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Crow rate
DCHP-2 (Aug 2012)
Spelling variants:Crow Rate, crow rate
n. — historical, transportation
a subsidized, reduced rail shipping rate for grain, grain-related products and machinery from and to the Prairies (in effect until 1993).
Type: 1. Origin — In 1897, the Calgary and Edmonton Railway Company received land title and financial subsidy from the Canadian government to extend a rail line through the Crow's Nest Pass in Alberta into southern British Columbia. The crow rate was established as a result of the Crow's Nest Pass Agreement (dated 6 September 1897) between the two parties. The resulting act of the federal parliament is excerpted in the 1898 quotation. As a result, the shipping rates were reduced eastbound on grain and flour and westbound on farm machinery. In 1928, the Calgary and Edmonton Railway Company was sold to Canadian Pacific Railway (see Atlas of Alberta Railways reference).
For many decades, the rates were frozen at 1925 prices (see the 1986 quotation), thereby influencing market forces. While important for central Canadian farmers and lasting for 97 years, crow rates were partly to blame for the sales or closures of western Canadian rail lines (see Canadian Encyclopedia reference). Crow rates were a longstanding point of contention between provinces (see the 1925 quotation), the CPR and the federal government (see 1961 quotation).
See also ITP Nelson, s.v. "Crow rate".
For many decades, the rates were frozen at 1925 prices (see the 1986 quotation), thereby influencing market forces. While important for central Canadian farmers and lasting for 97 years, crow rates were partly to blame for the sales or closures of western Canadian rail lines (see Canadian Encyclopedia reference). Crow rates were a longstanding point of contention between provinces (see the 1925 quotation), the CPR and the federal government (see 1961 quotation).
See also ITP Nelson, s.v. "Crow rate".
Quotations
1898
1. The Calgary and Edmonton Railway Company, hereinafter called "the Company," may lay out, construct and operate a railway of the gauge of four feet eight and one-half inches, from the present southern terminus of its railway to a point on the line of, and so as to make a connection and junction with, the railway now in course of construction from Lethbridge, in the district of Alberta, through the Crow's Nest Pass to Nelson, in the province of British Columbia, and which is known as the "Crow's Nest Line";
1922
This report recommends that the Crow's Nest Pass agreement be further suspended with a proviso that the Crow rates on grain and flour come into force next month. The general question of railway rates is referred to the railway commission.
1925
ONTARIO WANTS CROW RATE REPEAL
Ottawa, May 12--The repeal of the Crow's Nest Act in order to give the railway commission full authority and direction over the whole railway rate structure in Canada was urged upon the government this morning by a delegation representing the Toronto board of trade and the Ontario Associated Boards of Trade. The grounds for the request as cited by the delegation were discriminations and inequalities and general demoralization of business resulting from the present situation in regard to railway rates.
Ottawa, May 12--The repeal of the Crow's Nest Act in order to give the railway commission full authority and direction over the whole railway rate structure in Canada was urged upon the government this morning by a delegation representing the Toronto board of trade and the Ontario Associated Boards of Trade. The grounds for the request as cited by the delegation were discriminations and inequalities and general demoralization of business resulting from the present situation in regard to railway rates.
1961
The railway-prairie feud revolves around a CPR-CNR bid before the royal commission for a Canadian subsidy to offset huge losses claimed in hauling export grain at freight rates set by law under the 1897 Crows Nest Pass agreement.
The Crow rate is viewed in the West as the backbone of the prairie economy, and any change in it is fought bitterly by the provincial governments, farmers and the grain trade.
The Crow rate is viewed in the West as the backbone of the prairie economy, and any change in it is fought bitterly by the provincial governments, farmers and the grain trade.
1987
The battle over variable freight rates for grain, a leftover of the Crow rate debate of a few years ago, has resumed.
1990
The Quebec cattle farming organization cited irreconcilable differences with the free-enterprise-oriented CCA over such issues as agricultural subsidies, tripartite support programs, feed-grain transportation payment methods like the Crow Rate, and government intervention in markets, Shepherdson said from his farm at New Liskeard, Ont.
2007
The big grain companies hate Churchill because it does not work into the rationalized, east-west elevator grid that has gripped the West in the wake of the termination of the Crow rate.
References
- ITP Nelson
- Atlas of Alberta Railways • "The Calgary and Edmonton Railway"
- The Canadian Encyclopedia • "Crow's Nest Pass Agreement"