| January 1925 | Canadian Railway and Marine World (Toronto) | Page 36, col. 1 |
Schomberg and Aurora Railway abandonment recommended.
As stated in Canadian Railway and Marine World for Dec., 1924, pg. 621, the Hydro Electric Power Commission of Ontario, which operates the Schomberg and Aurora Ry. as part of the Metropolitan Division, Toronto and York District, Ontario Hydro Electric Rys., for the City of Toronto, has under consideration a report from its Railways Department engineers recommending that the line be abandoned, and was asked by the city council to prepare a thorough report on the situation. The line came into Toronto's possession, along with the rest of the Metropolitan Division, in 1921. It extends northwesterly from Schomberg Jct., north of Toronto, to Schomberg, 14.42 miles, and lies wholly within King Township.
The report requested by the city council was submitted by Sir Adam Beck, Chairman, Hydro Electric Power Commission of Ontario, on Dec. 6, 1914. It traced the line's history, and said: "Total operating expenses and annual charges are estimated at $58,675, and annual revenue at $20,000, leaving a net annual loss of $38,675." It pointed out, however, that this sum would not be saved annually by abandoning the line, and said: "The discontinuance of the Schomberg line would reduce the earnings of the Metropolitan Division by $7,300 annually. The operating expenses for handling the business lost, would amount to $6,100 annually, making a net loss to the Metropolitan Division of $1,200. The value of the bonds outstanding on the Schomberg line is $225,000. It is estimated that $75,000 could be obtained in the salvage of the materials and equipment of the line. The difference between the outstanding bonds and the salvage value would have to be carried by the Metropolitan Division at an annual cost of $11,200, in addition to which the share of the administration and other operating charges, at present carried by the Schomberg line, would be assumed by the Metropolitan Division, to the extent of $4,000. The total loss occasioned the Metropolitan Division, therefore, by loss of net revenue, $1,200, assumption of fixed charges, $11,2000, and assumption of administrative expense, etc., $4,000, would be $16,4000. Subtract this from the operating loss on the Schomberg line, $38,675, and the apparatus saving, due to discontinuance of operation on the Schomberg line, would be $22,275 a year."
After pointing out that prospects of improved business are not evident, the report concluded: "After due consideration of all the surrounding circumstances, the Commission is prepared to recommend to your council that operation of this railway be discontinued and that the necessary authority for such be obtained." Accompanying it was statement of operating revenues, operating expenses, and deficits since 1905. Up to the time of writing (Dec. 18), the city council has taken no action on the report. Residents of Schomberg, and of King Tp., are agitating to have the line's operation continued. Toronto papers, in discussing the matter, have expressed the opinion that the municipalities interested could urge continuation of operation with more show of reason if they exercised their rights to buy an interest in the line, and share in the net earnings or deficits, as the case may be, instead of leaving Toronto in full ownership and under the necessity of absorbing all deficits.
Railways: S. & A.Ry.