While these reduced rates have been popular with grain-exporting farmers, they have not been profitable for the railways and have given an unfair advantage to grain producers and ports in central Canada. In the early 1980s, the government attempted to resolve the problems between competing interests by changing the agreement. The Western Grain Transportation Act of 1983 increased shipping costs, but never more than 10% of the world price of cereals. In addition, other cash payments were made by the government to the RPC. After intense discussion and disagreement between the government, railways, farmers and farmers` organizations, the Western Grain Transportation Act was passed on November 17, 1983 (effective January 1, 1984). It has gradually increased the cost of shipping cereals, but never exceeded 10% of the world price of cereals. The federal government agreed to cover the remaining grain transportation costs, $675 million in 1987. The railways agreed to spend $16.5 billion by 1992 on new equipment and service development. In 1983, an alternative proposal to directly provide subsidies to farmers and increase railway rates to cover all operating costs was rejected, although the idea still enjoys considerable support today. October 1898.14 the road to Kootenay Landing, 325 miles west of Lethbridge, was carried out with Steamer service to Kootenay Lake passenger and freight to Nelson and beyond. The cost of building Kootenay Landing was $9,898,392 and a grant of $3,404,720 was awarded to the company.15 The MacPherson Commission was not reviewed by the federal government until 1967, when Canada`s National Transportation Act was passed by Parliament.

But the MacPherson commission`s recommendations on cereals were not included in the new legislation. This is due to the fact that significant improvements were underway in the area of grain handling and the transportation system. As a result, Parliament expected further improvements and felt that legal freight rates would be cost-effective. In 1897, the RPC and the federal government reached a reciprocal agreement. The government provided a grant of 3,404,720 $US to the RPC for the construction of a line from Lethbridge, Alberta, across the Crowsnest Pass to Nelson, to reach the Kootenay area of British Columbia. Large fomented subsidies have also been allocated by the government to the railways. In return for these provisions, the RPC agreed to reduce rates for two movements of general goods important to prairie development. The first was earned as «settler effects» transported from central Canada to settlers on the prairies.

These products to the west include coal oil, binders, agricultural equipment, household furniture, etc. The second commodity in the agreement was grain and flours that moved eastward to Fort William and Port Arthur. Rates of these products were reduced by three cents per hundred pounds below the 1897 level. In exchange for the subsidy, the railways committed that «reduced rates or tolls will not be charged by the company thereafter.» [2] The first surveys for a railway through the Crowsnest Pass were conducted in 1892 on the north side of the Oldman River, but nothing came from this project. The RPC chose a route on the south side of the river, and localization studies began in April 1897, before the law and agreement were in force. Apart from the 300-foot Valley of the Oldman River, just west of Lethbridge, there were no major technical difficulties.