By 1915, the line was opened from Squamish north to Chasm. The railway was starting to run out of money, however. In 1915 it failed to make an interest payment on its bonds, obliging the provincial government to make good on its bond guarantee. In the 1916 provincial election campaign, the Liberal Party alleged that some of the money advanced to the railway for bond guarantee payments had instead gone into Conservative Party campaign funds. In the election, the Conservatives, who had won every seat in the legislature in 1912 election, lost to the Liberals. The Liberals then took Foley, Welch, and Stewart to court to recover $5 million of allegedly unaccounted funds. In early 1918, the railway's backers agreed to pay the government $1.1 million and turn the railway over to the government.