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Alberta

The Canadian Northern Railway’s legacy at Big Valley, Alberta.

Published

3 years ago

13 minute read

By Shawn I. Smith, Canadian Northern Society

“The newly constructed train station circa 1913, Big Valley. Photo- Canadian Northern Society Archives

 

It’s a Saturday afternoon in June in the quiet Village of Big Valley. Visitors admire the splendid heritage railway depot and gardens at the end of main street. Two blocks south is a historic grain elevator – a classic Canadian symbol standing tall above the prairie landscape. To the east across the tracks are large stark concrete walls, visibly reminiscent of Stonehenge. “What are those curious walls?” is often asked. Then the sound of a locomotive whistle breaks the silence, creating a scene out of the 1950’s when a vintage passenger train pulls into town, and the train crew scurries about on the platform unloading its cheerful patrons.

“Visitors explore the Big Valley Roundhouse Ruins” Photo- Canadian Northern Society Archives

While not obvious to the guests who have enjoyed the 21-mile excursion train ride from Stettler aboard the Alberta Prairie Railway, the scene that unfolds on summer days in Big Valley is part of a legacy left by two dynamic railroaders who over a century earlier had an ambitious and grand vision for Western Canada. Today, both active and abandoned rail lines in central Alberta, related historic structures and sites, and indeed the communities that owe their existence to the Canadian Northern Railway (CNoR) share this common heritage.

Since the completion of the Canadian Pacific Railway in 1885, railways have been inextricably linked with the development of western Canada. After Confederation the new Dominion Government quickly recognized that without railways real settlement would not take place in the sparsely populated North West.

Energy, Enterprise, and Ability

“The Canadian Northern Railway lines map, 1916” Map- Atlas of Alberta Railways

The CNoR (Canadian Northern Railway) was a product of two Canadian-born railroaders with CPR roots. William Mackenzie and Donald Mann met during the 1880’s while the senior road was under construction in the Selkirk Mountains. Their “Energy, Enterprise, and Ability” – which would become the railway’s motto would lead to a partnership in contracting, steamship lines, and a 9,500-mile transcontinental railway empire that served seven provinces and included the Duluth Winnipeg and Pacific Railway in the U.S. The two were knighted for their achievements in 1911.
Branch lines were the key to the CNoR strategy.The Vegreville to Calgary branch – chartered in February 1909 by CNoR subsidiary Alberta Midland Railway – was the company’s key north-south spine through Alberta. The portion between Vegreville and Drumheller was opened for service in 1911. While it had the appearance of a typical prairie branch line, its primary purpose was to carry steam and domestic heating coal from mines at Brazeau and Drumheller to growing prairie markets.
The fact that the line traversed a region of great agricultural potential for both grain and cattle farming was an added benefit. In typical fashion, grain elevators were located every five to ten miles – the distance being established around the practical ability for a livestock team to haul a load of grain and return in one day’s time from the growing number of homesteads clustered around each delivery point.
The Battle River Subdivision along with further line completions in 1914 to Calgary and Strathcona respectively provided the CNoR with an effective intercity freight route, albeit longer than those of its competitors.
The Brazeau Branch, extending 176 miles west from the junction at Warden to the Nordegg Collieries was extremely important to the CNoR which depended largely on this supply of steam coal for terminals across the West. The subsequent extension of the Goose Lake line at Munson became an important link from Calgary to Saskatoon. All of these CNoR lines were financed using provincial bond guarantees.

“Bustling Big Valley railroad yard, roundhouse, 1920’s” Photo- Canadian Northern Society Archives

By May of 1912 mixed trains crewed by Big Valley men were running north to Vegreville and south to Drumheller. Another run to Rocky Mountain House was added in June. A Second Class depot was erected that year and a five-stall roundhouse and turntable were complete by April of 1913.
By late 1913 a Railway Post Office Car service had been established on the line, and Big Valley was home to 14 locomotives and an equal amount of engine service and train crews. Assistant Superintendent Thomas Rourke oversaw terminal operations that included a train dispatching office.
By September 1917 fourteen mines were operating in the Drumheller Valley producing 250 carloads of coal every 24 hours. Drumheller was without question the “Powerhouse of the West.” Big Valley’s railroaders were kept busy 24 hours a day operating the trains that pulled the coal out of the valley.

“Train time at Big Valley. A Southbound train at Big Valley, 1920’s.” Photo- Canadian Northern Society Archives

After being selected as the CNoR terminal, Big Valley boomed. By 1919, its population had increased to over 1025, with some 325 souls working for the CNoR. At its peak, the company’s payroll included 26 train and engine crews, a shop staff of 40, and a Bridge and Building crew averaging 45 employees, managed by Frank Dewar. There were 8 sectionmen, and at the station an Agent, operators round the clock, yard clerks, and the train dispatcher. Four to five carman conducted car repairs and inspections.
Coal from Brazeau was piled in a huge stockpile almost a block long on the east side of the yard. A gravel pit operation north of town at Caprona was established to provide aggregate for line ballasting on all of the CNoR area lines. Steam shovels kept this operation steady, mining volumes often equating to 100 carloads per day.
Big Valley’s early railroaders were a colourful lot. Many came and went, and with the Big Valley collieries in production by 1914 shipping coal as far east as Ontario – night life in town could be wild. Assistant Superintendent Rourke, a former baseball player in the Detroit Tigers minor league system, was responsible for putting together the “Big Valley Bugs” – made up almost entirely of railroaders – who in 1918 put together a resounding victory over the high-flying Edmonton Red Sox.

The National

During the First World War, financial problems caught up with Mackenzie and Mann and their rapidly expanding enterprise. Despite profitable western lines such as the Vegreville and Brazeau branches, lack of traffic on the transcontinental lines, burdensome debt, and the negative impacts of the War would result in the company being “nationalized” by the Dominion Government in 1918. The rival Grand Trunk Pacific (GTP) Railway would fare even worse, having been placed into receivership in 1919. These events led to the creation of today’s Canadian National (CN).
The new CN was confronted with the task of rationalizing the CNoR and GTP lines throughout western Canada. Consolidation was affected by the elimination of duplicate facilities and improving services by combining portions of the former competing lines. Construction of track connections joining the Brazeau branch with he former GTP Tofield to Calgary line at Alix were opened for service in 1922.
Connections were also made between the Battle River Subdivision and the former GTP mainline at Ryley. Geographically the GTP divisional point at Mirror was seen as central to the operations of the Brazeau branch vs. Big Valley. Coal that had originally moved over the Brazeau line to Warden then northward was now diverted over the new connection at Alix via Mirror which became the new home terminal for crews running west.
The new routing via Alix saved a distance of over 50 miles between Brazeau and Saskatoon. The former GTP south of Camrose also became the CN’s north-south main line through Alberta.

“The end of daily passenger train service between Edmonton – Drumheller. VIA Rail’s Dayliner at Big Valley, 1981” Photo-Charles Bohi

This consolidation led to the significant decline of Big Valley as a railway town. While the company kept a small number of train crews assigned to both freight and passenger service, by 1925 the exodus to Mirror, Edmonton, Drumheller, and Hanna began. It was reported that over 100 railroaders’ homes were moved out of the village, some of which continue to exist in Mirror today. In what was known as the “Battle of Big Valley” – the unions fought the company’s decision hard but were left with little compensation for their relocation expenses after the issue went to arbitration in the late-1920’s with the decision going with the company. By the onset of the depression, Big Valley’s population had dropped by some 500 souls to 445.
It is without question that the old Canadian Northern Railway’s reason for existence in central Alberta has changed dramatically since its arrival in 1910. Coal is no longer used to heat our homes – and in fact its use is considered sinful by some!
Packages ride on trucks, and people drive their own cars and trucks instead of riding mixed trains and Nos. 25 and 26 to get to Calgary or Edmonton.
While huge volumes of grain still move on trains – these are now loaded in modern high capacity elevators capable of loading 100 cars or more in 12 hours or less. The original steel rails that remain in service between Stettler and Big Valley are therefore of historic testament to Mackenzie and Mann and their great accomplishment. In fact, this section of track is the sole operating survivor of many similar “60-pound” branch lines that have now been re-laid or abandoned across the prairies. And almost incredibly one can still experience a passenger train ride over these vintage rails, pulling into Big Valley just as travellers did one hundred years ago.

Canadian Northern Society
www.canadiannorthern.ca
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Alberta

Alberta government should create flat 8% personal and business income tax rate in Alberta

Published on April 23, 2024

By

From the Fraser Institute

By Tegan Hill

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America

Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.

Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.

In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.

And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.

Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).

Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.

To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.

Author:

Tegan Hill
Associate Director, Alberta Policy, Fraser Institute
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Alberta

Province to stop municipalities overcharging on utility bills

Published on April 22, 2024

By

Making utility bills more affordable

Alberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees.

Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.

“Albertans need relief from high electricity costs and we can provide that relief by bringing in fairness on local access fees. We will not allow municipalities – including the city of Calgary – to profit off of unpredictable spikes in electricity costs while families struggle to make ends meet. We will protect Alberta families from the extreme swings of electricity costs by standardizing the calculations of local access fees across the province.”

Danielle Smith, Premier

Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.

“Albertans deserve to have fair and predictable utility bills. Our government is listening to Albertans and taking action to address unaffordable fees on power bills. By introducing this legislation, we are taking yet another step towards ensuring our electricity grid is affordable, reliable, and sustainable for generations to come.”

Nathan Neudorf, Minister of Affordability and Utilities

To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees.

Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.

“Over the last couple of years many consumers have been frustrated with volatile Regulated Rate Option (RRO) prices which dramatically impacted their utility bills. In some cases, these impacts were further amplified by local access fees that relied upon calculations that included those same volatile RRO prices. These proposed changes provide more clarity and stability for consumers, protecting them from volatility in electricity markets.”

Chris Hunt, Utilities Consumer Advocate

If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.

“Addressing high, unpredictable fees on utility bills is an important step in making life more affordable for Albertans. This legislation will protect Alberta’s ratepayers from spikes in electricity prices and ensures fairness in local access fees.”

Chantelle de Jonge, Parliamentary Secretary for Affordability and Utilities

If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities Act, Government Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable.

Quick facts

  • Local access fees are essentially taxes that are charged to electricity distributors by municipalities. These fees are then passed on to all of the distributor’s customers in the municipality, and appear as a line item on their utility bills.
    • The Municipal Government Act grants municipalities the authority to charge, amend, or cap franchise and local access fees.
  • Linear taxes and franchise fees are usually combined together on consumers’ power bills in one line item as the local access fee.
    • The linear tax is charged to the utility for the right to use the municipality’s property for the construction, operation, and extension of the utility.
    • The franchise fee is the charge paid by the utility to the municipality for the exclusive right to provide service in the municipality.
  • Local access fees are usually calculated in one of two ways:
    • (1) A percentage of transmission and distribution (delivery) costs, typically 10-15 per cent.
    • (2) A fixed, cents per kilowatt-hour of consumed power charge (City of Edmonton).
  • Calgary is the only municipality that employs a two-part fee calculation formula:
    • 11.11 per cent of transmission and distribution charges plus 11.11 per cent of the Regulated Rate Option multiplied by the consumed megawatt hours.

Related information
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