Under the authority of the Commuter Services Act, 1965, Statutes of Ontario 1965, c. 17, the Minister of Highways for Ontario decided to operate a Government of Ontario Commuter Service from Toronto westerly to Hamilton and easterly to Pickering utilizing Canadian National Railways’ trackage in the entire area of its operation. Although no contract for that purpose has yet been signed, the Canadian National Railways, on July 16, 1965, made an application to the Board of Transport Commissioners for authority to discontinue four passenger trains operating between Toronto and Hamilton. It was stated in the application that the train crews on the Commuter Service would be those of the Canadian National Railways performing services for the Ontario Government on an agency basis under terms and conditions to be provided for in a formal agreement to be entered into in the near
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future. By the order appealed from authority to discontinue the four trains was given and in addition the Board declared that:
It has jurisdiction in respect of the tolls to be charged by the Province of Ontario in respect of the proposed services.
The appeal by Ontario is against that declaration only and raises two points:
1. Whether the tolls to be charged by Ontario in respect of the Commuter Service are subject to the jurisdiction of the Board of Transport Commissioners;
2. Whether the Commuter Service comes within the legislative jurisdiction of the Parliament of Canada.
On the first question it is not disputed that the Board of Transport Commissioners has jurisdiction over tolls within the meaning of the Railway Act, R.S.C. 1952, c. 234. The issue is whether the tolls to be charged by Ontario in respect of the Commuter Service are tolls within the definition of this word in the Railway Act. The material part of this definition is as follows:
(32) ‘toll,’ or ‘rate,’ when used with reference to a railway, means any toll, rate, charge or allowance charged or made either by the company, or upon or in respect of a railway owned or operated by the company, or by any person on behalf of or under authority or consent of the company, in connection with the carriage and transportation of passengers, or the carriage, shipment, transportation, care, handling or delivery of goods, or for any service incidental to the business of a carrier; and includes any toll, rate, charge or allowance so charged or made in connection with rolling stock, or the use thereof, or any instrumentality or facility of carriage, shipment or transportation, irrespective of ownership or of any contract, expressed or implied, with respect to the use thereof;…
Appellant points out that the tolls in question will not be charged by the “company” within the meaning of the definition since they will be charged by Her Majesty in the right of the Province of Ontario. The answer to this contention is that the definition applies not only to tolls charged by the “company” but also to tolls charged “upon or in respect of a railway owned or operated by the company, or by any person on behalf or under authority or consent of the company, in connection with the carriage and transportation of passengers…”. While it is true that the rolling stock used in operating the Commuter Service belongs to Ontario, the railway on which this equipment runs is the “company’s” railway. Therefore, the tolls
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cannot be said not to be “in respect of a railway owned” by the Canadian National Railways; they are obviously a charge for the transportation of passengers over this railway by means of such equipment.
It is worth noting that under the Railway Act the rolling stock, is not considered an essential part of the railway. Although it is included in the definition of “railway” it is also included in the definition of “traffic”:
(33) “traffic” means the traffic of passengers, goods and rolling stock;
It should be further noted that under s. 315 of the Railway Act, a railway company is obliged to furnish “suitable accommodation for the receiving and loading of all traffic offered for carriage upon the railway”. Therefore it cannot be said that the operation of a commuter service by means of rolling stock owned by the Government of Ontario is not an operation of the “railway” within the meaning of the Railway Act. On the contrary, to the extent that the tolls charged to the passengers can be said to be charged in connection with the use of the rolling stock they are expressly covered by the last quoted part of the definition: “and includes any toll… so charged in connection with rolling stock, or the use thereof… irrespective of ownership”.