6. TELEPHONE AND TELEGRAPH SERVICE:—Local services of this character, and being actually a part of the Transportation Department.

Note:—All through telegraph service, whether Commercial or Railway business, is provided by Canadian National Telegraphs.

7. DINING AND SLEEPING CARS, AND HOTELS:—Operation of dining, sleeping, parlor and tourist cars, and hotels, restaurants, etc. (In charge of a Manager, who reports directly to the Vice-President.)

8. COAST STEAMSHIPS AND FERRIES:—Operation of Grand Trunk Pacific (British Columbia) Coast Steamships and certain car ferries, tugs, barges, etc., employed on both the Pacific and Atlantic Coasts in connection with Railway operations.

9. ELECTRIC RAILWAYS, (126.2 Miles):—Operation of certain electric railways in Ontario. Each of these lines is in charge of a general officer who reports directly to the Vice-President in charge of the Operating and Maintenance Department.

The organization is a combination of the departmental and divisional systems and is arranged along the general lines that the experience of the Canadian Pacific and Canadian National Railways has shown to be best for the conditions and vast territory involved. Each territory has a substantially complete organization, under a single officer, who is required to follow the general policy and observe the standards prescribed by the expert at the head of each sub-department. For operating action the organization is divisional, but the work is planned and prescribed under departmental standards, subject to the approval of the territorial Executive head of Department.

The Vice-President in charge of the Operating and Maintenance Department has the following Staff Assistants:—Transportation Assistant, Engineering Assistant, Mechanical Assistant (Locomotives), Mechanical Assistant (Cars), General Superintendent of Car Service, Statistician, Chief Electric Engineer, Engineer of Standards, Superintendent of Police and Special Service.

TRACK AND STRUCTURES:—Tracks were showing the cumulative effect of the stress of the War years, during which an abnormal volume of business had to be handled over portions of the system, particularly lines east of Port Arthur, and the maintenance work on all lines was abnormally difficult on account of the shortage and inefficiency of labor, and the difficulty and time necessary to secure supplies of material.

Vigorous action had to be taken to permit of satisfactory service. This work has been energetically carried on with gratifying results insofar as economy, regularity and safety of transportation are concerned. Unfortunately, prices and scarcity of labor and material continued to increase until the latter part of 1920, with the result that the cost of performing this absolutely necessary work was abnormally high during the first two years.

RAILS:—Most of the main line east of Winnipeg was laid with 80 or 85lb. rails, but many miles of main lines were still laid with rails on branch lines had to be replaced, on account of wear, and their inability to carry heavy cars.