Phase Two panels study grain costs and rail moves
Canada faces cost questions in moving export grain by rail as the Phase Two Snavely Commission holds hearings. CP Rail officials say railways and prairie provinces align on costing methods and data access, with full information shared and disputes minimized during the inquiry led by Carl M. Snavely Jr.
MENTIONED IN THIS ARTICLE
Canada
Carl M. Snavely, Jr
Snavely Commission
George Smellie
H. M. Romott
Canadian Pacific
Mr. Smellie
Winnipeg
Western Canada
Snavely
H.M. Romoff
Canadian Pacific Ltd
CP Rail
Commission
Romoft
Snavely Commission faces four concept clashes in rail cost study
CP Rail and provincial panels clash over cost concepts for grain transport. Romoff notes four core differences shape totals: purpose of costing, business risk, whether to include inflation and fixed assets, and treatment of equity versus debt. Even governments differ on 1974 spending versus ongoing costs.
MENTIONED IN THIS ARTICLE
Romott
CP Rail
Snavely
Romoft
Canada
CP ‘Limited
Rail cost dispute hinges on replacement prices and depreciation
The railways favor replacement cost for tractors with depreciation tied to current prices to sustain ongoing operations, while provinces push for charging only variable costs to grain and limit constant costs. They differ on inflation treatment and branch line subsidies, but agree broadly on technical revenue calculations. Mr Romett faces a large gap to reconcile, aided by consensus on most technical work and freight rate revenues.
MENTIONED IN THIS ARTICLE
Snavely
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P.E
VEGA
T Radio
MONZA
P.S
Frank Clement & Sons
Russell, Manito
Ralways
Prairie
Romoff
Provinces
Pree
Romett