The proposition presented in this thesis is that the use of the "Agreed Charges" by the Canadian railroads was designed merely as an instrument to improve their place in the growing intermodal competition in Canadian transport. However, the thesis has revealed potential effects for the Canadian economy extending beyond this purpose. These effects grow out of the influence that Agreed Charges have had on the marketing "reach" of Canadian manufacturers, and the consequential location of industry. The competitive purpose of Agreed Charges is reviewed by a study of their origin and effects in transportation in England preceding any experience with them in Canada. This is followed by reference to Canadian legislation of 1938 which presented the detailed legislation authority for Agreed Charges as they developed in Canada. The basic competitive purpose of the new rate device is evaluated by a study of its effects on the railroads and their competitors. The effects of Agreed Charges on the Canadian economy going beyond this competitive purpose is then studied through describing and appraising the influence which they had on the inter-regional marketing of a number of. products. Through this study the influence shows itself in permitting enlarged production in certain regions in Canada by extending the marketing areas beyond those that could be reached without Agreed Charges; and it shows itself in the preferences it gave to Canadian manufactured products over competitive products from abroad. / Business, Sauder School of / Graduate