•62 Transactions of the Canadian Institute. [Vol. IX. 



unequally in railway transportation. Legislation in that year dealt with 

 the topics of "Reasonable Facilities" and "Undue Preference." In 1873 

 a Commission was organized. In 1888 the Railway and Canal Commission 

 for England was reorganized and given more extensive powers. In the 

 United States regulation by Commission developed in New Hampshire 

 as early as 1845. The majority of the states of the Union have carried 

 on the regulative policy through commissions. The Federal Government 

 organized in 1887 the Interstate Commerce Commission which has been 

 given increased powers by the Act of 1906. In Canada, by the legislation 

 of 1903, there was organized the Board of Railway Commissioners for 

 Canada. This organization has a very wide power over rate matters. 

 Its decisions on questions of fact are final. There may be an appeal on 

 a question of law or jurisdiction to the Supreme Court, and there may 

 be an appeal from any Order of the Board to the Governor-in-Council. 

 The Governor-in-Council may also, of his own motion, over-rule or modify 

 an Order of the Board. The reason for the provisions regarding the 

 Governor-in-Council power is, that it is desired to maintain the principle 

 of ministerial responsibility. Before the organization of the Board of 

 Railway Commissioners for Canada the powers exercised regarding regu- 

 lation were in the hands of the Railway Committee of the Privy Council, 

 and this Committee as a sub-committee of the ministry was responsible 

 through the Ministry to Parliament. 



In addition to rate regulation the Commission has wide powers 

 -regarding operation and train service, various engineering matters con- 

 nected with railway inspection, opening for traffic, etc., questions of 

 accident inspection, and in general protection of the public safety. Many 

 other phases might be referred to, but these will be sufficient to indicate 

 the scope of the Commission's powers. No other regulative Comniission 

 in the world has as far reaching powers as the Commission. 



The question of rate regulation has been looked upon as the central 

 feature of railway regulation. There are two phases to the question of 

 rate regulation — Is the railway rate reasonable in itself? Are the rates 

 relatively reasonable ? 



Under the question of relative reasonableness develops the law in 

 regard to undue preference as it is called in England, or discrimination, 

 as it is commonly called in Canada and the United States. The law does 

 not forbid all discriminations, but simply those which are undue or unjust; 

 consequently each discrimination must be examined on its merits. A 

 discrimination is allowed in respect of quantity, that is to say, a carload 

 may have a lower rate per hundred pounds than less than carload shipment. 



