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12 Gro. 5 ORGANIZATION, OPERATION, RECOMMENDATIONS. dt

MAINTENANCE WaAy AND STRUCTURES.

The cost of this department distributed over the average mileage operated was about $1,200
per mile. We must consider, howeyer, that the line north of Clinton is new and required very
little expense. The charges fell almost altogether on the North Shore line and the Squamish
to Clinton section. This will show a cost of about $2,000 per mile, where, under conditions
usually existing on a newly constructed line with light traffic, the charge should not be more
than $600 per mile. As a result, the excessive expenditure, quite unavoidable, is about $175,000.
This item will also be reviewed later, as well as the extra cost for maintaining equipment owing
to the physical nature of the line. It will be shown that these charges will increase materially
in the near future if the line is to be kept in safe operation.

TRAFFIC, {

Of the total revenue tonnage handled (53,351 tons), 20,265 tons represented logs and other
rough forest products, or about 38 per cent. of the entire revenue freight traflic. Under the
most favourable circumstances—that is, if a full train-load of logs of fifteen cars in handled for
the maximum distance for which tariff is provided, 50 miles—the revenue will be:—

~One car 6,500 feet at $3.20 per M., $20.80.

HMPLCONT CATS Ate PLO ISO oa orctcterecarsciers a cveselcveselesetie ss.» oieiarsreis ay owls eiszenelen ticle vere $312 00
Cost of operation, all trains, $8.669 per train mile ..................5- 483 45
MOSSE DOM GLAM eer stoycicie- shel loveroreivie’ereieie AUG NOT BO GOO Ooo ROME ADtS $121 45

While much of the log traffic may be handled in regular trains, it will make no difference on
this computation. The rates on logs are already high, and if increased by 50 per cent. in order
to yield a net operating return to the railway they will be so burdensome as to make logging

~ operations unprofitable, It constitutes such a large proportion of the revenue tonnage, and is

. within measurable distance of exhaustion in any ease, with no substantial prospects of tonnage
on the Squamish Division to take its place, that the prospects are discouraging, if not hopeless,
in the future operation of the line, all of which has an important bearing on the future policy
with regard to the continued operation of this division.

The movement of other manufactured products of the forest and mines must be severely
handicapped through the necessity of high charges being made to Vancouver to place these
products in competition with mills or mines more favourably situated for the local market or
for direct shipment; in fact, similar conditions exist, hindering development in agriculture,
settlement where possible, and establishment of the few industries which might thrive under
more fayourable circumstances. In other words, development and settlement cannot reach any
measure of success. This will be dealt with further in the summary of the situation.

It is also noteworthy of the tonnage statistics that of the entire freight revenue traffic,
49,934 tons originated on the line and only 3,417 tons, or 6.4 per cent., on foreign lines.

The train service, twice a week, as shown in the train-tonnage figures, is barely sufficient to
handle the traffic, so that no reduction is practicable.

In passenger traffic it is not recommended that tourist or other feature advertising be
conducted, as the possibilities for much development are slight, and it is better to keep expen-
ditures to a minimum in that direction, for the traffic during a relatively short season would be
small, but would force expenditures in equipment and service which would be quite unjustified.

: 3 LocoMoTivE FUEL.

One of the principal and most important items of cost of operation is that of locomotive
fuel. The cost of fuel-oil at Squamish is $2.15 per barrel.” In relation to coal of a good
bituminous quality, such as the best Island or Alberta coal, it is customary by the oil companies
to estimate 314 barrels of crude oil the equivalent of 1 ton of good coal. In performance it
is well established that not less than 5 barrels, or slightly more, is the true equivalent, and this
includes the cost of labour in handling coal, ashes, wastage, and overhead. In other words, the
cost of fuel-oil, $2.15 per barrel, is at the rate of $10.75 for coal or more at Squamish. With the
completion of the line into Prince George, furthermore, the cost of high-grade bituminous coal
should not exceed $7 to $7.50 per ton, and the haulage will be much more fayourable than from
Squamish north. This fuel then can be procured cheaper at home instead of sending the mouey