Page "Alexander Cameron Rutherford" Paragraph 29

Of equal profile was Rutherford's government's management of the province's railways.

Alberta's early years were optimistic ones, which manifested itself in a pronounced enthusiasm for the construction of new railway lines.

Every town wanted to be a railway centre, and the government had great confidence in the ability of the free market to provide low freight rates to the province's farmers provided sufficient charters were issued to competing companies.

The legislature passed government-sponsored legislation setting out a framework for new railways in 1907, but interest from private firms in actually building the lines was limited.

In the face of public demand and support by legislators of all parties for as rapid as possible an expansion of the province's lines, the government offered loan guarantees to several companies in exchange for commitments to build lines.

Rutherford justified this in part by his conviction that railways needed to expand along with population, rather than having railway expansion follow population growth as would be the case without government intervention.

The Conservatives argued that this strategy didn't go far enough, and called for direct government ownership.