransporta- In earlyspring, thegovernment wouldstepinto help.Agency complaints withanairlinedirectly before the musttryto thatthey resolve them and alert programs withtravel to consumers tips provide educational FlySmartandother developed To subsequently theAgency helpconsumers, complaints process into itsdailyoperations. todirected integrate theAgency thepassenger lems. In budget,thegovernment the2005federal baggage damageandloss,ticketing prob- flightdisruptions,about poorqualityofservice, office hadhandledmore than8,000complaints In theCommissioner’s fiveyearsofoperations,

quality oflifeinCanada’scities. andimprove gasemissions greenhouse lower important to helpreduce traffic congestion, increasingly were public transportation services that acknowledgement wasthe growing Another pollution” from railway marshallingyards. “noise over complaintsfrom constituents were citedMPs concerns by Among environmental public intervention. appropriate grounds forregulation andstrategic addedtosecurity objectiveswere thePolicy as social andAt thesametime,environmental, for anintegrated transportation system.” andtheprivate sectorernments worktogether - “gov when objectivesare bestserved that policy and market forces” and stated forthefirsttime which gave to more prominence “competition National Transportation Policy inJune 2007 He to wasreferring Parliament’s update ofthe transportation system.” across theto accessibilityandefficiency achieve necessary assignedroles where ulation hasbeen vices,” Hare saidinhisfirstAnnualReport. “Reg- viableandeffectiveser inproviding agents competition andmarket forces astheprime thathave toof nationalpolicy evolved recognize predecessors havedirected statements been by “The CanadianTransportation andits Agency Infrastructuretry ofPublic Renewal. - Minis oftheOntario Minister Deputy ment. thefirst He been hadmostrecently public infrastructure planningandinvest internationally, economicstrategies, and with responsibilities formarketing Ontario anditsagencies, government the Ontario more than25yearswithinHare had spent - - jurisdiction in this area and overturned itsorders.jurisdiction inthis area andoverturned the Federal lacked CourtruledthattheAgency their railway noisecomplaints. Butlate in2000, forhelpinresolvingapproaching theAgency earlyas 1998, communitieshadbeguntion. As turn fordisputes aboutrailway noiseandvibra- prioritywasto givecommunitiesaplace toOne rail carriers.” muters, publictransit companies,andair com- the interests ofcommunities,consumers, proposals thataim“to strike abalancebetween legislation in2007addressing high-priority Transport Lawrence Cannonintroduced Minister the Agency. Such urbanissuesprompted mandates new for TORONTO PEARSONINTERNATIONAL AIRPORT, FEBRUARY 2005. (PHOTO: DUKE,USEDUNDERCREATIVE COMMONSLICENCE.) JETSGO MD-83PREPARING TOBETOWEDINTOAHANGARAT lems duringthe expansion ofrail facilities.lems as wellways to resolve unanticipated prob- promoted planningandcommunications proper oped a‘localdispute It resolution framework.’ of Canada,withadvicefrom theAgency,- devel dian Municipalities andtheRailway Association yearstheFederation thenextfew ofCana- Over collaboration wasthewatchword.intervene, couldmotives, andshunting. theAgency While passingtrains, idlingloco- tion andoperations, railwayExamples ofnoisesources were construc- providers. service railways orpublicpassenger vibration complaintsrelated to freight federal authorityto dealwithnoiseandthe Agency givingParliament resolved thisissuein2007by

91 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 92 to resolve complaints. Tested as apilotproject, created astatutory basisfortheuseofmediation The legislation,effectiveJune 22,2007, also acquire them. prior to arailway to accepting company’soffer or discontinuedrailway linesandrelated assets determine thenetsalvagevalueofabandoned to couldapplytoauthorities now theAgency In addition,municipalitiesandurbantransit includedinthemandate.urban transit purposeswere agreement. Rail corridorsthatcouldbeusedfor railway companycouldnotnegotiate acommercial anda provider service publicly-funded passenger ause ofrailway andfacilitieswhen equipment andtheto ascompensation decidesuchmatters authorityThe legislationalsogave theAgency CARRIERS.” AND AIRRAIL TRANSIT COMPANIES, COMMUTERS, PUBLIC NITIES, CONSUMERS, INTERESTS OFCOMMU- ANCE BETWEENTHE “TO STRIKEABAL- POSALS THAT AIM HIGH-PRIORITY PRO- IN 2007ADDRESSING DUCED LEGISLATION CANNON INTRO- ISTER LAWRENCE MIN- TRANSPORT

limited competition. of thetwonationalrailway companiesdueto hadtilted toobargaining power farto theside arguedthat relationships, shippers commercial the role of themarketAct emphasized and Policy intheCanadaTransportation enshrined companies. theNational While Transportation andthe railway shippers ing tensions between Parliament alsoturnedto effortsaimedatquell- cap.” asthe“revenue colloquiallyknown Program, Entitlement reflectedMaximum withintheRevenue then$33 million, notthe$105millionthatwere carswereactual maintenancecostsforhopper In 2007–2008, determinedthatthe theAgency grain to market. to CNandCPare allowed earnmovingrevenue much annualcalculationsofhow the Agency’s carmaintenancecostsfactoredin hopper into the legislationrequired aone-timereduction decidedto keepthefleet, thegovernment While charging.companies were costthantherailwaycars foramuchlower things,thatitcouldmaintaintheamong other Coalition of17farmorganizationshadasserted, the fleetto the Farmer Rail CarCoalition.The in principle,adecadethemaking, to sell agreement aprevious reversed The government prairie grain tomove Vancouver ports. andother CN andCPsincethe1970s to capacityto ensure to provided carswhichhadbeen 12,000 hopper fleetofmore thaninvolved thegovernment’s ofthelegislation unexpected element One marine andaccessibility. air,adjudication process fordisputes over rail, formalcourt-likealternative to theAgency’s acost-effective,mediation hadproved efficient improve leverage for shippers incommercial forshippers leverage improve Legislation effectiveinFebruary 2008aimed to operators, portsandvesseloperators. including railway terminal companies,shippers, to rail-based logisticschain, studytheentire potential changes.for further Thepanelwas a two-yearRail Freight Panel Review Service ofof legislation,aswelltheestablishment camein theform forshippers Improvements MOST CANADIANCITIESEVOLVED AROUNDRAILWAY TRACKSANDDEPENDONTHE GOODS ANDSERVICES THEY DELIVER.(PHOTO:SERJIO74/ISTOCK) was anunwarranted to barrier statutory remedies. had longobjected to thistest andMPs agreed it acomplaint.harm” before considering Shippers “substantialcommercial wouldsuffer shipper hadto nolonger besatisfiedthataThe Agency railways.” by abuse ofmarket power would “protect from thepotential rail shippers and rates. Cannonsaidthemeasures Minister servicenegotiations withrailway companiesover AERIAL VIEWOFVANCOUVER, BRITISHCOLUMBIA.

93 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 94 of Canadians with Disabilities versus VIARail. versus of CanadianswithDisabilities Courtrulinginthe caseoftheCouncilSupreme 23,2007,reached onMarch aday thatsaw a theaccessibilityfront, aturningpointwasOn tive withtheircounterpartsintheUnited States.” railway to competi- industryandshippers remain dors,” hesaid.“Improved capacitywillhelpour are madeonthekeytrade corri- investments thatmuch-neededcapacitywill, inturn,ensure the railway companieshaveseeking, been which theregulatory“The Billwillprovide stabilitythat Asia-Pacific region. oftrade withthetime ofunprecedented levels oftheCanadianeconomyatapetitiveness rail, andforthecom- that shiptheirgoodsby the measures to the hundreds of companies theimportanceof emphasized The Minister toacontract. orthecarrier settle shipper the ofeither roster selectsthefinaloffer Agency arbitrator from anIn thisoption, an independent common solutionto freight rates andconditions. to seekingajointshipper groups ofshippers to resolve disputes wasextendedfrom asingle arbitration optionoffinaloffer The Agency’s to adjusttheir plans. from 20days, to more timefor shippers provide for increasing to freight rates 30 waslengthened The noticethatarailway company mustgive or more shipper. one basedonacomplaintby services, incidental oftraffic orfeesforditions forthemovement pany chargesandassociated termsandcon- unreasonable railway andamend com- review to hadthepower now In addition,theAgency disabilities whomusttravel withattendants. This withadditional free airlineseatforpassengers an decision,ordering “one-person-one-fare” issuedits the Agency in 2008,when keyaccessibilitydecisioncameAnother inthecomingyears.”challenges inViaRailuse themajorityjudgment infuture Court Law Review. “Advocates caneffectively wroteMalhotra involume58oftheSupreme rights andgave itarobust interpretation,” Ravi ofhuman stressed theprimacy majority properly “Fortunately fordisabilityrights advocates, the train hadanaccessiblecabin. overnight every Renaissance train hadanaccessiblecoachand daytimeVIA wasrequired to thatevery ensure decision onVIARail. From thispointforward, Ultimately, 2003 therulingrestored theAgency’s transportation system. federal practical financialandlogisticalrealities ofthe the needsofpeoplewithdisabilities touniquely hasthespecializedexpertise balance thattheAgencyThe Courtalsoacknowledged to access. obstacles andremedies itidentifies tion, when notably theprincipleofreasonable accommoda- principles oftheCanadianHuman Rights Act, mustapplyrights legislationandthattheAgency Part VoftheCanadaTransportation Act ishuman In Courtruledthat itsdecision, theSupreme animals. andwhousedservice impairments withvisualin wheelchairsandto passengers Renaissance train carsaccessibleto travellers the Councilto getVIARail to make someofits campaignby aseven-year The decisionfollowed because ofobesity. withadisabilitymined thatshewasaperson a decisionoftheFederal CourtofAppeal deter McKay-Panos statusafter wasgranted intervener had arare diseaseresulting inparaplegia. Linda of Gander, Newfoundland andLabrador, who tis, andtheestate ofEricNorman, aresident Victoria, arthri- rheumatoid B.C. whohadsevere travelling. Joannewhen were They Neubauerof care attendantsindividuals whoneededpersonal along withtwoCanadians withDisabilities, This case,too, originated withtheCouncilof ities, regardless of thenature ofthedisability. to forpeoplewithdisabil- transportation services theprincipleofequalaccessdecision underlined - spring of2008. inthe accessibilitynewsletter in theAgency’s greater,”transportation willbeeven Hare said foraccessibleof disabilityincreases, thedemand “As Canada’spopulationagesandtheincidence the airlines’applicationforleave to appeal. obesity. TheFederal CourtofAppealdismissed are functionallydisabled by ifthey for themselves safety in-flight,orwhorequire additionalseating care or fortheirpersonal anattendant panied by withdisabilitieswhoare accom- fare forpersons Jazz andWestJet couldnotchargemore thanone decidedthatAirCanada, AirCanadaThe Agency (PHOTO: CANADIANTRANSPORTATION AGENCY) AT THEVIARAILSTATION INOTTAWA, ONTARIO. TRAVELLERS WITHMOBILITYIMPAIRMENTS

95 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 96 access to federally-regulated transportation. In limitsaperson’sa disabilityifitsufficiently maydetermined thatanallergy beconsidered stage intheearly2010s. had In 2002,theAgency took allergies, centre withserious for persons accessibilityissue,accommodationA different vided free ofchargefrom pre-boarding to arrival. oxygen fordomesticflights,solongasitispro- able alternativeto passenger-suppliedgaseous asareason- Air Canada’s gaseousoxygen service the mostappropriate accommodation.It accepted safetyandsecurityregulations, is by permitted formpassenger-supplied oxygen,inwhatever during flights. Thedecisionspecifiedthat from peoplewhorequired medicaloxygen against AirCanadaandoneWestJet addressed 25applications Also in2008,theAgency SYSTEM. TRANSPORTATION TIES OFTHEFEDERAL LOGISTICAL REALI- CAL FINANCIALAND WITH THEPRACTI- WITH DISABILITIES NEEDS OFPEOPLE TISE TOBALANCETHE SPECIALIZED EXPER- UNIQUELY HASTHE THAT THEAGENCY ACKNOWLEDGED ALSOTHE COURT their websites. display thetariffclearlyattheirofficesandon or cancelledflights. required Airlineswere to boarding ordelayed becauseofoverbooking whoare denied forpassengers and remedies conditions ofcarriage,suchasfares andfees, to tariff,listingtermsand establishitsown law,In free, by Canada,eachairlineremained ing measures to protect travellers. countries adopt parts oftheworld,withseveral steadily inCanadaandother gainingattention had been aircarriers by and qualityservice oftimely rightsandtheprovision Air passenger precedent-setting decisionsoncomplaints. aswell tariff informationforconsumers initiative tosimplifycomplex help aircarriers rightsthrough an airpassenger strengthened rightsissues.equally busyonairpassenger It was theAgency thissametimeperiod, During animal. oraservice aids, anattendant, withdisabilitieswhotravelpersons withmobility toticketing to service kiosks, andhow provide people withdisabilities,automated self-service boarding to area, thetraining ofpersonnel assist terminal accessibilityfrom theparkinglotto the tice, standards, andresource tools issuedon were of practice to increase accessibility. Codesofprac- standards andcodes developing systemic basisby undue obstaclesto ona transportation services alsocontinueditseffortsto remove The Agency includedinalater decision. were and WestJet to forpeopleallergic cats. Dogs zonesfrom AirCanada,CanadaJazzbuffer and nutsallergies. required In 2012,theAgency zoneonflightsforpeoplewithpeanuta buffer AirCanadato ordered create2011, theAgency - systemic basis, rather than case by case. thancase by systemic basis,rather could address non-compliancewith tariffsona ifitstating thatitwouldhave more leverage toreports Parliament,startingin2008–2009, limitations ofthisapproach ineachofitsannual casebasis. notedon acaseby the TheAgency mandate itto onlyallowed resolve complaints Across allofthesedecisions,theAgency’s shouldbeharmonized.provisions internationalanddomestictariffthat carriers’ ordered orcancelled.TheAgency overbooked a refund orberebooked aflightisdelayed, when to prefer receive they choosewhether passengers ada, WestJet andAirTransat to ordered were let In fiveseparate decisions in2012–2013,Air Can- inbothcases.should beprovided flight delays, and thatthesamecompensation inthesameway asnegatively impactpassengers could ruledthatflightadvancements Agency In a2013complaint againstAirTransat, the $200 toofdelay. $800— basedonthelength —from aslidingscaleofcompensation ordered boarding and fordenied sonable compensation wasunrea- tion of$100cashora$200voucher - ruledthatAirCanada’scompensa the Agency complaints.of importantairpassenger In 2011, resolved anumberAt thesametime,Agency individual airlinetariffsonitswebsite. alsostarted postinglinksto theAgency sumers, carriage withpassengers.To helpcon- further languageintheircontracts ofunderstandable aimedathelpingairlinesuseclear,document aSampleTariff developed Agency in 2011.This ifnothundreds ofpages,thethat spandozens, Since airlinetariffsare complexdocuments of Transport to draft regulations. wasaskedtheMinisterlate by 2011,theAgency fees, fuelsurcharges andtaxes. aresult, in As play fullround-trip fares thatincludedallairport was airtravel thatdidnotclearlydis- advertising topicAnother thatraised theire ofconsumers BY CASE. RATHER THANCASE A SYSTEMICBASIS, WITH TARIFFS ON NON-COMPLIANCE IT COULDADDRESS MORE LEVERAGEIF THAT ITWOULDHAVE 2008–2009, STATING MENT, STARTING IN TOPARLIAREPORTS - EACH OFITSANNUAL THIS APPROACHIN THE LIMITATIONS OF AGENCY NOTED BY CASEBASIS.THE PLAINTS ONACASE TO RESOLVE COM- ONLY ALLOWEDIT AGENCY’S MANDATE THESE DECISIONS,THE ACROSS ALLOF

97 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 98 a contract setting out level of service commit ofservice outlevel a contract setting railway company, request, to onashipper’s offer Act, effectiveJune 26,2013.Thelaw required a Legislators responded withtheRail Freight Service anddisputes.”problems solutionsto commercial servicethat encourages tion may benecessaryto fosteranenvironment recognizes thateffectivelegislationandregula- said initsfinalreport. “However, thePanel also thanincreased regulation,” thePanelbetter solutions willaddress issuesandproblems “In principle,thePanelcommercial believes to concludeterms. iftheparties are unablerecourse attheAgency withthe railway company and agreement level rightto ofashipper’s servicethe establishment measures tofurther protect notably shippers, PanelReview returned in2011to recommend theRailaccessibility matters, Freight Service In themidstof thecontinuingworkonairand organizationsandregulatoryconsumer bodies.” industry, between model forfuture co-operation consultationprocess as“apraised theAgency’s the Tourism IndustryofCanada, Association andCEOof Goldstein,President David then playing competitivesector. fieldin afiercely the inlevelling same rules—animportantstep the follow requiring thatallcarriers tition by andpromotedhelped consumers faircompe- 2012,which cameinto effectinDecember regulations,The “all-inclusive”advertising what shouldbeincludedintheadvertisements. collected andranked thepopularityofideas gestions through forumthat a“crowdsourcing” ofthepublicmadesug- tation inwhichmembers hostedonlineconsul- aninnovative The Agency - shippers andproducers.shippers to exportportscausedanuproar amonggrain railways by companiesbacklog ingrain delivery grain inthewinterof2013–2014.Asignificant a hugestrain onCanada’sshippingsystem for combined withexceptionallycold weather, put the rail front. Arecord crop inwesternCanada, storm onAt thesametime,another wasbrewing toments rail insurance requirements. - launched aconsultationonpotentialimprove Railway (CMQ). Subsequently, the Agency &Quebec soldtorail Maine assetswere Central nies declared bankruptcyandinJune 2014, their &AtlanticCanadaCo.treal, Maine Thecompa- subsidiaryMonfor MMAanditswholly-owned - thecertificateoffitness suspended The Agency was destroyed. coretheir homes,andmuchofthedowntown forced from 2,000peoplewere dead. Another blazeandexplosionsleft47 peoplethe ensuing released. Fire beganalmostimmediately, and crudeoilwasquicklylion litres ofpetroleum portation SafetyBoard reported. Aboutsix mil- aged, andmanyhadlargebreaches, theTrans- dam- tankcarswere Almost allthe63derailed ofthetownLac-Mégantic.centre for SaintJohn, New nearthe Brunswick,derailed 7.7 crudeoilbound millionlitres ofpetroleum &AtlanticRailwayMaine (MMA) train carrying In theearlyhours ofJuly 6,2013,aMontreal, Lac-Mégantic, Quebec. in uponadeadlyderailment rail matters other However, shifted publicattention quicklyto partiescouldnotconcludeanagreement.when forIt setupanarbitration process attheAgency operations. andother onrailcar delivery ments allows a shipper to ashipper haveallows therailway thatdirectly Manitoba. Interswitching isamechanismthat and160 kilometres inSaskatchewan,Alberta ing forallcommoditiesfrom 30kilometres to temporarily expandedtheradius forinterswitch- theAgency to Pursuant theseamendments, tation ofgrain. thetimelytranspor Act withthegoalofensuring Canada Transportation ActandtheCanadaGrain to the amendments temporary andpermanent Grain Farmers of Act,whichmadeanumber Parliament responded withtheFair Rail for GOVERNMENT-OWNED HOPPER CARS TRANSPORTING GRAINGOVERNMENT-OWNED HOPPERCARSTRANSPORTING - THROUGH THEPRAIRIES.(PHOTO:INDYKB/SHUTTERSTOCK) 65 calendar day65 calendar statutory deadline. processing ofarbitration caseswithinthe 45 to andsupported theefficient theAgency tion by eligibleforarbitra- terms clarifiedthematters arbitrations. operational ofservice level Defining what constitutes terms”forrail “operational regulations specifying developed Act, theAgency Also pursuantto theFair Rail forGrain Farmers to railway to another fordelivery destination. the Agency, to aninterchange pointfortransfer itscargo, atarate itsfacilitymove setbyserves

99 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 100 crude-by-rail andrelatedcrude-by-rail frequently issueswere In thewake oftheLac-Mégantic tragedy, September 2016. decision inof AppealupheldtheAgency’s therulingbutFederalchallenged Court reasons tofailure.were CN justifytheservice therefulfilled therequest; andifnot,whether therailwayis reasonable; whether company request forservice theshipper’s whether were: its obligations. questions Thethree evaluation arailwaywhether companyhasfailedto fulfill that setoutathree-step approach to evaluate issuedaprecedent-setting decisionAgency issuesinthefallof2014, ofservice level In complaintsaboutrailway addressing shipper in place fornearlyoneyear. afterbeing wouldnotberenewed requirements Transport announcedthattheminimumvolume the marketplace. of In 2015,theMinister March inorganizations asunwarranted interference someofCanada’smajorbusinesscriticized by requirements. Theseminimumvolumeswere for failure to meetthese minimumvolume year. couldbeimposed Administrative penalties duringeachmonthofthecropshould move minimum amountofgrain thatCNandCP Transport, priorto eachcrop year, onthe to annual adviceto of provide theMinister Finally, thelegislationrequired theAgency

public expectations. conditions, technologies, andstakeholder legislation keptpacewithchangingeconomic and pressure wasmountingto that ensure transportation sectorclosescrutiny wasunder not justforrail transportation. TheCanadian more changesonthehorizon— were There communities,” saidTransport LisaRaitt. Minister payers andmakingindustrymore accountableto whileprotecting tax- oversight and strengthen railway legislationwillimprove safety“This new to violation. $100,000per ofupapply anadministrative monetarypenalty could TheAgency that may affect theircoverage. immediately changes ofanyoperational Agency andinformthetheir liabilityinsurance coverage Railway companieswouldhave to maintain transport.goods they based onthetypeandvolumeofdangerous insurance, ranging from $25millionto $1billion, railway companiesto of carryminimumlevels Agency, regime required freight thenew federal To qualifyforacertificateoffitnessfrom the June 18, 2016. out intheSafeandAccountableRail Act,effective federally-regulated railway companieswasset regime fority insurance andcompensation discussed onParliamentHill. liabil- Anew

+ + + + + + tabled. ActModernization Transportation May 16,2017, Initiative launched. Modernization Regulatory May 26,2016, House ofCommons. tabledinthereview Transportation Act Feb. 25,2016,Canada

supply chainaswell. and adaptabilitynotonlyofthe rail sector, linksinthe butother The 2013–2014grain backloghadraised questions aboutthecapacity long-term economicwell-being. potential actionsintransportation thatwouldsupportCanada’s The panellooked forward 20to 30yearstoprioritiesand identify was appointed June 25,2014,towithfiveadvisors. headtheReview held theportfoliosofIndustry, International Trade, andForeign Affairs, cabinetminister whohad aformer The Honourable L.Emerson, David tation policiesandregulations. andupdate initiativesto Canada’snational transpor hensive review law. thanrequired by earlier compre- It becamethefirstofseveral oftheCanadaTransportation review arms-length Actayearhensive, June 25,2014,TransportOn LisaRaitt launchedacompre- Minister THE CANADIANTRANSPORTATION AGENCY, ON THE 2014 TO2017

101 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 102 toring regulations. new adjudicating complaints to andmoni- enforcing jurisdictions andshiftthefocusfromwith other forgreater harmonizationThis wouldprovide lations to theexistingcodes ofpractice. replace to andmonitoraccessibility regu- enforce new amandateIt begiven suggested thattheAgency more effectiveresponse to affectingit. problems quicker,the transportation networkandenable visibility, accountability, across andtransparency to mandate. greater itsnew Thiswouldpermit islative authorityto obtaininformationrelevant withtheleg- theAgency platform andproviding It data alsoproposed thecreation ofanew casebasis.a case by to address issuessystematically, thanon rather orders. theAgency Thiswouldpermit general andtheabilityto issue motionpowers own givingtheAgency recommended The report ofthefuture.”impact ontheAgency witha“significantdirectof recommendations anumber were recommendations numerous timely decisions.” Included inthereport’s andbalanced,to rigorous oversight, enable Canada’s transportation system“are structured governing entities andother ing thattheAgency recognized theimportanceofensur The report onFebruaryment 25,2016. Minister. inParlia Garneautabledthereport - weeksafterhewasappointeda few asTransport 18,2015, GarneauonDecember astronaut Marc wassubmittedtoThe panel’sreport former isatstake.”partner tion asareliable source ofproducts andtrade deliver,” thepanelsaid.“For- Canada,areputa is at riskifthetransportation system failsto “For largeregions ofthecountry, prosperity - the federal public service, duringwhichhehad publicservice, the federal in after a25-yearcareer came to theAgency months.on aninterimbasisforseveral Streiner fillingposition Vice-ChairSamBarone hadbeen asChairandCEO, tooka Streiner over Scott Julysitioned toleadership.20,2015, new On tran- consultations andresearch, theAgency thepanelwasconductingits theperiod During airline passengers. protection consumer for andenhance Agency anexpandedairmandatewould provide forthe theAgency. by and obligationsenforceable This rights regulations toor new establishpassenger Finally, legislativeamendments itrecommended LINE PASSENGERS. PROTECTION FORAIR - ENHANCE CONSUMER THE AGENCYAND MANDATE FOR AN EXPANDED AIR WOULD PROVIDE THE AGENCY. THIS ENFORCEABLE BY AND OBLIGATIONS SENGER RIGHTS TO ESTABLISH PAS- NEW REGULATIONS AMENDMENTS OR MENDED LEGISLATIVE FINALLY, ITRECOM-

August 27, that wasconcerned 2015. TheAgency oncompany stranded about1,000passengers operations.suspending TheCanadian-owned Airlines announcedthatitwas temporarily arrival,SkyGreece weeksafterStreiner’s A few Review.and Executive oftheAerospace Director at Transport CanadaandattheLabourProgram, Policy, Minister Development Deputy Assistant Secretary to CabinetforEconomicandRegional inavarietyofroles, includingAssistantserved AN AIRCRAFTREADYFORBOARDINGINWHITEHORSE,YUKON. porting them using another airline),implement usinganother porting them arefund ortrans- options (includinggetting oftheirwithin 24 hoursto informallpassengers some counter-argument, itwouldbeordered indicating thatunlesstheairline couldoffer to cause” order SkyGreecemotion, a“show some certainty, issued,onitsown theAgency Seeking to stranded travellers provide with tions to passengers. SkyGreece wasfailingto meetitslegalobliga- (PHOTO: PI-LENS/ISTOCK)

103 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 104 practices intheregulatory field.In May2016,the expectationsandbestbusiness models,user neededto keeppacewithchangesinAgency thatthe recognized moreStreiner generally maintains protection said. fortravellers,” Streiner choiceand andconsumer forinnovation allows ability to airlineindustry, arapidly evolving “The determinationbringsclarityandpredict itsproposed approach. under was areseller determined thatNewLeaf Travel CompanyInc. are onlyactingasareseller.they TheAgency solongasitiscleartolicence, thepublicthat wouldnotberequiredresellers to holdanair determinedthatIn 2016,theAgency March to andreselling them thepublic.air carrier purchasing seatsfromtravel alicenced by services NewLeaf intended to sellno-frillsdiscountair theCanadianairtravelwould beentering market. thatacompanycalledNewLeafannouncement inlate 2015wasthe development Another abouttheiroptions.uncertain stranded and donotleavechallenges passengers facingfinancial to thataircarriers ers ensure was willingto- use thefullextent ofitspow hadclearlydemonstrated thatitThe Agency advice abouttheiroptions,rightsandrecourse. timely providing SkyGreece ticket by holders immediately begantoThe Agency helpaffected SkyGreece declared bankruptcysoonthereafter. the measures inplaceto address thesituation. a help lineandupdate itswebsite to fullyexplain establish thepassengers, by the optionchosen - be compared andweighed. neededto andevidence of competingarguments significantvolumesselect, complexcaseswhere a nine-yearhiatus,to holdingoral hearingsfor ward disputes; ontheother, itreturned, after process foradjudicatingrelatively straightfor anexpedited implemented hand, theAgency ing itsdispute theone resolution services. On - with achangingindustrywasthrough improv to moved keeppace wayAnother theAgency from 2015–2016. 300% ajumpofover combined andrepresented fiveyearscomplaints received intheprevious that yearwasnearlyequaltoof thenumber filed in2016–2017. complaints The3,367new ofairtravelincrease inthenumber complaints These effortscontributed to asignificant and increased useofsocialmedia. targeted advertising, meetingsandevents, holder ofstakeefforts includedanincreased number - publicinformation revamped The Agency’s couldhelp. theAgency responsibilities, andhow aware oftheirtransportation-related rightsand stakeholders andother travellers, shippers, importance ofmakingtransportation providers, the underscoring outreach andengagement, alsoinitiatedapproach toStreiner anew bring theregulations into 2018. force by and allnecessaryapprovals, regulations, ensure planned to conductconsultations,draft updated and related guidelinesitadministers. TheAgency ofalltheregulationsInitiative —afullreview announceditsRegulatoryAgency Modernization - system formanyyearsto come. andaccessiblenationaltransportationefficient, do itspartinhelpingto create acompetitive, stood ready to —theAgency and innovation agility,in afast-moving world,onengagement, impartiality —andplacingincreased emphasis, and expertise, foundations ofindependence, its responsibilities. Buildingonlong-standing range ofall offronts to effectivedelivery ensure markedaction onawide by ofrenewal a period was inthemidstof theAgency Confederation, As Canadaapproached the150 As through arbitration. theAgency by established agreements level inservice penalties the inclusionofreciprocal non-performance for andallowing credit forcapitalinvestments, formulato giveindividualrailwaysEntitlement single railway, Revenue adjustingtheMaximum interswitching “captive”to option forshippers a Rail forGrain Farmers long-haul Actwithanew the interswitching under temporarily allowed theextended replacing for Canadianaircarriers, rulesregulations, changingforeign ownership rights to makeairpassenger the Agency new empowering The Billincludedprovisions andinterested experts, Canadians.ers, consultationswithstakeholdport’s subsequent - Transportation ofTrans ActandtheMinister - oftheCanada from thereview recommendations onsomeoftheproposed legislationdrew the May 16, 2017, tabledBillC-49, thegovernment ofrapid change,onContinuing aperiod Transportation Act.The Modernization th anniversary of anniversary Fair ESTED CANADIANS. ANDINTER- EXPERTS, WITH STAKEHOLDERS, CONSULTATIONS SUBSEQUENTPORT’S MINISTER OFTRANS- TATION ACTANDTHE CANADA TRANSPOR- THE REVIEWOF MENDATIONS FROM OF THERECOM- TION DREWONSOME PROPOSED LEGISLA- ERNIZATION ACT.THE PORTATION MOD- BILL C-49,THETRANS- GOVERNMENT TABLED MAY 16,2017, THE CHANGE, ON PERIOD OFRAPID CONTINUING A

105 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 106 MEMBERS’ LIST APPENDIX: Rutherford Dr. John Gunion Boyce A.C. Wilfred BrunoNantel Drayton Henry Lumley Goodeve A.S. Thomas Greenway Simon James McLean Scott D’Arcy James Mabee Pitt Killam Clements Albert James Mills Esdras Bernier Michel GeorgeBlair Andrew MEMBER BOARD OFRAILWAY COMMISSIONERS AND TRANSPORT COMMISSIONERS AND TRANSPORT

Commissioner Commissioner Commissioner ChiefAssistant Commissioner Chief Commissioner Commissioner Commissioner ChiefAssistant Commissioner Commissioner ChiefAssistant Commissioner Chief Commissioner Chief Commissioner Commissioner Deputy Commissioner Chief OFFICE

APPOINTED September 17, 1918 October 4, 1917 October 20, 1914 July 1, 1912 April 4, 1912 September 17, 1908 August 6, 1919 September 17, 1908 September 17, 1908 March 28, 1908 February 6, 1905 February 1, 1904 February 1, 1904 February 1, 1904

TERMINATION DATE July 24, 1923 October 3, 1927 October 19, 1924 August 1, 1919 November 22, 1920 October 30, 1908 September 16, 1938 August 5, 1919 September 16, 1918 May 6, 1912 March 1, 1908 January 14, 1914 January 31, 1914 October 31, 1904

Archibald Maynard Brown Armand Sylvestre James Cross Albert MacPherson Frank Mitchell Wardhope HughWilliam Masson Hugh Guthrie Garceau François Napoléon Stone George A. François Labelle Albert Charles Perry Fullerton John August Stoneman Tobias Crawford Norris Thomas Vien McKeown Harrison Andrew Frank Oliver Calvin Lawrence Carvell Frank Broadstreet MEMBER BOARD OFRAILWAY COMMISSIONERS AND TRANSPORT COMMISSIONERS AND TRANSPORT Commissioner Chief Commissioner ChiefDeputy Commissioner Chief Commissioner Commissioner ChiefAssistant Commissioner Chief Commissioner ChiefDeputy Commissioner Commissioner ChiefDeputy Commissioner Chief Commissioner Commissioner Commissioner ChiefDeputy Commissioner Chief Commissioner Commissioner Commissioner Chief OFFICE

APPOINTED July 1, 1948 April 18, 1945 April 1, 1940 September 21, 1939 November 8, 1938 August 12, 1935 September 16, 1933 December 16, 1931 December 16, 1931 August 13, 1931 March 12, 1929 March 30, 1928 September 5, 1925 September 16, 1924 September 21, 1923 November 4, 1921 August 2, 1919 TERMINATION DATE October 31, 1951 April 17, 1960 June 30, 1948 March 29, 1959 November 7, 1958 November 3, 1939 April 10, 1943 June 30, 1948 July 15, 1933 December 31, 1933 March 12, 1949 March 29, 1938 January 31, 1931 February 28, 1931 September 20, 1928 May 4, 1931 August 9, 1924

107 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 108 Alfred Sydney Kirk Alfred Sydney Dumontier Joseph Émile RoyIrwinWilliam John Woodard Miller HenryGriffin Herbert Roderick Kerr Shepard Day Clarence Leonard James Knowles Matthews A. Overton John D. Kearney JohnWilliam Patterson Chase Howard Brown MEMBER BOARD OFRAILWAY COMMISSIONERS

AND TRANSPORT COMMISSIONERS AND TRANSPORT Commissioner Commissioner ChiefDeputy Commissioner Commissioner Commissioner ChiefAssistant Commissioner Chief Commissioner ChiefAssistant Commissioner Commissioner Chief Commissioner Commissioner Commissioner Chief Commissioner Commissioner OFFICE

APPOINTED January 3, 1962 May 26, 1960 August 1, 1959 May 20, 1959 January 19, 1959 January 1, 1959 November 8, 1958 October 6, 1958 January 15, 1957 September 1, 1955 January 1, 1953 November 1, 1951 April 28, 1949 July 28, 1948

TERMINATION DATE September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 1967 December 31, 1958 November 8, 1958 January 1, 1959 January 2, 1962 September 1, 1955 January 15, 1957 July 3, 1951 May 19, 1959

James FloodClark John Rashleigh Belcher Frederick ThomasWood George Russell Boucher Paul Yettvart Davoud Joseph Morriset LouisGérard JamiesonWilbert Matthews McLean Daniel Alexander John Russel Baldwin J. P. Roméo Vachon Alan Ferrier CecilHenry Robert Alexander NAME AIR TRANSPORT BOARD AIR TRANSPORT Member Vice-Chairman Member and Chairman Member Chairman Chairman Member Chairman Member Chairman Member Member Chairman POSITION

1966 1965 October 10, 1963 1962 March 1, 1959 August 4, 1965 January 1955 July 1954 January 1950 1949 September 11, 1944 September 11, 1944 September 11, 1944 START DATE

1967 September 20, 1967 1965 September 20, 1967 1963 September 20, 1967 August 4, 1965 1958 1962 July 1954 1954 1949 December 1948 TERMINATION DATE

109 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 110 Howard Jackson Darling RutledgeJack Clemenger Scott George Alexander WatsonAlexander WestCarl William Jean-Claude Lessard Angus McGugan Henry J. Rahlves Audette Louis delaChesnaye John Valentine Clyne NAME CANADIAN MARITIMECOMMISSION Chairman Member Member Member Chairman Member Chairman Member Member Chairman Member Chairman POSITION

1966 February 21, 1965 1960 February 1960 August 1, 1959 January 1, 1954 December 13, 1950 1948 November 1, 1947 January 1, 1954 November 1, 1947 November 1, 1947 START DATE

September 20, 1967 September 1966 September 20, 1967 1964 February 20, 1965 1959 December 31, 1953 July 7, 1956 1948 July 31, 1959 December 31, 1953 July 7, 1950 TERMINATION DATE

John Woodard Miller Morisset Joseph LouisGérald Magee John ArthurDelamare Kirk Alfred Sydney Roderick Kerr Jones Haney David Roy IrwinWilliam HenryGriffin Herbert Laval Fortier Joseph ÉmileDumontier Howard Jackson Darling Raymond Robin Cope James FloodClark Alan Pengelly Campbell George Russell Boucher John Rashleigh Belcher TaschereauPierre John Pickersgill Whitney NAME CANADIAN TRANSPORT COMMISSION CANADIAN TRANSPORT Member Member Member Member Member Member Member Member Member Member Member (Research) Vice-President Member Member Member Member Member Vice-President President POSITION

START DATE September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 February 15, 1968 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967 September 20, 1967

TERMINATION DATE December 15, 1978 February 15, 1973 January 10, 1985 September 16, 1970 October 31, 1967 January 1, 1988 January 14, 1970 December 31, 1975 April 18, 1974 September 1, 1970 February 20, 1970 September 24, 1975 August 31, 1976 December 30, 1976 November 8, 1970 July 31, 1972 July 31, 1971 August 31, 1972

111 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 112 Jean-Louis Bourret Robert John Orange Wolfe R. Bernard John Francis Walter Paul Langlois Drainville L.Gérald J. A. McDonough James Maurice Armstrong Douglas Malcolm Yves Dubé Ralph Azzie John Teaton Gray Edward HenryLaBorde E. J. Benson Carver SedgewickAnn Harley Louis RenéTalbot Guy Roberge Thomson John BarrieGlen March Raymond MacDonald Guy Frank Lafferty NAME CANADIAN TRANSPORT COMMISSION CANADIAN TRANSPORT

Member Member Member Member Member Member Member Member (Research) Vice-President Member (Law) Vice-President Member Member President Member Member (Law) Vice-President Member Member Member POSITION

START DATE December 23, 1981 May 2, 1981 1979 1979 1979 1979 August 4, 1977 September 1, 1976 June 1, 1976 May 27, 1976 December 24, 1981 June 1, 1974 August 21, 1973 September 1, 1972 January 28, 1972 September 9, 1971 August 1, 1971 June 28, 1971 March 19, 1970 March 13, 1969

TERMINATION DATE March 31, 1988 March 31, 1988 March 31, 1988 March 31, 1988 March 31, 1988 March 31, 1988 January 1, 1988 August 4, 1986 September 1, 1986 December 24, 1983 May 31, 1984 December 24, 1981 January 6, 1981 August 31, 1982 1979 1979 December 24, 1981 June 16, 1981 December 24, 1981 1979

Weinberg Edward Ehrlich B. Keith Penner Edmund J. O’Brien James Mutch Daryl McDonough James Maurice Lambert Marcel Craig S.Dickson Beaudry Micheline Erik HersholtNielsen NAME Erik HersholtNielsen Lambert Marcel JamesMichael Landers John Thompson David John CarrMunro Jean Marchand HiltonDavid Chapman Anne-Marie Trahan NAME NATIONAL TRANSPORTATION AGENCY CANADIAN TRANSPORT COMMISSION CANADIAN TRANSPORT

Member Member Member Member Member Member Member Vice-Chairman Acting Chairman Vice-Chairman Chairman POSITION President Member Member Acting President (Law) Vice-President Member President Member Member POSITION

START DATE START DATE January 1, 1988 January 1, 1988 January 1, 1988 January 1, 1988 January 1, 1988 January 1, 1988 January 1, 1988 March 16, 1993 December 1, 1992 August 15, 1988 January 1, 1988 January 21, 1987 March 11, 1985 July 9, 1984 July 31, 1985 June 29, 1984 June 29, 1984 December 16, 1983 March 3, 1983 December 23, 1981

TERMINATION DATE TERMINATION DATE November 30, 1992 June 30, 1996 1996 November 30, 1992 December 31, 1988 March 31, 1990 1996 June 30, 1996 March 15, 1993 November 30, 1992 November 30, 1992 January 1, 1988 January 1, 1988 March 31, 1988 1987 March 31, 1988 July 31, 1985 March 31, 1988 June 2, 1986

113 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 114 Guy Delisle Proud George Albert Bruce Melvin Hood Gilles Dufault Mary-Jane Bennett Sutton A. Michael B. Keith Penner Richard Cashin Jean Patenaude Dorius Lorraine RobsonMarian NAME Lorraine RobsonMarian Richard Cashin Gilles Rivard McGrathJames A. Patricia Danforth Jacques Voyer George C. Minaker Kenneth Raphael Ritter Nicolle Forget NAME CANADIAN TRANSPORTATION AGENCY NATIONAL TRANSPORTATION AGENCY Member Member Commissioner Complaints Air Travel Vice-Chairman Member Member Member Member Member Vice-Chairman Chairman POSITION Member Member Chairman Member Member Member Member Member Member POSITION

START DATE START DATE January 8, 2002 January 8, 2001 August 1, 2000 August 2000 January 19, 1998 January 19, 1998 December 22, 1997 July 1, 1996 July 1, 1996 July 1, 1996 July 1, 1996 March 27, 1995 1993 May 3, 1993 1,1993 March June 22, 1992 May 20, 1992 1990 April 1989 August 15, 1988

TERMINATION DATE TERMINATION DATE January 7, 2007 January 7, 2007 July 31, 2002 January 18,2008 May 16,2007 31,2004March June 30, 2003 June 30, 2003 June 2000 July 1,2006 June 30, 1996 June 30, 1996 June 30, 1996 1995 1993 1993 June 30, 1996 June 30, 1996 1993 Scott Streiner Scott McMurrayWilliam D.Stephen Campbell Peter Paul Fitzgerald Tom Maville Sam Barone PelletierJean-Denis MacKeiganMark John Scott Hare Geoffrey Ray Kaduck S.Gill Baljinder Reginald Beaton Tulk Liette Lacroix Kenniff NAME CANADIAN TRANSPORTATION AGENCY Chair Member Member Member Member Vice-Chair Member Member Vice-Chair Member Chair Member Member Member Commissioner Complaints Air Travel POSITION

START DATE July 20,2015 July 28,2014 July 7, 2014 June 18,2014 January 22,2014 18,2013 March 3,2008 November June 18,2007 January 19,2008 June 1,2007 February 12,2007 January 8,2007 April 26,2004 December 16, 2002 October 1, 2002

TERMINATION DATE January 9,2016 2,2013 November June 22,2014 May 31,2012 February 11,2015 May 8,2016 April 25,2007 15,2007 December 30,2004 September

115 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 116 Reviews, 1988 to 1994 Reviews, National Transportation Agency, Annual 1988 to 1992 National Transportation Agency, Annual Reports, Social AnalysisBranch, June 1975 Canadian Transport Commission,Economicand Reports, 1967 to 1987 Canadian Transport Commission,Annual Reports, 1947 to 1966 Commission,AnnualCanadian Maritime Reports, 1996 to 2002 Canadian Transportation Agency, Annual Reports, 1938 to 1966 Board ofTransport Annual Commissioners, Reports, 1906 to 1937 Board ofRailway Annual Commissioners, 1947 Ottawa December 31, 1946. September 11, 1944 to period Air Transport Board, AnnualReportforthe Annual ReportsandReviews CANADIAN GOVERNMENT BIBLIOGRAPHY PUBLICATIONS Statistics Canada,1983. Leacy, F. H., ed., Historical StatisticsofCanada, Commission ofCanada,1978. forthe LawLaw astudyprepared Reform Series, Canadian Transport Commission,Administrative Janisch, H.N., The Regulatory ofthe Process 2001. March the Canada Transportation Panel, ActReview Transportation Policy for prepared , Apaper Gratwick, John, The EvolutionofCanadian Transport Canada,1988. ofpamphlets,, 10-partseries Environment Freedom Transportation inCanada’sNew toMove Reform, Transport Canada,1985. Freedom To AFramework forTransportation Move: Ostry, 1979. Regulation: AnInterim Report, ChairmanSylvia Economic CouncilofCanada, Responsible Regulation Slater,, ChairmanDavid 1981. Economic CouncilofCanada, Reforming Branch, June 1975. Commission, EconomicandSocialAnalysis Transit SubsidiesinCanada,CanadianTransport ofDirect Howard J., Darling, A Historical Overview , 1904- . of CommonsDebates Canada, Parliament. House ofCommons. House Related Documents Other Governmentand

Toronto, 1979. Howe: Abiography, McClelland andStewart, Bothwell,C.D. RobertandKilbourn,William, World, McGraw-Hill Toronto, Ryerson, 1978. Bothwell, Robert,Pearson, His Lifeand of UnityCanada,Toronto,, Macmillan 1977. Jay, David Bercuson, ed., CanadaandtheBurden BOOKS ANDARTICLES Free(also calledManitoba ) Press Telegraph; JournalOttawa ; ; Mail Calgary Herald; NEWSPAPERS ANDPERIODICALS Railway Council,Minutes Committee ofthePrivy Correspondence Railway Council, CommitteeofthePrivy Records ofCanadianTransport Commission(RG46) PUBLIC RECORDS Transportation Panel, 2001. Act Review March Vision andBalance,Reportofthe Canada Transportation Panel, Act Review April 5, 2001. Canada forthe , Astudyprepared Airline Markets forEnhancingCompetitioninCanada’sProposals andStanbury,Ross, ThomasR. W.T., Policy 1956. Economic Prospects, fortheRoyalCommissiononCanada’sprepared Lessard, J.-C., Transportation inCanada,Astudy ; La Presse Vancouver; Province Montreal Gazette; Montreal Edmonton Journal; Regina Leader-Post; Winnipeg FreeWinnipeg Press ; Citizen Ottawa Globe and Saint John

Cruikshank, Kenneth, Close Ties:Railways, 1939-55, McClelland &Stewart,Toronto, 1976. G., TheForkedCreighton, Donald Road, Canada ofCanada,Toronto,1867–1967, Macmillan 1970. G., Canada’sFirstCreighton, Donald Century McClelland &Stewart,Toronto, 1994. Toronto, 1990; Volume, 2:TheHeroic Delusion , McClelland Obsession andStewart,Magnificent Trudeau Times,Volume andOur 1:The andMcCall,Clarkson, Stephen Christina, McClelland &Stewart,Toronto, 1986. , andLaurier intheAgeofMacdonald and Love Gwyn, Capital,Ambition Sandra, The Private World, McGraw-Hill Toronto, Ryerson, 1977. Granatstein, King:His J. Lifeand L., Mackenzie Vancouver, 1991. 1849-1923,UBCPress, Mackenzie Sir William B., TheRailway KingofCanada:Fleming, R. Canada, Toronto, 1975. Crusading Years of 1895to1956,Macmillan the RightHonourable – The John G.Diefenbaker Diefenbaker, of Canada:Memoirs John G., One 1867-1936, McClelland &Stewart,Toronto, 1964. tation inCanadaVolume II:National Economy Glazebrook, G.P. deT., A History ofTranspor Toronto,Press, 1954. Transportation, UniversityofToronto W., Currie, A. Economics ofCanadian Montreal/Kingston, 1991. University Press,1851-1933, McGill-Queen’s andtheBoard ofRailway Commissioners Government

117 AT THE HEART OF TRANSPORTATION: A MOVING HISTORY CANADIAN TRANSPORTATION AGENCY 118 Brook andCo., Toronto, 1920. The Railway, Volume Builders 32,Glasgow Skelton, D., Chronicles ofCanada: Oscar Toronto, 1965. ofCanada,Schull, Joseph, , Macmillan Laurier Park,Madeira B.C., 2001. of Trans CanadaAirlines, HarbourPublishing, Peter, Pigott, National Treasure: TheHistory Fitzhenry andWhiteside, Toronto, 1994. Pickersgill, J.W. , AMemoir Seeing CanadaWhole: University ofToronto Toronto, Press, 1924. Associa Parks, W.Handbook ofCanada,British A., and Co., (Canada), Toronto, 1981. Morton,Canada andWar Desmond, , Butterworth Vancouver/Toronto, 1992. andMcIntyre,of CanadianNational , Douglas MacKay,The People’s Donald, Railway: AHistory University ofToronto Toronto, Press, 1926. Jackman, W. T., Economics ofTransportation, , TheInstitute,Delight Halifax,1986. Policy Studies. Ocean Hardly aTransport of International Institute forTransportation and Railway, UniversityofToronto Toronto, Press, 1923. A History oftheCanadian PacificInnis, Harold A., University ofToronto Toronto, Press, 1999. Canadian Regulatory Regimes and Institutions, G.Bruceetal. essay inDoern, Regulator: TheThirtyYears’ War, 1967-97,an Hill, M., Recasting Margaret theFederal Transport tion for the Advancement ofScience,tion fortheAdvancement Changing theRules:

University ofToronto Toronto, Press, 1957. and Financing Party theLiberal ofCanada1930-58, Whitaker, Party, Reginald, The Government Organizing Company, New York, 1973. Railways (Railroads, Macmillan ofAmerica) History oftheCanadian National G.R., Stevens, Toronto, 1978. Canada, Institute forResearch Policy, inPublic Stanbury, W.T., ed., StudiesonRegulation in (M. A.), Carleton University,(M. A.), 1955. Ottawa, , ThesisRegulation AirServices ofCommercial Gosse, Fred Paul, The AirTransport Board and UNPUBLISHED WORK

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