In the matter of the application of the Canadian National Railway Company, under Section 168 of the Railway Act and Section 2, Subsection 3 of the Canadian National-Canadian Pacific Act and all other relevant statutory provisions, for an Order granting it leave to abandon the operation of the following line of railway, namely:

A portion of the Alliston Subdivision, Ontario, between Alliston (mileage 5.1 and Creemore (mileage 23.6), a total distance of 18.5 miles.

39310.63

Before:

Armand Sylvestre, Q.C., Deputy Chief Commissioner.

H. B. Chase, C.B.E., Commissioner.

Heard at:

Collingwood, Ontario, on March 16th and 17th, 1955.

Appearances:

W. G. Boyd and H. J. G. Pye, for the Canadian National Railways.

J. D. Bowerman, for the Town of Alliston, Township of Tossorontio and two private individuals.

J. H. Shepherd, for the Town of Creemore.

W. J. Patton, Reeve of Nottawasaga Township.

Judgment

Sylvestre, Deputy Chief Commissioner.

H. B. Chase, Commissioner.

The application in this case was filed with the Board under date of July 15th, 1954. The hearing was conducted in Collingwood, Ontario, on March 16th and 17th, 1955. Shortly after the application was filed and in line with its usual practice, the Board directed one of its Engineers, in company with one of its Operating Inspectors, to make a thorough survey of that particular part of the line which the railways desire to abandon and to make a complete report with respect thereto.

Description and History of the Alliston Subdivision of the Canadian National Railways The Alliston Subdivision branches off from the Milton Subdivision (Branch Line, Hamilton to Allandale, Ontario) at Allimill, 1.5 miles north of Beeton and runs to Collingwood, Ontario, a distance of 40 miles. The railways propose to continue some operation on the line from Beeton through Allimill to Alliston, a distance of 6.6 miles on the south end of the Subdivision and between Collingwood and Creemore, a distance of 16.4 miles on the north end of the Subdivision, and to abandon the line between Alliston and Creemore, a total distance of 18.5 miles.

The service on the line consists of a mixed train in each direction daily except Sunday.

The general background history of this line was given to the Board by Counsel for the railways, Mr. W. Boyd. At pages 1351 and 1352 of the transcript Mr. Boyd stated:

I think it is customary in applications of this kind to open the proceedings by giving a short history of the line which is in question, the subject matter of the application.

In this case our records indicate that the Hamilton and Northwestern Railway Company was incorporated in 1872 by statute of the Province of Ontario which authorized the construction of a line of railway from a point near the City of Hamilton on the shore of Burlington Bay through the counties of Wentworth, Halton, Peel and Simcoe, to a point on one of the bays bordering on the Township of Tay.

Pursuant to that authority given by the statutes, capital stock was raised of some $600,000 and the company was authorized to construct a branch from any point on its main line within the County of Simcoe to the water's edge of Lake Huron in the Town of Collingwood.

This branch was completed and opened for traffic in 1878 and in 1879 and it is a portion of this branch that it is now proposed to abandon between Alliston and Creemore, a distance of 18.5 miles.

There were two agreements in 1879 relating to this railway by which the Hamilton and Northwestern Railway Company and the Northern Railway agreed to operate both railways by a joint executive committee under the title of the 'Northern and Northwestern Railway Company', but each company retained its corporate existence until amalgamation with the Grand Trunk Railway Company of Canada in 1888.

That is a short statutory history of the line which is the subject matter of this application. The application, of course, is for authority to abandon the 18.5 miles referred to between Alliston and Creemore and certain changes in train service on the remaining portion of the line which are also involved.

In their application, the railways submitted the following proposed scheme of operation with the proposed abandonment:

Cancel Mixed Trains 391 and 394 running daily except Sunday between Beeton and Collingwood.
The Hamilton-Allandale Wayfreight to be operated into Alliston three days per week to handle carload and less carload traffic.
An extra wayfreight train to be operated from Allandale to Creemore via Collingwood and return, once a week.
A truck service to be operated six times a week, twice a day, between Beeton and Alliston to handle express and less carload traffic.
A truck service to be operated six times a week, once a day, between Collingwood and Creemore to handle express and less carload traffic.
Complete withdrawal from mail and passenger services between Beeton and Alliston and between Collingwood and Creemore.

In support of their application, the railways submitted ten exhibits showing traffic handled, revenues and expenses, etc., relating to the operation of the line between Alliston and Creemore and relating to the Canadian National Railways System as a whole for the years 1950, 1951, 1952, 1953 and 1954. We will refer to a few of these exhibits. Exhibit 3 shows the carload traffic on and off the line—or rather, in and out—as follows:

1950:	In	28;	Out	4.	Total	a32.
1951:	In	31;	Out	12.	Total	43.
1952:	In	29;	Out	23.	Total	52.
1953:	In	29;	Out	4.	Total	33.
1954:	In	29;	Out	0.	Total	29.

From the above it will be noted that in a period of five years the carload traffic amounted to an average of about 38 cars per annum. Moreover, during the year 1954 not a solitary carload of traffic originated on the line.

With respect to the revenues and expenses, reproduced below is Exhibit 8, which indicates the effect of the operation of the line in relation to the Canadian National System, the additional expenditures which would be incurred due to the operation of supplementary truck service, etc., and it will be noted that after giving consideration to all of the expenditures involved, it is estimated that if the line were abandoned and the truck service, etc., were to be put into operation, the net annual saving to the Canadian National System would be $64,164. We should add that the expenses shown on Exhibit 8 were what might be termed bare bones expenses, that is to say, no charges were made for supervision, depreciation, etc.

Exhibit No. 8: Canadian National Railways
Loss Incurred on Alliston Subdivision, Alliston to Creemore, Ont.,
1950 to 1954 Inclusive
	1950	1951	1952	1953	1954
	$	$	$	$	$
Revenues (System)
Between Alliston and Creemore
Passenger	1,191	1,346	1,144	1,052	1,000
Freight	6,116	8,047	7,771	7,516	6,946
Express	985	1,307	1,865	1,705	1,568
Mail	2,493	1,519	657	650	746
Miscellaneous	46	127	78	46	50
Revenues that would be lost through curtailment of train service on balance of line
Passenger	1,809	1,654	1,966	2,049	1,978
Freight (at Alliston)	30,688	37,700	30,101	36,112	26,434
Freight (Between Collingwood and Creemore)	10,944	13,445	11,888	11,940	8,525
Mail	3,327	2,021	1,189	1,150	1,000
Total Revenue	57,599	67,166	56,659	62,220	48,247
Expenses (Out-of-Pocket)
Branch Line—Between Alliston and Creemore
Train Service	30,570	32,530	33,760	35,610	33,090
Maintenance of Equipment	12,430	13,220	14,040	14,930	11,550
Station Service	.	.	.	.	.
Maintenance of Way and Structures	21,570	28,100	43,210	53,990	58,150
Taxes	300	300	300	300	300
Off-Line-Balance of System 50% Operating Ratio
Freight (between Alliston and Creemore)	2,936	3,863	3,731	3,608	3,334
Express (between Alliston and Creemore)	443	588	839	767	706
Freight (at Alliston)	13,810	16,965	13,545	16,250	11,895
Freight (between Collingwood and Creemore)	4,925	6,050	5,350	5,373	3,836
Total expenses	86,984	101,616	114,775	130,828	122,861
Annual system loss	29,385	34,450	58,116	68,608	74,614
Additional Annual Expenditures Due to Abandonment
Supplementary Truck Service	5,000	6,250	7,500	7,500	7,500
Maintenance of Wyes at Alliston and Creemore	1,000	1,000	1,200	1,250	1,250
4% Interest on Capital Cost of Wyes	1,800	1,800	1,800	1,800	1,800
Total	7,800	9,050	10,500	10,550	10,450
Net Annual Saving due to Abandonment	21,585	25,400	47,616	58,058	64,164
Montréal, Québec, March 14, 1955.

Condition of Roadbed and Track

In the report made to the Board by the Engineer and Operating Inspector and in evidence submitted during the hearing, it was stated, inter alia, that 12.6 miles of the track consisted of 56-pound rail, 3.3 miles of 65-pound rail, which has been in service for seventy-three years, 1 mile of 70-pound rail, 1 1/2 miles of 80-pound rail, and 0.06 mile of 85-pound rail. The ballast is poor and very thin. The ties are in a fair condition.

In railway parlance there are five classifications of track: A, B, C, D and E. The line in question is the lowest of all, namely, Class E. Only light locomotives can be operated on the line at a speed not exceeding twenty miles per hour and the weight limit of cars used on the line is 169,000 pounds gross weight. Maintenance of the line has been deferred for many years, only a sufficient amount being performed each year to keep the line in safe operating condition.

At page 1357 of the transcript a witness for the railways stated that if the line is not abandoned, $10,600 would have to be spent on bridges alone for the year 1955. At pages 1362 and 1363 of the transcript the same witness stated:

The ties are—practically about 90 per cent of them are in mud ballast and that would require completely re-ballasting, which would take probably about two seasons to do it properly at a cost of about $74,000. The rail is long past renewal but we have never been able to get authority to renew the rail on account of the fact that there has not been enough traffic to feed the line. The replacement of that rail would give us a cost of maintenance of $74,500. That does not involve the capital cost, there is another capital cost of about $96,000 which would have to be taken care of otherwise, but that against maintenance would be $74,500.

Highways, Bus and Truck Services

The Board's file indicates that Provincial Highways Nos. 27 and 89 connect Allandale and Barrie with Alliston. Township roads of improved gravel construction and in a good state of repair connect all other points except Duntroon and Nottawa, which are linked up with Collingwood by Provincial Highway No. 24. All roads are ploughed in the wintertime.

All points on the Alliston Subdivision, with the exception of Allimill, Thompsonville, Tioga and Lake Junction are served by commercial truck operators, none of which, however, serves all stations. The only community on the line served by bus is Alliston.

For the opponents, two witnesses were heard, one from Alliston and one from Everett. Mr. L. L. Whiteside, Clerk of the Town of Alliston, contended that the abandonment of the line would be very harmful to Alliston, inasmuch as it would have a deterring effect upon new industries who might desire tolocate in Alliston.

In our opinion, and for the following reasons, we do not consider that much weight can be given to Mr. Whiteside's evidence. Alliston will still be served by the Canadian National Railways and, in addition, it is served by the Canadian Pacific Railway Company. As a matter of fact, Alliston is nearer to Toronto by way of the C.P.R. than it is by way of the C.N.R., the distance being approximately 50 miles by C.P.R. and 70 miles by C.N.R.

Mr. J. Alderson, who operates a coal business at Everett, explained to the Board that the abandonment of the line might result in putting him out of business entirely. He appears to be one of the best patrons of the railway and if the line were abandoned he would, in all probability, have to truck his coal from Alliston, a distance by highway of approximately six miles. We have considerable sympathy for Mr. Alderson, as there is no doubt whatsoever that he will be badly inconvenienced but, on the other hand, it would not be reasonable to expect the railway to continue in operation for the purpose of handling the few carloads of coal which Mr. Alderson has shipped in.

Statements were also made by Mr. G. H. Shepherd, who operates a business at Creemore, and Mr. W. J. Patton, Reeve of Nottawasaga Township.

Mr. Shepherd's great concern was with respect to the possibility of having to pay slightly higher freight rates if the line were abandoned, this being for the reason that freight coming in or going out would have to be shipped by Allandale instead of through Beeton, the mileage being slightly longer. He was advised as to the procedure to be followed in the event that the freight rates were increased. It should be noted, however, that, even with the abandonment, Creemore will still be served by the railway.

Mr. W. J. Patton was greatly concerned, contending that the line went through a good farming district and, if abandoned, would set the country back to where it was seventy-five years ago.

Summary

As has been stated herein, if the application were granted, the saving to the Canadian National Railways System would amount to $64,164 (See Exhibit 8). Coupled with that, consideration must be given to the deferred maintenance and the large amount it would cost to rehabilitate the line—even to maintain it as Class E track—which, as stated by the witness and set forth herein, would amount to $74,000.

As we have stated in previous cases, the Railway Act lays down no principles upon which the Board should act in granting or withholding approval in applications for abandonment of railway lines. The issue in each case where abandonment is sought resolves itself into a question of whether the loss and inconvenience to the public consequent upon the abandonment outweigh the burden that continued operation of the railway line involves when imposed upon the railways. Here we would refer to some previous decisions as follows:

C.N.R. Tweed Subdivision, year 1941, 53 C.R.C., p. 139. Abandonment of operation of the Tweed Subdivision between Yarker and Tweed, Ontario, a distance of 33.94 miles. System saving if line abandoned $22,203. Application granted.
C.N.R. Lakefield Subdivision, Ontario, year 1951, 66 C.R.C., p. 344. Abandonment of operation of 16.24 miles. System saving if line abandoned $31,392. Application granted.
C.N.R. Westport Subdivision, Ontario, year 1952, 69 C.R.C., p. 136. Abandonment of operation of 40.51 miles. System saving if line abandoned $83,035. Application granted.
C.N.R. Algonquin Subdivision, Ontario, Board's file No. 39310.17. Judgment dated January 17, 1955, not yet reported in C.R.C. Application to abandon 39.95 miles of the Algonquin Subdivision. System saving if line abandoned $97,109. Application granted.
C.N.R., portion of the Scotia Subdivision, Nova Scotia. Board's file No. 39310.61. Judgment dated March 8, 1955 not yet reported in C.R.C. Application to abandon 5.24 miles into Pictou Landing. System saving if line abandoned somewhat in excess of $20,000 per annum. Application granted.
C.N.R., portion of the Elgin Subdivision, New Brunswick. Board's file No. 39310.2. Judgment dated March 11, 1955 not yet reported in C.R.C. Application to abandon 13.5 miles between Petitcodiac and Elgin. System saving if line abandoned approximately $30,000 per annum. Application granted.
C.N.R., portion of the Albert Subdivision, New Brunswick. Board's file No. 39310.64. Judgment dated March 25, 1955 not yet reported in C.R.C. Application to abandon 20.4 miles between Hillsboro and Albert. System saving if line abandoned approximately $39,580 per annum. Application granted.

Considering the decisions in the cases mentioned above, the substantial loss to the railways and all that has been presented to the Board, we believe the application for abandonment is justified. The loss to the railways outweighs the loss and inconvenience to the public.

True, there will be some inconvenience to a few individuals but as the railways in their application have submitted a proposed scheme of operation as set forth herein, the public will not be left without other forms of transportation.

The application is approved and Order will go accordingly.

A. Sylvester,

H. B. Chase.

April 4, 1955.