The provision of a satisfactory transportation system is absolutely indispensable if Canada is to survive as a national unit. Without a transportation system which moved, relatively cheaply and conveniently, vast quantities of the country's primary products over long distances, it would be literally impossible for great sections of Canada to support its present population. In this context, modern transportation really means railway transportation for no other form of transportation can possibly transport such commodities as wheat, coal, and lumber over the distances and in the volumes which are involved in Canada.

For this reason, there has never been any difference of opinion as to the absolute necessity of providing the Canadian railways with sufficient revenue to enable them to continue to provide satisfactory transportation service. There have, however, been serious differences of opinion as to whether or not the present freight rate structure does yield to the railways enough revenue for that purpose and as to the source from which any additional revenue should be secured if it is decided that it is necessary. There have also been differences as to who was to be given the responsibility and authority to decide these issues.