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Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tablaeux, etc., peuvent Atre filmte i des taux da reduction diff Arents. Lorsque le document est trop grand pour ttre reproduit en un seul cliohi, 11 est f llmA i partir da Tangle sup4rieur gauche, de gauche i droite, et de haut en bes, en prenant le nombre d'imeges nicessaira. Lea diagrammes suivants illustrent la mAthoda. 1 2 3 1 2 3 4 5 6 ■,^%: *, 1 ^''s '• ; * 3J»1 •ii^ril??!^ ' _.-*--*r>.wL';v 'i*' .<" ' i jA S*" Lf^.^ ^OVA SC0TJ4 PROVINCE HOUSE >»>■". A.... ...A .*.■*.. . ... .^.y.-. '.A ■itt.Ca, ■!!- Ja ^ ■'^■-^^- '■'^•»^'''"<*^' RAILWAY CONSOLIDAHON. ¥f^| ^ K i ^-il '^1 ,4 .. 1 U f' Circular from the Hon. Provincial Secretary^ [Copy.] .- Provincial Secretary's. Office, , ,j ^; Halifax, Oct. 5, 1880. The Province of Ndiva Scotia possesses an interest in several Rail- ways which it is desirable to utilize in order to secure their beneficial and efficient management. Thefee Railways extend from the Strait of Canseau, in th^ Eastern part of tlie Province, to Yarmouth in the extreme West, which may be designated as the trunk line traversing its length, with a brancn from Middleton in the County of Annapolis to LuQbnburg. The Qovernraent of Nova Scotia have the power of acquiring all ot any of, these Railways an 1 with the object of consolidating such of them as might be advantageously consolidated into one system, propose to offer the opportunity of purchasing and operating them' to parties en^ gaged in Railway enterprises. With this view, I present for you coriv siueration the following brief description of these Railway 8, premising that the Intercolonial Railwt^ (owned bV the Dominion Government) traverses the Province of Nova Scotia in a northwardly direction from Halifax to the borders of New Brunswick. The lines controlled by the Province may bp divided into two sections, the Eastern and Western Divisions. The Eaidterti Division consists of a line extending from the StrMt of Canseau to Truro, a' distance of about 130 miles, and efnbracea the Eastern Extension from the Strait of Canseau to New Glasgow and the li ae from Pictou to Truro. The former line is about being com- pleted and i^ entirely new ; the latter has been in? operation for over twelve years, and passes through the coal fields of Pictou. The c ' The Westera Division consists of the VVindsd^ and Annapolis Rafi^ way; in length about 84 miles ; the Western Counties Railway, ex- tendihDg from Annapolis to Yarmouth, a distance of about 85 t^iles ; and £h6 Nictaux and Atlantic Railway, exfjendiiig from Ifiddleton to Lunenburg, a lergth erf about 72 miles. ' f- -- ^^ -c^ '■ '[.i'.-V^ T v.r i-r ft The Windsor and Annapolis Railway has been in operation for about eleven years, and traverses the Counties of Hants, Kinj^s ami Annapolis. Having been built by a company, the cost of construction cannot be exactly stated, but may be assumed at about $2,000,000. The Western Counties Railway, from Annapolis to Yarmouth, a distance of about 80 miles, is nearly completed from Digby to Yar- mouth, a length of 67 miles, which portion has been in operation for a year, and is well equipped with rolling stock, but will require about 8100,000 to fully complete it. The eighteen miles from Digby to Annapolis is mostly graded, but the work remaining to be done will by estimation cost about $500,000. The connection between the Western Counties Railway and the Windsor and Annapolis Railway from Digby to Annapolis, is at present maintained by steam over the Basin of Annapolis. The Railway from Windsor to Windsor Junction, known as the Windsor Branch, with running powers to Halifax, was granted as a subsidy to the Western Counties Railway Company, a.s an aid in building the line, but in consequence of their failure tu complete it according to agreement, is at present reserved by the Dominion Government and is leased to the Windsor and Annapolis Railway. The whole rights of this concession are, however, owned by the two companies named, jointly, and in the event of their con- solidation they would possess a Railway from Yarmouth to Windsor Junction with running powers to Halifax, embracing a length of 210 miles. The only gap thus existing between the Strait of Canseau and Yarmouth, or the extreme ends of the Province, is that portion of the Intercolonial Railway lying between Truro and the Windsor Junc- tion, of forty-eight miles. There is no doubt that the privilege of running powers over this section could be obtained from the Dominion Government on favorable terms, and thus the acquisition of these Railways would secure continuous connection from the extreme west- ern part of the Province to the Strait of Canseau. The amount of money expended on the Western Counties Railway to the present time may be estimated at about $1 ,500,000. The Nictaux and Atlantic Railway extends from the Annapolis Railway across the Province to the Atlantic ocean at Lunenburg. The line is only partially completed. There has been expended upon its construction about $250,000 and it is estimated that $900,000 would be required to complete it.. The company which undertook its construction have not been able to prosecute the work for want of funds, but are asserting their ability to complete the undertaking. The subsidies to the.se several Railways, as they now exist, contri- buted in cash by the Province, amount to about $7,000,000, exclusive of the right of way, engineering and other expenses. Their actual cost may be put at about $10,000,000. The general character of these roads as to construction is good, and in respect to some of them, as for instance the Pictou and Windsor Brancnes, superior; not being suvpassed by any Railways on the Continent of America, and in few instances equalled. This expendi- V ii \ 'i? I. » ^*^ I i i k % s ■i I ture consists of actual cash outlay, and does not represent sums based upon bonds or any inflated credit securities. The Government of Nova Scotia are desirous of ascertaining whether a consolidation of these Railways might be effected, which would be beneficial to the public interests in respect to their econom- ical and profitable management, and being in a position to place the whole or any combination of them that might be advantageous in the hands of Railway capitalists, desire to direct attention to the subject and to invite an examination of these Railways, with a view of en- tering into negotiations for the purchase, completion, and operation of the same. An inspection of the Map of the Province, together with the Rail- way system of the Continent of America, will £ fiord the means of arriving at such conclusions respecting the matter as may induce a more particular examination and investigation by Railway experts ; and I desire to state that the Government of Nova Scotia are pre- pared to consider offers for the acquisition of these Railways referred to, l)y parties who are interested in railway enterprises, and desire to invite your early attention to the subject, and are prepared to furnish such other information as may be in their possession respecting these Railways, and any communications made on this subject will receive immediate attention. 1 have the honor to be. Your obedient servant. [Copy.] S. H. HOLMES. January 11th, 1881. Referring to my circular of the 4th Oct. last past, relating to the Railways of Nova Scotia, and intimating the readin&ss of the Govern- ment to receive proposals for their acquisition, I beg to state that it is desirable the time for receiving such offers should be fixed, I now desire to say that the day of next has been decided upon as the last day for receiving offers. It is requested that the following particulars be observed in making an offer : 1st. For the Railways from Yarmouth to the Strait of Canseau with running powers on reasonable terms from Halifax to Truro. 2nd. For the same Railways with free running powers. ihd. For the same Railways, the cars to be hauled between these points, ut cost. 4th. For the Eo^stern and Western Divisions separately, the East- ern Division to include the Railway privilege above mentioned. V |>^ M |fL, V - -f / ^' fS! ^ • I," XTT The same offers to Vje made with the unilerstanding that the Gov- ernment ajrree to ijiiarantee bonds to an amount not exceeding three- lifths of the cost of the road, on the security of the road. I have the lionor to be, Your obedient servant, S. H. HOLMES, [Copy.] Sir,— May 25th, 1881. Referring to my circular of Jany. llth last, and all connnunicatioii.s to which it relates, I beg to intimate that the running powers over the Intercolonial Railway, from Truro to Halifax, therein referred to, have been granted by the Dominion Government, and are now com- municated, so as to enable you to modify your offer, as affected by the terms of such powers, which are as follows : The amount to be paid by the Government of Nova Scotia to the tntercolonial Railway to be that which will give the same percentage of revenues to the Intercolonial Railway over the whole line, including connecting lines, as it would receive under the ordinary traffic arrange- ments which would be made between two companies. In case of failing to agree, the matter to be referred to two arbitrators, one selected by each Government, the.se two, if nccessai'y, selecting a third. Any further information in my po.ssession will be afforded on application. I have the honor to be, Your obedient servant, S, H. HOLMKS. I'rovhiGud Si'crctdi'fj. u Copy. JuN'E 22nd, 1881. Referring to all previous circulars and communications relating to the Nova Scotia Railways, I now beg you to inehide in your tender an otter to construct and work the following ailditional IJranchcs : 1st. From Strait of Canseau to Louisburg or some other similar Kastern Port through the Island of Cape Breton — length about 75 miles, 2000 acres of land per mile and an allotment of minerals, to be agreed upon, being given as a subsiilj'. 2nd. From Pictou to some point on the Intercolonial between West River and Truro, dispensing with the prc'sent Ferry across Pictou Harbor. The iron for the permanent way to be furnished to the contractor — from ^0 to 2 jR';.>;t .:-i^ i said Intercolonial, provided that the Rates shall not be higher than Hot out in the Schedule attached, without the concurrence first obtained of the Dominion Government, and provided further that the Fare for the Local Passenj^er Traffic and the Rates for the Local Goods Traffic if carried over the said Intercolonial shall be the same as those charj^ed at the time by the Dominion Government for the like traffic between the same stations. (Til.) Any traffic between the Eastern Extension or Pictou Branch, and any place on those portions of* the Intercolonial Railroad not comprised in the Intercolonial referred to in this Agreement, shall be exchanged at Truro, and the through rates in respect thereof shall be agreed from time to time, and if no basis of division be agreed, such rates shall be divided on the basis of mileage. 7. The Nova Scotia Government shall deliver to the Syndicatees 300,000 acres of Crown Lands within the Province of Nova Scotia. 8. The Syndicatees shall be placed in the possession of all the special powers and privileges possessed by or originally given to the Halifax and Cape Breton Railway and Coal Company or others the persons from whom that Company now derive their powers. 9. The Synilicatees shall pay to the Nova Scotia Government, with the approval of the Dominion Government, the sum of ^2,000,000 (two million dollars.) 10. Tiic Syndicatees s),all be authorized to sell and transfer to, or substitute in their steail, a Company incorporated, or to be incorpor- ated nmler the Joint Stock Companies' Acts of 18fi2 and ISO? of Great Britain, or under an Act of the Dominion Parliament, or of the Parliament of Nova Scotia, provided that the Share and Loan Capital together of such Company .shall suffice to provide for the stipulated payment of S2,000,000 (two million dollars) to the Nova Scotia Gov- ernmont, and to provide for a working capital, and for the expenses and reiinnieration of the Syndicatees, and Share and Loan Capital together not being less than $2,500,000 (two million five h.\mdred thousand dollars). 11. The Nova Scotia Government shall guarantee a Dividend or Interest of tive per cent, per annum upon ^2,000,000, (two millions dollars) of the Capital of the said Company, representing the amount to be paid to the Nova Scotia Government, which amount may be issued in Bonds or Debenture Stock. The Nova Scotia Govern- ment also consents to .^500,000 (tive hundred thousand dollars) of the capital of the said company, which is to be raised in the form of shares, ranking as a first charge to the extent of six per cent, per annum upon the nett income of the Company, but subject thereto, the entire nett income of the Company shall be applied to the payment of the guaranteed Dividend ui Interest upon the S?2,000,0()0 (two million dollars) Bonds or Debenture Stock, and there- after to the repayment to the Nova Scotia Government of such amounts (if any) as they may have been called upon to provide under their guarantee. ■■r-,..^i 12. The Nova Scotia Government and the Dominion Government shall concur in and promote any Legislation required the more com- pletely to vest in the Syndicatees, the Properties and Powers refer- red to. Note. — The above was modified \erbally by Messrs. Mann, Schiff, and Kennel ly in person, to the extent of requiring only 5 per cent, instead of G per cent, on S.500,000 Proprietors' shares ; these gentlemen also offered to bnild to Louisburg on condition of receiving same guarantee as covered line from Truro to Canseau. s. H. H. [Copy.] Halifax and Cape Breton Railway anh Coal Com^'Any. Sir — Montreal, 24th Feby., 1881. Referring to your letter dated 18th inst., and to tb' > onversation I had with you "s you passed througj^ here on your way to Halifax, I beg to subiuic olie following offer in connection with the Eastern Ex- tension Railroad. 1. The Government of Nova Scotia to authorize the issue by tlie Halifax and Cape Breton Railway and Coal Company, of bonds cover- ing both the Pictou Branch and the Eastern Extension, to be guaran- teed by the Government, payable at twenty years, and carrying five per cent, interest, payable half-yearly, to the extent of two millions, five hundred thousand dollars, ($2,.500,000.) The Company will undertake to dispo)?e of these bonds at the best rate obtainable in the market, and out of the proceeds they will pay : 1. The discount and commission incurred in the floating of the bonds. 2. The cost of the road. 3. The amount of rolling stock required, including 18 miles of steel rails, and repairs to the Pictou Branch, to enable the Ccmpany to do full service after the running powers are obtained to Halifax. 4. To repay to the Government the amount of the subsidy paid and payable by it. If any balance remains after the payment of these different matters, that balance will be equally divided between the Government of Nova Scotia and the Halifax and Cape Breton Railway and Coal Company. The necessary legislation to be accorded, in order to carry these things fully into effect. If the receipts from the two roads afford sufficient to pay two-thirds (§ds) of the interest on the bonds, the Government will lose nothing, inasmuch as they will have received the full amount of the subsidy paid ; and if at any time for two years the nett earnings of the road ^^ X ~ I - ^ »I.K«tv,— — . to fall ten thousand dollars ($10,000) per annum short of the payment of the interest, the road will then be handed over to the Government, if 80 desired. This oft'er will remain open to the Government to accept till the 10th March next, after which it will be considered as withdrawn, and the Company will pursue such cdurse as it thinks proper. I have the honor to be. Sir, Your obedient servant, (Sgd.) HUGH ALLAN, Preeident, H. «fr C. B. R. d; C. Co. [Copy.] New York, May 17, 1881. Hon. S. H. Holmis, t Provincial Secretary, Halifax, N. S. Sir,— , I herewith make your Government the following proposition, to Wit: 1st. I will pay your Government the sum of eleven hundred thousand dollars in cash for the Eastern Extension Railway, together with the Pictou Branch, the purchase to include all the rights, titles, interests, claims, properties in fee simple, and franchises belonging thereto, connected therewith, of, for, or to the said line or lines of railway and railway companies, together with all the rights, titles, or claims of the Government in said railway or railways, and properties, rights, and interests, both of the said Railway Company and ,the Government of Nova Scotia. The lines extending from the Straits of Canso to Pictou and Truro, the total length being one hundred and thirty-two miles. I will further undertake in connection with the above purchase the construction of the line of railway from the Straits of Canso to the town of Louisbnrg, in the island of Cape Breton, the .laid line to be constructed shall be a first-class railway, of .same guage as the balance of the line of railway — 4 feet 8J inches. The Govern- ment to grant to niy.self and associates a charter and right of way, with all neces.sary grounds for construction and operating said line of rail- way, with all necessary lands for depots, stations, anil work.shops, and all other privileges and rights necessarily incidental to the said con- struction and operation of said line ; the Government also to grant in fee simple two thousand acres of land per mile for each mile of rail- way so constructed to myself and associates. The Government to grant myself and associates also charter with rights of way and other necessary privileges for the construction of a line of railway from the function of Pictou Branch and Eastern Extension Railway to the Nova A .^•^ ww^m:m^'^'^^!^!^wm wm:^^ 11 A Scotia line, at or near Moncton, with the rights to connect with or consolidate said line with other lines of railway which we may con- struct or purchase. 2nd. In lieu of the foregoing, if the Qovemment would prefer, I will also make this my second proposition, to wit : I will pay the Government tor the Extern Extension Railway, to- gether with the Pictou Branch, the purchase to include every and all the rights, titles, interests, claims, properties, in fee simple, and fran- chises belonging thereto, connected therewith, of, for, or to the said railways, or rauway company, together with all the rights, equities, and interestn of the Government in anywise connected tnerewith, the sum of fourteen hundred thousand dollars in cash, the Government to give and grant in connection with such sale, a subsidy in cash of seven thousand dollars per mile to myself and associates for each mile of railway built by myself and associates in the extension of the line from the Straits of Canso to Louisburg, in the Island of Cape Breton ; the Government to further grant in fee simple two thousand acres of land per mile to myself and associates for each mile of line by us so constructed, the Government to grant to myself and associates the charter with rights of way and all other necessary rights incident to the construction and successful operation of said line of Railway. The Government in each case to procure at a reasonable rate the running rights of the Company over the Intercolonial Railway from Truro to the City of Halifax, or failing to do so to grant to myself and associates a charte; with all necessa^ rights, &c., &c., for the con- struction of a line of Railway from the rictou Branch to the City of Halifax, with all necessary rights of way and depot grounds, &c., for the construction and operation of said line of Railway. In either case the Government to grant myself and associates the charter for the construction of a line from the junction of the Eastern Railway with the Pictou Branch to the Nova Scotia line at or near Windsor. Respectfully submitted, (Signed) A. L. BLACKMAN, And Associates. [copy.] Halifax Hotel, Halifax, N. S., May 30th, 1881. The Hon. Simon H. Holmes, Provincial (Secretary of Nova S:otia. Sir, — I hereby offer to purchase and construct the following lines of rail- way in the Province : 1. Eastern Extension (New Glasgow to Strait of Canso). i''tl "^ 12 2. Pictou Branch (Pictou to Truro), dispensing with ferr;- across harbor of Pictou. 3. Windsor Branch (Windsor Junction to Windsor). 4. Windsor and Annapolis. 5. Pictou Loop (West River to Pictou), dispensin^^ with ferry- across harbor of Pictou. 6. Western Counties, (Annapolis to Yarmouth). 7. Canso and Louisburg (Strait of Canso to Louisburg). I agree to pay the Government within three months after the acceptance of this tender, the sum of four million, five hundred thousand dollars, ($4,500,000 for the purchase of existing lines, and further agree to complete, fully equip, and work all the lines enumer- ated as above, provided the Government will give all rights, privileges, franchises, powers, undrawn subsidies, &c., now due, belonging or at- taching to the several lines before mentioned, and grant such legisla- tion as may be necessary to complete their construction, and provided also that the Government will guarantee bonds bearing interest at the rate of five per cent, per annum, on an amount equal to three -fifths of the cost of such lines. The Government to provide the rails for the Pictou Loop Line, and on the completion of the Western Counties, and the Canso and Louis- burg lines, to further guarantee bonds for a similar amount, and at a similar rate as before mentioned on the sum expended on them, viz : (32,10;),000.00). The Provincial Government to have a first charge on the lines com- pletcil and to be completed, for the guarantee asked. The issue of Bonds to be immediate, but such bonds to be under the control of Trustees to be appointed by the Provincial Government and the Company acquiring the lines, ami the proceeds paid from time to time as the works progress, under the joint certificate of the En- gineer of the Provincial Government and the Company. The works to be of the same general character as those in operation in the Province. On being notified of the acceptance of this tender, I agree to pay as a deposit the sum of !?2.jO.000.00 to the credit of the Provincial Govornmont, at the Bank of Montreal. •; 1 I have the honor to be. Sir, Your most obedient servant. (Ss.'¥"^. HI [Copy.] 13 The Halifax and Cape Breton Railway, New Glasgow, 18th June, 1881. Dear Sir, — Referring to previous correspondence, and in compli- ance with your desire that some modification might be made in our proposal for the purchase of the Provincial Railways, in order to bring it more in accordance with the form of tender asked for, I beg to submit the enclosed, which I hope you wiV bring before your Government with as little delay as possible, and let us have an early reply. I am, &c., (Sgd.) T. D. Milburne, Vice Pres. H. We remain, &c., (Sgd.) WiNSLOW, Lanier & Co. i\ [Copy.] Walston H. Brown & Bro., Bankers, 11 Pine Street, New York, October 16, 1880. S. H. Holmes, Esq. : Dear Sir, — Your favor of the 4th inst. was duly received and would have been answered more promptly, but I have be»,j confined to the house for a few days with a severe cold. Your communication 1^ % '■-> ■:i 20 is very interesting, and we have no doubt but that it would repay any Syndicate to undertake the scheme. We are at present construct- ing three railroads (Ohio Central, Lake Erie and Western Sandusky Division and Peoria Decatur and Evansville), so that wc have not the time required to undertake the works that you suggest. Thanking you for the politeness of presenting it to us. We remain, &c., W'alston H. Brown & Bro. [Copy.] W1N.SL0W, Lanier b Co., Bankers, New York, October 29, 1880. Hon. S. H. Holmes, Provincial Secretary, Halifax, N. S. : Bear Sir, — We duly received your esteemed communication of the 16th inst., with it various enclosures, all of which have had our careful attention. The Hon. Mr. Stairs has favored us with .several interviews in regard to this subject, and we have expressed to him our views upon this business, which he has kindly offered to convey to you. • Respectfully yours, (Sgd.) WiNSLOW, Lanier & Co. [Copy.] Montreal, November 8, 1880. Sir, — On behalf of some friends and myself, I beg to ask to be supplied with an official copy of your circular of the 14th October last, inviting offers for the purchase of Nova Scotia Railways. I would also ask to be favored with answers to the following questions : — 1. What is the latest date at which the Government will receive tenders. 2. When may the decision of Government upon tenders be expected. 3. Will Government guarantee title 4. In case of purchase, when will delivery be made. 5. Will Government find out for certain if running powers from Truro to Windsor Junction can be obtained, and upon what terms, and notify parties tendering accordingly. It must be evident the acquisition of running powers is important and will infiuence tenders, also that the question of when purchase will be completed is essential. I have the honor, &c., (Sgd.) E. W. Plunkett. The Hon. S. H. Holmes. / I •■ 1 f h / B^^^' 21 [Copy.] f f Morton, Rose & Co., Baktholomew Lane, E. C, London, Nov. 6th, 1880. Dear Sir, — We duly received your letter with statement referred of the 4th ult., and regret not having replied to it before this. The reason of the delay was to give us an opportunity of consult- ing with our friends as to whether there was any chance of carrying out your views. The Railways of Nova Scotia are very little known in England, and, with the exception of the securities of the Windsor & Annapolis, we do not know that investors are interested in any others. The information j'ou gave us is almost too meagre to enable us to offer any definite opinion, but our strong impression is that to cany out such a scheme as you propose, viz. : the consolidation and acquir- ing the Railway system of Nova Scotia, it would be necessary for the Government of the Province to take it on their own shoulders, and either issue their own, or bonds guaranteed by the Province, in pay- ment. To consolidate the Railway system and then issue a security upon th« system, leaving only the property as a security, we fear would be difficult at the present time, unless some very favorable statement as to the position and prospects and earnings could be authoritatively stated. We will give the matter further consideration, and, in the mean time, if we can be of any further assistance to you, we trust you will not hesitate to communicate with us, as we should at all times be most happy if we can be of any service to you. We are, dear Sir, &c., (Sgd.) Morton, Rose & Co. S. H. Holmes, Prov. Secretary of Nova Scotia, Halifax, Nova Scotia. '/ \ H [Copy.] G3 William St., New York, November 17, 1880. S. H. Holmes, Esq., Provincial Secretary, Halifax : Dear Sir, — As we promised Mr. Stairs in conversation when he was in New York, we brought your proposals in regard to the rail- ways of Nova Scotia under the notice of Mr. Greenrell, a member of the firm of Messrs. Morton, Rose & Co., in London, and Mr. Greenfell advised us that he had already had some discussion with Mr. Stairs on the matter, and did not exactly see his way to taking it up. '*■ I, ^1 it'; i 28 We have looker! into the papers with some care, and think a .scheme of consolidation bein^ devised that provided a fair annual return could be shewn, it would not be difKcult to find a market for an issue of bonds. It would be hopeless, however, to undertake such a task until the earnings and capacity of the road could be clearly demonstraterl by actual facts and figures. The value of the Windsor and Annapolis, which has been running for eleven years, could probably be easily ascertained, but the value of its extensions is, we imagine, almost entirely prospective. When the Eastern Counties division has taken possession of the Pictou Branch, and after the.se two roads have been run in harmony for say three to six months, a clearer idea could be formed of their intrinsic value. To force a sale of these properties at the present time would surely be impolitic, for no respectable financial house could issue bonds on an uncompleted road, unable to show earnings sufiicient to pay *he interest on its debt, and unguaranteed as we understand this to be, by the Governmtnt, and if any firm could be found to take the matter up as a speculation, they would only do .so on the very lowest terms, terms which in the event of a failure would secure them against loss, and in the event of a succeas would leave them with all the profit. Should you decide on defining the purchase, we should be glad to hear from you later. We are, dear sir, &c., (Sgd.) J. S. Kennedy & Co., Per O. H. NoRTHCOTE. [Copy.] London, !28th October, 1881. The Hon. S. H. Holmes, Provincial Secretary, Halifax, N. S. : Sir, — We have the honor of acknowledging receipt of your letter of the 4th October, in which you enclose a statement and summary of the Railway System of the Province of Nova Scotia, and ask us to consider, with this information before us, whether a company could be formed here to take the various lines over, as a whole, on the terms on which the Province is prepared to offer them, and which you are convinced would be such as to make the investment highly remunerative. In reply to this letter we beg to assure you that we have considered the subject as carefully as the means at our disposal will allow, and that we do not doubt that under good and economical management, satisfactory profits might be earned, but the formation of a company of the description does not fall within the range of our business, and we are not able to give a trustworthy opinion as to whether capitalists could be found willing to carry out the scheme or not. .1 ! I ^ i \ \ I '%\ / li s -i , A \ ' 23 I '^ f' <