Canada Calling
September 1999

by Bryce Lee

INDUSTRY NEWS

After a 3 year hiatus, the Prairie Dog Central has restarted operations. 4-4-0 #3 was purchased in 1882 by Canadian Pacific Railway. Later it was bought by the city of Winnipeg and in the 1960s it became the property of the Vintage Locomotive Society. The train made two round trips July 3, 1999 from Inkster Junction to Warren, Manitoba. Six hundred passengers were on board. The train runs twice daily Saturday and Sunday during July and August. Three hundred people can ride on every trip. After painstaking efforts to get the Prairie Dog Central back on the tracks the vintage train's season may be in jeopardy. Over the weekend of July 24 serious mechanical problems sent Locomotive Number Three to the shop. The breakdown came at the worst possible time for the vintage locomotive. The runs were fully-booked. The shut-down was costly in lost ticket sales. However the service had also acquired a former MLW S-3 from the Pine Falls Paper Company former 101 of 01/1952, nee CN 8454 while the Three-Spot is repaired. It was expected to be a month long C$25,000 problem, however repairs were completed in short time and the locomotive was expected to be operating again the first week of August 1999.

Passenger train service between the Sault and Hearst on the Algoma Central Railway was running 6 hours late because of a severe storm July 3. An official of the railway said 12 miles of track were covered with fallen trees brought down by the severe storm. Although not confirmed a tornado may have touched down. Crews started clearing the fallen trees along a stretch of railway 300 kilometres north of the SOO July 4. The Agawa Canyon Tour train was not delayed.

Ontario Northland track maintenance workers in North Bay rejected a deal in mid-July to keep them employed. It's the second time workers at Ontario Northland Railway have turned down a tentative agreement for a shortened work week or a pay cut. The Kidd Creek copper and zinc mine has been on strike which in turn has put pressure on the railway to reduce costs. The mine is the ONR's largest freight customer, accounting for about C$1-million in revenues monthly. Meanwhile, unionized clerical workers at Ontario Northland have ratified an agreement that provides for a reduced work week. However Ontario Northland's unionized mechanical workers remain on strike, putting 33 full-time employees and 17 summer students out of work. The Brotherhood of Maintenance of Way Employees represents 181 section men, machine operators, gang labourers and bridge and building workers. Layoff notices were go to out to 28 employees and could take effect by July 26, 1999.

As they ate breakfast on a Toronto-bound Via train, passengers were jolted when an empty logging truck ran into the side of Via Train #2 on July 14, 1999. No one was seriously injured however five passengers and the truck driver suffered minor injuries and were treated in hospital. The accident occurred about 8 kilometres east of Hornepayne, which is approximately five hours north of Sault Ste. Marie, specifically mile 290.50 of the Ruel Subdivision at the station place name of Shekak. There were 23 cars on the train, which originated in Vancouver, 12 of which derailed but remained upright. As a result of the accident F40PH 6455, 6438 and 6439 were leaking diesel fuel. By late the following day almost 14,000 litres of diesel fuel had seeped into the ground. The truck driver had just dropped off a load of logs and was driving away from a local sawmill at the time of the accident. The crossing, used by as many as 30 logging trucks daily, has stop signs, but there are no flashing lights. The accident is being investigated by provincial police and the federal Transportation Safety Board. A shoofly was built around the derailment site; environment officials were arranging for replacement of the fuel soaked soil. Clean up was expected to take a number of weeks.

The last 16 cars of a westbound CN freight train derailed the evening of July 16 in front of the Morrisburg, Ontario station at mile 92.20 of the Kingston Subdivision. No one was injured and no hazardous materials were spilled. Other cars in the 132-car train were carrying hazardous materials, but were unaffected by the derailment. The local fire department arrived on the scene after receiving a call at 6:40 p.m. Morrisburg is about 45 kilometres west of Cornwall, Ontario. Motive power was SD40-2 5305, 5243, SD50F 5452, GP40-2L 9444. Train length was 9634 feet with total tonnage of 10348. Due to the amount of damage the main line was closed until the morning of July 15. Seven freight trains were detoured on St.L&H lines as were all VIA trains.

Its been another record breaking year for tourists travelling the White Pass and Yukon Route out of Skagway. The railroad established an all time record for one day mid-July, with 3700 passengers. Company Vice President, Gary Danielson, says Whitepass is already ahead of last years record pace of 258,000 passengers. 85% of Whitepass business comes from the cruise ships and with more of them stopping each year in Skagway; the railroad is expanding. Four more passenger cars will be added next summer. A barge carrying repatriated locomotives for the Whitepass & Yukon was expected to arrive in Skagway Alaska on July 31. The locomotives were transferred to another barge in California after a storm at sea had caused one of the locomotives to break free from its moorings.

Whitepass purchased the MLW DL-5353 locomotives from the Sociedad Colombiana de transportr Ferroviario in Bogata Columbia. No 101, 103, 104, 106 and 107 built in 1969 were considered surplus in 1992 and were sold to Columbia. With a huge increase in passenger traffic, WP&Y needs them again, even if it cost them more than for what the railways received for selling the locomotives originally. Railway officials say purchasing the locomotives still cost less than the estimated two million dollar tab for one new locomotive.

Four youths who jumped from a moving train into the rushing waters of the Niagara River were recently thwarted by police with a civilian boater's help. Inspector Art Rees of the Niagara Region police said the male youths two from Fort Erie Ontario and two from Niagara Falls, NY had jumped on a moving train in Canada and were spotted by railway workers as the train crossed the International Railroad Bridge, which connects Fort Erie and Buffalo, NY. The workers ordered the train stopped and called police. Rees said the youths hid among the steel girders of the 126-year-old bridge when police arrived. Then, realizing they were trapped, they jumped into the fast-moving river. While the Canadian boys, aged 12 and 14, swam to shore and were taken into custody, the American boys, aged 12 and 15, were swept downstream. They were plucked from the water more than three kilometres from the bridge by a boater, who brought them to the Canadian shore where they were also arrested. All four were charged with trespassing and released. Rees said he's had numerous calls from citizens who say they've seen youths crossing the bridge. "As soon as they set foot on the bridge, it's trespass,'' said Rees. "The trespassers can expect us to be monitoring the bridge." He said police are also concerned about the safety of those who try to jump from the bridge into the treacherous waters of the Niagara River. While the boys were in no immediate danger of being swept over Niagara Falls, they were headed in that direction. Rees added that he plans to work with immigration officials to address the problem of people using the bridge to cross the border without dealing with proper immigration or customs agencies.

Federal Transport Minister David Collenette, together with Reilly McCarren, executive vice-president and CEO of Algoma Central Railway Inc., announced July 28, 1999 that the Government of Canada has reached an agreement with Algoma Central to continue its remote passenger service between Sault Ste. Marie and Hearst, Ontario, over the next four years. The agreement follows the Minister's October 1998 response to the Standing Committee on Transport's report on rail passenger services, in which he stated that remote status provides a compelling and continual policy justification for government subsidy of the particular service. The service supports the regional economy by carrying customers, staff and supplies to remote commercial lodges and wilderness tour points, some of which can only be accessed by rail. Algoma Central served nearly 16,000 passengers in 1998.

On July 28 Home Hardware Stores Ltd., announced the winners of its Rediscover Canada Sweepstakes, sending 20 lucky Canadians on a Vancouver to Halifax adventure, valued at C$8,000. Each winner and a guest will fly to Vancouver, B.C. on September 18 to board a luxurious VIA Rail train, pulled by VIA F40PH 6429 emblazoned in the Home Hardware paint scheme and logo. Following a scenic trip through the Rocky Mountains, across the prairies and around the Great Lakes, the train will stop in Kingston, Ontario, where the winners will board the Canadian Empress; a replica riverboat. After a five-day, four-night cruise, including stops along the St. Lawrence, the private riverboat will dock in Montreal. From there, the lucky winners will re-board the VIA Rail train bound for the trip's final destination, Halifax. Home Hardware's Rediscover Canada Sweepstakes package includes all accommodations and meals on the train and riverboat, return air transportation, and $500 spending money. Home Hardware Stores Limited is a cooperative of dealer-owned and operated independent hardware, building supply and furniture stores. Founded in 1964, the company today has grown to include more than 900 independent dealers in every province and territory in Canada.

Transport Minister David Collenette announced on July 30 amendments to the Carriers and Transportation Undertakings Regulation. The amendments will ensure the Government of Canada receives the relevant information from railways and grain companies to make sound decisions about the long-term future of Canada's grain transportation system. Under previous regulations, information collected from railways was not specific to grain. The new amendments allow for the collection of operational and financial information related to the handling and transportation of grain from railways and from companies operating elevators receiving and handling western grain. Grain companies currently provide operational information to the Canadian Grain Commission, under the Canada Grain Act. The amendments require them to file information with the Minister as well. Companies will be able to avoid duplication by authorizing the Commission to transmit information to the Minister on their behalf. The proposed amendments, promulgated pursuant to section 50 of the Canada Transportation Act, were published on Feb. 7, 1998, in Part I of the Canada Gazette. Comments were received from interested parties and were incorporated into the Regulation. The new amendments came into force on July 28, 1999.

GO Transit Chairman Eldred King expressed best wishes to GO's Managing Director Rick Ducharme on July 21, after the Toronto Transit Commission announced that Ducharme will be its new Chief General Manager. "Rick has steered GO through many changes," King said. "Since 1993, GO weathered staff cuts and significant reductions in funding, but still managed very impressive ridership increases and solid financial performance. GO now boasts record ridership of 36 million passengers a year, and a consistent cost-recovery performance that places it among the best transit systems in the world." This past June, Ducharme was named 1998's Transportation Person of the Year by the Ontario Committee of National Transportation Week. He has been with GO since 1976, and served as Managing Director for six years.

Steam Whistle Brewing has won Toronto's approval to set up in the former CPR John Street Roundhouse. Proposals by railfans to turn the 4.9 hectare site into a museum have failed to raise funds. Under the deal, Toronto will spend up to C$1.8 million for basic upgrades (structural, water, sewage, electricity, etc). Steam Whistle (run by the people who founded The Upper Canada Brewing Company) will put C$500,000 into building improvements and pay rent of C$4 million over 20 years for 27,500 square feet of space. They hope to be operating by the end of 1999, and already have the brewing equipment. They want to set up a microbrewery, brewpub and bistro, retail store, and tour area. Site has been home to a roundhouse since 1897, with the current building constructed in 1928.

Toxic smoke from a large fire on July 31 drove 300 people from their homes in east-end Montreal. The fire was in a building that was the former machine, boiler and erecting shop from Canadian Pacific's New Shops. It was the only remaining building from the works. It was abandoned at the time of the fire but its prior use had been a chemical factory making paint ingredients. The remaining lead and zinc as well as three containers of PCBs caused the environmental flap. Two youths, aged 15 and 16 were questioned and released after being spotted on the roof of the building just before the fire broke out at 5:30 a.m. One person was hospitalized with minor injuries. Two police officers also suffered slight injuries. The Montreal Fire Department ordered the building demolished and all that is left is contaminated rubble. The New Shops were located on the block bounded by Ste-Catherine on the north, Parthenais on the east, Notre Dame on the south and DeLormier (or Colborne as it was called when the shops first opened) on the west. This block was shared on the north east by the Montreal Oil Cloth Company, on the south east by Parthenais Square and on the south west by the Montreal Jail. The facility was almost universally referred to as The DeLormier shops. The New Shops were opened in 1883 and closed in 1904 when Angus Shops opened. The facility was called the New Shops to differentiate it from local shops at Carleton Place (inherited from the Canada Central) and Hochelaga yards (inherited from the Quebec, Montreal, Ottawa & Occidental).

The St. Lawrence & Hudson Railway (StL&H) and Progress Rail Services Corporation (Progress Rail) announced August 3 that they have closed the deal regarding Progress Rail operating a maintenance and repair shop at StL&H's St. Luc Yard facilities. Progress Rail will open a new maintenance and repair shop for railway cars and locomotives which will primarily serve the Quebec, Ontario and Northeastern U.S. markets. Progress Rail will occupy a portion of the St. Luc Yard facilities which includes part of the present Locomotive Repair Shop and additional space in the rail yard. This transaction is the result of the StL&Hs efforts to seek a new commercial role for its surplus repair facility at St.Luc and fulfils a commitment made to its employees back in December 1997 when it announced the restructuring of its diesel locomotive fleet maintenance activities.

In the wee small hours of July 12, the Ringling Brothers and Barnum & Bailey circus train was being prepared to leave Toronto and return stateside. CP 8246 and 8220 hauled four elephant cars (baggage cars), one bi-level auto carrier, and 16 TOFC cars away from Keating Yard east of downtown Toronto. The TOFC cars were loaded circus-train style, in each direction from the level crossing at Carlaw Street. These 21 cars were then taken and coupled to the other cars which were at Lambton Yard during the circus's stay in Toronto. The train was over the border before noon the same day.

CANADIAN NATIONAL RAILWAYS

Caution! CN's power switches used to all be 24 volts, and you would hear the machine start up and the points would start to move a few seconds later. Older 24 volt machines are being upgraded to 100 volts and all new installed switch machines of 100 volts are being installed. With the new 100 volt machines, there is no "warning" sound; as soon as the machine is heard, the points are already moving!

Canadian National Railway Co., the country's largest railway, topped analysts' expectations with a 26 percent profit jump in its second quarter. The Montreal-based railway, which bought Illinois Central Corp. last year and merged the two companies' rail operations, reported a net income of C$196 million, or C$2.01 a share fully diluted in the latest second quarter. That compared with a profit of C$143 million, or C$1.59 a share in the year-earlier period. Analysts had expected the company to earn C$1.91 a share before extraordinary items, according to IBES International, which tracks brokerages' estimates. CN said its revenues in the latest second quarter rose to C$1.06 billion from C$1.03 billion a year earlier, while operating expenses declined to C$724 million from C$757 million. The company also said it planned a two-for-one split of its shares and would pay a dividend in the third quarter of 30 Canadian cents a share on a pre-split basis. The cash dividend will be payable on September 27 to shareholders of record on September 7. The additional common shares from the stock split will be available on September 27 to shareholders of record on September 23, 1999. In its review of the second quarter, CN said five of its business units posted higher revenues compared with a year earlier. CN's equity in the earnings of Illinois Central, minus after-tax interest costs associated with the C$2.4 billion acquisition, added C$9 million to net income, compared with C$8 million a year earlier.

GE Harris Railway Electronics, L.L.C. (GE Harris) has been awarded a contract by Canadian National Railroad Company (CN) to provide a new Computer Aided Dispatch (CAD) System based on GE Harris' Navigator Dispatch(TM) System. GE Harris will install 17 operator and maintainer workstations to provide CN's U.S. operations with dispatch capabilities. The Navigator Dispatch system operates using the latest Windows NT-based platforms and will provide CN with integrated CTC and dark-territory control. The system will also provide comprehensive built-in rules checking and other advanced features that are supported by easy-to-use "point and click" operations. The system's flexible architecture and support tools will enable CN to quickly modify certain variables, such as track layout configurations, and add dispatching seats as needed. GE Harris' Train Navigator(TM) Dispatch system is part of a family of CAD products that implement traffic control functions in a state-of-the-art, client/server platform and provide a seamless and complete traffic management solution. Running under a Microsoft Windows NT interface, Train Navigator provides the ability to integrate local and remote networks using off-the- shelf computers.

CN's new Edmonton intermodal terminal is still a reality 14 months after CN announced the C$18 million project for northwest Edmonton. In May of 1998, CN announced it would be operational by September 1999. However a few months ago, CN said delays in obtaining regulatory approvals pushed back the project by one year. Apparently the problem stems from a difference of opinion as to whether the railway needs regulatory approval to build the yard. The Canadian Transportation Agency says yes; CN initially believed this was not required but has since acquiesced to the CTA's request to submit the required information. On June 21 1999, CN provided the last information that the CTA required and hopes for approval as quickly as possible.

The Illinois Central Railroad had on display June 30, at their Woodcrest shop in Homewood, Illinois IC E9ar 102. The ex- Burlington Northern 9903) has been painted in the 1954 green-yellow-black livery presently being applied to all CN business cars. Lettering on the right side is Canadian National and Canadien National is on the opposite or fireman's side. The French/Quebec influence has not been seen on motive power before this particular application. The repainted CN business cars have English lettering on one side; French lettering on the opposite side.

The proposed plan for single tracking the double-track southern Ontario Canadian National Dundas Subdivision is as follows: Bayview Junction (Hamilton to Falkland mile 35.6 (Princeton is mile 37.6) to remain as double track; Falkland to Gobles (mile 44.9) to be converted to single track; Gobles to Thames mile 51.1 to remain as double track; Thames to Ingersoll West mile 59.8 to become single track with the present south main from Beachville mile 54.3 to Ingersoll West 59.8 to become south service track; Ingersoll West to Zorra mile 63.0 to remain double track; Zorra to Nilestown mile 70.0 to become single track; Nilestown to London to remain double track.

From London to Sarnia on the Strathroy Subdivision work continues installing CTC and related track improvements. To mid July 1999 the following work was completed: Mandaumin, turnout installed; Wanstead, both turnouts installed; Watford West, turnout installed; Kerwood, both turnouts installed but not connected; School Road, turnout installed; Poplar, turnout installed & signals in place; Komoka, new signals in place at CPR diamond, new crossovers installed, signals in place, home signal off Chatham Sub in place; Komoka to London, new signals in place mile 7.2 and 4.7, CTC not yet activated.

Further plans for the Strathroy Subdivision: on September 18 the CTC to mile 35.6 (Watford West) is to be activated with ABS removed between mile 36.0 to 52.0; October 2 CTC activated to mile 51.0 and remove ABS between 52.0 to 55.5; October 23 CTC activated to Blackwell mile 55.6; November to December remove turnouts at Watford, Adelaide and Pike. Recent heavy wind storms in this area may in fact delay this schedule somewhat, as a number of new signal masts were toppled.

As a result of motive power problems associated with the takeover of Conrail by CSX and Norfolk Southern the following scenario has developed: Locomotives that had been stored on Canadian Pacific, were leased via Helm to Norfolk Southern. These locomotives in turn have been forwarded to Canadian National to help repay horsepower hours owed to CN by Norfolk Southern. The locomotives will be used on trains which run to and from Canada to the Norfolk Southern in Buffalo, New York, and are cleared to lead as they have all of the required apparatus to lead in Canada. The lease period is for at least one month from August 1, 1999. Locomotives are: SD40-2 5492, 5691, 5692, 5749, 5757, 5720, 5776, 5815, 5829, 5826, 5841, 6073, SOO 788, Soo 6617.

CANADIAN PACIFIC RAILWAY

Due to a severe storm, the CPR Northern Ontario Service Area from Cartier to Ignace Ontario experienced major problems. Starting at 1800, July 4th, heavy rainfall and hail hit many locations in Northern Ontario. The Heron Bay, White River and Nemigos Subdivisions (between Sudbury and Thunder Bay) were hardest hit and many of the communication capabilities in this area were damaged. At 0900 July 5, 1999 CP closed the main line between White River and Chapleau Ontario so the railway could clear fallen trees from the main line to restore power and communication links. It was expected shipments in this corridor, (traffic moving between Eastern and Western Canada) to be delayed between 24 to 48 hours.

With the splitting of Conrail, on the St. Lawrence and Hudson between Bensenville (Chicago IL) to Montreal PQ, CPR have continued to experience delays on traffic at all of the interchanges with the NS and CSX at the old ConRail interchange points. On the whole, CPR yards remain fluid but inconsistent, with delays continuing to be in the 24 hour range. In order to assist Norfolk Southern in alleviating congestion on their lines, CPR was continuing their short term haulage agreement to move cars from Binghamton to Allentown, bypassing some of their more congested areas. This should have improved the handling on traffic destined to the Allentown and North Jersey Shared Asset areas.

Canadian Pacific Railway (CPR) has shared its productivity gains with grain shippers and producers, according to a Canadian Transportation Agency (CTA) costing analysis. The study shows Canadian railways have shared up to 55 per cent of their productivity gains since 1992. "The CTA analysis confirms what CPR has asserted from the outset of the debate about productivity - that we are sharing productivity savings through reduced rates, increased incentive rate discounts and grain-facility investments," said Ray Foot, assistant vice-president of grain at CPR. "The study also shows the Canadian Wheat Board and the National Farmers' Union were wrong when they claimed that railways withheld C$224 million in productivity gains in 1998 and shared only 20 per cent of their savings." The analysis was conducted as part of the current grain system reform process led by Arthur Kroeger, who said today that a more commercial, contract-based grain handling and transportation system will bring about more opportunities for savings and productivity sharing. With CPR's latest rate reductions, a 100-car load of Prairie grain moving from many Prairie elevators to Vancouver or Thunder Bay is eligible for a C$5-per-tonne discount, for a total of about C$50,000 in savings for a single train-load. The Canadian Transportation Agency (CTA) found that the estimated total costs for moving the 1998 Western grain ranged from C$676.5 million to C$700.9 million. The CTA also found that the difference between the railways' net revenues and their estimated costs related to grain transportation for 1998 were between C$99.4 million and C$123.8 million, with the railways' estimated costs including a fair return on equity. The CTA also estimates that 49-55 per cent of new productivity savings generated in 1998 were passed on to shippers.

Canadian Pacific Ltd. announced July 21 it is chopping 1,900 jobs from its railway division in an effort to cut costs and become more competitive. The conglomerate said it will be taking a special charge of C$501 million to help pay for the job cuts at the railway, which will be completed by the end of 2000. The reductions will reduce the railway's 19,000-member workforce by about 10 per cent. CP said the layoffs and cost-cutting were in line with the company's continuing focus on driving down costs and increasing productivity across its group of companies, particularly CP Ships and the CPR.

The job cuts will occur throughout the railway both in Canada and the United States. CPR chief executive Rob Ritchie said that about 30 per cent of the cuts will be made in administration, 45 per cent in maintenance with the rest from train operations.

The railway also recorded fiscal second quarter operating profits of C$158 million, excluding the severance charges. That's down C$16 million from the same period last year with an operating ratio of 81 per cent compared to 79.8 per cent. The operating ratio is a key industry statistic used to measure efficiency in the railway business. CP said its operating income decreased eight per cent in the first half of 1999, reflecting low bulk commodity prices; especially in grain, coal and fertilizers.

The problems affecting the CPR stand in stark contrast to CN, where several years of cost-cutting, and downsizing acquisitions have put the company in an enviable position in North America's rapidly consolidating rail industry. After the job cut announcement, CP shares fell 60 cents in late-morning trading on the Toronto Stock Exchange to C$38.60. The stock's 52-week high is C$40.65.

In the early hours of July 13 a Delaware & Hudson crew from Saratoga Springs, NY, guided two red Canadian Pacific Railway locomotives pulling a string of railway cars through the Bronx, New York, and into the former New Haven Oak Point Yard. This train entered history as the beginning of CPR service east of the Hudson River. In addition, it marked the first time since the creation of the Penn Central Railroad in 1968 that New York City has been served by two Class I railroads. Since that first train, the Delaware & Hudson, CPR's subsidiary in the Northeast, has provided weekday service between Saratoga Springs and The Bronx reliably and without incident. The southbound train, no.274, leaves Saratoga Springs at 8:00 PM and arrives in The Bronx at 03:45 AM. The northbound train, no.275 departs The Bronx at 11:00 PM with arrival at Saratoga Springs scheduled for 06:45 AM. These CPR trains connect New York City to CPR's 15,000-mile network of track linking the Atlantic to the Pacific Ocean. They operate below Albany with trackage rights over the CSX franchise that belonged to Conrail until June 1 of 1999. Carload switching service is then provided by CSX to all customers in The Bronx including those at the Hunts Point Terminal.

In addition, carload customers in Brooklyn and Queens, and Nassau and Suffolk Counties on Long Island, will also be reached as their cars will be transferred every weekday by CSX on their interchange train to the New York & Atlantic Railway. Finally, CPR also received trackage rights to serve a potential intermodal terminal at Harlem River Yard, also in The Bronx. The initiation of this rail service represents the fulfilment of efforts by government, shippers, and receivers to once again have competing rail freight service in New York City and out on Long Island.

The CPR doesn't own the land its tracks use to cross a number of British Columbia Fraser Valley Indian reserves so the bands can levy municipal-style taxes on the railbed, says a Federal Appeal Court tribunal. But the bands' appeal for the right to taxation was dismissed on a technicality, even though the majority of the court ruled they had such a right. The case arose when five bands, citing Indian Act amendments which extended their ability to tax property on reserves, sent tax assessment notices to non-Indian individuals and corporations that occupied reserve lands. The CPR appealed the assessments. It said it owned the respective railbeds and they were therefore not in the reserve and the band bylaws were invalid because they exempted band members and were therefore unlawfully discriminatory. This case involves 15 CPR rights of way. In the Federal Court's trial division, a judge ruled that the CPR rights of way were not in the reserve and therefore could not be taxed. The Matsqui, Seabird Island, Cook's Ferry, Skuppah and Boothroyd Indian bands all immediately appealed. Their appeal was heard in Vancouver in January, 1999. Two out of three judges on the Appeal Court tribunal ruled that the CPR does not own its railbeds and the band taxes are not discriminatory. But the way in which the Appeal Court judges split in their decisions on the two issues led to the bands' appeal being dismissed. Justice J.T. Robertson ruled that CP Rail did not own the land crossing the reserves and the Indian bands had a right to tax the corporation. His argument on title was supported by Justice Alice Desjardins but disputed by Justice Louis Marceau. On the matter of taxation, Robertson ruled that exempting band members from taxes is an inherent aboriginal right that flows from the historic obligation of the Crown to protect Indian lands, an obligation first recognized by the Royal Proclamation of 1763. On taxation, Marceau supported Robertson but Desjardins disputed the finding. The end result was both Marceau and Desjardins had dismissed the bands' appeal, even though the dismissals were on different grounds, so the appeal was considered to have failed.

Canadian Pacific Railway and the Canadian Council of Railway Operating Unions (CCROU), representing approximately 4,800 train crew personnel, announced that a four-year contract settlement (January 1, 1999 to December 31, 2002) reached on May 26 has been ratified by a large majority of CCROU members. The CCROU is comprised of two international unions, the Brotherhood of Locomotive Engineers (BLE) and the United Transportation Union (UTU). This is the first major railway labour settlement in North America to extend beyond 2000. The agreement provides for wage increases of two per cent in each of the four years of the contract. In addition to benefit and pension improvements, the agreement contains provisions for improved productivity by allowing greater flexibility in training and scheduling.

Longer trains are coming to Canadian Pacific Railway (CPR) lines across Canada and the United States as part of the company's latest drive to improve productivity. About 50 per cent of CPR's main line trains will be affected by the new operating strategy, with some trains measuring up to 2,750 metres (9,000 feet) long and carrying up to 150 rail cars. Previously, the standard maximum length of CPR trains was about 2,200 metres (7,200 feet), or 120 cars. While the railway has operated trains of this length in the past, new investments in locomotives, infrastructure and information systems are allowing the railway to operate 150+ car trains more regularly, giving it an edge in productivity. At the same time, by running longer trains, CPR is consolidating traffic on to fewer trains, creating more capacity. While longer trains will be operating on almost all sections of the CPR main line network in Canada and the U.S., the railway will restrict the longest trains of 2,750 metres (9,000 feet) to the following corridors: between Toronto, ON, and Calgary, AB (westbound only); between Montreal and Smiths Falls and Sudbury, ON (westbound only); between Moose Jaw, SK and St. Paul, MN (northbound only); between Winnipeg MB and Glenwood, MN (northbound only).

Some time around 1400 July 21, a westbound mixed freight headed by CP 5638, 5687 and 5645 derailed three locomotives and eight freight cars at the front of the train, in Buffalo NY. The derailment occurred near the Bailey Avenue (near William Street) overpass of the Southern Tier line leading into CP's SK yard. According to a Buffalo fire chief a small amount of fuel from one of the locomotives spilled. This is usually a slow speed area and the bridge is single track. The train blocked the Southern Tier and the NS connection to their Bison yard facility for some time.

Shell Canada Limited, Sultran Ltd., and Canadian Pacific Railway (CPR) had tonnes of reasons to celebrate July 20; ten million tonnes, to be exact. The most effective formed sulphur unit train service in the world moved its ten millionth tonne of sulphur out of Shell Canada's Shantz Sulphur Forming Facility on that day. The Shantz facility is near Didsbury, about 100 kilometres north of Calgary. Hot liquid sulphur is transported from Shell's Caroline gas processing plant via a 42 kilometres underground pipeline to Shantz, where it is cooled and formed into dry pellets, loaded on special gondola cars and sent to the west coast to be shipped to markets around the world. Since the facility's opening in 1992, CPR, Sultran and Shell have worked together to expand sulphur transport from Shantz at an almost unbelievable rate, from shipping 15,000 tonnes its first year of operation, to an output of two million tonnes in 1998.

SHORTLINES

Canadian National announced August 3, 1999 it has reached an agreement in principle with Trillium Railway Company Ltd. for the transfer to Trillium of 66 kilometres (41 miles) of industrial feeder track on Ontario's Niagara Peninsula. The Welland West lines between St. Catherines and Welland, Ontario, consist of sections of CN's Cayuga subdivision and Thorold, Canal, Grantham, Fonthill, Town Line and West Welland spurs. These lines, which transport mostly paper products, industrial chemicals and metals, handle an average of 1,400 carloads of freight annually and will be operated by a Trillium subsidiary, the Port Colborne Harbour Railway (PCHR). The PCHR has operated 11 kilometres (seven miles) of track along the Welland Canal since 1997, following CN's sale of the track to the Municipality of Port Colborne. Trillium last year acquired a section of CN's Cayuga subdivision between St. Thomas and Delhi, Ontario; this track is operated by Trillium's St. Thomas and Eastern Railway Co. subsidiary. Trillium, a short-line operator with corporate headquarters in Dunnville, Ontario and administrative headquarters in Gowanda, NY, is owned by Canadian entrepreneurs and U.S. operators of short lines. The actual date of transfer is to be September 18, 1999.

The Ferroequus Railway Company Limited, has been given permission to operate non-revenue test moves over the CASO Subdivision between mile 112.0 and 112.5 in St. Thomas; that's only half a mile. The reason for the permission to do so, granted by Transport Canada, is to allow Tom Payne to operate his Reading 2100 under steam. The 2100's restoration and conversion to oil firing started (finally) the last week of July at the former CASO shops in St. Thomas Ontario.

It would appear the final runs of CN GMD1's on A1A-A1A trucks on the Lewvan Sub., may soon be completed. It would appear some test runs on portions of the subdivision where tie bars and related were replaced will allow GP38-2s to operate where before only the lightweight GMD1s may have trod. The Lewvan Subdivision is the last remaining portion of CN's lines still utilizing 60 pound rail. The 1063 in Regina had not been used since July 5, which was the last time they ran to the Lewvan Sub. The 1600-1601 were last used last July 15, when they coupled them with GP38-2's 4778/4703 to go west to Kalium of the subdivision for some potash.

CN has disposed of the following properties: In Manitoba the Carman Sub., mile 0.13 to mile 50.50, to CEMR, a subsidiary of Cando Contracting, effective June 6, 1999; the Pine Falls Sub., mile 0.20 to mile 67.10, to the Central Manitoba Railway, effective May 2, 1999; in Alberta the Grande Cache Sub., mile 1.80 to mile 232.90, the Grande Prairie Sub., mile 0.0 to mile 89.10, and Smoky Sub., mile 306.20 to mile 357.80, to RailNet Inc. for operation as Alberta RailNet, effective June 27, 1999; and the following abandonment, effective April 15, 1999 and in Saskatchewan the Imperial Subdivision, mile 9.2 to mile 50.6 has been abandoned.

There's another shortline railway in Saskatchewan. The farmer- owned line opened the last week of June 1999 from Pangman to Assiniboia. Kevin Klemenz is the president of Red Coat Road and Rail. He says the line needs to move at least fifty thousand tonnes of grain a year to break even. Klemenz says the wet weather and poor crop outlook will make things interesting.

Six cars filled with grain bound for Churchill Manitoba derailed late July 8, 1999, 160 kilometres south of Gillam. No one was hurt. however passengers on a Via Rail passenger train going south were temporarily stranded in Gillam. Omnitrax Canada owns the railway between The Pas and Churchill.

According to the Edmonton Journal 90% of the shares of RaiLink were conveyed to RailAmerica on Friday July 16, 1999. The deadline for the deal was Friday July 16 at 1700 Edmonton time. There will be little if any change in management or employee rosters. Rail America have indicated that they will not interfere with present business practices or operations of RaiLink.

It would appear the Cartier Railway in Quebec is considering the cost effectiveness of rebuilding their current fleet of Alcos with Caterpillar prime movers or perhaps purchasing new General Electric built locomotives. The general feeling is to purchase 14 new General Electric locomotives with AC capabilities rather than do the rebuilding. Some of the fleet of Alcos would be cannibalized to keep other Alcos operating.

Cape Breton & Central Nova Scotia has a new caboose on the property ex CN 77021 from the former CN Montreal Auxiliary. On June 30, 1999 GP7u 2160 was the Stellerton switcher, GP18 was moving coal from Port Hawkesbury to the power plant at Point Tupper, and the last RS18 3842 was the Sydney switcher. GP9 62 ex Indiana & Ohio 62 was parked at the back of the shop with mechanical problems. GP7u 2176 was in the Sydney shop being worked on to take 62's place. GP50 3108 that rolled on its side following a January derailment is back in service. All C630's and the three remaining RS18s that are in the dead line are for sale. Two parties are interested but if they are not sold they will be scrapped.

On July 27, 1999 the following motive power was noted at the Ontario Northland Railway Shops in North Bay, Ontario. Inside the ONR shop the following were observed: GP9 1604 with long hood removed; GP9 1602; SD40-2 1731; FP7Au 2001, and SD75I 2102, 2104, 2103 and ex-VIA FP9Au 6303 being rebuilt into RLK 1401. Outside only GP9's 1600 and 1603 were idling. In the deadline in the yard were wrecked GP38-2's 1803 and 1807, wrecked SD40-2 1732, retired FP7A's 1520, 1508, and one other, and ex-MILW F-B's 126C, 73B, 121B, 84B all in poor condition.

The following were observed at CLN Industries, Capreol Ontario in July 1999. Former GTW GP9's 4438, 4444, 4446 owned by Western Rail Dismantlers now painted a medium blue (like MoPac) with a white frame stripe and another horizontal white stripe about a third of the way up the unit, all the way around. Former Squaw Creek Coal U33C's 3809 and 5752 are now lettered DJPX and painted just like a CR lease unit; a solid Conrail blue. Also in evidence ex-CN GMD1's 1149, 1169, and 1910; ex-CP SW1200RS 8100; ex-CP SW1200RSu 1209; ex-SOO SW1200 1222 still in MILW "Bandit" colours; ex-SP SD35R 2966 without hood or prime mover.

MOTIVE POWER

The following 22 CN GP9u's surplus to Canadian needs have been transferred to the Illinois Central's Woodcrest Shop in Homewood Illinois: 4011-4019, 4021-24, 4027-4031, 4033-4036. In addition 131 Grant Trunk Western locomotives, formerly assigned to the main GTW shops at Battle Creek Michigan have been shifted as well. These are: GP38-2s 4912-4931; 5812-5836, 5844-5861, 6221-6228; GP38ACs 5800, 5801, 5807, 6200, 6201, 6203, 6206; GP40u 6401; GP40-2 6406- 6425; SD40s 5900-5914 (5902-5911 DWP), 5916, 5917, 5919, 5920, 5921, 5922, 5924-5925, 5927, 5928; SD40-2s 5930-5937. This will leave the following GP9us 4600-4635 and GP38-2s 4900-4911, 4932- 4334 assigned to the Grand Trunk Western at Battle Creek. In addition no motive power is assigned to the Duluth Winnipeg and Pacific.

The following CN locomotives are stored serviceable, long-term: GMD1 1150, 1160, 1180, 1181; CN SW1200RS 1339, 1355, 1357, 1362, 1364, 1366, 1371, 1375, 1381, 1383, 1385, 1386, 1396; GP38-2 4705, 4706; GTW GP38-2 4927; GTW GP38 2000; GTW GP40-2 6408, 6413; CN GP9RM 7240, 7259; CN SW1200RM 7300, 7301, 7306-7308, 7314; GP40-2L(W) CN 9401, 9403, 9408, 9412, 9414, 9432, 9434, 9438, 9458, 9459, 9463, 9465, 9466, 9470, 9471, 9472, 9478, 9480, 9522, 9526, 9570, 9632; GP40-2(W) 9634, 9636, 9641, 9642, 9644, 9646, 9647, 9649, 9650, 9651, 9652, 9653, 9655, 9656, 9657, 9659, 9660, 9662, 9663, 9664, 9665, 9667. (above as of 1999 08 07)

CN SD75 5791 was released from Alstom on July 28 and sent to General Motors in La Grange Illinois for emission testing purposes.

The following CPR units are stored serviceable. Units so highlighted are for sale: SOO SD40 738, 739, 745, 746, 748, 755; CP lettered [on SOO] SD40 741, 747, 752, 756; SOO SD40-2 757, 758, 759, 761, 762, 763, 765, 767, 768, 769, 770, 771, 772, 774, 775, 780, 781, 789; CP [on SOO] SD40-2 760, 777, 783, 784, 785, 786; SOO SW1200 1203; SW1200RS 1210; CP GP9u 1521, 1526, 1557, 1559; CP GP38-2 3030, 3032, 3036, 3039, 3045, 3048, 3058, 3100, 3130, 3134; CP SD40 5401, 5404, 5407. 5412, 5413; CP [on StL&H] SD40-2 5424, 5425, 5426, 5485; CP SD40M-2 5499; CP SD40 5503. 5508, 5514, 5525, 5528, 5530, 5548, 5556, 5559; CP SD40-2 5482, 5693, 5700, 5706, 5616, 5724, 5762, 5818, 5823, 5824, 5827, 5833, 5864, 6057, 6058, 6070; CP [on SOO] SD40 6400. 6403, 6404, 6405; CP [on SOO] SD40A 6406, 6407, 6408, 6409, 6410; SOO SD40-2s 6606, 6608, 6609, 6618-6623 (these last units will be returning to their lessor in October after 20 years); CP SW1200RS 8106, 8111. (as of 1999 08 07)

The following CPR units are stored unserviceable. Units so highlighted are for sale or have been sold: SOO GP7 378, SOO GP9 410 (sold to Dakota Missouri Valley Rwy); SOO SD40 753, 754; SOO SD40-2 787 (sold Unicapital); SOO MP15AC 1554; CP [on StL&H] GP9u 1599, 1649; CPR GP38-2 3030, 3053, 3055; SOO GP9R 4201; CP [on SOO] GP40 4607; CP [on StL&H] CP SD40-2 5416, 5428; StL&H SD40-2 5447, 5449; CP SD40 5410, 5509, 5533; CP [on StL&H] SD40 5502 (to Helm), 5510, 5515, 5516 (to Alstom), 5518, 5521, 5551 (to Helm); CP [on StL&H] SD40-2 5483, 5571, 5589, 5596, 5608, 5628, 5659, 5685; CP SD40-2 5740, 5832, 5839, 5843; SOO SD60 6007; SOO SD40 6402; CP [on StL&H] GP9u 8236, 8243, 8232; CP [on SOO] GP9 8275; CP [on SOO] AC4400CW 8518, 8566 (these last two may be out of service for about a year for repairs). (as of 1999 08 07)

Probably as of mid-August 1999 the CPR will have no locomotives leased in service although some leased motive power may still be on the property awaiting return to the lessor. This must be the first time in thirty years or more this has happened! There may be some leased power operating on CP after this date however said motive power will be leased to others and running through or paying back horsepower hours owed to CP by the company which using said leased power to pay back said HPH to CPR.

Canadian Pacific has acquired GP40-2 4650 (exx HATX 501, ex GTI 308, nee B&M 308 sn 776025-9); 4651 (exx HATX 503, ex GTI 316, nee B&M 316 sn 776025-17); 4652 (exx HATX 506, ex GTI 310, nee B&M 310 sn 776025-11); 4653 (exx HATX 507, ex GTI 309, nee B&M 309 sn 776025-10); CP 4654 (exx HATX 508, ex GTI 315, nee B&M 315 sn 776025-16); CP 4655 (exx HATX 511, ex GTI 302, nee B&M 302 sn 776025-3); CP 4656 (exx HATX 513, ex GTI 301, nee B&M 301 sn 776025-2); CP 4657 (exx HATX 4657, ex GTI 306, nee B&M 306 sn 776025-7). These locomotives were completely reconditioned internally by Independent Locomotive in Minnesota, however somewhere along the way the locomotives did not get repainted. They are now lettered CP however the paint is in the fading colours of Guilford with some of the Boston & Maine blue showing through as well. These are assigned Toronto; welcome to the ugly sisters.

Essex Terminal (Windsor, Ontario) SW8 104 purchased new in 1954 has been sold and moved to a Cargill operation in Bloomsberg Ohio.

Former CN SW900 403, purchased earlier in 1999 by AAM from CLN- Charny, moved on CN 449 July 9 to Coteau, Quebec and is waybilled to Ivaco at L'Orignal on the Ontario L'Orignal, reporting marks IVACO.

GMD1u 1437 didn't do too well on the Okanagan Valley Wine Train and has been replaced with GP9u 7063. The 1437 moved to Edmonton for repairs and was to be the unit to be leased to the makers of the movie "Shanghi Moon" on the Drumheller Sub. filmed during July and August of 1999.

Former Stelco SW8 454 (EMD 07/1953, sn 18354, ex-Stelco 5454; exx-SP 1124. 9/79, nee SP 4619 was seen in transit from the Lake Erie Steel Company division of Stelco at Nanticoke Ontario on July 4, 1999. The locomotive is headed to Larry's Truck Electric in Girard, Ohio. It was lifted on July 4th by CN train 399 to Sarnia, then on 381 to Detroit, arriving there on July 5, and then to Flat Rock Yard the south for interchange with CSXT in Toledo.

Canac has sold one M420W and one HR412 to the new Manitoba Southern. Units 3518 and 3536 were to leave Montreal by the first of August. The 3536 is none other than former Bombardier 7000, the solid black one, not the CN unit with the same number. In addition another Canac M420W has been sold. The 3576 was moved in late July to the Tennken of Dyersburg, Tennessee, their third purchase of an MLW! It'll move CN-IC all the way.

The following individuals contributed to the September 1999 Canada Calling: Rainer Auer, Jayphred, Jim Brock, Bruce Chapman, Tim Green, Doug Hately, Gerald Henrickson, Peter Jobe, Joe Kazmar, Randy Kotuby, Dave Lisabeth, Shaun McGinnis, Bill Miller, Mark L. Miller, Carl Perleman, Stephen Reeves, Wayne Regaudie, Thomas Sajnovic, Jim Sandilands, Glen Smith, Smith Brothers Cough Drops, Mike Swick, John Wendelin.

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