Application of the Canadian National Railways for an Order granting leave to abandon the operation of a portion of the Renfrew Subdivision between Two Rivers (M. 162.3) and Cache Lake (M. 166.8), on the Ottawa Division; and a portion of the Algonquin Subdivision between Cache Lake (M. 37.5) and Ravensworth (M. 70.5), on the Allandale Division—a total distance of 37.5 miles.

Heard at Toronto, June 18, 1935.

Judgment

Commissioner Stoneman:

The Canadian National Railways apply under Chapter 47 of the Statutes of Canada, 1932-33, for the approval of the Board to the abandonment of operation of the Renfrew Subdivision between Two Rivers (M. 162.3) and Cache Lake (M. 166.8), on the Ottawa Division; and a portion of the Algonquin Subdivision between Cache Lake (M. 37-5) and Ravensworth (M. 70.5), on the Allandale Division—a total distance of 37.5 miles.

Before the year 1933, unless there was a statutory or contractual provision requiring a railway company to operate its road, it was at liberty to abandon the whole or any portion of its line. The statute above referred to, which amends the Railway Act by adding section 165A, provides that

The company may abandon the operation of any line of railway with the approval of the Board, and no company shall abandon the operation of any line of railway without such approval.

Brief Historical Review

Opened for operation 1897.

Built under statutory authority, Canada Act 54-55 Victoria, Chapter 98. In 1899 the Ottawa, Arnprior and Parry Sound Railway Company was amalgamated with the Canada Atlantic Railway Company, which in 1914 was amalgamated with the Grand Trunk Railway Company under Canada Act 4-5 George V, Chapter 59. The Grand Trunk Railway Company was amalgamated with the Canadian National Railway Company in 1923.

There is now no train service between Two Rivers and Cache Lake, Renfrew Subdivision. There is, however, the following:—

The railway company permits the summer residents to operate an automobile with steel wheels over its rails between Madawaska and Algonquin Park stations during the summer months. The schedule for the summer months of 1935 was as follows:—

Westward				Motor Car	Eastward
Daily except Sunday and Monday		Monday only		Stations	Monday only		Daily except Sunday and Monday
4.00	p.m.	4.00	a.m.	Madawaska	8.00	a.m.	8.00	p.m.
4.50		4.50		Whitney	7.10		7.10
5.20		5.20		Rock Lake	6.40		6.40
5.40		5.40		Two Rivers	6.20		6.20
6.00	p.m.	6.00	a.m.	Algonquin Park	6.00	a.m.	6.00	p.m.
This service terminated September 7.

Trips made by motor bus from September 9 to October 31
Date	From	To
Sept. 12	—	Madawaska	. . . . . .	Algonquin Park and return
Sept. 14	—	Madawaska	. . . . . .	Algonquin Park and return
Sept. 16	—	Madawaska	. . . . . .	Algonquin Park and return
Sept. 19	—	Madawaska	. . . . . .	Algonquin Park and return
Sept. 21	—	Madawaska	. . . . . .	Algonquin Park and return
Sept. 28	—	Madawaska	. . . . . .	Algonquin Park and return
Oct. 10	—	Madawaska	. . . . . .	Mileage 147.3 Renfrew Sub. and return
Oct. 16	—	Madawaska	. . . . . .	Algonquin Park and return
Oct. 22	—	Madawaska	. . . . . .	Algonquin Park and return
No trips made between October 22nd and 31st.

It will be noted from the above that it is possible for both passengers and effects to cross the trestle between Two Rivers and Algonquin Park stations during the summer months.

Train Service, Algonquin Park Subdivision

Mixed train, Tuesday and Friday, westbound:
Leave Algonquin Park 9.00 a.m., arrive Ravensworth 11.00 a.m.

Mixed train, Monday and Thursday, eastbound:
Arrive Ravensworth 4.20 p.m., arrive Algonquin Park 6.20 p.m.

Train Service, Renfrew Subdivision

Passenger train, Friday only, westbound:
Leave Madawaska 8.40 p.m., arrive Two Rivers 9.55 p.m.

Mixed train, Friday only, westbound:
Leave Madawaska 7.00 a.m., arrive Two Rivers 10.30 a.m.

Mixed train, Wednesday only, westbound:
Leave Madawaska 8.15 a.m., arrive Two Rivers 10.45 a.m.

Passenger train, Saturday only, eastbound:
Leave Two Rivers 6.25 a.m., arrive Madawaska 7.45 a.m.

Passenger train, Wednesday only, eastbound:
Leave Two Rivers 11.40 a.m., arrive Madawaska 12.55 p.m.

Mixed train, Friday only, eastbound:
Leave Two Rivers, 11.50 a.m., arrive Madawaska 3.00 p.m.

Mixed train, Monday only, eastbound:
Leave Two Rivers 2.30 p.m., arrive Madawaska 5.30 p.m.

The railway operating revenues for the year 1931 were $43,817; for the year ending December 31, 1933, they were $20,302; and for the year ending December 31, 1934, they were $37,478. The railway company's operating expenses (out of pocket only) for the same period were as follows: For the year 1931, $78,439; for the year ending December 31, 1933, $39,984; and for the year ending December 31, 1934, $42,054. The loss for this three-year period amounted to $24,622 in 1931; $19,682 in 1933; and $4,576 in 1934.

The portion of railway line covered by this application lies almost entirely within the borders of Algonquin Park. The Province of Ontario, represented by H. C. Draper, state that they have a very substantial investment in the park, and so long as the present operation continues they will receive a substantial revenue. At present their annual revenue is estimated to be $250,000. They had, at the time of hearing, 700 men employed along the line. Mr. Draper states there are 42 timber leases and 208 lease-holders and licensees in the park; that there are a great many camps with accommodation for guests ranging in number from 75 to 200 per camp; that there are numerous people who have summer residences served by the railway; and that if the application were allowed summer activities of any kind within the park would be very seriously handicapped and in some cases completely stopped.

Representatives of the Algonquin Corporation, the Sterling Lumber Company, and the P. A. Duff Company, Limited, holders of large timber leases in Proudfoot, Peck, Butt, McCraney, and Hunter townships also appeared. The evidence of these parties is to the effect that they have substantial investments in the territory; that during the years 1930-35 their operations were considerably curtailed because of the depression; and that when conditions improve their shipments will increase very substantially, but if the railway is allowed to abandon the Algonquin Subdivision between Mile 35.3 and Mile 70.5 it will be impossible to operate the lumbering business in the territory at all, and their investments will be almost a total loss.

The road map of the province of Ontario does not indicate any roads closer to the abandoned line than the north and south roads at each end of the abandonment. However, the Department of Northern Development is constructing a road between Whitney and Dwight. This road parallels a portion of the line to be abandoned from Two Rivers to Algonquin Park, From Two Rivers to Algonquin Park the highway is within one mile of the railway on the north side. It parallels the railway on the south side for four miles west from Algonquin Park and then the two lines separate sharply. Canoe Lake Station is four miles from the new road to the south. Brule Lake would be twelve miles from the new road and about fourteen miles from the road at Ravensworth. There are no adjacent roads to the north. McCraney has no road connection closer than Ravensworth, a distance of seven miles. The distance to the new road to the south would be fourteen miles.

There are no other transportation facilities other than rail being operated in the area served by this line. The highway which is being constructed by the province is the only road which touches the area and could be used only by a very small percentage of those interested, to reach places where they are presently located in the park. The lumber industry would be almost, if not entirely, cut off from transportation facilities of any kind, and, while it is a fact that during the years for which the earnings are filed substantial losses are shown, there is a possibility, with business conditions improving, that a very substantial increase in shipments of lumber will take place.

Included in the operating loss shown by the railway is a yearly corporation tax paid directly to the province of Ontario, amounting to $2,470. The suggestion was made by the railway company at the hearing, that as the province is financially interested in the continued operation of the line the province might be disposed to refund this tax in some way to the company. Counsel for the province has since advised the Board that, upon the railway company withdrawing its application to abandon, the province is willing to abate the corporation tax from and after the 1st day of January, 1936, for a period of one year. Counsel for the railway agrees to withdraw the application for abandonment on the understanding that the province waives the taxes on this line for the year 1936, and will thereafter consider on a yearly basis a similar abatement.

In these circumstances, no direction or order of the Board at the present time seems necessary.

February 13, 1936.

The Assistant Chief Commissioner and Commissioner Stone concurred.