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Whenever possible, these have been omitted from fiiVning/ II se peui que certainet pages blanches aioutAes lort d'une restauration apparaissenf dans le texte, mait, lortque cela ttait possible, ces pages h'ont pas M filmAes. Additional comments:/ Cdmmeniaires tupplimentairas: This Item It filmed at the reduction ratio cheeked below/ Ce document est film« au taux de rMuction if«dlqu4 el-de«i0us. □ Quality of print v< Qualiti inAgile de varies/ Agile de I 'impression n Continuous pagination/ Pagination continue < Includes'index(es)/ Cohtprend un (des) index ' Title on header taken from:/ Le titre de I'en-tlte provient: f □ Title iMge of issue Page de titre de la I I Caption of issue/ livraison Titre de depart de la livraison □ MastheaiJir^^ G4nArique (p4riodiques) de la livraison % 10X 14X 1IX 22X 26 X 30X I2X lix 20X .i*x 2IX J2X • ^4. 'il !t e vue on s . 1. * Th« copy filmad h«r« hat b—n r«|)rodue«d thanks to Shii a*n*rosity of: .Britfsh Columbia Archives and Records Service. . 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L'axampiaira fiimA fut raproduit grica A la g4n4rosit4 da: V British Co1umb|1a Archives and' Records Service. ,»' Las imagas suivames ont txt raproduitas avec le plus grand soin, compta tanu da la condition «t da la nattat* da t'axampiaira film*, at an conformity avac las conditions du contrat da filmaga. Laa axamplairas originaux dont la co'uvarturs an papiar ast imprim4a sont filmis an commandant par la pramiar plat at an tarminant soit par |a darnlAra paga qui comporta una amprainta d'Imprdssion ou d'illustration. soit pflir la sacond plat, salon la cas. Tous laa autras axamplairas originaux sont film4s an commandant par la pramiira paga qui comporta una amprainta d'impraasion ou d'illustration i(t 90 tarminant par la darnlAra jsaga qui comporta una talla amprainta. Un das symbolas suivants tpparattra sur la d9rnikr9 imaga da chaqua microficha. salon la cas: la symbols ^-^ signifia "A SUIVRE". la symbols V signifia "FIN". N. %- ^Mapa. pittas, charts, ate., may ba flimad at " diffarant raduetlon ratios. Thoaa too larga to ba antlrMy Ineludad in ona axpoaura am flimad baginning in tha uppar laft hand cornar. laft to right and top to bonom, as many framaf aa raqulrad. Tha followlr>g diagrams illustrato tha mathod: Las cartas, planchas, tablaaux, ate. pauvant Atra filmAa A das taux da reduction diffirants. ^ Lorsqua la documant ast trop grand pour fttra raproduit' an un saul clich*. il aat film* i partir da I'angla supiriaur gaucha, d« gaucha * droita, at da haut an bas, 9n pranant la nombra d'imagatf nAcaasaira. Laa diagrammas suivants illustrant la mithoda. M' n / 41^ c^/^A^ '■-,_.. -^ tHE (CANADIAN PACIFIC 7?) the. Shareholders. ILWAY CO. Office of the Secre'i^^ry. MoxTREAi; May 8lh, IHSa. > For t ho inibrmiition of tho shari'hokh^rs of tho Cjuiadinn Farilic Railway Co., J am iiiNtnictod to transmit the (mi- closed table bf the Dominion rtlrliament yesterday ; also a copy of the Uesolutions which the Government have brou<^ht, down, and have ffiveii notice, will he moved on an early day. I am iurth<'r instructed to say that, a^ it must be some weeks before the lei>-islati()n ffiving- eths t t'o these resohi- fioufi can bi'come law, it will b(( necessary to adjourn the Annual and the Special meetinjr of the shareholders, adver- tised to take place here on the l;]th instant, to the KUh tailed statements on all matters pertaininj? to the position of the enteri)nse. As there appears to be some misapprehension as to the nature of the obligation assumed f)y the Do^uinion (Jov- crnment in rejrard to the payment o^f the divid.'ud of a per cent, per auuum, on Ih.'- i|M;r),0f)(),0O() .-apital stock of the Coinpany, I am instructed to' state that the Government, ■ for valid consideration, contracted with the Hank of Montreal, as Trustee for the individual shareholders of the Canadian I'acilic Railway Co., to pay the said dividend half y<.arly until Augiist, 18!t;{, and that th(« proposed re-arriuiKement of. the (Wipauy's linances does not, and <«annot in any way, allect .this undertnkiiijif, or interfere with the regular payment of the said dividend to tho shareholders. ■ . By order of the Hoard, • „_4iHAm,KH.imi?fKWA^Pfifc— = t I SetrHarj/. ' ^A^kAJfa'i f^'i W"tir-' o Xetier of Mr. Geoeoe Stephen, President of the Canadian Pacific Railway. Company,- to the Hon. Minister of Railways and Canals. Canadian Pacific Railway Company, Montreal, 18th March, 1886. Sir, In view of the approaching completion, of the contract for the construction of the Canadian Pacific Railway from Callander to the Pacific ocean, according to the contract entered into by this company, and of the consequent necessity for making timely and adequate provisioh for the unexpectedly large volume of traffic which the line has already developed, as well as for the great increase which it is now certain will take pkice on the ojieuing of f the through line in the 8prii\.g of 188(), the company finds itself compelled to seek for some re-arrangement of its finances which will enable it to procure the necW«sary capital required for this purpose, I have, therefore, the honor, on behalf of the Board of Dir^jcitors of this Company, to submit to you some observations upon the ppsition of the company, and offer some suggestion^ as to the neces- sary remedial measures for restoring to the company the free use and iiontrol of its own resources, and^ at the «ame time, of practioarlly providing for the repayment of the loan of last session, and relieving the Government, finally and forever, Irom all responsibility for or connec- tion with the Canadian Pacific Railway. It will be remembered, that uitder the provisions of the Act of last session, the Government, as security for the repayment of the loan to. the company, deemed it necessary to take ajatattltory lien, not only on the lino con- 100.773 «5> 1^; tracted to be built, but on the whole property of the com- pany, including its steamers and branch lines, practically stnppmg it of every resource it possessed, and leaving it without any means of providing for the important pur- poses of the enterprise, outside of the mere work of con- struction of the main line from Callander to the Pacific Ocean, and its equipment, to the extent contemplated by the contract, except its unsold stock. That resource, the only one the company had left, was rendered unavailable o-wmg, to some extent, to the provision in the Act, by which, in case of default on the part of the company in performing the conditions on ^hich the loan Was granted the Government could practically confiscate the whole property of the Company, but also, in a. greater measure to the unfair and malevolent attacks of the enemies of the company, acting in concert with some, happily only some, of the political opponents of the Government, aided by a venal section of the newspaper press of the country. From these quarters the company and its resources have been unceasingly assailed and discredited during the whole of the past year in the most unprincipled and un- patriotic manner. A large portion of the country traversed by its lines has been decried as a barren and worthless desert ; the advantages of the Northwest, as a field for |migration, have been depreciated, and attempts have been made to create the impression that the line, when opened, could not possibly pay its working expenses, and that the Government would be compelled to take posses- sion of it and operate it at a loss to the country, variously estimated at from $3,000,000 to $8,000,000 annually. In fact, the enemies of the company, both at home and abroad availed themselves of the stringency of the provisions of the Loan Act, and of persistent and unfounded misrepre- sentations of the country, and of the conduct of the com- pany, for the scarcely concealed purpose of wrecking the ti ut t> rpi iwr .^.Jl.ud£^il^^ 'itfuA, •' ^.-^Sl^&i^^ii.-i. I A.*1'«,'ii&iiitj By these means investors were alarmed, the stock was providing the company with the funds necessary forcarrv- pT wl" uTr. '®"'"'"^' "'"' *^ "'-lit of the coS- pany was all but destroyed. The company it will bo remem-bered, atthe time of the passaje of the Act, earnestly, but ineffectually, remou- strated against the severity of the conditions 'n whfch .ng effect on the future credit of the company of the stringent and apparently inequitable charLte'r o he . remedy „,,,„ ^^ ^^^ Q,,,,,^^,,^ ;„ j,„ ^^^^^ ^^ ' ^"^e hivrLTnTn/vrit'ed"' '''"'-'- '" '^-» -^--^ The shares of the company, at the time of the passing ol the Act last session, were selling at about $60 per JlOO «har s, aud were expected to advance to «7o or ' 80 (shortly afterwards they began to decline ; and they are ZJTtZ^- ''" y- """" 'he -cumstln" sh„!u f 1 , ^'P'-^'-S that the stock of the company The amount of the loan provided for by the act ' i^ J. i. i^M V s.'ti.tii "^ ^ 1 f 8 , Ocean, covering all terminalsbuilt, or to be "built, and all equ/pment and rolling stock now on the line, or that may be hfereafter put upon it- together with its tolls and r^enues, subject, of couree,-to the existing mortgages on the line from Montreal to Callander. . ' ' ' 3. The G?ovemment t» accent $15,000,000 of these bonds in part settlL ment of the loan to the Company, the balance of th^ loan tob^ paid ofTby a^eduction of the l^nd grant, to an extent necessary to cover the amount of the bt^lance of the loan, at the rate of $2 per a«re, which is 46 cents per acre less than the lands already sold have netted the Company in cash The loan of last session would thus be practically paid off, and the Company would have in its Treasury. ample resouVceS from its first mort- gage and land grant bonds to provide for its present wants as well as for " ■ the future development of its business ; and with its credft restored and re-estaWislied in the confidence of its shareholders it w6uld then be in a -' position to proceed, Ist, with the much wanted extension of the Manitoba Soutli Western Railway ; 2nd with the completion of the line to Sault Ste. Mane ; 3rd, to secure, in some way, a connection with the City and Harbor 9f Quebec ; 4th, yith reasonable aid from the Government to extend the Canadian Pacific system to the ocean ports of the Mq.ritime Provinces- 5th, It would also be in a position to aid indirectly in securing the early completion of its Ontario Division tq the Detroit River, and at the same time, removing for ever, dfl necessity for any further applications to the^ Government for assistance on the [)art of the Company. Its further neces- sities and the success or failure of the enterprise would thus be entirely" the affair of the shareholders themselves. 4. To enable the company to provide for present wants, and to give it time to realize on its securities, the Government to make a temporary loan of $6,000,000 for a term not exceeding eighteen months, on the security of the postal subsidy payable by the Government to the company, supple- ■ ment«d by a deposit with the Government ef $5,000,000 four per cent firet mortgage bonds. 5. If the forgoing suggestion is adopted, an amount of the Land Grant Bonds in the hands of the Government, equivalent to the number of acres deducted from the land grant, musi be cancelled; thfe balance of those ^bonds, then remaining, tobc returned to the company. ' 1 regret that circumstanpes should have placed it in the power of th« enemies of the Company to compel it to make this application to tfie government ; but hope the. suggestions now offered will receive favorable considera- tion, Their adoption would have the effect of gradually restoring the credit of the Company, and of placing the enterprise in a condition to do its work efficiently and / >(i»!&^ rif 9-'« ^ «ucce«fally,. without in^rolving the governruftnt in uy pennanent additfonal outlajr^on behalf of the^ompany and- actually proyidfng for the practical repayment of the I existing loan. < ^ <> conclu8ion.it only -remains for me to add that in making this application to the aovernment, "l do so with tho fullest faith and .confidence in the present and future ^oney-earning power of the enterprise. l' am satisfied f !!..*^r 'TTf^ ^f *^« Company are amply suflficient faithfully>&nd honestly to discharge ev(*ry obligation it has incurred, whgther to the. ^qvernment or to others ; and that the Cana5TSn Pacific Railway, upon jts final comple- tion and equipmeiTt. will be one of the -most important and prosperous Railway properties on this continent. Statements are appended showing the amounts ex- pended on . improvements, on main line and branches rolling stock, etc., in 1884, beyond the requirements of" the contract; and an^ estimate of the probable expendi: ' ture, for similar purposes, up t<» Mey, 1886, with several ' other statements bearing on some l^f the matters referred to in this letter. ' \ 1 have the honor to be • * ^ ^ • Sir, ' ■ - Your obedient servant, ' , ' .. ' ' (Signed, - Geo. Stephen rr. >T President. Ihe Honorable the Minister of Railways and Canals, Ottawa. •' -?^- % Statement showing the amounts expended by ihe Com- » pany on ,81st December 1884, on cg&structioif'^f main' line and branches, exte^isions, terminals, ilubroven^ihts / -^ 1 1 ipn^o n t, mtefwt atwi diYi4enrBTal86^bWm» the to^ - 4 *•« 4.* 10 amount received by the Company from its cash and land sifbsidies, and from Government loan : 1. Expended on main line and branches . . •> $52,595,842 2. Expended on equipment )),1()8,755 3. Expended on improvement of Government lines. ....... 1,241,780 4. Material on hand 3,087,729 5. Expended on advances to secure access to the Seaboard, and for other purposes within the diaster, and on leasedlines • 5,857,223 Tbtal expenditure to 31st December $72,561,329 ADDITIONAL EXIJ^NDITURE. Sum now in liands of Government to jmy if ine years guar- anteed dividend $14,28H,28K Dividend paid '• .' ' 5,378,000 Interest on land grant bonds •. ■ 582,734 iill)2,8(K),351 Total amount rticeivod from cash and land subsidies and from Government loan Balance . 55,632,651 $;^7,2(t7,700 L G. OGDEN, Auditor. Amount exiHUulod in excess of receipts up to 3l8t Deceinlnir, 1883, as shown by statement of that date $37,377,175 Amount rt«'eiveraj?e, mail and express carfl, omiRrant cars, box and rattle care, conductors' cars, derrick, tool and other auxiliary care, locomotives, hand cars, jnish cars, track tools, sema- phores and other e(]uipmoht requisite for operation of line, also for restoring <-onstru(J||fe| locomotives tb|<(XKl workinj; condition ^P. ^ $1,0(10,000 For elevators, Port Arthijr, Montreal, itc, txjal bunkera, Montreal, additional real estate, Montreal and else- whefti, revetment walls at Montreiil, additional de|x)t and tracks and other facilitit«, Montreal and other points, additional yard room and tracks, coal and other docks, and other terminal facilities at Fort William antecti(m, I. ako Hu|)flrior section... < .. 160,000 Prairie section , oblite rating rumainint r cu tlin gw 100,000 TerniiiuiT racllTtios al tJuebtH- ..'■'■ T. 200,000 $910,(H)0 i»^ .12 ; - Statement of amounts expended on improvements on mam hue and branches, additional equipment, &c., iu 1884 m excess of estimates received, and beyond require- ments of the contract, and for which no part of the gov- ernment loan or, subsidy was available : Montreal to Sudbury ^ ^,„_^ Sudbury to VVinnipej? ;;; \l^'^^t Winnipeg West , oof Expended on branches .!!! .\' .'.'.'".'.'."..".'." ' '^SS Expended on Government lines IsoW ExjxMidod in additional equipment ..!".!.. 54?.'86« — ?i502jfl84 Amount paid during 1884 on interest dividends, exchantre insurance und general exjxinHos .....' ;} 478 486 Wot include.! in abovgti.e estimate of extra expenditun< on ~~' ■ construction liotweon Michipicoten and Tort Arthur Ixo'on.l the requirements of tl.e contract, amounting to *2 rm 000 Sfatement of the Accovntant apfminted by the Government t6 -examine the lH)oks of the Company. .. Ottawa, 4th May, 1885. SiR,-I have the honour to state that, in accordance with your instructions of the IBth ult., and the further verbal recjuest of the honourable the Finance Minister I have carefuUy examined into the books of the Canadian lacifi,. Railway Conppany, and have extracted from them a balance sheet showiqg the state of affairs on the 81st December, 1888, and the Slst December, 1884, respec- tively. From this balance sheet I have constructed a statement, exhibiting tho.|e phases of their expenditure into which the h(«lourable the Finance Minister directed me mtiVe particularly to enquire, vi«. :-The extent of expenditure made by the (Company upon the main line rial,etc Ivi8i),474 4,213,758 !),1 08,755 ltet»ived from Government— $«H,()83,580 Loan ""'^''^y $20,240,317 I-ress n^tained for dividend Kmirantw, $7,3«0,!»12 -. 18,«2(t,(5(K) Land — Proceeds of H,702,OH() $47,5(111,003 ExjxMided on main line out of Comimny's rosourtHw $20,514,577 Exixnidal (Hit of Company's funds on connectiouH 5,H57 224 Dividend ^. r'-i-u'/wm, ,, ' 6,3(8,000 i»e|)OB)t with (loverumont to KUarantee dividt-nd (1,»KI7,377 Total oxp«Mi(litun« mwle and liahilities incurred of other than Ciovernniont resouroe* $;W ((57 178 I*rovldod thus . — '— Vi*t''^' *21I,5(W,12;H »^'""'"«! 232.«(M> l."W" «'«*«' m,m Karninm $l,(12»l,0fi3 Leas— BulamwH duo l(tlt,745 .,, ., , , l,45(i;jl8 Hoatlng debt (I,W>B,4<>2 — .. , |a »,UB 7 ,1 7 H " Resolutions. On Tuesday, the 30th April, 1885, the Premier, The Rt. Hon. Sir John A. Macdonald, gave notice in the House of Commons of, and laid on the table, the follow- ing Resolutions : — . 1. That the Canadian Pacific Railway Company, under the authority of its shareholders, as provided by the 28th section of its Charter, may issue and deliver to the G-ov- ernment first mortgage bonds to the extent of $35,000,000, bearing 5 per cent, interest, such bonds to constitute and be a first lien and charge on the «^ntire property of the Company, real and pejjjional, now owned or hereafter to be acquired, or owned by it (save and except the lands granted or to be granted by the Government to the Com- pany under the said contract), including its main line of Railway with its tolls and revenues, the extensions there- of; its branch lines of Railway (except the Algoma Branch), the whole of its equipment, rolling stock and plant, and all its steamers and vessels, saving always, however, the rights of the holders of the existing mort- gages on th(! extensions of (he line of the Railway from Callander to Brockville and Montreal as secudiy for the unpaid balances of the purrhase money pf the "said exten- sipns. 2. That the Company may secure the payment of the said Bonds and of the ijiterest thereon by a Deed of Mort- gage executed by thi^ Company to Trustees to be approved by the Govt^tnioent, with the authority and, of the tenor and purport, and containing the condition^ n'medies, pro- ' visions and powers authorized -and provided for by the 28th Section of the Charter of the Company, to such extent and in such manner and form as shall .l>o approved by th»^ Cfovornor in Counoil ^ 3. That upon the issue and delivery of the said Bonds t, TiR»^iTnTr"Sna"THSl'if6 Vn^alU by the t t i It I 15 Act 47 Victoria, Chapter 1, intituliid : " An Act to amend the Act respecting- the Canadian Pacific Railway Com- pany and for other purposes"; upon the Railway and ^rq^- perty of the Company affected by the said Bonds and by) the Deed of Mortgage securing the same shall cease to exist, and shall be released and discharged in respect of the Railway and property so affected, and the shares in the capital stock of the Company, to the extent of 135,000,000 now in the hands of the G-overnment shall be cancelled and destroyed. But the Algoma Branch shall still remain charged with the lion and charge created by the said Act. 4. That the time for the payment of the entire^loan to the Company of !5;29,H80,912 shall b'e fixed at the first day of May, 1891, and so long as default shall not occur in the payment of principal or interest at the times whon they shall respectively become due, the interest upon the said loan shall be computed at the rate of 4 i)er cent, per annum. But llic Company may at any time pay the amount of the said debt or any part thereof in sums of not less than !^1,0()0,00() ; and if such payment be made on account of the sum of |i20,000,000, hereinafter mentioned, sonding amount of Bonds shall b«' returned to it. 5. That as security for the i)ayment of |20,0()J).0()0 of such loan and of the interest thereon, the GovernmVuit shall hold and retain $2(»,000,000 of the said first mort- gag(> bonds, aijd in respect of such bonds shall have all the rights of bondholders except as to thc! rate of iaterest as provided in the last pre<;eding section. And upon pay- ment of aiiy half-yearly 'instalment of such interest the half-yearly couponsattached to the said bonds, correspond- ing to such half-yearly payment of interest, shall be cancelled and surrendered to the Company. But if the Qo mpany m a ke s defaul t iii t h e pay men t of the i nter est on the said sum of #20,000,000 or of the principal thereof at 't • 16 be computed at the',r„^6 pertun ef ""'"'"''" .«ch default .hall be equivalent to a defaultTT ^ ""^ .^eajrrhV aVtroarSe" r '''^''"" "-» the said Bonds- andTnon th r °' P™"''*' "^ default in respe t" ei ZtJ "T'' """'"»»e '" said *?«,000,000 L a tToI tTZtr '".T"^ °" '^^ , shall be authonzed and mpoweldto tlt^' '^™""' the property mortffaired >JT 7 Possession of theben'e«t:,the'ShoMer:;e''Sr" ""' ''"" "" th'said W,: Z::Lf; ;t're^™™' 1 "■" "^'anee- of .i_ • '"""uuimg to the sum of !ft<»8snoio j he interest thereon, the Government shall h'« paid out of the uett pro,-«eds of th„ =11 """t , *"' and the Government shalo^^te , VL™'*. '""''^ ' the entire amount „flJ^,dG™ Bo" d,, """^ "'"'"' and possession as provided bT the s^M IT "'I^rf':l^ nett pro<-oed8 of su.^h sales to b„ „7a\ ^ ^ '' ""•> ees ot snch lands or any Part thfir^nf i« u t h eretn. shall h^^^^ ^ J^ I I'^^ - g"^ charg ed ■1 t 11 ference over the shareholders. And no further or other charge shall be created qn the property mortgaged as security for the said first mortgage bonds until the said sum of $9,880,912 and interest, and also the^said sum of $20,000,000 and interest shall have been paid in^full ; and after payment out of the proceeds of such lands of the outstanding Land Grant Bonds, and of the said sum of $9,880,912 and interest, the remainder of such lands shall remain charged with a first lien and privilege in favor of the Government as additional security for the payii^nt of the said sum of 120,000,000 and interest. 7. That the Government may make a temporary loan to the Company of 15,000,000 to be repaid by the Company to the Government on or before the 1st day of .Tuly,^886, with interest at the rate of 4 per cent, per annum payable on the Ist day of January and the 1st day of July, 1886, the Company to have the right to repay the said loan by instjilments of not less than $1,000,000 each, and to receive . on the payment thereof, a corresponding proportion of the amount of said bonds heid as security therefor ; and after reserving part ol the said bonds to the amount of $8,000,000 to be held by the Government as security for the said temporary loan, and to ba dev ered to the Company on payment to the Government pf the said sum of $5,000,000 and interest in whole or in part in proportion to such payment, the remainder of the said Bonds shall be from time to time paid by the Government to the Company, to b(^ applied by the Company under the supervision of the Government to the payment for work done or to be done for the development, improvement and extension" of the Railway, its connections an^ equipment, and for the main- tenance of the credit, and efficiency of the Company ge^- erally to the satisfaction of the GovernmefiT; and if the BondB i n the hands of th e Government, or any piirMh4»r 4» of, shall !)« sold by the Company at a price satisfactory to the Government, the proceeds of such sale shall be paid int» 18 the hands of the G-overnment in the place and stead of the Bonds so sold, and such proceeds shall be dealt with as is hereinbefore provided with respect to the Bonds they represent. 8. That the proportion to which the G-overnment is en- titled of the moneys realized by the Trustees of the Land Grant Bonds ; and after the redemption of the Laud Grant Bonds, the proceed? of all sales of Land granted or to be granted to the Company, under the contract, realized as provided by the said Act, shall be applied to the pay- ment of the interest and principal of tfie said sum of $9,880,912. And after payment thereof in full, towards the payment to the Government of the interest and prin- cipal of the said sum of $20,000,000. 9. That the said Act of- last Session (4*7th Vidonn. Chap. 1), shall remain in force except in so far as it is affected by the provisions hereof. 10. That if at any time any line connecting with the United States system of Railways shall be in course of construction to a point on the river St. Mary's, and there shall be a probability of the ei^rly completion thereof ; and the Company shall desire to continue the Algoma Branch to a junction with such line ; the Governor in Council may, in their discretion, and' upon such condi-- tions as they shall determine, order the release and dis- charge of the said Branch from the lien and charge thereon created by the said Act, and continued by this Act, and may, by such order, authorize the Company to exercise in respect of the said Branch, the power of mortgaging the same in manner and form as provided by its charter with respect to mortgaging the main line thereof, to such ex- tent per mile as shall be fixed by such order, the proceeds of such Bonds to be applied exclusively to the construc- tion of the extension of the said Branch to such junction. U &:(,l£t ^ ^ri»^&^ f'V < 7\ i 'i»'