Telephone policy

Liberal government would make a number of large-scale forays into government operation of utilities, the most notable of which being the creation of Alberta Government Telephones.^[3] In 1906, Alberta's municipalities legislation was passed and included a provision authorizing municipalities to operate telephone companies.^[4] Several, including Edmonton, did so, alongside private companies.^[4] The largest private company was the Bell Telephone Company, which held a monopoly over service in Calgary.^[4] Such monopolies and the private firms' refusal to extend their services into sparsely-populated and unprofitable rural areas aroused demand for provincial entry into the market, which was effected in 1907.^[5] The government constructed a number of lines, beginning with one between Calgary and Banff, and it also purchased Bell's lines for $675,000.^[6]

Alberta's public telephone system was financed by debt, which was unusual for a government like Rutherford's, which.was generally committed to the principle of "pay as you go".^[7] Rutherford's stated rationale was that the cost of such a large capital project should not.be borne by a single generation and that incurring debt to finance a corresponding asset was, in contrast to operating deficits, acceptable.^[6] Though the move was popular at the time, it would prove not to be financially astute. By focusing on areas neglected by existing companies, the government was entering into the most expensive and least profitable fields of telecommunication.^[4] Such.problems would not come to fruition until Rutherford had left office, however. In the short term, the government's involvement in the telephone business helped it to a sweeping victory in the 1909 election.^[8] The Liberals won 37 of 41 seats in the newly-expanded legislature.^[9]

Labour bills

Rutherford's government legislated an eight-hour day,^[10] as well, Rutherford's government also passed workers' compensation legislation designed to make such compensation automatic, rather than requiring the injured worker to sue his employer.^[11] Labour representatives criticized the bill for failing to impose fines on negligent employers, for limiting construction workers' eligibility under the program to injuries sustained while they were working on buildings more than 40 feet (12 m) high, and for exempting casual labourers. It also viewed the maximum payout of $1,500 as inadequate.^[12] In response to these concerns, the maximum was increased to $1,800 and the minimum building height reduced to 30 feet (9.1 m).^[12] In response to farmers' concerns, farm labourers were made exempt from the bill entirely.^[12]