The Great Compromiser

With a roar, a wave of provincial protest against higher freight rates (TIME, April 12) broke last week against the federal government. For a moment the government staggered, then the skillful footwork of Mackenzie King got things right again. Because the case for higher rates, based on the railways' higher costs, was solid, the government stood pat; it ordered the new schedule to take effect immediately. Then it offered a concession.

To meet the outcry against differences in rates between different sections of the country,* the government ordered the Board of Transport Commissioners to look into the possibility of equalizing rates. It would take about a year, and in the end it would probably mean little, but on paper it looked nice. Furthermore, the survey might help to quiet Liberals from the Maritimes and the West who had joined the Opposition in protesting the new charges.

* In Ontario and Quebec, to meet truck and ship competition, rates are below the legal maximum. They are higher on the noncompetitive prairies, higher still over the Rockies because of a "mountain differential." The Maritimes get a 20% reduction.

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