J.B:
There is a very nice book on Kthe aslo and Slocan. It was written by Robert Turner who is the currator of the British Columbia Museum in Victoria. Bob gave me a vast amount of detail on Rotary #1 and it will be in the book I am writing on snow fighting. The RGS sold it for two reasons: they were short of $$$ and they had over estimated the need for a rotary on the south end of the RGS. They had planned to station one in Ridgway and the other in Rico or Durango. The RGS built a track in Durango that was called "snow plow spur." They never did base a rotary in Durango, but they did keep one of their three flangers there.
The rotary was standard gauged in 1913 and became CPR 400812 and it was retired in July 1928.