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GOVERNMENT INTERFERENCE HOLDS DANGERS FOR RAIL SHIPPERS

Aida Olivia Pereira de Carvalho Guerra

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Abstract

Major challenges face Canadian railways in 1977; foremost among these are recent federal government proposals for changes in the National Transportation Act of 1967 which would formalize the user pay principle and which would reintroduce federal control over freight rates. The author examines the reasoning behind these proposals and their possible implications. The major railways are opposed to federal freight rate controls, arguing that it will result in higher rates and loss of business. The findings of recent inquiry commissions (Snavely Commission and the Hall Commission) into grain handling costs and transportation are also examined.

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What this paper is about

Major challenges face Canadian railways in 1977; foremost among these are recent federal government proposals for changes in the National Transportation Act of 1967 which would formalize the user pay principle and which would reintroduce federal control over freight rates. The author examines the reasoning behind these proposals and their possible implications. The major railways are opposed to federal freight rate controls, arguing that it will result in higher rates and loss of business. The findings of recent inquiry commissions (Snavely Commission and the Hall Commission) into grain handling costs and transportation are also examined.

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Available abstract

Major challenges face Canadian railways in 1977; foremost among these are recent federal government proposals for changes in the National Transportation Act of 1967 which would formalize the user pay principle and which would reintroduce federal control over freight rates. The author examines the reasoning behind these proposals and their possible implications. The major railways are opposed to federal freight rate controls, arguing that it will result in higher rates and loss of business. The findings of recent inquiry commissions (Snavely Commission and the Hall Commission) into grain handling costs and transportation are also examined.

Key concepts: Commission, Government (linguistics), Business, Public administration, Face (sociological concept), Control (management), Economics, Public economics

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