depend on private initiative and he hoped that he would not live to see the day when all Canada's railways were nationalized, because that would constitute the greatest political and commercial menace the country could possibly experience. He referred to the good-will that existed between the officers of the Canadian Pacific and National systems and declared that the Canadian people by reason of the competition were getting excellent transportation facilities at lower rates than in any other country.

On Apr. 5, as Chairman of the Montreal reception committee, Mr. Beatty gave a reception to the delegates to the National Council of Education. On Apr. 22, he was the guest of the Toronto Branch of the Canadian Manufacturers' Association at a dinner and devoted a good deal of attention to the question of suggested co-operation between the C.P.R. and C.N.R. His statement at this time clearly outlined the position of the C.P.R. in this respect, voiced the Company's desire to go as far in that direction as was wisely possible and frankly pointed out the difficulties and limitations necessarily attaching to such a movement. The next day he attended a joint banquet of the Brantford Board of Trade and Canadian Club and on Apr. 29 was again in Toronto, guest of the Canadian Daily Newspapers' Association at their annual dinner. He spoke of the narrow margin of profit on which Canadian railways were operating and also declared that "stability of tariff is what this country needs more than anything else."

On May 25, Mr. Beatty sailed from Quebec on the Empress of Scotland, arriving at Southampton on June 3 and motoring to London. With the exception of a three-day motor trip to Liverpool and return, his entire time was spent in London where he let the contracts for the construction of two passenger ships and five cargo boats. He sailed on the return trip from Southampton on June 26 aboard the Empress of France and landed in Quebec on July 3. The President made his customary inspection trip to the Pacific Coast in the latter part of August and the early part of September. He left Montreal on Aug. 19, accompanied by Sir Herbert Holt, F. W. Molson, R. H. McMaster and F. E. Meredith, directors, and visited in turn Toronto, Winnipeg, Saskatoon, Edmonton, Calgary, Vancouver, Victoria, Moose Jaw, Regina and Ottawa, arriving back in Montreal on Sept. 9.

The meeting of the Investment Bankers Association of America at Quebec in October, afforded Mr. Beatty an excellent opportunity to lay before the financiers of the United States many facts about Canadian development and the part played in it by the Canadian Pacific Railway and this he did in an able manner at the morning session on Oct. 15. He also delivered an important address at the banquet of the Canadian Board of Trade in Saint John, N.B., on Oct. 21, where he discussed the immigration question, stressing the urgent necessity of a larger population in Canada and throwing out suggestions as to how this might best be obtained. On Oct. 29 he accepted the invitation of the Alumni Association of Univer

sity College, Toronto, to attend their annual dinner, speaking to a large audience on the history of the C.P.R. His next public appearance was at a luncheon of the Electrical Club of Montreal on Nov. 17, where he spoke on "Corporations and Citizenship," dealing at some length with the responsibilities of corporations towards the state and to national and individual welfare. "Canadian corporations," he declared, "are good citizens and so long as they are guided by men of ability and with ideals, they will not only continue to be good citizens but will develop from within themselves thousands of men whose standards of citizenship are unconsciously elevated through that association." Speaking in a somewhat different vein at a meeting of the Arts Under-graduates Society of McGill University on Dec. 7, he laid stress on the importance of undergraduate days in the formation of those personal characteristics which would make the student an influence for good both during his college days and later. He illustrated his theme by referring to two outstanding students each from the Universities of McGill, Toronto and Queen's. Mr. Beatty's last speech for the year was delivered at the annual banquet of the Ontario Commercial Travellers' Association in London on Dec. 23. He there made pointed reference to the Canadian railway situation, drawing attention to the difficulties threatening the railways as a result of the demands for higher wages on the part of the employees and for lower rates on grain and other commodities from shippers in some parts of the country.

The Railway
Commission:
The General
Rates Case

The Board of Railway Commissioners for Canada held no fewer than 59 public sittings in 1926 and heard 311 applications. 35 sittings were held in Ontario, 5 in Quebec, 1 in Manitoba, 3 in Saskatchewan, 2 in Alberta, 9 in British Columbia and 4 in New Brunswick. The total number of miles covered by the Board and its officers amounted in round figures to 460,134 and the time taken up in formal hearings and the necessary travelling in connection therewith equalled 51 out of every 100 working days. The total number of orders issued was 1,401, of which 11 were general orders, these being distinguished from the other orders by reason of their application to all railway companies subject to the Board's jurisdiction. In addition 2 general circulars were issued.

The Traffic Department received and fyled 71,492 tariffs and supplements, these embracing 57,214 freight, 9,641 passenger, 3,541 express, 1,018 telephone, 70 sleeping and parlour car and 8 telegraph tariffs. The Engineering Department made 275 inspections comprising inspections for the opening of railways, inspections of culverts, highway crossings, cattle guards, road crossings, bridges and subways and general inspections. The Operating Department investigated 1190 accidents, covering 287 persons killed and 1,389 injured. Accidents to the number of 2,517, covering 429 persons killed and 2,620 injured were reported by the various railway companies, as compared with 2,713 accidents covering 272 persons killed and 2,955 persons injured in 1925. Out of 303 highway crossing accidents, automobiles were involved in 233 instances, horses and rigs in 29 and pedestrians in 39. The Fire Inspection Department reported that, except in one province, the railways were responsible for comparatively small forest fire damage in 1926. While they were charged with 926 fires, 51.5 per cent. of these burned less than one-fourth acre each, many not escaping from the right of way; 41 per cent. burned from one-fourth acre to 10 acres each and only 70 fires, or 7.5 per cent., burned an area greater than 10 acres each. Fires attributed to railways burned 45,829 acres, of which 6,197 acres were merchant

able timber and 15,067 young forest growth. The loss was $94,630. Due to prolonged drought in British Columbia, forest fire conditions in that Province were exceptionally bad and 46 per cent. of the number of railway fires, 83 per cent. of the area and 87 per cent. of the money value destroyed occurred there.

There was no change in the personnel of the Board in 1926, its membership comprising, Chief Commissioner, Hon. H. A. McKeown, K.C.; Assistant Chief Commissioner, S. J. McLean, M.A., LL.B., PH.D.; Deputy Chief Commissioner, Thomas Vien, K.C.; Commissioners, A. C. Boyce, K.C., Calvin Lawrence, and Hon. Frank Oliver. A. D. Cartwright was Secretary.

General Rates Investigation. The task entrusted by Parliament in 1925 to the Board of Railway Commissioners to investigate Canada's freight rate structure and make such adjustments as would remove as far as possible inequalities and alleged discriminations was actively prosecuted in 1926-27 and constituted probably the most important undertaking yet dealt with by the Board. The Order-in-Council instructing the Board to institute the investigation was passed on June 5, 1925, and it contained these directions:"The Committee advise that the Board be directed to make a thorough investigation of the rate structures of railways and railway companies subject to the jurisdiction of Parliament, with a view to the establishment of a fair and reasonable rate structure which will, under substantially similar circumstances and conditions, be equal in its application to all persons and localities, so as to permit of the freest possible interchange of commodities between the various provinces and territories of the Dominion and the expansion of its trade, both foreign and domestic, having due regard to the needs of the agricultural and other basic industries and, in particular, to: (a) The claim asserted on behalf of the Maritime Provinces that they are entitled to the restoration of the rate basis which they enjoyed prior to 1919; (b) the encouragement of the movement of traffic through Canadian ports; (c) the increased traffic westward and eastward through Pacific coast ports owing to the expansion of trade with the Orient and to the transportation of products through the Panama Canal."

Hearings of the Board pursuant to the order were held as follows :-Ottawa, Jan. 5, 1926; Montreal, Jan. 7-8; Windsor, Ont., Jan. 12,; Toronto, Jan. 14; Ottawa, Mar., 23-25; Moncton, N.B., Apr. 6-8; Winnipeg, June 14-16; Regina, June 21-23; Saskatoon, June 24-26; Edmonton, June 29, 30 and July 1; Calgary, July 2-3; Kelowna, B.C., July 6; Vernon, B.C., July 7; Kamloops, B.C., July 8; Vancouver, July 12-15; New Westminster, July 16; Chilliwack, B.C., July 17; Victoria, July 19-20; Prince Rupert, July 30. Final hearings opened in Ottawa on Nov. 30. From that date until Dec. 17, when sittings were adjourned over the Christmas holidays, three British Columbia cases occupied the attention of the Board: the general submissions of the Province; the submissions of the Associated Fruit Growers and the application of the B.C. Government for an order reducing the rates on grain moving westward to British Columbia for domestic consumption to the level of the rates as applied on grain for export. Only two witnesses were examined:-D. O. Lewis, consulting engineer, Vancouver, who was on the stand for 10 days, or 50 hours continuous examination, and William Scott, Traffic Manager, Associated Fruit Growers of B.C. Resuming on Jan. 11, 1927, the Alberta applications were under consideration, and on Jan. 12-14, the Saskatchewan applications. On Jan. 18-19, the cases for various Ontario manufacturers were before the Commission, while on Jan. 20, the case for the railways was opened. C. P. R. witnesses, notably E. E. Lloyd, Assistant Comptroller; W. M. Neal, Assistant to the Vice-President; George Stephen, Assistant Freight Traffic Manager and W. M. Kirkpatrick, Foreign Freight Manager, were on the stand throughout the month of February. The C. N. R case was commenced on Mar. 2 and concluded on Mar. 18, the principal witnesses being E. P. Mallory, Director, Bureau of Statistics, and F. J. Watson, Commission Freight Traffic Representative. Hearings were then adjourned until Mar. 29.

Up to this date the hearings had been in progress for 53 days and the following had constituted the main phases of the inquiry:-(1) The application of British Columbia for the removal of the so-called mountain differential wherever the differential was reflected in freight rates charged on traffic moving within, to or from British Columbia; also for a reduction in the rates on grain both for