A staff of engineers has been established at headquarters, which prepares standard plans and specifications, for bridges, culverts and buildings, and develops uniform methods and instructions for the construction and maintenance of such facilities, instead of having it done at the various offices of the Chief Engineer. The members of this staff were generally withdrawn from outlying offices where they were not replaced. The establishment of this office does not represent any considerable increase in cost. It was formerly difficult to secure satisfactory reports of operations, exercise proper control, or make fair comparisons of results and costs, because there was no uniformity in connection with reports. Standard forms of reports and methods have been adopted with very favorable results. A very fine system of Operating Statistics has been inaugurated similar to that in use on Class I United States Railways, which makes it possible for Division, District, General and Executive Officers to know promptly the results from and the efficiency of operation in any territory. The benefit in reduced operating costs resulting from numerous physical improvements is now being felt. The provision of those contemplated, particularly in respect to water supplies and track connections to short-route traffic, and save train mileage, will also have a very important effect upon operating costs. Very substantial improvements in freight and passenger train service, in economy of operation and satisfaction to the public have been effected, the latter being indicated by the steadily increasing public patronage. Much of the criticism of the National Lines is due to conditions which are now largely non-existent, or to lack of information as to the character of service now furnished. As a striking example of the progress that has been made, the western grain moved to the Head of Lakes during September, October, November and December, in 1920 and 1921, respectively, is quoted:-- 1920 42,016 cars. 1921 65,238 cars. One of the greatest handicaps is the necessity of maintaining duplicate main lines in certain provinces, involving great additional expense without proportionate increase in revenue. Another is the extremely low traffic density of a considerable proportion of the system mileage, which must be operated throughout the year in the interest of people who have settled in adjacent lands and have developed business interests. Generally speaking, the lines in question have low grades, and an increase in population would make them profitable. Another handicap is the considerable number of older branch lines principally in Eastern Canada which must be operated, but on which the volume of traffic is so small as to involve very serious loss in operation.