Proposed abandonment of Toronto-Lake Simcoe radial line

Toronto Transportation Commission wrote the city board of control May 22, recommending abandonment of the radial railway running from Toronto northerly to Sutton, on Lake Simcoe. The later stated that this line, known as the Metropolitan Division, together with the Scarboro Division running east out of Toronto, and the Mimico Division running west out of Toronto, were acquired by the city in 1920; that they were operated by the Hydro Electric Power Commission of Ontario Railways Department from Nov. 1, 1922 to Jan. 11, 1927, and have since then been operated by the T.T.C.; that the Scarboro and Mimico Divisions were incorporated into the T.T.C. city system in 1928; that the Mimico Division is self-supporting and that the Scarboro Division is self supporting as far east as Birchcliff; that abandonment of the Scarboro Division line east of Birchcliff is being considered; that the Metropolitan Division's losses are a charge against Toronto taxpayers; that that line is 48.66 miles long from Toronto north city limits to Sutton, and that the Schomberg branch, on which operation was abandoned on June 30, 1927, is 14.36 miles long; that freight and express revenue on the Metropolitan Division line was 19.5% less in 1928 than in 1927 and passenger revenue 5.5% less; that the city council appropriated $430,000 to place the line in good condition, $300,000 for cars and $105,000 for track improvements, but that only the $105,000 has been spent; that the 1927 operating loss on the Metropolitan Division was $327,019.92, and the 1928 operating loss was $381,044.38; that annual fixed charges on the outstanding debentures are $271,542, which will have to be met for about 11 years, but which can be reduced by salvage of assets if the line is abandoned, and that, in the T.T.C.'s opinion, the final loss to the city will be less if the line is abandoned than it will be if operation is continued.

The letter concluded as follows:—"Your Commission recommended that in the best interests of the city and in order to protect the city from further unnecessary loss, operation of the Metropolitan Division be discontinued. If our recommendation is adopted, we would suggest that all service cease on Sept. 30, 1929. Operation should be continued through the summer and over the exhibition period on account of the fact that the summer months represent the period when losses are comparatively light and the maximum amount of revenue can be obtained. If the city adopts the foregoing recommendations, your Commission will make effort to assist the city in adjusting and disposing of the assets."

The T.T.C. in its letter quoted extracts from a report on the Metropolitan Division situation, made by R. M. Fuestel, Fort Wayne, Ind., President, Indiana Service Corporation, who it had retained to make a study of the matter. These are summarized as follows:—"The permanent population outside of Toronto served by the line appears to be not over 20,000. The transient summer population at Lake Simcoe affords a temporary increase in revenue, but it is for only a very small portion of the year. Revenue decreased from $536,218 in 1923 to $409,487 in 1927. The trend is similar to that obtaining on some 2,000 miles of line in Ohio, Michigan, Indiana and Illinois. The service has been well arranged to fit the traffic available. The rather high average track mile revenue of $18,500 a year speaks well for past operations, but it probably represents the maximum which will ever be earned on the property. The inroads of trucks and automatics are increasing. The passenger car equipment on the line is somewhat old in type. Cost of power is high, on account of this old equipment, and also on account of heavy grades and the amount of snow removal necessary. The present downward trend in gross earnings may be expected to continue until only about $4,000 and $5,000 per mile of track will be earned. Transportation costs are high due to a rather high average wage and low average schedule speed. In the light of experience in the United States I would hesitate to make any additional reconstruction or capital expenditure on this line. While operating expenses could be decreased somewhat with large capital expenditures, the net revenue after the change would not warrant the expenditure. It is obvious that with the past 5 years' record of no net earnings available for return or retirement, and no prospect of bettering this condition, the maximum amount of money can be saved by an early abandonment of operations."

The city board of control referred the T.T.C. letter to the Toronto Corporation Counsel for a report on the legal aspects of the proposed abandonment, and to the city Commissioner of Finance for a report upon the financial aspects of it, and expressed itself as in favor of carrying out the T.T.C. recommendation. As was to be expected, the communities served by the line are much against operation being stopped. The Toronto Finance Commissioner is in favor of abandonment, and the Toronto Corporation Counsel is said to hold the view that there are no legal difficulties in the way.

Railways: H.E.Rys., Met.Ry., S. & A.Ry. , T. & Y.Rad.Ry., T.T.C.

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