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The Huron Expositor, 1970-10-08, Page 14OPNOTCH TOPNOTCH FEEDS LIMITED We are ready to serve you Phone Us For Today's Prices On (Prices Changing Daily) CUSTOM DRYING SERVICE and GRAIN BANK STORAGE AVAILABLE . Phone 527-1910 Seaforth THE CLASS OF Tnis year you can't afford not to be Dodge material BIG TORSION QUIET DODGE A lot more of everything for your money The '71 Big Dodge quietly says, you've arrived. Quiet luxury in looks, Torsion-Quiet Ride, sumptuous interiors, yet,,this fine car is priced ,right down with the others in the full-sized field. Ittiiodels to choosefrom start- ing at Polara Special all the way up to the MOnaco'aougham. DODGE CHALLENGER COUPE Challenges them all So,beautifully This k the one the car critics called the sports compact of the year. This year sees the Challenger Coupe. It was designed for those who want sports car looks and performance at a budget price. Four models to choose from including a convertible. A DODGE CORONET The just right size at the right price This is the four-door Sedan with a plan. For '71 mid size Dodge Coronet is all new, a little richer ... touches like woodgrain on the instrument panel and door trim and lush colour-keyed-carpeting. But don't worry. Coronet's low-price was part of the plan too. • • DODGE DART SWINGER • Canada's biggest compact value Dart is better than ei,er for '7J. Take the Sw-inger two-door 'Hardtop, now there's style you'll have a hard time matching. You can choose from Sixes and V8's that all do their thing on regular gas. Swing a little or swing a lot with Canada's lowest priced Hardtops. DODGE DEMON SPORT COUPE Priced way down there The newest of the new cars and a wild addition to the great Dodge compact line, It has room for five and a trunk that will take all their. luggage. Torsion-bar suspension for the best ride anywhere. Engines? Pick from a 198 Sir or a potent 318 V8, Or power up to the Demon 340. Don•tsettle for a mini when you can get the new Dodge Demon. DODGE CHARGER. Now at a family man's price and all new for '71. Family-sized room in a sporty hardtop! And gel this. Charger is • priced right down with the intermediates. From the straight Charger right up to the roaring Charger R/T -- one look at Charger and you'll agree it's a lot of car for a family man's price. See the wide range of Dodge cars at your Dodge dealers ROWCLIFFE MOTORS Goderich Street, Seaforth 527-1670 „ • : Passenger Trains Stop November 1 V 1.4--THE HURON EXPOSITOR, SEAFORTH, ONT., OCT. 0, 1970 Read the Advertisements — It's a Profitable (Continued from Page 1) itoba, Saskatchewan and Alberta were present at the hearings and argued that the amount of information about actual losses disclosed by the Committee and by the railways was not sufficient. Counsel contended that inter- venors were at a serious dis- advantage because all the rele- vant facts were not available to them, and that, because in some ways the case set a precedent for the future, it was important for them to know as much as possible of the costing proced- ures employed by the Committee. The passenger-train service hearings at Owen Sound and Guelph were the first to be held by the Committee after Order No. R-6313 was issued . The Com- mittee judged that the details of cost informatiion by Categories, referred to earlier and made av- ailable, either before or at the hearings, to all interested par- ties on request, constituted rea- sonable disclosure and permitted intervenors to make an adequate appraisal of all aspects of the determination of actual losses. Any greater disclosoreof cost information would have been, in the opinion of the Committee, irrelevant to the issues to be decided in this particular case. However,' the Committee was impressed by the argument of Provincial counsel that greater disclosure would lead to a better public understanding of its cost procedures. We have revised our original opinion on what might constitute reasonable disclosure Pastime! In passenger-train service dis- continuance cases. THE HEARINGS: The applications in this case were heard by the Committee at Owen Sound on March 31, April 1 and 2, 1970, and at Guelph on April 8, 9 and 10, 1970. When the Guelph hearing ended, at the request of .counsel for the Government of the Province of Ontario, the Committee agreed to allow time for the filing of writ- ten submissions which would take into account a Report of the Ontario Government, not then issued, entitled Design for De- velopment: The Toronto Centred Region. The last of these sub- missions was received by the Committee en June 1, 1970. Because of the widespread public interest in the hearings, the Committee considers it de- sirable to examine the represent- ations made at the hearings at some length. In addition to the Railways, the Committee heard Members of Parliament, Members of Provin- cial Parliament, representatives of the Governments of Ontario, Manitoba, Saskatchewan and Al- berta, representatives of cities and towns , counties, boroughs and townships, railway Unions, chambers of commerce, the Liberal Party of Ontario, the New Democratic Party of On- tario, and individual concerned citizens, numbering iq all more than seventy, every one of whom presented their views on the discontinuance of these' pas- senger-train services, In addition to the intervenors who appeared at Owen Sound and Guelph, others filed written briefs or submissions with the Committee prior to the hearings. All views presented prior to or at the hearings have been considered by the Committee. However, due to their number, we discuss them collectively by subject matter, rather than in- dividually, or necessarily by reference to the persons expres- sing them. Owen Sound Canadian National Counsel for Canadian Nation- al began by stating the passenger policy of the Railway. Canadian National studies show that it can economically fulfill a role in intercity transportation in areas of relatively high population den- sity and in areas where indicat- ions of activity in the travel market are such as to be likely to produce a level of revenue that would meet the cost of ser- vice. The policy of the Railway is at the same time to take steps to seek withdrawal from or ob- tain public monetary support for those unprofitable services which do not fit into that pattern, in an effort to eliminate the deficit in passenger operations. Canadian National's position was that the Railway cannot con- tinue to sustain the extremely large annual loss incurred in providing the passenger-train services which were the subject of the hearing. It was for this reason that Canadian National had applied for discontinuance of these services , with a view to receiving the authority of the Committee to discontinue them, or a direction to continue all or part of them under a federal subsidy to the extent of 80 per cent of the actual losses on any service to be continued. The Railway had one witness, Mr. D. V Gonder, its Vice- President, Great Lakes Region, who has jurisdiction over the passenger-train services in- volved in these applications. Mr. Gonder gave evidence in which he described the existing service, the changes that have been made in years past in an attempt to improve it, the present highway network serving the communities that are also served by the passenger-train services and the prevailing bus services in the area. Mr. Gonder also pre- seuted an exhibit showing a list of fifteen communities now served by the Canadian National passenger-train services under review, but not directly served by alternative public transportation, and their respective distances from such public transportation. There was also evidence from Mr. Gonder about the effect that discontinuance would have en em, ployees. Three operators and fifteen train crew employees would be affected, but no unem- ployment was foreseen. Mr. Gonder said operators were very much in demand, and, as Canad- ian National intended to hire new train crew employees in 1970, the fifteen so displaced would be easily assigned to other train service work. Alternative Public Transporta- tion. It was apparent from the evidence of Mr, Gonder and Mr. James concerning alternative public transportation, that ex- tense," bus service is available, and, ,at the request of the Com- mittee, representatives of West- ern Ontario Charterways, On- tario Coacamays, and Gray Coach Lines apPiared as witnesses at the hearing. They described in detail their individual and inter- locking services, which are available to essentially the same area and most of. the communit- ies served by the passenger-train services. They think that the bus industry in Western Ontario is progressive, healthy and thri- ving, and that they and the other connecting, bus services not re- presented at the hearing would have no difficulty in carrying'any additional traffic that might re- . suit from discontinuance of the passenger-train services, or indeed in expanding existing bus services should increased traffic or community demand warrant it. Intervenors „ Without exception, inter- venors at the Owen Sound hear- ing were opposed to the reduc- tion or the discontinuance of any of the passenger-train ser- '`efees'uilder consideratioh'in this case. There was evidence about the assistaece the pioneers' in this part of Ontario gave to the com- panies, that built the . railways, mainly in, the form of money grants from towns or municipal. governments. We were told of the almost total dependence on the railways• for all.transport- ation needs during the later years of the nineteenth and the earlier years of the twentieth,century. Some intervenors were in no doubt that this dependence still exists, and that good railway passenger service continues to be essential. The case was pleaded for elderly people who, do not drive oars and do not find the neces- sary convenience and comfort in buses and for whom the railway passenger train represents their only acceptable means of travel. The importance of the passenger train'to students was also stres- sed as a reasonably, ,priced ant convenient mode of transport be- tween their homes and the univer- sities. Against evidence to the con- trary given by the railways and the operators of bus services in the area, many claimed that the bus is not an adequate alternative to the passenger train, and were not convinced that WS service would be sufficiently increased to meet the needs of the travel- ling public. Fears were also expressdd of possible increases in bus fares, if all competition from the railways were removed. We were reminded that this part of Ontario is'knawn as the esnow- belt" and that during many wInter storms highways are closed to cars and buses and only the trains can operate. Counsel for Ontario and other intervenors insisted that the rail- ways and the bus operators had neither studied nor negotiated feeder services by bus that might substantially increase the number of people carried on the passenger trains. The claim was made that if the passenger trains were dis- contieued, the resultant increase in automobiles and buses on the highways would seriously accent- uate the problem of ale pollution throughout the whole area. In reply to one such statement, an officer of one of the bus companies said that a diesel Day- liner could be replaced by two buses without any increase in air pollution. The importance of passenger- train services to the prospects for industrial development of the area was argued at length. Plans for industrial development on a local, county. or regional basis, either with or without provincial or federal support, were ex- plained. Everyone who spoke on this subject was in agreement that discontinuance of passen- ger-train services would con- stitute a serious set-back In efforts to attract new industries. The sociological benefits to the people of Ontario in general, and of this part of the Province in particular, by developing its attractions in tourism, recrea- tion and cultural activities were the subject of representations. It was contended that such develop- ment would be more difficult without adequate passenger-train services. he Tquality of service and of the equipment used,'the times of departures and arrivals ,and the frequencies of trains were the subject of much unfavourable comment. It was represented that improvements of one kind or another in the services would not only better serve the people of the area but would increase the volume of passenger traffic. There was no substantive evidence of any kind, however, on which to base an estimate of what part of the actual losses would be eliminated by such chSnges. It was said that Canadian Nat- ional, in particular, had made no serious effort by way of surveys or other inquiries to determine what the people wanted and which of such demands might feasibly be met so as to increase patronage on the trains. It was also said that neither of the rail- ways had made any advertising or promotional efforts in` recent years to attract more passeng- ers, at ence There seemed to be a strong current running through the Owen Sound, composed of nos- talgia and regret over the possible disappearance of such a seemingly permanent part of daily life as the passenger train, and for a future in which com- munities would be for the first time in living memory without the full range of railway passen- ginerttes se ervti gc.rexas. N s. Many people ex- pressedFINpIso .theirFTHstrong, ECOMMITTEE mmims TinEgEs Accordingly, we are not per- mitted to postpone our decision whether the passenger-train ser- vices in this case are uneconomic and, if so, whether any of them should be discontinued, unless there is a clear statutory man- date for so doing. The' Canadian National ser- vice between Stratford and •Goderich incurred total costs in 1968 of $86,828, against total revenue of $10,035, for an actual loss of $76,793. In this case, revenues would have to increase 8.6 times, without any increase in costs, for the service to break even. Passenger-train revenue is, of course, a direct reflection of the - volume of fare-paying passengers using the service, and the suggestions cf intervenors for improvement were all directed to ways by which the Railway might attract more passengers. These suggestions included more ad- vertising, more frequent service, more convenient schedules and greater carrying capacity on the trains. Many intervenors urged the Committee to accept a regular daily service to and from Toronto for business and shopping as the real requite- ment of the travelling public in the area. The fact is that Canadian -National does provide service six days a week to these com- munities, and it would be im- possible for the Railway to pro- vide more frequent service with-' out substantially increasing costs. And there is no evidence that ther e would be a corres- ponding, increase in revenue, to say nothing of the additional re- venues required to meet the cost of operating the service as at present. These passenger-train ser- vices face severe competition for traffic from the highway, bus and the private automobile. The region of the Province of On- tario they serve has a network of paved, all-weather highways and roads. All rail points are either served directly by bus at least once daily or are within a con- venient distance from a bus stop. Bus service is available at the larger centres several. times a day to and from Toronto or intermediate points. Bus fares are competitive with those of the railways. It is difficult to obtain de- tailed evidence of, the extent to which the people in- this region of Ontario use their own auto- mobiles in preference to public transportation. Neither the rail- ways, nor the intervenors with the exception of the Government of Ontario, offered any precise evidence relating to travel by private automobile as an alter- native to the passenger train. However, ,the Committee takes note of the face that, based on the latest information available, it is estimated that more than 85% of domestic intercity travel is by highway bus and private automobile, preponderantly the latter. And, based on the latest census data available from the Dominion Bureau of Statistics, .this region of Ontario shows a higher motor vehicle ownership in relation to population than the provincial average. The Ovulation of Ontario at the 1966 D.B.S. Census was 6,960, in 0 and the number of private motor vehicles was 2,235,489, or an average of 3.11 people per vehicle. It is clear that private owner- ship of motor vehicles on this scale is a very important factor that in large part accounts for the lore' degree of utilization, and the resulting short fall in revenue, of the passenger-train services in question, even if the ratio of ownership to population 4, were to remain static at 1966 levels. The Committee has also ex- amined these passenger-train Services from a slightly different point of view, in terms of the distribution of their net cost between the passenger, the rail- 4, way and the Canadian taxpayer. The results' illuEarate dramatic- ally the real consequences of the under-utilization of these services. In the case of the Canadian National service between Strat- ford and Goderich, the corres- 4 pending calculations of cost dis- tribution on a per passenger basis are $1.01 paid by the aver- age passenger, $1.54 borne by the Company and $6.17 contri- buted by the taxpayer. The Committee has con- cluded that there is a marked 0 and persistent preference of the travelling public for the bus or their own automobiles over the service offered by these passen- ger trains. And there are strict limits on the extent to which their revenue position could be im- proved by increasing fares. The moment railway fares began to exceed bus fares to any apprec- iable degree, erosion of revenue would begin to take effect, caused by the movement of passengers away from the railway to the cheaper forms of transport. None of the feasible alterations in, a. railway operating practices, equipment assignment, schedul- ing, pricing or other aspects of passenger service under rail- way control would, in our opinion, overcome the inherent unprofit- ability of these services. We find that in the light of the mag- nitude of the actual losses in- curred in the last three pre- scribed accounting years in re- lation to the number of passen- gers using or likely to use the services , no such alteratipns could render them economic. In these circumstances, the Com- a mittee determines that the pas- senger-train services provided by Canadian Pacific between Tor- onto and• Owen Sound,-and by Canadian National between Tor- onto and Stratfoid, 'Palmerston, Goderich, Kincardine, Southamp- ton be and Owen Sound, are unecon- omic and likely to continue to uneconomic. a) The Committee finds that the actual losses incurred do not justify the continuance of • these passenger-train services for the convenience of the number of passengers that have used them 41 and that, in the opinion of the ' Committee, would be likely to use them if the services were not discontinued. b) The Committee finds that the highway system serving the points in this region of Ontario served by the passenger-train a. services is excellent and is pro- bably as extensive as could be found in any comparable area of Canada. The Committee further finds that the existing bus ser- vices in the area constitute a satisfactory alternative public transportation service and the a Committee accepts the evidence adduced at the hearings that these bus 'services will be adequate in capacity and will be increased in frequency as required by traffic • demands resulting from discoh- tinuance of passenger-train ser- vices. c) The Committee agrees with V the submissions of both railways that discontinuance would have a minimal effect on other pas- senger-train services. The Committee has considered the effect on other passenger carriers and, as explained above, has concluded that the bus ser- vices can adequately serve the additional traffic. d) The Committee has fully considered all the repiesentat- ions made and all the informatiod available to it on the probably future transportation needs of the area. In the long term, we a find that the highway system in the region will be adequate to deal with the passenger traffic now being carried by train. The Railway Act. sr vtiheaetsdiwsocuolndt nnuozncine. the Committee further its Fthoipenisanelfil on finds conflict with future plans for the area to be further studied by the Government of Ontario in accordance with the guidelines of the Report Design for Development: The Toronto- Centred Region which was adduced in evidence by the Gover- 6 nment of Ontario. In these circumstances, the Committee determines that these uneconomic passenger-train services should be discontinued.