Canada. Royal Commission on Transportation (1948-1951) : The Royal Commission on Transportation was established under Order in Council (P.C. 6033, December 29, 1948) under Part I of the Inquiries Act (R.S.C. 1927, c.99) and on the recommendation of the Prime Minister. The Commission was mandated inquire into and report on: (a) the effect of economic, geographic or other disadvantages on certain sections of Canada in relation to various transportation services, and recommend what measures should be initiated so that the national transportation policy may best serve the general economic well-being of Canada; (b) the Railway Act on matters such as guidance to the board in general freight rate revisions, competitive rates, and international rates, and recommend amendments; (c) the capital structure of the Canadian National Railway Company and report on the advisability of establishing and maintaining the fixed charges of that Company on a basis comparable to other major railways in North America; (d) the present-day accounting methods and statistical procedure of railways in Canada, and report on the advisability of adopting measures conducive to uniformity in such matters, and on other related problems such as depreciation accounting, the segregation of assets, revenues and other incomes, as between railway and non-railway items; (e) the results achieved under the Canadian National-Canadian Pacific Act, 1933, and amendments, making recommendations as warranted; and (f) any feature of the Railway Act (or railway legislation generally) that might advantageously be revised or amended in view of present-day conditions. The Commissioners were William Ferdinand Alphonse Turgeon, Chairman; Henry Forbes Angus and Harold Adams Innis. The Secretary was G.R. Hunter.
After World War II, Railway traffic in Canada declined considerably. The financial position of the railways was unstable and in October 1946 they applied to the Government of Canada for a general increase of 30 per cent in freight rates. The increase granted was 21 per cent, but it was not to come into effect until April 1948. Seven provinces contested the increase in rates and the resulting decision of the Board of Railway Commissioners was appealed to the governor in council. A demand for increased wages and a threat of a railway strike followed. An "eleventh hour" settlement resulted in a .17 per hour wage increase which was made retroactive to 1 March 1948.
On 27 July 1948 the railways made another application for an additional 20 per cent general increase in freight rates. At this time the appeal in the 21 per cent increase was still before the Governor in council. On 12 October 1948 the governor in council made an order of reference back to the Board of Transport Commissioners instructing the board to consider the two cases concurrently.
Somewhat earlier, on 7 April 1948 the governor in council had ordered the Board of Transport Commissioners to undertake a general freight rate investigation. Seven provinces were not satisfied with this action. Their premiers appeared before the federal cabinet, on 26 April 1948 and asked for an investigation of Canada's transportation policy by a royal commission. The government rejected their request. The seven provinces then appealed formally to the governor in council, on 29 July 1948, requesting the appointment of a royal commission.
In the autumn of 1948 Canada's two major political parties held conventions. Both conventions passed resolutions complaining of "discrimination" in freight rates and of other anomalies in the transportation system. One of these resolutions asked for the appointment of a royal commission of inquiry and the other called for an "investigation." Also, representations were made to the government, especially by interested parties in the Atlantic region and Western Canada, who claimed that they were in an unfavourable position compared with central Canada, because of "economic, geographic and other disadvantages" in regard to existing "tariffs of tolls and rates." As a result of the general dissatisfaction with freight rates and related issues, the Government of Canada appointed a Royal Commission on Transportation on 29 December 1948 (See Report of the Royal Commission on Transportation, 1951, Ottawa: King's Printer, 1951, pp. 12-14).
Hearings of the commission were held in St. John's, Charlottetown, Halifax, Fredericton, Quebec City, Montreal, Ottawa, Toronto, Winnipeg, Regina, Calgary, Edmonton, Vancouver and Victoria from 2 May 1949 to 31 May 1950. The Commission received 143 submissions. RG33-27 General Inventory
