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On Thursday last the Canaidian government submitted to parliment the proposed
subsidies in aid of railway construction and in that connection have announced
a policy that will be a source of unqualified satisfaction to the rate payers.
In Plain words it is that from this time forward public money voted to aid
of railway will n oe longer be a pure gift ; but merely an investment in
consideration of which the railway shall anually render services to the
government in the free carriage of mails, government stores and militia
supplies, to an extent equal to interest on the money so advanced by the
government.
Out of a total amount of subsidies approximating $6,500,000, the Ontario
and Rainy River recieves a sum of $886,000, viz.:
For the line from Fort Frances to the mouth of Rainy River, 70 miles, $3,200
per mile.
For the Stanley station in Port Arthur, Duluth and Western Railway to Fort
Frances,140 miles, $6,400 per mile.
For years parliment has been voting millions of money towards railway construction,
and when the railways were built the government has been obliged to pay
the highest going rate on all government material, stores, mails and men
sent over these lines. The result is that today Canada is paying each year
more than $1,250,000 for transportation to railways largely built with public
money. had thgis new principle, now inagurated, been attached to railway
bonuses in teh past, teh country would not to -day be obliged to pay for
this large annual sum. Moreover, hereafter the railways are not going to
be the parties to fix the rates, but they shal be settled by the government.
These important provisions entirely do away with the gift of bonus feature
of railway subsidies and convert them simply into advances, securing railway
construction and teh develpment of the resources of the country, and at
the same time providing for full and ample compensation for such advancesby
the companies being required, for all time to perform, free of charge, services
for the government to an extent equal to all public money so advanced to
them.
This successful grappling with this important subject, asserting as it does,
the right of the people to recieve value for their money, is not one of
the least triumphs of the Canadian Government which in the short space of
three years has courageosly and skilfully so many problems of government
that defied the efforts od their predecessors in office and emphasizes the
return of the supremacy of the people over corporate influence.
An entirely new departure has been made by the government on granting these
subsidies.
In the case of the Rainy River Railway, which will some day form the link
of a great transcontinental railway, completing with the Canaidian Pacific
Railway, provision is made that it cannot amalgamate with the C.P.R. The
independence of the road is preserved as far as it is possible to do.
Provision is also made that all the roads to which subsidies are given must
grant running powers to all other railroads. In respect to rates and tolls
a new clause in addition to the provision which already exxists in teh railway
act, has been provided, making it imparitive that these shall be approved
and controlled by the Government. There is another important feature in
the resolutions, and that is the all roads recieving public aid will be
bound to perform work for the government to the extent of of interest at
three percent the total subsidy voted. These roads must enter into a contract
with the government to do this.
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