ABRIDGED SPECIAL REPORT OF THE OPERATING
AND MAINTENANCE DEPARTMENT, CANADIAN
NATIONAL RAILWAYS, FROM THE FALL OF
1918 TO THE END OF 1921.

The following account of the operating and maintenance department of the Canadian National Railways is a shortened form of the report of the Vice-President in charge, which was included in the comprehensive survey of the railways’ position, submitted by the President to the Hon. Mr. Kennedy, on his becoming Minister of Railways and Canals, and as the outcome of the interview mentioned on page 265. Perhaps no report which has reached the public gives so succinct and comprehensive a sketch of the manifold activities of the operating and maintenance department of a great railway system. It is thought these appendices will be of some value to Canadian taxpayers who are interested in knowing how their money has been spent on railways account.

The Management of the National Railways, during 1918-21, was required to weld a number of disjointed and separately operated Railway properties into a single system, completely rearrange jurisdictional territories, and reorganize all departments, dispose of the accumulated arrears of work in connection with the maintenance of equipment and permanent way and structures, provide large quantities of new rolling stock, develop and inaugurate the use of new standards, systems, methods, plans and forms, while dealing with the most extensive and important wage movement that ever took place in the history of roadbuilding.

The functions of the Operating and Maintenance Department may be broadly grouped as follows:

(a) Transportation (i.e., train and station service).

(b) Maintenance of rolling stock.

(c) Maintenance of track bridges and buildings, including the provision of additional facilities or the extension or improvement of facilities on all lines, excepting those still under construction.

The Railways are generally divided into two grand divisions, viz:

EASTERN—6,828.0 miles; embracing all lines situated east of Armstrong, Ont., and Port Arthur, Ont., and extending to the Atlantic Coast, including Prince Edward Island. In charge of a General Manager whose office is at Montreal, Que.

WESTERN—10,030.4 miles; embracing all lines Armstrong, Ont., and Port Arthur, Ont., and west to the Pacific Coast, including those on Vancouver Island and the Duluth Winnipeg and Pacific Railway. In charge of a General Manager whose office is at Winnipeg, Man.

Eastern Lines are again subdivided into three General Superintendents’ Districts, viz:

Western Lines are subdivided into four General Superintendents’ Districts, viz:

Note—In the Pacific District, an Assistant General Manager is in charge instead of a General Superintendent, on account of its remoteness from General Manager’s headquarters.

General Superintendents’ Districts are again subdivided into Superintendents’ Divisions, each averaging approximately five hundred miles.

The general division of territory under General Managers, General Superintendents, and Superintendents is substantially the same as on the Canadian Pacific. The General Managers’, General Superintendents’, and Superintendents’ staffs are also generally similar to those on the Canadian Pacific, and the division of duties and responsibilities, and the relationships between sub-departments are substantially the same.

The actual work of operation is divided between sub-departments as follows, and the first five functions are those generally handled divisionally, while the balance are largely controlled by departmental organization.

1. TRANSPORTATION:—Operation of trains, switching in yards, operation of freight houses, team tracks, etc.

Car Service and Car Accounting—Having to do with the distribution, movement and record of cars, and collection of per diem and demurrage.

2. MECHANICAL:—Maintenance of locomotives, cars, work equipment, including shops and roundhouses, and the preparation of plans, specifications, etc., for new equipment.

3. MAINTENANCE OF WAY AND STRUCTURES:—Maintenance of track, bridges, buildings, and the provision of additional or improved facilities on operating lines.

4. POLICE AND SPECIAL SERVICE:—Policing and protection of Company’s property, investigating of irregularities, etc.

5. MEDICAL SERVICE:—Physical examination of employees, attention to persons injured on the railways, and general supervision of all matters relating to the health of employees and patrons.

Note:—Associated with this Department is a Safety organization for the prevention of personal injuries.

6. TELEPHONE AND TELEGRAPH SERVICE:—Local services of this character, and being actually a part of the Transportation Department.

Note:—All through telegraph service, whether Commercial or Railway business, is provided by Canadian National Telegraphs.

7. DINING AND SLEEPING CARS, AND HOTELS:—Operation of dining, sleeping, parlor and tourist cars, and hotels, restaurants, etc. (In charge of a Manager, who reports directly to the Vice-President.)

8. COAST STEAMSHIPS AND FERRIES:—Operation of Grand Trunk Pacific (British Columbia) Coast Steamships and certain car ferries, tugs, barges, etc., employed on both the Pacific and Atlantic Coasts in connection with Railway operations.

9. ELECTRIC RAILWAYS, (126.2 Miles):—Operation of certain electric railways in Ontario. Each of these lines is in charge of a general officer who reports directly to the Vice-President in charge of the Operating and Maintenance Department.

The organization is a combination of the departmental and divisional systems and is arranged along the general lines that the experience of the Canadian Pacific and Canadian National Railways has shown to be best for the conditions and vast territory involved. Each territory has a substantially complete organization, under a single officer, who is required to follow the general policy and observe the standards prescribed by the expert at the head of each sub-department. For operating action the organization is divisional, but the work is planned and prescribed under departmental standards, subject to the approval of the territorial Executive head of Department.

The Vice-President in charge of the Operating and Maintenance Department has the following Staff Assistants:—Transportation Assistant, Engineering Assistant, Mechanical Assistant (Locomotives), Mechanical Assistant (Cars), General Superintendent of Car Service, Statistician, Chief Electric Engineer, Engineer of Standards, Superintendent of Police and Special Service.

TRACK AND STRUCTURES:—Tracks were showing the cumulative effect of the stress of the War years, during which an abnormal volume of business had to be handled over portions of the system, particularly lines east of Port Arthur, and the maintenance work on all lines was abnormally difficult on account of the shortage and inefficiency of labor, and the difficulty and time necessary to secure supplies of material.

Vigorous action had to be taken to permit of satisfactory service. This work has been energetically carried on with gratifying results insofar as economy, regularity and safety of transportation are concerned. Unfortunately, prices and scarcity of labor and material continued to increase until the latter part of 1920, with the result that the cost of performing this absolutely necessary work was abnormally high during the first two years.

RAILS:—Most of the main line east of Winnipeg was laid with 80 or 85lb. rails, but many miles of main lines were still laid with rails on branch lines had to be replaced, on account of wear, and their inability to carry heavy cars.

Parts of the main lines west of Winnipeg were already laid with 80 or 85lb. rail, but many miles of main lines were still laid with 60lb. rails which, on the more important traffic sections were replaced by 85lb. rails, and the lighter steel thus released was used on branch lines under construction.

The installation of heavier new rails does not necessarily imply the scrapping of the rails that are taken up. They are generally used over and over again. In this way a large mileage previously laid with light rails has been equipped with 80 or 85lb. sections.

The statement of new rails purchased for application during the years 1919, 1920, 1921 and ordered for 1922, follows:—

TIES:—The general condition of ties on the older lines, due to deferred maintenance during the war necessitated an abnormally high percentage of renewals. On the Eastern branch lines very large numbers of ties had to be installed immediately, to maintain traffic with reasonable safety.

The situation was markedly aggravated because of a very large mileage constructed between 1910 and 1914 on which the original ties had to be largely replaced, the average life of untreated softwood ties being approximately eight years.

The condition of ties on these lines of late construction is now approaching normal, and on the older lines is satisfactory.

The new ties laid for maintenance and not for new construction, are as follows:—

BALLASTING:—A great deal of the mileage was insufficiently ballasted. Speed of trains was restricted, riding qualities were wholly unsatisfactory, and the expense of constantly restoring track to passable surface and alignment was unnecessarily high.

Some of the more recently constructed main lines were fairly well ballasted when built, but a good deal of the ballast was, as is usual, absorbed in the embankment before it solidified. As the dump settled it left many sags and irregularities in the track. It was imperative to apply a very considerable amount of ballast in excess of what might be considered normal for older track. Most of this extra work has been performed. This experience in connection with new lines is common. Track is not usually considered to be stable until it has been ballasted three times. The use of heavier locomotives and cars, to secure economical operation, also necessitated heavier ballasting on certain sections.

The improvement in track conditions has been most marked, and we are now enjoying better riding, greater track stability, and less cost of maintenance.

BRIDGES, TRESTLES AND CULVERTS:—Prior to the period under review, the Intercolonial main line bridges had generally been replaced by heavier structures to carry larger and more powerful locomotives. But construction of double track at certain points necessitated new double track bridges, the most expensive one being over the Tantramar River in New Brunswick.

The situation on the branch lines, including the Halifax and Southwestern Railway was very unsatisfactory. The steel bridges were generally of insufficient strength to safely carry the heavy cars coming into general use on all roads. The wooden structures required complete replacement or very extensive repairs. While a considerable number on those branch lines require attention in the near future, most of them have been dealt with.

The National Transcontinental bridges were generally of a high standard, but some pile trestles, particularly at points where the foundations were uncertain, have been replaced.

On the Canadian Northern Quebec lines the bridge situation was very serious. Bridges are very numerous. The large steel ones were generally too light for heavy locomotives. Replacement of the timber structures was imperative. Traffic from the paper and pulp industry had so rapidly increased, that it could not well be handled with the comparatively small locomotives that could use the bridges. It was expedient to reduce the loads of large capacity cars, or to place lighter cars between them to ensure safety. Besides the inability to handle satisfactorily all of the traffic offered, the use of so many train units was extremely wasteful. There was no alternative but to replace most of the bridges.

This work was undertaken in the spring of 1918, to make the main line between Ottawa and Quebec, between Montreal and Joliette; between Garneau and Riviere au Pierre; and between Quebec and Chicoutimi; suitable for Mikado locomotives, with a tractive effort of 53,000 lbs. compared with those of 25,000 and 30,000 lbs. formerly available. With a very large increase in the tonnage and decrease in the number of trains, the economies in operation are very great.

On the Canadian Northern main lines between Ottawa and Port Arthur, and Toronto and Capreol, while steel bridges of high classification were provided over the principal streams many ravines were crossed by timber trestles, the intention being to fill them with earth when the lifetime of the original timber had expired and provide steel or concrete structures over the streams.

There were eighteen miles of timber trestles on these lines in Ontario. To date about one-half of this mileage has been disposed of.

The same policy in respect to timber trestles was followed on the Canadian Northern and Grand Trunk Pacific Railways in the West.

There are many large timber structures on the Grand Trunk Pacific between Winnipeg and Prince Rupert, and also on the Canadian Northern between Warden and Brazeau in Alberta. Again, on the line between Wayne and Calgary there are many comparatively small trestles but about one-third of them have been replaced. There are also quite a number of timber structures on the Canadian Northern between Edmonton and Vancouver, but most of them are small. All large openings are crossed by heavy steel bridges.

STATIONS AND OTHER BUILDINGS:—The only large stations that have been constructed are terminal buildings at Levis, Capreol, Hornepayne and Rainy River. Ordinary stations have been erected at intermediate points either to replace ones destroyed by fire, or under order of the Board of Railway Commissioners to meet the demands of increased traffic.

The roof of the train shed at St. John collapsed in 1919 as a result of age and corrosions, and was entirely removed, temporary wooden umbrella shelters over platforms being substituted. The station building itself has also suffered to some extent, apparently through the settlement of foundations. Plans have been prepared for a new station of different type, suitable to the peculiar topographical conditions, but as grade separation and the cutting down of grades are involved, an agreement with the City is necessary before any work can be undertaken.

Numerous enlargements of freight sheds and express buildings have also been made, to provide for growing traffic.

Owing to labor shortage, it was exceedingly difficult to maintain section forces, largely on account of lack of living accommodation at isolated points. It was found necessary to build section houses each year. This policy will necessarily have to be continued for several years before the lines are completely equipped.

On account of the newer main lines running through thinly populated territory, and the terminals being located where no previous settlement existed, it has been necessary to build cottages for our employes, notably, Napadogan, N.B., Parent, Que., Capreol, Hornepayne, and Atikokan, Ont., Kamloops and Boston Bar, B.C. No further large expenditures in this connection are anticipated, except at Edson, Alta., on account of the Canadian Northern and Grand Trunk Pacific consolidation.

On account of rapid development of lumbering and mining north and west of Sudbury, the lack of accommodation for unmarried employees at Capreol became acute. Adopting the practice of the Grand Trunk and Canadian Pacific Railway, a building was erected at that point and turned over to the Railway Y.M.C.A. to operate. This institution has been of great benefit to the employees, and has undoubtedly resulted in improved morale and better service. Several other points on the System greatly need some facility of this kind.

WATER SUPPLIES:—East of Winnipeg good water is so abundant that the only work required was to ensure the regular supply, or in a few instances, to provide new supplies to facilitate traffic movement, or to substitute gravity or hydraulic ram operation instead of pumping to reduce the cost. This applies also to western Alberta and all of British Columbia.

Between Winnipeg and Edmonton, or Calgary, the situation is entirely different. Rivers are few and far between and the difficulty of securing adequate supplies of water at proper intervals is very great. Much of the water obtainable from wells or small lakes is so heavily charged with suspended matter or salts in solution that it produces scale on the interior of boilers, causing them to leak so seriously as frequently to result in complete failure on the road, and greatly to increase the consumption of fuel and boiler maintenance costs.

There are many stretches between water tanks of such length that locomotives could not pull fully loaded trains with the water carried in their own tenders and had to draw one or more water cars behind them. Until recently, it was at times necessary to employ from one hundred and fifty to two hundred water cars simultaneously. This practice is very expensive, as each car usually displaces a revenue load, its maintenance cost is very high, and the trouble and delay at terminals incidental to their use are very great. On a single G.T.R. subdivision of less than a hundred miles, during a period of heavy traffic, water cars on trains, cost $10,000 per month.

A certain amount of work was done each year, but was undertaken on a much larger scale in 1921. Pipe lines of considerable length have been constructed to obtain water from several streams. Numerous existing wells have been deepened or enlarged. But, in general, the policy has been followed of providing storage reservoirs by excavation, or by the damming of ravines, or by a combination of the two, in which to catch and hold the water resulting from melting snow in the Spring of the year, or from rainfall. This water is the best obtainable on the Prairies. The open storage arrangement has the advantage of showing at any time the total quantity of water available.

TELEGRAPH AND TELEPHONE:—Lines east of Quebec, and west of Port Arthur, were moderately well equipped with wire facilities, but between Quebec, Montreal, Toronto and Port Arthur there were only two iron wires, both of which were used exclusively for local railway operation.

The consolidation of the Canadian Northern and Canadian Government Railways into the Canadian National System, with headquarters at Toronto, greatly increased the volume of telegraph business with that city; and it immediately became necessary to provide some additional circuits. In 1919 two copper wires were strung between Toronto and Quebec, and between Toronto and Winnipeg, and, later, an additional copper from Quebec to Toronto, and two additional from Toronto to Winnipeg. Two of these wires are used as a metallic circuit for telephone train despatching and they are also used at the same time for simplex telegraph service. The remaining two are assigned to the Canadian National Telegraphs for commercial business.

An iron wire was strung from Edmonton to Vancouver and an additional iron wire from Kamloops to Vancouver to meet pressing requirements, but increased facilities between the former points are still required.

Telephone train dispatching circuits were also extended on the Intercolonial, and telegraph facilities in the Prairie Provinces were improved.

Metallic circuit telephone service for train despatching is a very great improvement over the telegraph service previously employed, and has now been adopted by all of the larger railways. It is not only much more rapid, thus greatly reducing delay to trains and increasing the total number of trains that can be handled, but in many instances makes it possible to reduce the number of despatches. The train crews carry portable telephones, and when emergencies arise, hook onto the wires and immediately get in touch with the dispatcher. Formerly, to report a breakdown or derailment it was frequently necessary to walk many miles to a telegraph office.

The entire maintenance and operation of telegraph and telephone facilities, except those required for train despatching and local railway purposes, was handed over to the Canadian National Telegraphs in the Fall of 1920. It may be noted, however, that the combination of the general railway and commercial business makes for economy in that a considerable portion of the railway business can be transmitted during the slackness of commercial business.

YARDS:—Island Yard at St. John was reconstructed to provide additional terminal facilities for winter export business.

The yard at Moncton was altogether too short for the trains hauled by the larger locomotives placed in service during recent years, and the situation of the roundhouses and other engine facilities prevented any extension. This lack of track length involved a great amount of terminal delay and extra switching. The handling of the numerous passenger trains was exceedingly difficult and expensive. The roundhouses, built many years ago for small engines were altogether unsuitable. The coal dock was worn out; and all other facilities were wholly inadequate for present requirements. The lack of proper facilities at this point where a very large number of trains were handled, involved much additional expense in operation, and, at times made it impossible to give satisfactory service.

It was decided at the beginning of 1920, to provide new enginehouse facilities and extend the yard. Land was acquired for immediate and future requirements and a certain amount of grading and the construction of a large culvert were done. Last Spring the additional yard grading, and the construction of a 40-stall enginehouse, with machine shop, power house, stores building, coal dock, water tank and ash pits, were undertaken by our own forces, and the buildings have been occupied since December 17th, 1921.

The principal roundhouse, engine terminal and yard of the Intercolonial in the Quebec District is at Chaudiere, a short distance southwest of Quebec City, but there was also a large roundhouse at the north end of the Quebec Bridge, built by the National Transcontinental Commission. The Grand Trunk had a small enginehouse at Point Levis. All three were being operated at much unnecessary expense. The facilities at Chaudiere were enlarged in 1920 and 1921 and all engines in that vicinity handled there at a saving of $75,000 per annum.

Canadian Northern engine terminal facilities in the east end of Montreal were unsatisfactory. A 10-stall enginehouse, with stores building, machine shop, and all other usual facilities, has been constructed at Longue Pointe.

The roundhouse at Hornepayne, Ont., destroyed by fire in 1920, was replaced by a permanent structure of a new design, to meet the extraordinary snow conditions, and extreme cold of that region.

On Western Lines, it was necessary to rebuild in brick or concrete, the wooden roundhouses at Atikokan, Rainy River, Kamsack, Humboldt, and North Battleford.

At Saskatoon, the original Canadian Northern yard is in the centre of the City. Our facilities became wholly inadequate during periods of heavy traffic. Canadian National and Grand Trunk Pacific co-ordination greatly increased the pressure upon this terminal. The two railways intersect at Nutana, in the southern part of the City. Suitable land was available there. Work was commenced upon the new yard, enginehouse and other terminal facilities in 1920. The terminal has been in use since November, 1921.

Except at Quebec, Montreal, Ottawa, Toronto and Fort William, terminal facilities are now fairly satisfactory and apparently no very large expenditure at any one point will be necessary during the next few years although the growth of traffic at Winnipeg is so rapid that it may possibly enforce some improvements at that point.

At Quebec, Montreal, Toronto and Ottawa large developments are involved, which will require a great deal of careful consideration. Some additional facilities are immediately necessary at Quebec City, to take care of growing traffic, and a proportion of the Grand Trunk business.

At Fort William it is imperative that large modern yards and terminal facilities be constructed immediately. Otherwise it will be impossible materially to increase the grain traffic that can be handled from the prairies to Lake Superior. Favorable options have been secured upon suitable property, a very satisfactory tentative agreement has been made with the Township of Neebing, for the closing of streets, fixed taxation, etc., and plans have been developed.

REPAIR SHOPS:—The chief plants for repairing equipment, manufacturing material, etc., are at Moncton, N.B., St. Malo, (Quebec City), Leaside (Toronto), Transcona (near Winnipeg), Fort Rouge (in Winnipeg). Smaller plants at which a limited amount of general repair work is performed are at Riviere du Loup, Que., Limoilou, Que., Capreol, Ont., Port Arthur, Ont., Saskatoon, Sask., Edmonton, Alta., Port Mann, B.C., and Prince Rupert, B.C.

The outstanding developments were the equipment and opening of the large St. Malo Shops, Quebec, and the construction and opening of the moderately-sized plant at Leaside, Toronto. The former plant, constructed by the National Transcontinental Railway Commission, was completed in 1914, but was neither equipped with machinery nor used until 1919. The lack of adequate repair facilities in the Province of Quebec, together with the rapid growth of traffic, produced a serious situation, and the equipping of St. Malo shops was undertaken in 1919, actual repair work being commenced in the fall of that year.

There were practically no repair shop facilities on the National Lines in Ontario. A very serious situation in regard to the condition of equipment having developed, work was commenced early in 1918, at Leaside, a suburb of Toronto, upon a moderately-sized plant for the repair of locomotives and cars, which began operation in 1919. This plant is not of great capacity but the necessary land is owned by the Railways, and the design of the plant will permit of large extension. As the principal repair shops of the Grand Trunk Railway are located at Montreal, Que., Stratford and London, Ont., that Road having no important repair facilities at Toronto, it is likely that under co-ordination it will be found advisable to enlarge the plant at Leaside, to take care of some of the Grand Trunk work. It is highly desirable that a freight car shop be provided at Leaside at an early date.

It is unlikely that any large extensions will be required in the plants at Moncton, Transcona, and Fort Rouge, in the near future, but there is immediate need of a medium-sized plant at Edmonton, as there are now no adequate facilities for repairs between Winnipeg and the Pacific Coast, and only a freight car shop of moderate size at Port Mann, B.C. As the distance from Winnipeg to Vancouver is 1,565 miles, and from Winnipeg to Prince Rupert 1,758 miles, and as most of the equipment has to be hauled to Winnipeg for general repairs and then hauled back to the point at which it is to be used, a large saving can be effected. Highly suitable property at North Edmonton is owned by the Grand Trunk Pacific, and plans for a plant there are in preparation.

ROLLING STOCK:—The rolling stock owned was wholly insufficient. Very little new equipment had been provided since 1913, and traffic had grown enormously. It was impossible properly to maintain the equipment during the war, on account of the shortage and inefficiency of labor, difficulty of securing materials, and lack of shop facilities in Ontario and Quebec. The situation was aggravated by the shortage of equipment on United States railways. Canadian-owned cars sent into the United States loaded with paper, pulp, pulp-wood, lumber and other commodities, were generally retained by the American roads.

The National Railways are the originating lines for a large volume of the classes of traffic referred to. As it was generally impossible to secure a sufficient number of American-owned cars to move the products enumerated above, the volume of which had grown enormously during the war, we were faced with the alternatives of supplying cars for the export of commodities referred to, thereby incurring the risk of losing some of their equipment for an indefinite length of time, or by refusing to furnish their cars for this business, to deprive the paper and lumbering interests of Canada of the means of exporting their products, thus causing serious injury to the business of the country, and tending to aggravate the already serious exchange situation.

The policy adopted by the Canadian National Railways under these conditions was to make every effort to secure American-owned equipment for this traffic, and make up the deficiency as far as possible with system-owned cars. It was the only sound policy, but it deprived the National Railways of a considerable number of their cars, particularly during 1919 and 1920.

The National ownership of locomotives, freight cars, and passenger cars, was relatively below that of the other principal Canadian railways. If all had been available it would have been totally inadequate to meet traffic requirements. The public demand for additional train service, and car supply was most insistent and the actual need of additional equipment very great, so that many new locomotives, freight and passenger cars were ordered in 1918, 1919 and 1920, delivery being generally from six to twelve months after each order was placed.

LOCOMOTIVES:—As it was highly desirable to employ the most powerful locomotives in order to handle the maximum tonnage per train, the policy was adopted of only purchasing heavy engines, placing them upon lines with the greatest density of traffic and with suitable track and bridge conditions.

Besides the ordinary repair work a certain amount of locomotive improvements, such as heaters, brick arches, etc., to increase capacity and reduce fuel consumption, which had been commenced some years before, was continued, and is still being carried on.

During the first eight months of 1921, through shrinkage in traffic, several locomotives were out of service, but all engines were employed during the Fall. This extra motive power available on September first, made it possible to increase the volume of grain handled from the Prairies to the head of Lakes during the past four months, as compared with previous years.

Several subdivisions can now carry heavy locomotives for which such power is not available. It is, therefore highly desirable in the interest of economy, that additional freight locomotives be purchased. A few large passenger engines are also badly needed in order to satisfactorily handle heavy through trains on certain sections. Five powerful freight locomotives of special design are essential to handle coal traffic on the Bickerdike branches of the Grand Trunk Pacific. These locomotives would effect very substantial economies, and fully justify the expense involved.

PASSENGER CARS:—One of the first and most urgent problems of the National Railways was the securing of sufficient passenger cars to handle returning overseas military forces. One hundred and thirty steel Colonist cars with wood interior finish were ordered for the earliest possible delivery.

The shortage of general passenger equipment was also extreme. A considerable number of cars in service at that time were wholly unsuitable on account of age, weakness, and obsolete character. The constant increase in the number of cars required to be handled on long-run passenger trains led us to adopt all-steel equipment for main line services. Very careful consideration was given to design, and the new passenger equipment is fully equal to that of any other line.

FREIGHT CARS:—As there was much variation in the freight cars previously ordered by the several lines, each design was carefully considered, and new standards adopted.

Heavier locomotives and longer trains imposed such severe stresses upon the older types of wooden cars that many more repairs were required. During the war cars in bad order accumulated. During Government Control in the United States all freight cars were pooled, and equipment repairs greatly neglected. When Canadian cars were returned in great volume last fall and winter a large percentage were in defective condition. Recently about ten per cent. of our freight cars were in bad order, or about twice the normal number.

Contracts were placed with Canadian car builders some time ago to make heavy repairs to three thousand cars and the forces in our own shops were augmented. The freight equipment should be in normal condition by September 1st.

A serious trouble with freight cars of older designs is the pulling off of wooden draft timbers. Four years ago we began to replace wooden draft timbers with steel members. This greatly reduces the cost of repairs, delays to shipments and trains, and prolongs the life of cars.

The Canadian National lines at the end of 1919 had 1,644 locomotives. At the end of 1921 the total was 1,718. The Grand Trunk Pacific engines at the same periods were 259 and 256. Passenger equipment during the same periods stood at: C.N.R., 1,816 and 1979; G.T.P., 355 and 352. The freight car situation was C.N.R., 1919, 62,576; 1921, 66,591. G.T.P., 1919, 15,232; 1921, 14,908. At the end of 1921, therefore, this Department was responsible for 1,972 locomotives, 2,331 passenger cars and 81,499 freight cars. We also had altogether 4,032 work cars.

C.N.R.—G.T.R. CO-ORDINATION:—Following the acquisition through special legislation of the Grand Trunk Railway System on March 8th, 1920, a mixed Committee of Management was appointed by the Government to co-ordinate the two systems to improve service and reduce cost of operation. This Committee consisted of the following:

Mr. Howard G. Kelley, President Grand Trunk Ry., Chairman.
Mr. Frank Scott, Vice-President Grand Trunk Ry., Finance.
Mr. W. D. Robb, Vice-President Grand Trunk Ry., Operating.
Mr. C. A. Hayes, Vice-President Canadian National Rys., Traffic.
Mr. S. J. Hungerford, Vice-Pres. Canadian National Rys., Operating.

A conference of officers of both lines appointed sub-committees to study and report upon various phases of activity, which, if approved by the Committee of Management, were immediately put into effect.

Traffic and ticket offices throughout the United States and Canada were consolidated, terminals and stations were used jointly, track connections were constructed to permit of consolidation, freight movements rearranged, interline passenger services established, and tickets and passes interchanged. Express services were also closely co-ordinated.

Most of the physical connections and other required facilities have been provided, and authority will be asked to complete the program. Very substantial economies in operation have been secured, and the relative position of the Government-owned lines materially strengthened. The Operating Department consolidations are at the following points:

FREIGHT STATIONS:—Toronto, Toronto (Cherry St.), Port Hope, Cobourg, Grafton, Colborne, Brighton, Trenton, Belleville, Napanee, Kingston, Brockville, North Bay, Pembroke, Ottawa (Hurdman), Ottawa, Washago, Rockland, Hawkesbury, Aston Junction, Lyster and Ste. Rosalie.

PASSENGER STATIONS:—Parry Sound, Napanee, Brockville, North Bay, Pembroke, Rockland, Hawkesbury, Ste. Rosalie, Quebec, Washago, Kingston, Cobourg, Grafton, Colborne, Brighton, Aston Junction and Lyster.

YARDS:—Toronto, North Bay, Hawkesbury, Pembroke, Rockland and Ste. Rosalie.

ENGINEHOUSES:—Toronto, Brockville, Pembroke, Hawkesbury, Ste. Rosalie, Kingston, North Bay, Ottawa, Rockland, and Chaudiere.

G.T.P. ABSORPTION:—Owing to the Grand Trunk’s difficulties, on March 7th, 1919, the Minister of Railways and Canals was appointed Receiver of the Grand Trunk Pacific, and on July 12th, 1920, an Order in Council was issued appointing the Board of Directors, Canadian Northern Railway, Managers of the Grand Trunk Pacific, acting on behalf of the Receiver.

Immediately the official staffs of the two lines were amalgamated and reorganized. Departmental officers and staffs were also consolidated. Train services were rearranged to secure the shortest routes, and arrangements made for the joint use of terminals and other facilities. Duplicate offices have been abolished, and certain freight sheds, stations and roundhouses have been closed, passenger train services materially improved and freight traffic short-routed, the whole involving very substantial reductions in operating expenses, capacity to handle a larger volume of business, and improved service to the public.

Various physical connections have already been provided, but several important ones remain to be constructed.

The Grand Trunk Pacific has a terminal at Jasper, seventeen miles east of the summit of the Rocky Mountains. The Canadian Northern has one at Lucerne, five miles west of the summit. The rails were removed from portions of the two lines between Edmonton and Red Pass Junction in 1917, and sent to France for war purposes. Traffic has since been handled over one route consisting of portions of both lines. Only one of the two terminals mentioned is now required. The facilities at either of the points are not adequate. Something more must be provided at whichever point is selected.

The Operating Department’s co-ordinations are:

FREIGHT STATIONS CONSOLIDATED:—Winnipeg, Portage La Prairie, Regina, Saskatoon, Prince Albert, Canora, Battleford, Edmonton, Stony Plains, Moose Jaw, Yorkton, Calgary and Evansburg.

PASSENGER STATIONS:—Portage La Prairie, Yorkton, Saskatoon, Canora, Battleford, Moose Jaw, Calgary, Prince Albert, Stony Plains, Evansburg and Edmonton.

YARDS:—Fort Rouge, Transcona, Winnipeg Terminal, North Regina, Nutana, Prince Albert, Edmonton and Calgary.

ENGINEHOUSES:—Winnipeg, Rivers, Melville, Regina, Moose Jaw, Prince Albert, Edmonton, Edson and Calgary.

TRAIN SERVICES:—The regular train services incidental to the co-ordination of Government-controlled lines have been given a great deal of study. We have now daily time freight services between Halifax and Vancouver, with regular connections reaching all important points. The results are gratifying. In the way-freight services substantial economies and improvement in service have been secured.

STANDARD OFFICE WORK:—The co-ordination of independent roads, each with its own methods, systems and forms, necessitated the adoption of new standards.

A staff of engineers has been established at headquarters, which prepares standard plans and specifications, for bridges, culverts and buildings, and develops uniform methods and instructions for the construction and maintenance of such facilities, instead of having it done at the various offices of the Chief Engineer. The members of this staff were generally withdrawn from outlying offices where they were not replaced. The establishment of this office does not represent any considerable increase in cost.

It was formerly difficult to secure satisfactory reports of operations, exercise proper control, or make fair comparisons of results and costs, because there was no uniformity in connection with reports.

Standard forms of reports and methods have been adopted with very favorable results. A very fine system of Operating Statistics has been inaugurated similar to that in use on Class I United States Railways, which makes it possible for Division, District, General and Executive Officers to know promptly the results from and the efficiency of operation in any territory.

The benefit in reduced operating costs resulting from numerous physical improvements is now being felt. The provision of those contemplated, particularly in respect to water supplies and track connections to short-route traffic, and save train mileage, will also have a very important effect upon operating costs.

Very substantial improvements in freight and passenger train service, in economy of operation and satisfaction to the public have been effected, the latter being indicated by the steadily increasing public patronage. Much of the criticism of the National Lines is due to conditions which are now largely non-existent, or to lack of information as to the character of service now furnished. As a striking example of the progress that has been made, the western grain moved to the Head of Lakes during September, October, November and December, in 1920 and 1921, respectively, is quoted:—

One of the greatest handicaps is the necessity of maintaining duplicate main lines in certain provinces, involving great additional expense without proportionate increase in revenue. Another is the extremely low traffic density of a considerable proportion of the system mileage, which must be operated throughout the year in the interest of people who have settled in adjacent lands and have developed business interests. Generally speaking, the lines in question have low grades, and an increase in population would make them profitable. Another handicap is the considerable number of older branch lines principally in Eastern Canada which must be operated, but on which the volume of traffic is so small as to involve very serious loss in operation.

It is a pleasure to pay tribute to the splendid loyalty, energy, and enthusiasm displayed by the official and working staffs as a whole. It can be said, without reserve, that the officers and employees of the National are as enthusiastic and zealous in their work as those on any privately-owned railway. No tendency to relax has been observed since certain lines were acquired by the Government. This enthusiasm is one of the most valuable assets of a large organization. If encouraged it will be a most powerful factor in placing the National Railways upon a basis entirely satisfactory to the owners, the people of Canada.