R 20 Paciric Great Eastern Ramway. 1922

money for the necessary expenditure, sell some of the locomotives now owned by the company,
cancel mail contracts for the winter months, and close down that portion of the line where snow
trouble occurs during the winter months. Operate a freight-train as often as there is business
to warrant during the summer months, be that one a fortnight or one a month. Do not send
out an engine unless there is a full load at least in one direction. Raise rates, both passenger
and freight, to all the traffic will bear; that is, meet competition. Stop hauling freight at Jess
than cost, to say nothing of paying interest charges. Encourage development as much as possible
by giving commodity rates to low-grade freight as long as it can bear a rate slightly above cost.
Any other action is not just to taxpayers of British Columbia. They have been obliged to pay
the interest on the cost of this plant, and they should not be taxed to maintain a service for
the people adjacent to the Pacific Great Eastern Railway that these people are unwilling or
unable to pay for themselves. Abandon the operation of the line between Dragon Lake and
Quesnel, unless the municipalities north of that point who may be interested will pay each year
the cost of maintaining the line from Dragon Lake to Quesnel in excess of $1,250 per mile of
main line. This is only justice to the other patrons of the road and to the taxpayers of British
Columbia. If these suggestions are carried out the road should do better than paying operating
expenses, for a few years at least, until such time as heavy renewals or replacements will be
required. page|

Fifth: If the fourth suggestion on any modification, if same be put in force, that the
company engineers keep in mind the possibility of abandoning the entire line south of Clinton,
if a sufficient saving can be made in operating expenses to pay the interest on the construction
cost of the line from Clinton to Asheroft, less the value of the salvage of the line south of
Clinton. Study the possibility of selling the south end of the line to the lumber interests.
They cannot object to the abandonment of the line unless they are willing to pay more than the
salvage value of the line and operate the same for their own use as they see fit.

Sixth: That the Province does not guarantee any more bonds, either as to principal or
interest, for the construction of branch lines; if such lines are demanded to develop resources
of any section, then let the owners of these resources, be they owned either privately or by the
Government, give to the railway company an interest in the resources, which they may in turn
pledge as security for the money with which to construct the lines. If money cannot be raised
in this manner the line should not be constructed.

Seventh: If the people of British Columbia are not prepared to continue paying from
$2,000,000 to $2,500,000 per year on the investment already made and what will be necessary
in the next ten years, that the company be ordered at once to abandon the whole system and
recover what salvage is possible, and in this way slightly reduce the liability and also preyent
any further increase in their obligations.

In conclusion, I wish to thank you, sir, for facilitating my efforts to obtain all the facts
bearing on this study. I also wish to express my appreciation for the courtesies and assistance
rendered by the officers and engineers of the Pacific Great Eastern Railway.

Yours truly,
J. G. SULLIVAN.