Royal Commission to Inquire into Railways and Transportation in Canada (1931-1932) : The Royal Commission to Inquire into Railways and Transportation in Canada was established under Order in Council P.C. 2910, 20 November 1931, under Part I of the Inquiries Act (R.S.C., 1927 c.99) and on the recommendation of the Minister of Railways and Canals. The Commission was mandated to inquire into and report on the problem of transportation in Canada, particularly railways, shipping and communication facilities having regard to present conditions and the future developments Canada. The commissioners were Lyman Poore Duff, Chairman, Joseph Wesley Flavelle, Beaudry Leman, Leonor Fresnel Loree, Walter Charles Murray, John Clarence Webster, and Lord Ashfield. The secretaries were Arthur Moxon and George W. Yates.
The contraction of general business, following the crash of the stock market in the autumn of 1929, had an almost immediate impact on railways. Passenger and freight traffic decline sharply, which had a marked effect on the gross earnings of railways. This decrease was caused partly by the competition from motor vehicles which, deprived railways of some short distance passenger and freight traffic. Railways also suffered from a general shrinkage in business, in both export and internal trade, at a time when they were expanding their services. Although individuals suffered a reduction of dividends on the stock of the Canadian Pacific Railway, there was no direct charge on public funds. However, the depression changed the surplus of the Canadian National Railways into a loss, and fears that the national railway would be a greater financial burden than could be borne quickly revived. The financial situation was so serious that Edward W. Beatty, President of the Canadian Pacific Railway, suggested to Henry Thornton, President of the Canadian National Railways, that he asked for a royal commission on transportation. Thornton, raised the subject in the Standing Committee on Railways and Shipping of the House of Commons. The Committee recommended Thornton's proposal in their report of 16 July 1931 and four months later the Royal Commission on Railways and Transportation in Canada was established (see G.P. de T. Glazebrook, A History of Transportation in Canada, Toronto: Ryerson Press, 1938, pp. 394-396). Hearings of the Commission were held in Halifax, Saint John, Quebec City, Montreal, Ottawa, Toronto, Winnipeg, Regina, Calgary, Edmonton, Vancouver and Victoria from 4 December 1931 to 20 February 1932. The Commissioners also held a number of conferences while en route to Vancouver and Halifax by train. The commission received 72 submissions. RG33-16
