Toronto-Lake Simcoe radial railway proposed abandonment.

The recommendation made by Toronto Transportation Commission that operation of the electric railway between Toronto and Sutton, on Lake Simcoe, which is owned by the city and operated for it by the T.T.C., be abandoned on Sept. 30 owing to the heavy losses incurred for several years, was dealt with in Canadian Railway and Marine World for September, pg. 580, and in previous issues/ On Sept. 25, a York County committee asked the Toronto city board of control that operation be continued for another 2 months, to give their County Engineer, W. B. Redfern, of James, Proctor and Redfern, Toronto, full opportunity to study the line's operating conditions and prospects and report on them. The board of control recommended to the city council that the request be acceded to, and the city council adopted this recommendation on Oct. 1, an amendment by an alderman that the line be operated for only an additional 30 days from Sept. 30 being lost. Prior to the committee appearing before the board of control, Mr. Redfern had submitted a preliminary report, in which he pointed out that the railway had been bought by the city for over $2,000,000 in the clean-up deal in which Sir William Mackenzie power and electric railway interested were acquired; he claimed that this deal had resulted in very large savings to Toronto citizens in the cost of electrical energy, etc., and although the radial railways had not been bought on their merits as revenue producers, but as necessary parts of one large deal, it had been thought that they would pay their own way. Not long after the deal was concluded, the southern 3 miles of the Lake Simcoe line were incorporated into the T.T.C. city system, and as the traffic on this part of the line had been very heavy, with earnings of about $400,000 a year, or about 15 times greater per mile than on the rest of the line, this changed the radial railway from being self-sustaining into one having annual deficits. Debentures outstanding on the line are $2,510,00, representing a valuation much in excess of the fair value of the line. A fair valuation, in his opinion, would be $950,000; if such a value were assigned to it, the reduction in carrying charges would reduce the deficit of 1927 from $327,019.92 to $140,000. During that year, about $60,000 was spent in extraordinary maintenance, including change of track gauge from 4 ft. 8 1/2 in. to 4 ft. 10 7/8 in., the Toronto city line gauge, and deduction of that amount would leave the year's deficit as $80,000. He claimed that such a result would be on the basis of the high operating costs incidental to antiquated and worn-out equipment, and stated further:—"Our opinion is that if the service on the radial be improved by the purchase of new modern cars, by the co-ordination of a bus service to act as feeders to the railway line and not in competition with it; and if the line be given sympathetic operation and the competing motor coach lines be removed, the revenue will considerably more than pay operating expenses. With an increase in population and development that might be expected in the territory served, it has a good chance of meeting annual fixed charges."

Railways: Met.Ry., T. & Y.Rad.Ry., T.T.C.

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