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The Public Good and Private Business of the Crow Rate: Prairie Grain Handling and Transportation Policy

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The Public Good and Private Business of the Crow Rate: Prairie Grain Handling and Transportation Policy The Public Good and Private Business of the Crow Rate: Prairie Grain Handling and Transportation Policy A Thesis Submitted to the College of Graduate and Postdoctoral Studies In Partial Fulfillment of the Requirements For the Degree of Doctor of Philosophy In the Department of History University of Saskatchewan Saskatoon By Laura Larsen Copyright Laura Larsen, August, 2020. All rights reserved. Permission To Use In presenting this thesis/dissertation in partial fulfillment of the requirements for a Postgraduate degree from the University of Saskatchewan, I agree that the Libraries of this University may make it freely available for inspection. I further agree that permission for copying of this thesis/dissertation in any manner, in whole or in part, for scholarly purposes may be granted by the professor or professors who supervised my thesis/dissertation work or, in their absence, by the Head of the Department or the Dean of the College in which my thesis work was done. It is understood that any copying or publication or use of this thesis/dissertation or parts thereof for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the University of Saskatchewan in any scholarly use which may be made of any material in my thesis/dissertation. Requests for permission to copy or to make other uses of materials in this thesis/dissertation in whole or part should be addressed to: Head of the History Department Room 522 Arts Building University of Saskatchewan Saskatoon, Saskatchewan S7N 5A5 Canada OR Dean College of Graduate and Postdoctoral Studies University of Saskatchewan 116 Thorvaldson Building, 110 Science Place Saskatoon, Saskatchewan S7N 5C9 Canada i Abstract The Crow rate shaped the Canadian prairies’ agricultural settlement yet a highly charged debate over it fostered a sense of western alienation. Originally signed in 1897 the Crowsnest Pass Agreement, more popularly known as the Crow rate, between the federal government and the Canadian Pacific Railway (CPR) regulated freight rates on grain and flour moving from the Canadian prairies to eastern ports. The federal government later extended the regulated rates to cover Canadian National Railway (CNR) and applied the rate regulations to grain and flour movement to the west coast ports. Combined with the highly decentralized network of grain elevator delivery points and railway branch lines, the Crow rate facilitated agricultural settlement in the prairies and minimized transportation costs for farmers in the prairie’s export-grain economy. Yet, by the mid-20th century, CNR and CPR argued that regulations on freight rates made their decentralized prairie rail networks uneconomic. The railways lobbied for the removal of the Crow rate to improve business revenues. In contrast, farmers, their organizations, and prairie provincial governments argued for its retention as a public good continuing a long- standing national policy promise to prairie residents. This dissertation examines the public debate over the Crow rate as part of a larger discussion over changes to prairie agriculture, which also raised concerns about how to safeguard Canada’s reputation as a reliable grain exporter on the international stage during the Cold War. This study demonstrates how the debate over the grain handling and transportation system encouraged sentiments of western alienation in the prairies. Through public records, including newspapers and Royal Commissions, this dissertation locates the Crow rate debates within the history of agriculture and transportation policy in post-war Canada. This dissertation moves the scholarship of western Canadian agriculture beyond the historiographical confines of early 20th century western settlement and the railway construction boom. ii Acknowledgements There are many people to who I owe thanks for supporting me on the long road to successfully competing this dissertation. I am thankful for the advice of my supervisor, committee members, and external examiner. My supervisor Dr. Erika Dyck supported me to bring this project to fruition. Not only did she provide insightful and timely feedback throughout the writing process but she encouraged me to be bold in looking beyond the prairies and confident in putting this topic into a larger context. I benefited from the guidance and experience of my committee members, Dr. Geoff Cunfer, Dr. Jim Clifford, and Dr. Sina Adl. They encouraged me to be precise while also making this specialized topic accessible. My external examiner Dr. Royden Loewen asked thoughtful and exacting questions that made me engage with this topic in new ways. I am thankful for the financial support I received from the History Department at the University of Saskatchewan and the Saskatchewan History and Folklore Society to complete this project. This project grew from my M. A. thesis completed under the supervision of Dr. Bill Waiser, who taught me to avoid using the “orphaned this.” I deeply appreciated the support and encouragement of my fellow students throughout this entire project from comprehensive exams through to defense. In particular Michelle Desveaux, Anne Janhunen, Glenn Iceton, Erin Spinney, Dustin McNichol, Cheryl Troupe, Karissa Patton, and Jessica DeWitt as they reminded me of the importance of work/life balance and shared their own journeys with me. Tyla Betke helped me to access hard-to get research materials on tight timelines. I am indebted to Frances Reilly for providing feedback on many drafts and allowing conversations to circle back to grain and trains regardless of where they started. My family has been an unwavering source of support throughout all the ups and downs of my academic journey. Throughout the hard parts of this journey they encouraged me to keep going and listened as I mulled over this project. My parents gave me feedback on my drafts and, when I needed it the most during the pandemic, provided a supportive place to write. My sister reminded me to take care of myself and made sure my nose was not always to the grindstone. My partner has been a constant source of patient support since our first archives visit. My extended family has cheered me on every step of the way. I owe all of them a huge debt of gratitude. iii Dedication To all the prairie people who shared their experiences with me. You showed me there was a story to tell. iv Table of Contents Permission To Use ........................................................................................................................... i Abstract ........................................................................................................................... ii Acknowledgements ........................................................................................................................ iii Dedication .......................................................................................................................... iv Table of Contents ........................................................................................................................... v List of Figures .......................................................................................................................... vi List of Abbreviations .................................................................................................................... vii Introduction .............................................................................................................. 1 The MacPherson Commission ............................................................................... 39 Threats to Canada’s Breadbasket, 1965-1974 ..................................................... 76 Solving the Problems of the Grain Handling and Transportation System, 1967- 1975..................................................................................................................... 120 The Snavely Commission .................................................................................... 160 The Hall Commission ............................................................................................ 187 Recommendations from the Commissions ........................................................ 210 Ending the Crow rate, 1979-1983 ...................................................................... 239 Conclusion ........................................................................................................... 263 Bibliography ....................................................................................................................... 274 v List of Figures Figure 1.1 Grain ports and prairie provinces in Canada ................................................................. 9 Figure 1.2 Urban and rural population in Canada, 1921-1971 ..................................................... 15 Figure 1.3 Number of farms in Saskatchewan and average area, 1921-1981 ............................... 16 Figure 3.1 Graph from the CWB Annual Report showing strikes and other problems with grain movement for the 1974-1975 crop year ..................................................................... 117 Figure 4.1 “Monthly Average Board Asking Price” for 1972/73 Crop Year ............................. 142 Figure 4.2 Saskatchewan Realized Net Farm Income 1964-1974 .............................................. 143 Figure 5.1 Delivery points 1965/66 crop year ............................................................................ 167 Figure 5.2
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