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series of increase had to be put into force; it is now 

 almost beyond human prevision to say when and where 

 such demands will find their limits . ' ' 



* ' Serious as were the difficulties caused by the high 

 price and scarcity of labour, materials and rolling 

 stock, the transportation companies have been able to 

 maintain their "services, and even to augment them at 

 times, although until quite recently they were not per- 

 mitted to increase their charges in proportion to the 

 higher cost of operation . ' ' 



The majority of the Boards of North American 

 lines are now dedicating their attention to increasing 

 the transportation capacity of their lines, and to the 

 introduction of labour-saving devices, since it is prac- 

 tically impossible to effect economies without an in- 

 creased movement of traffic, and along this line of in- 

 tenser movement lies the salvation of difficulties which 

 at present threaten to bring the running of railways to 

 an impasse. 



The fundamental security given the railways for 

 sure and steady freights through the existence of ele- 

 vators needs no dwelling on ; a study of the nett results 

 in U.S.A. and Canada is the most emphatic endorse- 

 ment one can adduce. A similar knowledge that 

 throughout the country there existed freights waiting 

 despatch at an opportune movement would mean for 

 the railways here a sounder basis for their calculations 

 than they have at present, and without which they 

 confess they cannot promise a stable and equitable 

 tariff. 



More powerful than ever are the reasons to-day 

 for allowing a smaller quota for transport in our cal- 

 culations of costs. We must be prepared for keener 

 competition in our selling market, and possibly nett 

 lower prices. Although the actual selling rates may 

 rise considerably on the consuming markets, the increas- 

 ed cost of production and handling will cause the net 

 price to the producer to be lower. Undoubtedly if the 

 real profit is too low there will be an end of extensive 

 cereal raising, and since cereals form such a large per- 

 centage of the railway cargoes, this is no negligible 

 matter for our transport companies, for they will cer- 

 tainly not be able to recuperate on other branches, on 

 the cattle and sheep, for instance, which already pay 

 nearly ten per cent, of their selling value on the ex- 

 port market, in freights for railway transport. 



