Report on Pacific Great Eastern Railway.

By W. P. Hinton.

F Vicroria, B.C., April Sth, 1922.
The Hon. John Oliver,

Presiding Director, Pacific Great Eastern Railway,
Victoria, B.C,

Dear Sir,—In accordance with your letter of the 21st ulto., I desire to respectfully submit
a& memorandum report containing my observations, analyses, comments, and recommendations
pertaining to the organization, operation, and maintenance of the Pacific Great Eastern Railway.

I did not examine the entire property at this time, having been over the greater part of it
previously quite critically, besides being generally familiar with the balance of the country served
since, and can estimate generally the operating conditions and possibilities.

All available data were closely studied, as well as an inspection of the North Shore Jine
and at Squamish, resulting in the report and conclusions reached in brief form in the enclosed,
and in order that you may have a summary of the matter contained therein, the following may
be of use :—

(1.) The officers and staff generally are capable and discharge their duties efficiently ;
material reductions are not practicable or are inadvisable pending development of and decision
on your future policy.

(2.) Inereased rates generally to provide additional revenue are not practicable. They are
already so high as to bear very heavily, if not prohibitive in some cases.

(3.) Accounting, purchasing, stores, etc., departments are systematically conducted and in
accordance with the best methods.

(4.) North Shore Division should be put in the tramway class to reduce operating expenses
and efforts made to dispose of or abandon the line.

(5.) Squamish Division: The future operation of this line or part of it between Squamish
and Clinton to be carefully considered. The low tonnage capacity of trains, the absence of traflic
possibilities of an attractive nature, the difficulty of maintaining the line and in many places
constantly subject to destruction, also the excessive wear on track, ties, structures, motive power,
and rolling-stock, should be justified only for a heavy traffic. It is on this division that
your heavy operating costs occur. The report shows that this excessive cost over normal is
approximately for 1921 :—

Maintenance way and structures .........20.cserecrcerccssces ... $175,000 00
Transportation ........ prea eaeietcista a eusreie ein Seta nid SOD RON Asa AG seeee. 50,000 00
Sia ent sGe: Saher ae ON GL ae LA RETR A aig oh ake gan ie ee LLU 0000

Exclusive of excessive wear on rails, motive power, and rolling-stock, as well as costly inter-

ruptions and delays to traffic.
The maintenance charges will now increase very rapidly, as the 16,000,000 feet of timber

in bridge and trestle construction must all be renewed within the next few years or replaced
by steel or concrete. The cost of these renewals may be figured in place at probably $2,500,000,
so that this sum must be figured in addition largely to present losses, as it cannot properly be
charged to capital account, the latter carrying only the difference between cost of renewal in kind
and the cost of permanent structures.

(G.) The construction of the line to Prince George should be proceeded with, as the material
is largely paid for and delivered; economies in operation can be effected thereby and an outlet
furnished by direct rail connection to reach markets, stimulating settlement wherever possible
and making operations already started in the territory of the Pacific Great Eastern surer of
success.

The officers and staff rendered every assistance; in fact, welcomed this opportunity of haying
an independent examination of their work, together with any helpful suggestions which I was
able to make to them in our several discussions and inspections.