Canada. Commission on the Costs of Transporting Grain by Rail : The Commission on the Costs of Transporting Grain by Rail was established under Order in Council P.C. 873, 18 April 1975 under Part I of the Inquiries Act (R.S.C., 1970, c.I-13) and on the recommendation of the Minister responsible for the Canadian Wheat Board and the Minister of Transport. The Commission was mandated to inquire into and report upon the costs and revenues of grain traffic and the relationships of such costs and revenues. The commissioner was Carl M. Snavely, Jr.
In response to requests from provincial governments and grain producers in Manitoba, Saskatchewan and Alberta, on 18 April 1975, the Government of Canada appointed Carl Snavely to head a Commission on the Costs of Transporting Grain by Rail. The commission was asked to evaluate methods for determining railway costs and revenues, as well as their applicability to the costs of transporting grain at statutory freight rates, popularly known as the "Crow Rates."
Above all, the commission had to evaluate the adequacy of Costing Order R-6313, and the methods by which it was applied. The Canadian Transport Commission, which regulates transportation in Canada that is under federal jurisdiction, had used this Costing Order, since 1969, to calculate the cost of transporting statutory grain by rail and for the payment of subsidies to railway companies for losses incurred in moving it.
"Statutory Grain," as defined in sections 271 and 414 of the Railway Act, (R.S.C., 1970, c.R-2) included all grain, and most grain products, originating west of Thunder Bay and destined for export through terminals at Thunder Bay, Churchill or on the West Coast.
In addition to examining the costing order, Commissioner Snavely did an analysis to determine the cost of transporting a bushel of grain by rail at statutory freight rates based on figures from the calendar year 1974.
A series of "cost profiles" for different categories of prairie rail lines, which were used to determine the cost of transporting grain in a particular area, were also calculated.
Even though the railways were losing money by transporting grain at statutory freight rates, Snavely did not consider it within his mandate to determine "an appropriate rate level for statutory grain traffic; a method of compensating the railways for any shortfall in revenue that may be found to exist under contemporary conditions; or the ability of statutory grain shippers to pay either the present rate level or any other rate level."
After all, the costs and revenues associated with grain transportation resulted from rates set by the Government of Canada. It was up to Parliament to decide whether or not rate changes were necessary.
During the course of the inquiry, Snavely worked closely with the Royal Commission on Grain Handling and Transportation, which was mainly concerned with the abandonment of certain branch railway lines in Western Canada (see: The Commission on the Costs of Transporting Grain by Rail, Report, Ottawa, Supply and Services Canada, Volume 1, 1976-1977 and newspaper clippings, RG 33/124, vol. 7).
Hearings of the commission were held in Winnipeg, Regina and Orillia from 19 April to 30 July 1976. There were 36 submissions and 213 exhibits filed with the commission.
A Technical Committee, which was made up of staff of the commission and representatives from wheat pools, railways and government, held meetings in 1975-1976 for the purpose of examining railway costing techniques and related matters. RG33-124 General Inventory
