March 4, 1932 NAC RG30 Vol 10120 File 6340.54 (Port Rowan Sub.) (Ottawa)

Inter-departmental correspondence
Toronto, March 4th, 1932.
Your file Subject Our file
Proposed abandonment Port Rowan Sub. 6405.97

Mr. S. J. Hungerford,
Vice President,

I enclose you herewith memorandum in triplicate relative to the Port Rowan Subdivision.

It will be noted that the gross C.N.R. annual revenue amounted to $83,620. The present operating expense is $27,912., this being based on the maintenance of way and structures expense for the past year. Allowing for an increase in the cost of maintenance to $21,250., the amount estimated by the Chief Engineer as being necessary for a term of years, brings the estimated annual expenses to $38,628. Using either figure of annual expenses, there is a credit balance which more than pays for the cost of handling the business originated and destined to this Subdivision over other parts of the System, and it is, therefore, concluded that the Subdivision is profitable and should be maintained.

The possibilities of trucking have been gone into in the report and it shown that in order to satisfactorily handle the traffic by trucking, it would be necessary for the Railway to undertake the trucking and absorb the cost out of the through freight rate, and under these conditions there would be no material advantage in making a change at the present from our present method of handling.

(Signed) W. A. Kingsland
General Manager.

Railways: C.N.Rys.