Crow Rate

Crow Rate

The "Crow Rate" or "Crow's Nest Freight Rate" was a rail transportation subsidy imposed on the Canadian Pacific Railway ("CPR") by the Canadian government, benefiting farmers on the Canadian Prairies and manufacturers in central Canada.

Contents

Origin

In the late 19th century, mineral strikes in southeastern BC near Nelson, Ainsworth, Rossland, Kaslo, Kimberley and Moyie inspired American rail interests to push lines northward, to rail out ore and to provide machinery and supplies needed for the development of local smelters. Both the Canadian government and the CPR wanted an all-Canadian rail line to forestall this American access and to reassert Canadian sovereignty in the area. A rail line was planned from Lethbridge, Alberta to Kootenay Landing near Nelson, British Columbia through the Crow’s Nest Pass, which would also enable the development of coal deposits in the Pass and the Elk River valley, important both for mineral smelting operations and for the CPR's conversion of locomotives from wood to coal.[1]

The CPR needed government funding and concessions for the construction of this rail line, and the negotiated agreement between the CPR and the Canadian government was contained in the "Crow's Nest Pass Agreement" dated September 6, 1897. Amongst other things, the CPR agreed to provide reduced rail rates for farmers' grain shipped east to the Great Lakes and for farm machinery shipped west from central Canada "forever".

Unfortunately, this may partially be the cause of the abandonment (and in few cases, sale) of thousands of miles of CP branch lines and even secondary main lines due to the grain traffic on many of them being no longer profitable. CP was unable to cover the cost of keeping lines open that primarily served grain elevators, in many cases, due to the low rates that the farmers got, and it ultimately led to the closure of many grain elevators which were abandoned from rail service, thus causing the Crow Rate to arguably have negative long-term impact on CP.

End of "forever"

Although popular with farmers, these reduced rates were not cost-effective for the railway and provided central Canadian manufacturers and grain ports with an unfair advantage. The Crow Rate was suspended by the CPR during World War One and only reinstated in 1925. By the early 1980s, the government attempted to resolve the problems between the competing interests by altering the agreement. The Western Grain Transportation Act of 1983 allowed shipping rates to increase, but never more than 10% of the world price for grain. In addition, further cash payments were made by the government to the CPR.

With the 1993 election of the new Liberal government of Jean Chrétien, the government took steps to eliminate the subsidies altogether. This was implemented in 1995 through the Western Grain Transition Payment Program, which provided one-time payments to farmers to assist them in making the transition away from subsidized shipping.

Reference

  1. ^ R.G. Harvey Carving the Western Path, Routes to Remember Heritage House Publishing, 2006

External links


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • CROW — Course Resources on the Web (Academic & Science » Universities) * Charcot Restraint Orthotic Walker (Medical » Physiology) * Cybernetic Remotely Operated Woman (Business » Positions) * Children Rate Outstanding Writers (Community » Educational) * …   Abbreviations dictionary

  • BAT Crow — infobox Aircraft name = F.K.28 Crow type = Ultralight manufacturer = British Aerial Transport Company Limited caption = designer = Frederick Koolhoven first flight = 1920 introduced = retired = status = primary user = more users = produced =… …   Wikipedia

  • Crowsnest Pass — This article is about the geographical feature. For the municipality, see Crowsnest Pass, Alberta. Crowsnest Pass Crowsnest Lake, Crowsnest Pass …   Wikipedia

  • Canadian Pacific Railway — Infobox SG rail railroad name=Canadian Pacific Railway logo filename=Canadian Pacific Logo 1996.png logo size=162 system map size=300 map caption=Canadian Pacific system map as of 2004 (does not include DM E and IC E trackage). old gauge=… …   Wikipedia

  • Doug Young — Meredith Douglas Doug Young, PC (born September 20 1940 in Tracadie, New Brunswick) is a Canadian politician.Provincial politicsHe was first elected to the Legislative Assembly of New Brunswick in 1978 as a Liberal Member of the Legislative… …   Wikipedia

  • Shaunavon, Saskatchewan — Infobox Settlement official name = Town of Shaunavon other name = native name = nickname = settlement type = Town motto = imagesize = image caption = flag size = image seal size = image shield = shield size = city logo = citylogo size = Location… …   Wikipedia

  • Les Benjamin — Infobox CanadianMP | name=Leslie Gordon Benjamin cabinet= term start=1968 term end=1993 predecessor=Riding created successor= John Solomon birth date= April 29, 1925 birth place=Medicine Hat, Alberta death date= June 16, 2003 death place=… …   Wikipedia

  • Transportation in Thunder Bay, Ontario — Transportation is essential to trade, which has always been the backbone of the economy of Thunder Bay, Ontario, Canada, beginning with Fort Kaministiquia in 1717. When the area was first settled its many waterways were used by the Voyageurs to… …   Wikipedia

  • Agriculture in Saskatchewan — is the production of various food, feed, or fiber commodities to fulfill domestic and international human and animal sustenance needs. The newest agricultural economy to be developed in renewable biofuel production or agricultural biomass which… …   Wikipedia

  • Doug Young (politician) — Meredith Douglas Doug Young, PC (born September 20, 1940 in Tracadie, New Brunswick) is a Canadian politician. Contents 1 Provincial politics 2 Federal politics 3 References 4 …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”