^J 
 
 <^^ 
 
 .^ 
 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 // 
 
 
 'Q, 
 
 :/ 
 
 
 1.0 
 
 I.I 
 
 12 
 
 14 
 
 1.8 
 
 
 1.25 
 
 1.4 1.6 
 
 
 ■^ 
 
 6" 
 
 ► 
 
 V] 
 
 <? 
 
 /^ 
 
 c^. 
 
 c*^ 
 
 <^> 
 
 0^ 
 
 >. 
 
 /. 
 
 
 y 
 
 /A 
 
 PhotpgTdpliic 
 
 Sciences 
 Corporation 
 
 '^ 
 
 C> 
 
 V 
 
 s 
 
 v 
 
 \ 
 
 \ 
 
 ^\^ 
 
 ^ 
 
 
 6^ 
 
 <^ 
 
 %^ 
 
 # 
 
 >> 
 
 23 WEST MAIN STREET 
 
 WEBSTER, NY I4SB0 
 
 (7)6 1 872-4S03 
 
 r^^ 
 
^ €'. 
 
 CIHM/ICMH 
 
 Microfiche 
 
 Series. 
 
 CIHM/ICMH 
 Collection de 
 microfiches. 
 
 Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques 
 
Technical and Bibliographic Notes/Notes techniques et bibliographiques 
 
 The Institute has attempted to obtain the best 
 original copy available for filming. Features of this 
 copy which may be bibliographically unique, 
 which may alter any of the images in the 
 reproduction, or which may significantly change 
 the usual method of filming, are checked below. 
 
 n 
 n 
 
 n 
 
 n 
 
 Coloured covers/ 
 Couverture de couleur 
 
 Covers damaged/ 
 Couverture endommagee 
 
 Covers restored and/or laminated/ 
 Couverture restaur6e et/ou pelliculde 
 
 Cover title missing/ 
 
 Le titre de couverture manque 
 
 Coloured maps/ 
 
 Cartes g^ographiques en couleur 
 
 Coloured ink (i.e other than blue or black)/ 
 Encre de couleur (i.e. autre que bleue ou noire) 
 
 Coloured plates and/or illustrations/ 
 Planches et/ou illustrations en couleur 
 
 Bound with other material/ 
 Relie avec d'autres documents 
 
 Tight binding may cause shadows or distortion 
 along interior margin/ 
 
 La reliure serree peut causer de I'ombre ou de la 
 distortion le long de la marge int^rieure 
 
 Blank leaves added during restoration may 
 appear within the text. Whenever possible, these 
 have been omitted from filming/ 
 II se peut que certaines pages blanches ajout^es 
 lors dune restauration apparaissent dans le texte, 
 mais, lorsque cela 6tait possible, ces pages n'ont 
 pas 6t6 film^es. 
 
 Additional comments:/ 
 Commentaires suppl^mentaires: 
 
 L'Institut a microfilm^ le meilleur exemplaire 
 qu'il lui a 6t4 possible de se procurer. Les details 
 de cet exemplaire qui sont peut-6tre uniques du 
 point de vue bibliographique, qui peuvent modifier 
 une image reproduite, ou qui peuvent exiger une 
 modification dans la mdthode normale de filmage 
 sont indiquds ci-dessous. 
 
 n 
 
 D 
 D 
 
 
 n 
 
 D 
 D 
 
 n 
 
 Coloured pages/ 
 Pages de couleur 
 
 Pages damaged/ 
 Pages endommagdes 
 
 Pages restored and/or laminated/ 
 Pages restaur^es et/ou pelliculdes 
 
 Pages discoloured, stained or foxed/ 
 Pages d6colordes, tacheties ou piqu^es 
 
 Pages detached/ 
 Pages d^tach^es 
 
 Showthrough/ 
 Transparence 
 
 Quality of print varies/ 
 Quality in^gale de I'impression 
 
 Includes supplementary material/ 
 Comprend du materiel supplementaire 
 
 Only edition available/ 
 Seule Edition disponible 
 
 Pages wholly or partially obscured by errata 
 slips, tissues, etc., have been refilmed to 
 ensure the best possible image/ 
 Les pages totalement ou partiellement 
 obscurcies par un feuillet d'errata, une pelure. 
 etc., ont 6xi film^es d nouveau de facon d 
 obtenir la meilleure image possible. 
 
 This item is filmed at the reduction ratio checked below/ 
 
 Ce document est filmd au taux de reduction indiqui ci-dessous. 
 
 10X 14X 18X 22X 
 
 The 
 to t 
 
 The 
 pof 
 of! 
 fin 
 
 On 
 bef 
 
 the 
 
 StO( 
 
 oth 
 fvs 
 
 I 
 
 Th« 
 sha 
 Tl^ 
 
 Ma 
 
 dffi 
 em 
 boi 
 
 rigl 
 roq 
 
 26X 
 
 30X 
 
 / 
 
 12X 
 
 16X 
 
 20X 
 
 24X 
 
 28X 
 
 32X 
 
Tits copy filmed here has been reproduriad thanks 
 to ttie generosity of: 
 
 Bibliothdque nationale du Quebec 
 
 L'exemplaire filrn^ fut reproduit grdce i la 
 g6n6rosit6 de: 
 
 Bibliothdque nationale du Quebec 
 
 The images appearing here are the best qualit> 
 possible considering the condition and legibility 
 of tfie original copy and in keeping with the 
 Uming contract specifications. 
 
 Origtnal copies in printed paper covers are filmed! 
 beginning with the front cover and ending on 
 ttie last page with a printed or illustrated impres- 
 sion, or the back cover when appropriate. All 
 otfter original copies are filmed beginning on th« 
 fvst page with a printed or illustreted impres- 
 sion, and ending on the last page with a printed 
 or iMustrated impression. 
 
 The last recorded frame on each microfiche 
 shaM contain the symbol -^^ (meaning "CO^i- 
 T1WUED"), or the symbol V (meaning "EIMD'K 
 whichever applies. 
 
 Maps, plates, charts, etc., may be filmed at 
 cfifferent reduction ratios. Those too large to b« 
 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 images suivantes ont 6X6 reproduites avec le 
 plus grand soin, compte tenu de la condition et 
 de la nettetd de l'exemplaire filmi, et en 
 conformity avec les conditions du contrat de 
 filmage. 
 
 Les exemplaires originaux dont la couverture en 
 papier est imprim6e sont film6s en commenpant 
 par le premier plat et en terminant soit par la 
 derniire page qui comporte une empreinte 
 d'impression ou d'illustration, soit par le second 
 plat, salon le cas. Tous les autres exemplaires 
 origirjaux sont filmds en commenpant par la 
 premiAre page qui comporte une empreinte 
 d'impression ou d'illustration et en terminant par 
 la dernidre page qui comporte une telle 
 empreinte. 
 
 Un des symboles suivants apparaTtra sur la 
 ierniire image de cheque microfiche, selon le 
 cas: le symbole — »► signifie "A SUIVRE". le 
 symbole V signifie "FIN". 
 
 Les cartes, planches, tableaux, etc.. peuvent etre 
 film6s 6 des taux de reduction diffdrents 
 Lorsque le document est trop grand pour etre 
 reproduit en un seul clich6, 11 est filrn^ 6 partir 
 de Tangle sup6rieur gauche, de gauche 6 droite, 
 et de haut en bas, en prenant le nombre 
 d'images n6cessaire. Les diagrammes suivants 
 illustrent la m^thode. 
 
)85.1 
 ] 
 
THK 
 
 LEVIS AND KENNEBEC 
 RAILWAY, 
 
 AND ITS DIFFICULTii'S, 
 
 ilv ("IIAliLKS A. SCUTT. 
 
 ONt: OF THE LATE CONTRACTOR'-^. 
 
 A HiilKF TIl>i<)in di-- IvAKnclII-.LLF, \- S<'i)TT"> ('( )\ .N I'.C- 
 
 TK).\ Willi Tin: I.!\i: i'Ui).M its C().MMi:.\fi;.Mi:.M to 
 TiiK riiKsi-.xr TiMi:. 
 
 » • . - 
 
 ' . I 
 
 • » 
 
 • r * 
 
 » • • 
 
 • • • • • 
 
 • • It 
 
 * * ► » I , , . , , 
 
 Ci T' E R E r : 
 
 l'l!lNTi;i) AT TIIK •McvliSIM; CII li.VS (Cl.i: " O/ri 't, 
 
\ 
 
 V 
 
.•«•.?< 
 
 s i^5 .7/4 
 
 XMB 
 
 LEVIS AND KENNEBEC RAILWAY, 
 
 And its Difficulties, 
 
 1>Y CiiAULEs A. Scott, 
 
 ONE OF THE LATE CONTRACTORS. 
 
 A Brief History of Larocheij.e cS:; Scott s Connection 
 WITH THE Line from its Commencement to the 
 Present Time. 
 
 § 
 
 Owing- 1:) tho nnlbrtuiiato position in which the Levis and 
 Konncljoc luiilway Company Jinds itself placed to-day, in 
 an antagonistic attitude towards the Englisli capitalists 
 who have built the road thus I'ar, and owing to the fact 
 that the public has but a very slight knowledge of the true 
 position of the cnteri^rise, and the circumstances which have 
 led to the present troubles ; and more particularly injustice 
 to myself, who induced my English friends to invest tiieir 
 money in the undertaking, I think it desirable to lay Ijeforc 
 the public in this p:unphlet, a brief history of the under- 
 taking and of my connection with it, and in doing so, I can 
 assure the public that I am actuated by no other motive than 
 that of justice and lair-play towards all ^xirties \yho have in 
 
 \ 
 
 58688 
 
^ K •> . I I «-f 
 
 good i'liith i\'u\oi\ ill })riii'-riiiu' tin- roiul to th»' posit ion it was 
 in wluMi tht' unrHiiunutf ditli<-ultifs which have latiily 
 ui'iM'ii. lii'oiiLih! stiil'c and aninidsiiy inlK an tMilcrpriiXc of 
 such iniixiilancc and [>ioniisc to th'* inti'n'>l*' oilhL' Pictvincc 
 ol" <^iichcc. 
 
 The Levi-" and Konneboc Railway ('i»mpany was incor- 
 povatcd ]»y act orilic Provincial I'arluuucnt in 1S(51», lor llu' 
 jHuposc itrhuildini:- ;i railway, about niiu'ty miles in Icnylh 
 I'roni j^i'vis to ihe I niti'd Stales ooundary line in Maine, 
 and on the -'.Is; ])i'eenil) -r. LST<>, a (contract was cnlt'red 
 into with Mr. .1. !!. llulh.n't to construct ")i) miles oi' /'-odt/rtf. 
 liail.vav IVoiti I. -vis to Si. i'^iMiicois. at the })rice oi' si;, (KM) 
 cash per mile. '•<>!i![>li'ted :ind ctpiipi) ''^- l^uriiiLt the summer 
 ori^^Tl. some J7 miles of road w re uraded (at a cost to 
 the contract tr. aci-ovdiiiL:' to his own hook^. of s t4,<H)0 cash), 
 lor whi h ;i)c ( 'iimpany paid ahoui sti."), 000 in municipal 
 debentures at par and in money. The subscriptions to 
 
 tl 
 
 le 
 
 «tock o!' ihe Company at that tim»», (and they have 
 
 nev'-r bem i:ierea>ed since) amoiiuted t<» al)out ^104,TS0, 
 
 in 
 
 ide u}) 
 
 lo 
 
 How 
 
 Town oi' i^evis s.')0,OoO in Corporation Bonds. 
 
 Si. An.s.lme 12,000 
 
 I'rivaiv' Xanies 42.7>^o Cash. 
 
 Thi> advled to a Governmeii! subsidy ol^s 1.710 per mile, 
 represeiitinL: about s2,-S70 }>er mile. This was the amount 
 which the ('oiiipaiiy had to build a Wojihii Jini/ifui// iM) 
 miie.s in lenu-tii, \\ hich was to have eo.st si;, 000 |)er mile I 
 
 1: was in the summer ol' 1 ■<7 I 1 lirst met Mr Laroclu'lle, 
 and in the winter ol' l^l'l we entered into partnership, not to 
 conslruia i!ie railway, but lo undertake a sub-co!itra.ct i'roni 
 Mr. ILulb-rt to nei out the nece.ssary ties and timber I'or -JO 
 miles ol' iracj. and we became involved b) the extent ol' 
 
about $30,000. IVm' tlio payiutMii ol' which w- hud to h.ok to 
 Mr. llulln'rl, aiifl through hiui to tlu' Levis .iu»l Ivcnuchoc 
 liailway Company 
 
 Mr. Jlulht-rt hcc.uiu' unlorluiuitc ,11 his (•(•iitracts. and 
 could iKtl iiit't'i oui' ( laini, and Ihi' Coiiipiiiiy had no iuiid.s 
 Iclt. .so that (willi lit) resources oruur cwii) \vc liad to iiiakt* 
 .some I'llitrt (Mit.xidc t'> piiy ourselves. in .Tanuarv. IS"'), 
 Jjarochclle \- Sell made an arrnn^enjeui wi th Mr. Hull>ert 
 1)V whieli \}\:]\ <_;<'nl leni;in ;e^reed to reiiie IVwiii :hf contrai'l 
 ;ih(>L'i'th'-r, ;ii;<l W'' \\"re lo repl.-ic" him. A h-iise of Ihc 
 lir.^t S"ctio!i (■'.') miles] was granted u> hy the ('omi);i}i v, we 
 an'i'eciii'^- III hi u id th.it jun'tioM ol' the id.id. and ha\ inu; as om- 
 i>rolits I he Wf.rkini: of it I'ltr '2'* vears. (This lense \\as suh- 
 secjucutly I'.xtejided lo H!) ycaivs on ihe whole loll L!lh ol'liuo, 
 :h) miles ) 
 
 "\Voodt}n Ktiilways hiviuL!' j)roved ,•! laihire, tlie idea oi" 
 construct iiiLi' this road with wooden rails was ahaudoued. 
 and I liot up a prospectus lor an Irou Koad. thiid^inir 1 
 had simj)ly to i.ro ovtM' to the i.,ondon Market and i^et all tin; 
 money 1 wanted in a lew <hiys. 1 lel'l lev Eniiland iu 
 March, IST^!, and in the meanlime throuiih liie ^'cnerosity 
 ol" Mr. .Tas. (J. Ifoss, of Qu(d)ec, who adxam 'd us suliiciont 
 money, we W're ei^ihled to clear oirmo.st ol' our liabilitii'S. 
 
 W 
 
 Iteachinn' London. I Ibmid it ut!"r]v impossible t<» nen-o- 
 ciate JJonds on .-i i',.ad that rea!l\- had nolhiiiu t<» li'ive as 
 security, ex.'fpi a jialtry, ^2,8Ti> i) t mile. s!ii)scribed 
 here !)v (!o\ernm'nt and people. Alter spendinii- a])out 
 I'our months in Lond(.)n, makinu- everv eliort to n^^'ociate a 
 loan, r return -d !o Canada, h;!vinu" ^iuiialiy lailrd in my 
 ol)ject. but it'.ivinu ihe nei»'otiaiion in ihe hands ol' a [)er- 
 sonal I'rieiid. Mr. .1. \V, Cunning'iiam. who jiromised to do 
 hisuttnost to Iloat the loan required. Jlow lar hesurcei'ded in 
 ridlilling' that promise, will be seen I'urther on. 
 
1 »s r» . I I *T 
 
 Immediately on inv n»turn to Canada, I i'nt(»r»'(l into noiro« 
 tiatioiis ihrouij:h Mr. Hull)prt with New York i)artit's. and 
 «eL'iir»'d 600 tons of iron rails, and a locomotivo, wliich 
 ••nahled us t-^ lay aljout .six miles ol' track. For the payment 
 oi thi.H mat*.'rial. lK»nds of the road were i^ivt-n as collateral 
 securiiv. with the understandinij that the amount we were 
 lialile for would be paid when we negotiated our loan in 
 Eni'land To enable us to pay ircii ht and lay trac-k. we 
 )»orrowed money, and depended on our success in Enirland 
 to rei>ay it. 
 
 In *'>;tober. 187;i Mr. Cunningham cabled me to 
 come to Eiiirland, that he thought he could neurociate for 
 money to carry us on. I left by next steamer, and on ar- 
 rival was introduced by him to .lohu Laauham Keed. E.sq., 
 Contractor and Financial Agent, who was looking into our 
 scheme, and alter a.scertaining from the very best of sourc«'s 
 the .standing of Mr. Keed. and receiving the best po.s.^i bio 
 report of his character as an honorable man, and capable 
 of taking hold of our scheme, I entered into an airreement 
 with him<j^ubject to ratiiication by the Company) to make 
 us advaiicei^ to continue work, and in consideration of our 
 critical position, obtained from him the sum of x'l,.")00 
 sterling to cable over, enabling us to pay our labour, tS:c., 
 and .savt.' VLh from bankruptcy. 
 
 EXTRACTS FUOM AGREEMENT. 
 
 Th»' followinii- extracts from the agreement (which was 
 ratified by the Company) between Mr. Reed and the Levis 
 and Kennebec Railway Company, spi^ak for themselves as 
 to th»' naiiire of the whole transaction. 
 
 •' The purchaser agrees to use his best endeavors to dis- 
 " pose of the said debentures, and shall account to the 
 " Company for so many of the same as shall be disposed of 
 •• by him at the rate of as aforesaid per 
 
f 
 
 (lolnMiinvt'." (l!):uh (IcImmiIuiv boariiig a nominal value 
 
 r.cKto.) 
 
 " Tht' purchaser shall havo the option ol' purchasing tlic 
 Conii)any's (IcIxMiturcs ol" tho second and third issue of 
 one hundred thousand pounds (€100,000) each on the 
 terms iind conditions hereinhelore j)rovided, in respect ol' 
 tln» lirst issue of the Company's debentures, provided 
 ho\v«'ver that ifthe i)urchaser should herea Iter purchase 
 the de})entures of the Company of the second or third 
 issues, he shall account to the Company at the rate of 
 ...j^er debenture I'or each one hun- 
 dred jxAinds (ClOO) lebenture of such second or third 
 issue."' 
 
 The strict terms upon which this ai?;reement was entered 
 iuio were that the LfMsc exiKling' he f ween the Compant/ anti 
 Lnroi'.helle i^ Scott shmld be cancelled immediatelij on my 
 return to Canada, and a contract which he {Mr. Reed) drew vji 
 V)onld be paxscfl in lieu of said lease, as it mould be im- 
 jiossible for him to enter into any nci^otiations for advances on a 
 line of railway, where a lease existed bettceen the Company and 
 Contractors. The cbntract in lieu of the lease was duly 
 executed and the lease cancelled. 
 
 This contract provided that the contractors should con- 
 struct the railway i'ully eciuippedlor and in consideration oi' 
 the sum of Co.oOO sterling- per mile in bonds (or proceeds), 
 and iii;o2,018 per mile in paid up stock of the Company, 
 touether with uU Crovernment and Municipal subsidies. 
 
 The Sterling Bonds were duly executed, and the lirst 
 issue of ClOO. 000 was sent to Mr. Keed, with the Ibllow- 
 ing Power of Attorney : 
 
 POWER OF ATTORNEY. 
 
 " To all to whom these presents shall come, or may in 
 ♦* any way concern, the Levis and Kennebec Railway Com- 
 
'• ]i;iiVy. :i (•(>viii>;niy (Inly iii'inponiltwl iiikIit .in A«'i <>! tin* 
 " Li'iiislatun' m!' ihc l*i(>\ iiic' ol' (^MvIxm-, in Him Doi liiiioa 
 •' of ( 'iiuad.', ;isst'ntt'(l to -itli April, 1m»'.i .liuoKlfd l»\ ini 
 ••Ad iiss.'!il'.'(l to J4tl! Dcc'iiilxT. I'-TJ.iuid l)y im A<t;is>rnl. 
 •* ('(1 to I'^Tl Si'M(l (ii'i"'! nm : Whcrt'iis. \\ c i ;i.' siiid Company, 
 "undt'iund iii pur>ii;uj -tM.l the an horii\ coulrrr.'d upon 
 '•us l»v the. >;ud A<'1 'd' iiK'orpdraticii and tlu' Ads ann'inl- 
 "at.or\ thiTt'ot. pi-oposf to .-,idl tlir lirsl nioilii'ay-i' si'Ncn jti-r 
 '• ciMit <|f!).Mii ur.'s ol the ('.inipaiiy ol tlic liist i>sui' lo l\w 
 '• aniouni ol' oni' hundifd ihousai 
 
 V 
 
 ( 
 
 •'<J(I0), and loi' thai purposf \\ ,• j.i"po-,c lo apjioiiit .I<dni 
 'LaiiLihani Itfi'd, ol 1 K iim"s Amis Yard, in tin- City of 
 •' Loiulon, I'Jiti'land. as our Au'di' a;n Altoiiicy. Xo\v. 
 '' thcridoiT. Know Y' . tiiai we, the said li"vis and K-nindxH- 
 "Uailwav Coinp.iny. in .-onsidfi-ation ol ihr premises. Jiatli 
 • and do li(Mel)\ iiominait'. ron-^titut.' and 'ppoint t!i.' said 
 '•.loiin Iwanyhani lv«^''d as our Aiji'nl and Vttorncy, to r<'- 
 •' ceive ilio >aid I'omN, a.^ lln-y fctliall. Iroiii lime to linu'. I)e 
 " doli\ ercd to iiiiu. and to m-'jotiate. ^.H ,,iid dispose ol'llie 
 •• same, cithd' 1)\ liiniselr o;- ihvouii'li hankers, ln'okeis or 
 •' ai^'enis. a> he sliall i!p|ioinf on >iieh t'-rni- and eniiditions 
 •' as he shal! determine to l»e proi">e!', and to reeei\e an I 
 " colh ct the pi'oe.eils iheveol'. and lo Liive lull aiidahso!ut«> 
 " disidnrii' 's. and aequiiianees iherelor. loi u-. and in our 
 
 nann a> iuilv as 
 
 r{} 
 
 uM d 
 
 () so. 
 
 '• llerehv uivinu' and Lirantinii' lo oui.-aid A:^ent and A*. 
 " tornoy .'nil and eom[)h'le autliorily in '.In' i»reu)ises, and 
 '• ralilVinu' and aiireeimj- to latil'v and oonhrm all that our 
 •'said Attorney shal. lawiuHy do or cause to he done hv 
 " virtue liortM)l". in witness whercoj'. we tlie said Levis and 
 "Keinu'hec Railway Conipany, \'<'., \'<'. \'c. 
 
 (fSigncd,) 
 
 '•J. G- BLANCH KT. 
 
 I'residont. 
 
 "E. DEMKUS, 
 
 listM-Totary,'' 
 
 thJ 
 urj 
 
9 
 
 Tliiit th(» ;i2'i't'<'>niMif with Mr K'.-.m! whs lortuiiiUc :iiul 
 (i}i|)<)rtmi«>, niiiv !*•' jutlu'))! IVoin tin' l:i<-tili:ii siiii-<> tliat tini«> 
 tilt' proiiKtlfTN (»r r;iil\Vii\ s ill tii.- I iiited Slatt's liiix •• olli'vcil 
 IxumIs in Loiiiloii oil injids iilmuly in ojiffntion \\{ Jilt\ pt-r 
 • I'Ml «li.<('<)uiil willioui hi'ijiii jil)lt' lo l»orro\v aiiv moiicv ; 
 Mu\ tiial sudi iiiliiu'iiti.-il hkmi :is Sir IIicji'li Alliiii, IIoii. 
 Thos. M((;n'.'vy, th'- rrcsidt'iit of ili" Cr.Mlii \ all^'v W^nuX 
 of Toronto, ill.' C'(»iitr;n'lors ol i lit- <^n<-h.'f Ci'iilral. and 
 others. Iiuvo spent moil 1 1 IN and nmnt lis in London t'nd<'a\-or- 
 iiiU' to lloat tlii'ir honds. and hii\i' in \\\\ cafso <'oinpli'tr!v 
 lailt'd to «lo so ; and \ fi ihcsi' i(»ads had shai'i- capital and 
 municipal <iTanls varyinu" IVom s4,0()(> to slo.'Hdj p.-r niih'. 
 l)«^si(h>s hir'^v ( ro\ criimt'iit hsidit's. while ih" Levis' and 
 KeiinehiM', as I lia\'e shew 'I, had only $ll«)(i per mile IVom 
 thes«? sources. Some ' the ^Milar' < roads, such a.-, ilie 'I'o- 
 ronlo and Nipissinii', which did su<'ceed in net;(;tiatini:' their 
 hond«, had to limit their .si, • to siS.OOO per mile, while the 
 Levis and Kennehcc chtamed t'o..">()0 storlim: per mile. 
 
 ( )n my return to (^jnehec I went on to Xi a Y(»rk, and 
 our larLUt' <M'editors there \\ ere pei'i'ectly satislied \\ iih tlie 
 ne]'()tiation '* inado in lOnLiland as thoy had had verv 
 satisfactory ri'porls of Mr. K'eed's position. Through Mr. 
 li«»ed's •'•oncrosiiy in making' us a i)reliniinar\ advance ol 
 .€l,oOO, mattors weri^ jxMl'ecily smooth with u-. in <^nel)cc. 
 ujid work proii'ivsst'd durinii' the winter of ISTo and 1SV4. 
 In \ho sprinu,- of 1ST4, <»ur lirst shipment ol" L40<) tons railtj 
 and in the {'all <;00 tons more, arrived IVom Mr. lioed, and 
 advaiu'i's enahliim" us to pio'-eed \\ ith ouj- work', nnd l>v 
 the fall of IS" I we liad completed •']() mile.s of road. < )ur 
 lia})ilities in the Inited Slates amountini^ to ^To,OU<) wi're 
 also paid oil' l)y Mr. lve«'d. 
 
 In the fall of 1874. 1 made satisi'actory arranir'^meiifswith 
 the lihode Lsland Locomotives Works and Was(»n Mniufaet- 
 uring Company, for two additiom\l locomotives an<l live 
 
10 
 
 first-class cars, which wcvo iluly doliverod in November. 
 Tht'se purchases wt^e made on the strength cnlirelij of our 
 English neuoiiations I 
 
 Our English advances continued up to "May, 1875, and 
 Mr. Keed had sncccedinl in Ho. ting- the first issue of 
 .tl'-COoO of debentures, and had advanced us about .£9,000 
 ov<M- what lu' had promised to do. for which he simply held 
 ihe second i»ue as collateral. 
 
 As we tliouiiht it viM-y lulvisable to construct 15 miles 
 more of line (to St. Joseph) 1 left for England in April, 
 \>1'k to try and induce Mr. Keed to make us the necessary 
 advances, and alt;'r a ureat deal of trouble, he agreed to 
 do so. holdinii' the second issue of bonds as collateral, as 
 the market would not permit of their being floated I A 
 Power of Attorney similar t(» the first sent was forwarded 
 him. authorizinu' him to -deal with the second issue. 
 
 ( )n June 20th of the same year, our first section of 30 
 miles "vvas opened for traliic. The rails for the 15 miles 
 additional not arriving before S(^[Uembt^r, we were unable 
 to complet.^ our work to St. Joseph that fall, but in .Tul\', 
 1<7»'. the additional l-") miles were inspected by the Gov- 
 ernment Enuineer. 
 
 The (lovernment in 1S75 gave additi(»nal aid to the line, 
 increasiiiLi' th(^ su^sidv ;■» s:^,.;^()0 nett. so that the total 
 amount which went into the actual construction of the 
 railwav (lo mile>) up u tin» i)res"nt time is as follows: 
 
 FUnit TANADA AND fMTr.D STATES. 
 
 CJovernment aid. ..s:157,800 
 
 L!':s^ — TiTist fund pledu'cd t*.)nn'i't 
 
 iniere.^t on ijonds 74,385 
 
 $ 83,415 (0 
 

 11 
 
 Private subscriptions to \Vood»Mi 
 
 Railway actually pavl up as per 
 
 Stock List lately issu'Hl IJJSO ^-) 
 
 Levis Corporation to AVooden 
 
 Railway (in bonds) oO.OOO (') 
 
 St. Anselme, indirectly throuu'li 
 
 private parties (bonds) 12,000 (*> 
 
 Liabilities incurred altoii'ether on 
 
 Mr. Reed's credit (iiu?ludin<i- 
 
 115,000 advanci'd by Messrs. 
 
 Ross, Caron, Beaudet and 
 
 others,) (less Rolling' Stork 
 
 since taken possession of by the 
 
 owners) 11.'). 00^ (■) 
 
 N 30:"..-20:l 00 
 
 or about !^7,000 per mile. ~~ 
 
 FRO-Ar EXiJLANP. 
 
 Furnished by Mr. Reed in actual 
 
 cash and rails up to A]n-ii, 1874 
 
 (on 1st issue of bonds) C .J.j.oQO 
 
 Furnished by Mr. Reed in actual 
 
 cash as advances, irom April. 
 
 1874, to date, as per statemiMit 
 
 (on second issue bojids) o ■!, 1 0.5 
 
 Stcrlinfv f 108,10.) 
 
 or at $4.8G per i' .$.52.1,827 70 
 
 or per mile sj; 12,08:1 
 
 It must also b ' remembered that the ani<.unt> numbered 
 2, 3 and 4 (^104,780) Avere o-ivrii and subs<-ri])ed ibr a 
 irooden railway contracted for at !*<(;,(iOO por mihv These 
 subscribers have now an Iron Railway instead. v.lii<-h is 
 certainly more than they ('(nild have expected when they 
 gave what they did ! 
 
M IJ li, 
 
 ■r-p 
 
 12 
 
 Several anonymous newspaper correspondents have en» 
 deavor.'d, since the present difiicuhies have arisen, to i)rove 
 that ol tlie amount spent in the constnictioii ol'tho road only 
 48 per cent, was furnished by Mr. Kecd. and his friends, as 
 ajrainst '')2 per cent. eontri])Uted by the shareholdt>rs. the 
 Grovernment. and lln' persons to whom the $115,098 is due. 
 
 \o\v allowinu' the (lovernment and o'her Canadian sub, 
 scriptioiis to stand as they are. the amount so subscribed 
 would vt>pnv^,Mit >;oO:},20"5, or about sT.OOO per mile, as 
 aii-ainst l^nu'lish advances of !^.')2'),^2T, or •1^12,083 per mih* ; 
 a5i(l 1 maintain that the (rovrrnincnt sub.sidy is given as a 
 hnnus to the jKirties who should furnish the funds to carry 
 out the uiidHrtakiiiii". also the L -vis and St. Anselm.' sub- 
 scri])tions, wliicli n'pr(">L'nt sr]i\0()n. Therefore the follow- 
 nig statem 'lit should be considered a fair cimiparison. 
 
 Private sul)Scriptioiis s 42,780 
 
 Floatinu" dc])t. incurred on credit of Euirlish 
 
 ne;^otiations 1 irj,0f»8 
 
 Total ... >;; 1.">7,87S 
 
 or s-"),Ctr)0 per mile, 
 
 n> aiiiiist a '!uil a Umuc s from Eti-jfland, as per stjtemeiit 
 :c;.'>2.">,S27. or sIlV"^-'" p-'r mile. 
 
 In the foreu-oinu'. I have merely irone into actual ea>h 
 fiLTures ol' h )\v liiiancial matters stand, as l)e!\veen the L -vis 
 and Kennebr'c Railway Company and Mr. Heed. I now 
 wish to show the position oi" the mortu'age I 
 
 On the iirsi S 'ction (»f liii'. about '■)') miles, not to speak 
 of the s H!oud tSeciion, there is a bonded del)t (bonds floaterl 
 and held in Iviu'land) of C-).3O0 steriinu' j^^r mile, and upon 
 which an interesl of 7 p-r cent per annum is expected to 
 be })aid (or in liunres, t'7.0<J<» per annum). The Trust Fund 
 
13 
 
 provided out of the Governint'iit sttl^^My it; exhausted, and 
 on the 1st July next ci;;],;jOO will W kIikk- and no funds ready 
 to m<'et it, nor does the lease with Mr. S.^niH:il. us may be 
 seen, even allude to any bonded deU -^si*-lini2-. 
 
 The mortgag-e on the road is tEtrv-jfc-r-s : 
 
 Bonded debt .on 1st Seetion „ i'lOO,000 
 
 Advanced by Mr. Ixeed on iadl i-ynw oi 
 .t*100,000 ol bond« A-SJOo 
 
 *;i.j:5,l!)5 
 
 or at $1.8«) per t s;744,r)J7 
 
 or about -^ 17,000 per mile. 
 
 This, it Si?ems to me, must be tolerjiy v itlain to persons 
 who have any knowledge of iigure«.. 
 
 Mr. Heed had never contemplate-*! tflV»T a momi'iit that he 
 would be called upon to furnish all uh-"" money to build the 
 line, but dej^ended on liberal action oa ^h^e part of the Gov- 
 ernment and Municipalities to ass-i*)! liam in ciirrvinir out 
 
 •■ ml ■ZJ 
 
 an enterprise of such importance to- 11%'" Trovince. In this 
 how.'ver, he was sadly disappointed, aoc- notwithstanding 
 his every elfbrt in 187o ajyid ls7t';. ty ^H additional aid trom 
 the G-overnraent, the County of Br^JHIE.'^ -. :and Levis, he (ail. 
 ed to impress upon thetn the faeC n5a2t EuLilish capital 
 could not be procun^d for railway (enM-Tprises. unless the 
 p:;ople direcf/// hen f-l'il tins; hi/ th>'. t'.m''>irpriii(' would exert 
 themselves to u reasonable exN^it!! 
 
 Can any one blams^ Mr. Reed for ffev-Iinsi int-'Use disap- 
 P'iintm'iit at the apathy and indtrfr-inen'oe maiiiiested by 
 Government :inl p 'ople after reenrrmi* ^ncJi lib.'ral assist- 
 anee from l']nulisli capital, and he it rrmv mbcffd that the 
 Levis and K«Minebee Railway is th-^ ••f.jt ]iBe(>f railway in 
 the Province ot Quebec, whose seetiriiia«> h ^ e been quoted 
 
"^ — I J Ilk T 
 
 14 
 
 on \hi Lojuloii Stock Excliaui:^e. Apart IVoui these di.sap. 
 poiutaniiits, let 1113 draw attention to the lact tluit in ttfe 
 pro.sp^'.'tas i«jijuetl, and n^on which I made (hv neijotiatioii 
 for Eiiu'li.sh capitil. the tralUc n-oeipts on the lir.st 30 iniies 
 were estimated (I mule the calculations upon the same 
 basis us established by engineers in Ontario and the United 
 States, taking' into aeeonnt ih^^ population and products oi" 
 ih<i districi to be served by ihe ro:ul) at s;l80, 000 per annum 
 •rro.ss. e(|ual to ^ii^tj.OOO per mile, or considerably loss than 
 the Grand Trunk and other Canadian roads arc now earn- 
 ina*. WJiei^a^ tlie actual rec-'ipLs on oO miles only readied 
 to ab )'at $12, 0')0 p 'r annum or barely enough to pay the 
 workiuL;* expenses oi" tlie line, and upon the 45 miles there 
 was no iucrcas,' on tint amount. 1 do not mean to doubt 
 that so soon a^ timber interests improve, and the people 
 accustom lln'ms dves to a railway as a means oF communica- 
 tion, the receipts will be much g-reater; and indeed it is still 
 my iirm conviction that ii' ever the line is completed so as 
 t) connect with the Tnited States railway system in Maine, 
 and with the Quebec Central, and the immense area 
 of unocciij)ieil lands in tlie County of Beauce, admirably 
 adapted I'or a settlement, and d'slined to become the garden 
 o!" the Province, shall have been developed by its means, 
 the L 'vis and Kennebec will become in time one oi" the 
 most proiitable and useful lines in the Province ; but in the 
 meantime we cannot wonder that Mr. Heed was sadly dis- 
 appointed to liud that al't-'r the lirst year's working, not 
 one dollar c;)uld be j)rovided out of the receipts to meet the 
 interest on the del)entures. I am of opinion that the receipts 
 could hive been largely increased had the terminus at 
 Levis reaclie;! a more convenient point, and that at St. 
 Joseph reached the villaaw })ut notwithstanding the eHbrts 
 made, noi a dollar of assistano^ could be obtained from 
 either Levis or St. Joseph to eilect the extensicm I 
 
 < )\ving 10 iill these circumstances, it was imi>o«sible to 
 continue the line, or to iloat the bonds of the second issue, 
 
15 
 
 and Mr. UimhI naturally declined lo make i'urthor advances 
 until nioro suhstantuil ai.l was uivcii !>>' Jh(^ (Jovcrnniciit 
 and municipalities. It mu.-sl he clearly understood that 
 Mr. Ivei'd never undertook to jntrcha^e the bonds, but that 
 ho would simply account to the Company at the rate men- 
 tioned in au'retunent, irhfiii he could make a inihlic issue, and 
 he was naturally led to }>elicve ihat so soon as bond fide 
 progress had been made the Goveriunent and municipalities 
 would <2;ive some tangibl,' assistaiu^u towards the enterprise 
 to enable him to lloat the bonds and complete the line I 
 
 Last November, sei'lng the critical iinancial position of 
 the Company and contractors, aiul knowing- that the Pro- 
 vincial L(\gislature was al)out to meet, he thought it advis- 
 able to cross the Atlantic, (which he did at a htuivy sacri- 
 lice to his own business in England,) Cor the purpose of 
 laying matters before the Government, and to see what 
 could be done towards completing the line. Immediately 
 on arrival here he went up the line to St. Joseph (its pre- 
 sent terminus) and from thence drove to St. Crcorge, and on 
 his return to Quebec hi' came to the conclusion that, as the 
 traflie receipts were only sulTiciont to meet the working ex- 
 penses of the line, it would }>e useless to construct anv 
 more road for the present, unless : 
 
 Ist. That the Government should substantially increase 
 their assistance. 
 
 2nd. That the muni(Mpalities should show some interest 
 in the undertaking and su])scribe ;i moderate amount of aid. 
 
 3/7/. That the completion of the American connecting 
 lines to the United Slates ])oundary should l^e assured as 
 soon as the Levis and Kennebec reached that point, 
 
 Mr. Reed considered that continuing tlie works uiuler 
 the present (nrcunistances, with no possibility of lioating 
 more bonds on a line which was iinable to pay the in- 
 
Ill 
 
 L -rosi oil those iilroiuly issuod. wuuld result in tlie civation 
 oi' a h»'avy flonlin^' <i.'l)l with no iniint'diatc prospect oi" 
 paviiiu' it, mid in the ultiiiiale disu'racc and taihiro of all 
 conneiit'd with thf nndcrtakinii"- Ft)r tln'se reasons he 
 proposed the lallowinu' plan to the Crove-nment, and in 
 which the (.'ompany assisted him, viz : — 
 
 l.s7. TliMt. so as to ensure the payment of the interest 
 on the lirst t*100,0(i i oi'dchentnres (towards which (he pre- 
 sent trallii- rrct'ipts lannot contribute anythinn',) he pro- 
 posed to aid in cons! ructinu' the Quebec Central Kailway 
 from its pi't'scnr terminus at Weedon, some 45 miles, to form 
 a connection at .Scott Junction with the Levis and Kennebec, 
 and he considered that tliMncreased traflic from this source 
 would fully cover the required interest, viz; €7,000 per 
 annum I 
 
 2.ii'l. That the ( lov.'rniiient should allow the subsidy 
 to wliicli (he Levis and Kennebec Ivailway would be 
 entitled on ih' uncompleted portion of their line, which 
 would only amount to ubout $G0,000 (alter deduct inu' the 
 assiii'nmeiit male in trust for the bondholders) to be ap- 
 plied to the Que])cc C(»utral Railway, that Company givinu' 
 as collateral sectirily debentures of that road at their market 
 value, this loan to })e returned as soon as bonds were soldi 
 
 This proposal the (iovernraent would not accede to, nor 
 would they give any increase upon the total amount of the 
 subsidy ^-ranted in 187'), but passed a measure proposinii- 
 to irrant temporary assistance to this aiul other roads, as 
 follows. (It can readily be seen that this measure coiUd b(» 
 oflittl.' advantau'e to a road which it was necessary to 
 complete lhrou'j:hoiit.) 
 
 (ASSEMBLY lULL, No. 10,',.) 
 
 " An Act to amend the law respectini'' Subsidies iu money 
 " made to cctain Ivailways, and for other purposes. 
 
 fl 
 
 <« ^-^VM MAJESTY, by and with the advice and consent 
 of the Legislature of Quebec, en.v ts as loUows: 
 
17 
 
 " I. The Lieutenant-Govi'viior in Council, as soon as the 
 " followino- railway conipanit's : 
 
 " The Levis and Kennebec Railway Company ; 
 
 " The Quebec Central Railway Company ; 
 
 " And the St. Francis and Meg-antic International Rail- 
 " way Company ; 
 
 " Shall hav*' put tin* com[>leted portions of their roads in 
 " good w^orking- order, to his satisfaction, may advance to 
 " them on account of their subsidy, lo. a sum of §1,000 for 
 " each mile thus completed, in addition to the sum of 
 " S 4,000 which they have received, or may now have a 
 " rig'ht to receive ; and ^o. out of the whole balance of the 
 " subsidy granted to them for any other portion of their 
 " road which they may hereafter complete, — another sum 
 " of such an amount, and in such a manner, that this ad- 
 " vance being made, there shall remain to be i)aid not less 
 " than !Si2,000 per mile upon the portion of the road to be 
 " hereafter completed, and that in any case, no more than 
 " §6,000 per mile shall be advanced. 
 
 " The Lieutenant-Grovernor in Council may recjuire 
 " that the sum of §1,000 [)er mile, advanced to the compa- 
 •' nies mentioned in the preceding section, on the complet- 
 " ed portions of their lines, be used to perfect such portions 
 " of line, and to pay whatever they may owe for the right 
 " of wa\-, la])or and rolling stock." 
 
 I may here state that Mr. Reed's idea was, that as the 
 Quebec Central Railway had large municipal })onuses, it 
 would be a tolerably easy matter to com})lete this line, and 
 that when completed it would be comparatively easy to 
 float the bonds in Lonlon on a finished line of road, and the 
 completion of this Junction could have been made thij:* year. 
 
 8 
 
18 
 
 Failinur in the carryiiitf out of this plan, he was I'orced to 
 look at multiTs ill a difFt'ivnt lig'ht. Tho contractors' debts 
 amounted to about $1;'.0,000, (since reduced to $115,000 
 bv the owners of rolling- stock reniovi'ig- their property,) 
 niul the Trust Fund ibr the payment of interest on the 
 (lel)entures was exhausted, so that some decisive step had 
 to be taken. IL- then proposed : 
 
 1>7. Tiial the contractors' labor and right of way debts 
 (jnivilenfed) should ]>e paid out of the advance to be made 
 by the Cxovernment from the subsidy the Company was 
 entitled to receive. This- amount would be entirely absorbed 
 for this i)urpose and would still leave the contractors' debts 
 existing in amount to about $100,000. 
 
 '2)i'l. That lie, .Mr. Ueed, would advance fifteen cents 
 in the dollar in cash to pay to the creditors on account. 
 
 Srd. That a certilicate of obligation should be issued by 
 the Company to each creditor for the balance due hira, and 
 tiiat so soon as th*^ Company was in a position to continue 
 its works, tliese obligations should be j)aid out of the pro- 
 ce./ds el tlu' tliird issue of ImjjkIs, and a iruarantee to be 
 given to that elfect. 
 
 4!h. That in the event of the creditors accepting this oiler, 
 all the stock of the Levis and Kennebec Railway Company 
 held l)y Lnrorhelie (S: Seott, l)y virtue of their contract, 
 should !)■' transferred to Mr. Reed. 
 
 The transfer of the stock was asked, so that he could 
 control I he enterprise, (uiul why not .'' seeing that he had 
 pnt ni'arly all the money in it), and further to prevent its 
 lallinu- into th > hands ol a multitude of people who might 
 give him trouble hereafter in the management of the alfairs 
 of the Company ! 
 
19 
 
 I concoivo that his ofil't was a jrenorous ono, bi^cau.so ho 
 was not in any way liable Ibr tho roiitnu-lors' debts, hnd 
 already been induced by us to invest in what, has proved 
 for kirn a very unprofitable enterprise, and he did not re- 
 quire the stock to control the road, as he had only to lore- 
 close the mort2^aj^e (bonds) he held, so as to obtain complete 
 possession, and thus wipe out all eiainis oi' the contractors 
 creditors and original shareholders I 
 
 The above proposals were hulk objeett'd lo in th*' slron^•(^st 
 manner by my partner, Mr. Larochelle ; and tlie Directors 
 of the Levis and Kennebec Railway Conipanv. thou<ih ap- 
 proving of the proposed settlement, would Jiot hear ol' llie 
 last proposition by which the control of eh^ctions and ihe 
 road w^ere to be given up to the man ir/to furnishrd /he iw/ir// 
 and IV ho has to be thanked for the 45 Diile^i of ro/id lanv con- 
 structed ! 
 
 Having failed to come to any amicable and reasonable set- 
 tlement of the difliculties connected with the enterprise, 
 Mr. Reed had no other recourse but to take legal proceediniis 
 against the Company, but not without givinu' thi' Directors 
 due warning of his intentions-, and demanding of them 
 payment of the advances he had made in good faith. 
 
 About the 18th January, after having left tlie matter in 
 the hands of the Hon. George Irvine, and a power of attor- 
 ney with Mr. Cunningham, Mr. Reed h»lt lor luigland, I 
 need hardly say, pretty well disgusted with his conneciion 
 with the Levis and Kennebec Railway, his first Canadian 
 enterprise I 
 
 On the 6th February, the Annual Meeting of the Share- 
 holders of the Levis and Kennebec Railway Company was 
 held (a full report of w'hich apjieared in the Chroniric of 
 the 7th), and to say that the action of the Direclors and the 
 few shareholders present was ungenerous towards Mr. 
 
90 
 
 Reed, would be piUtiiig- the matter in a very modest lii^ht 
 indeed ! 
 
 The proxies of some 300 shareholders hold by th»' Presii 
 dent and Secretary, together with about hall" a dozen who 
 were present in p'.Tson and representing in all about $40,000 
 in th»* airirreirate, controlled the eleclion. A persistant refusal 
 to record the vote (o.200 shares) of the Wuson Manutaetur- 
 ini; Co.. from whom the Company had purchased i>assenger 
 cars to th" amount of $20,000, and who had accepted in 
 gx)otlfaHh th«' stock as collateral security (but whi<'h the 
 Secretary hid not recorded in the Transfer Books) to'^ether 
 wirh a refusal to record the vote of Larochelle &: Scott's 
 as-iiirne-. although he was jirincd with an ordt-r from the 
 C'>urt. ••nabled these gvntlcmMi to do as they pleased, and 
 elect whom they chose, and havinu' elected the following 
 Board of Directors. Messrs. E. Beaudet. J. B. Renaud, F. X. 
 Lemienx. L. P. Du'mers, W. C. Carrier, Z. Audet, A. Fortier, 
 G. O. Taschereau and Mii'hael Cahill, the Shareholders hi/ 
 Vrnxies. pro<.*eeded to dispose of the Bondholders' property 
 by Iea.<in'jr the whole line oi' railway to Mr. Sruccal, a per- 
 fect stranger to the enterprise, on the followinu- basis : 
 
 LK.\SE. 
 
 '• On the sixth day of Fe))ruary, one thousand eight hun- 
 dred and s^'venty-seven. 
 
 •* Before the undersigned iVotary Public for th»* Province 
 of Quebec, in the Dominion of Canada, residinir at the City 
 of Quebec, cam** and api)eared. 
 
 " Th- Levis and Kennel)ec Railway Company, a body 
 politic and corporate, here represented by Francois Xavier 
 Dulac. Esquire, of St. (leorge, County of Beauce, Alfred 
 Morrisi*et. Esrjuire, Doctor, of Ste. llencdine, and Jean 
 Bapti.ste Michaud, EsquirtN of Levis, i'or this purpose duly 
 authorized by and in virtue of a resolution passed at a 
 
21 
 
 genoral meotiiin' ol' tlu' shiUvhohU'i-.s ol' tho baid Company, 
 hold at Levis, tho sixth day of February instant, of the lirst 
 part. 
 
 " And Louis AdeLn-dSt'-necal, I'^squire, residini;; at Pierrp- 
 ville, District of Kicheliou. Uailway Contractor, of the 
 second part. 
 
 " Who have a-in-ed to the following, viz : The said Levis 
 and Krnnehi'c Uailway Company irives and transfers to 
 the said Ijouis Adt'lard Seni'cal, all the riii'hts it miirht have 
 ])y and in viriuc of the <'ontract entered into botw«!en it 
 and Messrs. Larochelle & Scott, with power to demand tho 
 resolution of tin; said contract, also all its rights to the 
 rollinti' stock and other materials which are at present on 
 the said line and its dependencies, as well that which 
 belongs to it as that which it has leased with the right of 
 keepinir on the same conditions that it could itselt have 
 kept them, and for these presents to take and dt'fend any 
 judicial proceedings he thinks lit, provided he does so at 
 his own cost. 
 
 " And further, the said Company leases to the said Louis 
 Adelard Sencc-al, for twelve vears from this dav, all the said 
 railway line that is built or to be built as mentioned here- 
 after ; the said Lauis Adelard Senecal to receive all the 
 revenues of the said line during- the said lease. 
 
 " The said Louis Adelard Senecal obliges himself to ex- 
 ecute with nil possible diligence all the conditions required 
 by the statute passed at the last session of the Legislature 
 of this Province, in order to obtain the subsidy thereby 
 granted, and to pay all the divers sums that are owing for 
 its completion for the right of way, labour and -rolling 
 stock, as required by the said statute ; and that on pay- 
 ment of these said sums or i)art of them, he shall have a 
 right to subsidy on the part of such corresponding to the 
 amount he shall have paid as above mentioned. 
 
•'And Itirllici'. Ill' will liavothc rin'lit (iT I'lM-civiiiii' tlw sub- 
 siilii's i^iMutctl or (o 1)' i^'raiittvl hy llif (JovcrimuMil ;in<l 
 liu' nnini<'ii>;il <ir [)riv;ilo suhsci iplioiis duriiiL;- tlu- U'vin ol" 
 tli»' siiiil JMse. 
 
 "And in coiisi*!"'!';!!!!)!! of tin' pivnii>t\'^, the said Louis 
 AfKdard Si'mu'mmI will piy to tin- >>aid Company, williiu the 
 thirty diivs rollowjnu" tin' laiili ■ il ion of tln'sc ijrcscnts, as 
 h-n'oat'tcr ni'ntioiicd. a sum of two tlii)nsaii<l dollais, and a 
 lik" sum t'vi'vv voar uL tlio samo dale diirini"' tlio ti-riu ol" 
 the saiil lease. 
 
 " Tlu' said Louis Ad"ianl S 'ik'-cmI will pay. on thi' iirst oi' 
 evt'iv month, i) 'uinniiiu' on tiif Iirst ofJnne, a Turther sum 
 of I Wo thousand dollars until lie shall have i>aid oil' the 
 SUM ol'ontr hundred and ihirtv ihoinand ami ninety-eiuiit 
 dollars and ciu'ht cent-; for tlu' d(d)ts mi'iilioiied and detailed 
 in th" statements A. 1> C. I). V. G. 11. and }>i. herounto 
 aniii'Xt'd. 
 
 •■ And when the said liouis Adelar<l Seneeal shall produce 
 ve('.'i])ts, discliariivs o'- iranslers in his lavor lor any one ol' 
 the sums mentioned in the said statements, the said i>ay- 
 ments ol' two thousand il >llavs shall oe rediu'ed in tlie pro- 
 l),)rtion the sum so paid l)i>ars to the said .sum ol* one liun- 
 dred and thirty thousand and nin(^ty-eii>-ht dollars and eight 
 cents. 
 
 " lie shall have power also to contest, at his own risk, any 
 oi' the .said claims, and a'.l sueh debts or part ol' such debts 
 as he shall sueciM'd in haviuL!: dismissed shall be considered 
 a^ a payment made by him, and <M*edit will l)e given him 
 in the arorementiotied proportion, 
 
 ••The said Company binds itself to .subrogate the said 
 Louis Adelard Seneeal in all the riglits and recourses it 
 might have l)y reason of the debts paid by him. 
 
28 
 
 " Tln» s.iid Louis ,\<l<'l;iiil Si'IU'imI hmd- iiii'l oMi'^fs liim- 
 st'ir to l<i'i'|) ill l:m(»(1 oidi'i' iiiitl iij op-'ritioii llii- pmf of tlic 
 said liut' iilreudy biiili, and ihc line lo hf Wiiilt ;ifc, IhmcIii- 
 iil'tor inoiitioiicd, and to build it siieli tliat it will he rcctdvcd 
 l)y tii!» (rov,>nmi 'lit l']iii,''iip't'r, within ttin' y«Mi' iroui tins 
 diiy, liiat pii'i which is iioi yet roniplft.-d to hrint:' the tiT- 
 iiiiiius to till' prop'ity in the Town of Li'\ is known as 
 "Shaw's Prop 'Vty, " on th- condition that the Town of L-'vis 
 or the (A)inpany furnish the riuht of way from the present 
 tenniuus to the said '"Shaw's Property.'' 
 
 " And tile said Louis Adeiard Sciieeal oblio-.-s himself 
 further t.) iinish and litive reeeivecl hy the said l']nnineer' 
 within the sani' delay, tiiat part ol thi- said line from the 
 parish ol' Si. Joseph, to and in ih" parish of St. Francois, 
 namely, ahoui ten miles, provided th ■ municipal or private 
 subscription in the last mentioned municii)ality amount to 
 the sum often thousand dollars. 
 
 "lie will also haw the riq-ht of lakini"' the rails that are 
 deposittnl with Li Bampie Nationale as )llateral security 
 oil his paying the amount for which tln-y are given as 
 security. 
 
 "The said Louis Adeiard Senecal obliges himstdf to make 
 and build, and have acci'pled as aforesaid, within three 
 years from this day. the thirty-five miles ofline that remain 
 to be built iVom the place reached as aforesaid at St. 
 Francois to the frontier, pr.)vided that the Government 
 subsidy, and the municipal and private subsbriptions 
 granted or to be grant. >d for this part of the line, amount 
 tog\.^ther to tin; su'ii of teti fht>u.<ati.'i flol/urs jji-r niile. 
 
 " The said Louis Adeiard Senecal ol>liLres himself to use all 
 possible diligence to have these presents ratiiied by the 
 creditors of the said Larochelle iV Scott, and in default of 
 his obtaining the consent of the majority in number and in 
 
24 
 
 amount neoos>;ary lor this purpose wit.liiii tliirty days aClor 
 the leiral app jiiitmeut ol' all assin-iioe to the ostato of Laro- 
 ch'llo iSc Soott, and of i)rodu(^ing a Ici^-al r(>solution, these 
 pres.'nts shall be considered as never 1 a\ ing- been made 
 witliout recourse lor damages or ot)ier\vise by the said 
 Louis Adelard Senecal aii'ainst the said Company, nor by 
 the latter aj^ainst the said Louis Adelard S^necal, exc(>pt in 
 the case oi' his tailing" to execute ar.y of the oldiuations 
 imposed upon him. 
 
 " And in the case when the appoint m"iil ol' the said assi. 
 gnee could not be made ))efore the lirsi ol" March na^t, the 
 terms of payment above mentioned, and each of them, shall 
 be postponed lor a time equal to the time that shall elapse 
 between the first of March and the appointmt'iu of the said 
 assignee, and the dates for the completion of works slial] 
 also be extended an equal period of time. And at the ex, 
 piration of the said l»>as(\ the rollinu* stock <>f the said line 
 and its accessories, which now belonu* to the Company, and 
 are on the line shall tlit'u belong to them. 
 
 '• Where tlie said Louis Adelard Senecal shall fail to make 
 any one of the aforesaid paymtmts. and, aUo. v.here he shall 
 fail to complete at the uiven periods above mentioned, any 
 of the parts of the line above mentioned on thv' aforesaid 
 conditions, the Company can give him notice of payment, 
 and if he does not execute his obligations within llic tliirty 
 days ioUowing the notice, the Company shall have the 
 power to resume the line ami all its rights by these presents 
 now iriven, and all the works done, payments made and 
 the materials then placed on the line shall be forfeited by 
 the .said Louis Adelard Senccal, and will return of right to 
 the Company. 
 
 " At the expiration of the said lease the said Louis Adelard 
 Senecal will leave on the line a rollinu' stock equivalent to 
 what the Company now posse.ss, and which is on the line 
 and its dependencies. 
 
2A 
 
 *' Thus tloiu^ :iiul pa-sscd. at Iho Town of L.nis. uudor th.- 
 number two thousand nine hundivd and sovonty-four, ol 
 the minutos of Mtre. Ja.ques Augvr, tlie undorsiirn.xl No- 
 tary. 
 
 "And tho parties act ini>' as above .stated, have .si irued these 
 pres'nts, and the seal of th.^ Company ailixed after the 
 reading- thereof." 
 
 (Siii-ned,) 
 
 
 L. A. Skn'kcal, 
 
 Dk. Alf. Mokri.^.si:t, 
 
 1-. X. DULAC, 
 .T B. MiCHAUD. 
 .lAC-,iUK.-^ AUGEn. M.P, 
 
 A true eopy ol' ih(^ minute remainino- 1 
 of record in my oliice. \ 
 
 (Siii'ucd.) 
 
 .Tac. Au<;eu, X.P. 
 
 Before proeeediun- furtht>r t(. ronsirler thi- ab>urd as-ree- 
 ment, I must do all er.'dit to one of th^ Directors ♦•lected, 
 by a'pp.'iidiim- the iollowini*' notice v.hich app.-ared in the 
 C/i, -omr/e. oi'the 14th Fe])ruary, and which needs no com- 
 ment, 
 
 NoTici':. 
 
 " I saw with surprise ray name in th^ Cli ronir/e oHhe 
 " 7th instant, as elected om the new Board of Direction of 
 " the (^)uobec and Levis Railway C\)mpany. and have 
 " awaited, in vain, an oliirjal notilication of th.- sanif. in 
 " order to resign a trust to which I had b.M'ii appointed 
 '• without my knowledi,e or consent, I iher.-fore be-- to 
 *' notify all those interested, and the public uenerall-v. that 
 " I hereby n'sio-n as Direclor of the Levis and K.'un.-bec 
 " Railway Company, and have nothina- to do with the same. 
 
 "Quebec, >3th Fe})ruary, 1877. 
 
 (Siraed,) 
 
 •J. B. KKNAUU' 
 
 Bl 
 
26 
 
 Lei not the reader lose sight of th'i fact that this lease irus 
 countenanced, and to all intents and purposes signed hi/ 
 several of the verj/ Directors who hneiv that Mr. Reed had 
 refused to advance one cent towards the enterprise white a lease 
 existed with the contractors, and irho themselves ivere parties 
 to a rcsiliation of the lease, and substituting therefore a con- 
 tract prepared by Mr. Reed, and knowing that he had positive. 
 Ill slated that bon'l.< could not be sold on an?/ raihcay in 
 the face of a lease existing ; I sat/ in the face of these facts, the 
 above lease was entered into with Mr. Senecal. 
 
 But whnt shall I say oi' the Lease .' What will bt; th^^ 
 result iu all future attempts to raise capital in England, for 
 railway purposes, when we find that the lirst claimants" 
 (bondholdt^r.s) interests are sacrificed and ia'nored ^ Can we 
 see a clause in thi'^ document, by which provision is made 
 for the payment of the interest on the bonds ? ^'an w^e see 
 any provision made for the payment of the principal jC20.),. 
 
 000 :" None ; no reference is made to these items, they are 
 more trilles to those who are parties to the lease ! And the 
 earnings of tlie road, which had l^een mortgaged to the 
 bondholders for the payment of interivst and sinking fund^ 
 are given to the lessee without any stipulation, for twelve 
 t/ears. 
 
 The payment of .1:14.000 per annum interest, not to speak 
 of a sinkinu' fund to mert llu' debentures at raaturitv. are 
 simple trilles which tlie Company or Lessee never thouii-ht 
 ol'I Will a court of 1 av sustain a proceeding of this kind .' 
 
 1 hope not, lor the sake of the country ! 
 
 Let ns look at another important clause of this document : 
 " The lessee will construct the line beyond St, George (o.'» 
 miles), providc^l only that $10,000 per mile is guaranteed to 
 him by Government and Municipal aid ! " This was exactly 
 what Mr. Reed had re([uired. If the Crovernment. Munici- 
 palities, or people had guaranteed him $10,000 per mile on 
 
27 
 
 W, 
 
 this rernaiuiuir .section, noue f>|f ih^ pr^sinit difiiculties 
 would have occurred, and the roaiL . uld have been huilti 
 and the hito contractors establish*^! -a.-^ a ^olv^nt firm ! 
 
 If $10,000 per mile could haro lt.^m realized, whvclianixe 
 the contractors ? AVhat has Mr. >-Da*''al done to deserve 
 this emolument voted him by >[n:;2T*'}io]der.'< representing' 
 $40,000 worth of stock, as a^'ain^t s&ai interest c>f X'200,000 
 which the English capitalists h'jlil ttSu"' Company liable lor :* 
 
 The Annual Meeting- h'4d. rEs-- h'A.^ t^iu'ned l)v three 
 shareholders representing- To shan^ic^T-SO^ol' stock, and not- 
 withstanding the stron^-est opp-iKiitS'^Mi -on th » part ol' tlie 
 leg^al advisers of the English CapiMiSa-t-s au-ainst the lease 
 and the action of the Company, ih^ T<>a.'i is tak-Mi forcible 
 possession of by the pretended Ie«*>-. im the fac^ of a guard- 
 ianship, and tlie owners oi tXw^ rofcl Sc*rso(>th have 2'ot to 
 wait the action of the courts toobiiiMiiii JTQsrice and possession 
 of their property ! 
 
 What the results ofsiichan aenii^ia mil be as eifecting 
 
 further English subscriptions to^uvard* railway or other 
 
 s"curities of the Province of (^iiebt?>?. I ieav<^ th" public to 
 
 judge. 
 
 « 
 I have little more to add, bur [ ^•*!i to place myself right 
 
 with all my friends wlio have hL.,^ . me in my struggle 
 with this enterprise I I do not ea'^ii a r-ej9ection airainst my 
 late })artner as far as the w<»rk ap>p«Ttr!ii-/tiifd to him is con- 
 cerned, and must bear testimony r.> M* iinriring <'nergy and 
 perseverance in the uphill struggL^ -ivie kad to undergo. 
 
 The stand I have taken at the ptr.-^^m lime in connection 
 with the Levis and Kennebec tri^: m!i:*k'i^. is simjily that I 
 propose to support the bridge ikn/f c^'cricd me over, and if 
 under the circumstances, I c^au -lo ::;.Tiiiug: i'Xsi^, 1 ^vill at 
 least show gratitude towards thos»^ ::: .ids in Enirland who 
 have reposed conlidence in me. 
 
28 
 
 As I havo given a true and unvarnished history of the 
 Levis and Kennebi»c Jiailway and its pri'stnit diffitnilties, in 
 which aro given undeniable tacts, [ come to the (juestion, 
 what have I made out of it after live years of work and 
 anxiety ^ 
 
 The emoluments have been so u'reat thut I deem it ad- 
 visable to elassifv them ! 
 
 1.S'/. I have drawn i'roiu \hr funds ])rovided h// Mr. Reed 
 $1,500 per annum. (Mr. Larochelle the same) a considerable 
 sum out of which still stands to my credit in the books of 
 the late contractors I 
 
 Hiif/. 1 have had an action taken out aii'ainsl me for con- 
 spiracy l>y the new lessee becaus.; I was trying- to protect 
 the interests of my friends who advauc>_Hl the money to 
 build the railway ! 
 
 ;>/>/. And lastly. I hive l),?en subjected to criticisms both 
 by ih'i Fr.Mich press and [> ';>ple, as having btu^Ji inlluenced 
 by a national feeling to overthrow tin' present directorship, 
 and placj it entirely under Enii'lish control, and have even 
 b.'eii accursed bv an anonymons writer in tlie Can<i<lien of 
 a ilisregard for the interests of my creditors in opi).)sing the 
 NetileiiiMit which Mr. Senecal proposes to make with tht.un. 
 
 \ow the fa<-ts arc, that Mr. Ueed proposed not to inter- 
 fere ill anv way wil!i t!ie iiit"resi,s of the stockholders ol 
 the Couipaiiy, and only to make such a sli^'lit change in 
 till' Board of Direction, (h" i)roi)osed to iv->'lecl the President 
 aad oflici'r.^ of the Coiui):iny. and all llic members of the 
 old Coard of Directors except t\v(»), as he ihouu'ht would 
 best serve th'' advancement of the enteri)rise, so I I'ail to 
 see why there should be any national feeling in the 
 matter. Th"n as to my opposition to Mr. SeiiecaVs pro- 
 position to settle with our ereditor.s, it has arisen because 
 1 doubt that gentleman's ability to carry oul this arrange- 
 
29 
 
 mtMit ; ill tho livst placo, because I do not think the 
 ai^reomont which givo's him the proiits ol workinjr the 
 road — the property of the bondhoklers— is h\i^al, and .se- 
 condly, Ix'cause I am conlident that even iC it were so, 
 the prohts ol'its working- wouhl not be sufficient, for some 
 years to come.to pay the iii;2,000 per month which Mr. Senecal 
 promises to pay, supj^o.sing that the heavy engau'ement lie 
 has undertaktMi woukl allow him to devote rhai sum for 
 this ]>urpose. On the other hand I believe that Mr. Ji^ed's 
 propositio]!. if accepted, will result in the payment in full 
 of these <-reditors long- before the expiration of the live 
 year.s and a half which it will take to complete Mr. Scnecal's 
 proposed mode of payment . 
 
 I (Munot conclude this pamphlet without expressing' my 
 deep regret at the unfortunate position which th»^ affliirs of 
 this once promising enterprise have taken ; a position of 
 antagonism betw^een its different interests, wdiich I believe 
 to be as unnecessary as it is injudicious. The finest coun- 
 Iry in the Province of Quebec, a district rich in timber, in ^ 
 minerals and in soil, and containing the largest area of land 
 suitable for setthnnent which yet remains available, awaits 
 only the completion of this railway to become developed 
 and peopled. Surely it would have been a wise course for 
 all who are interested in the enterprise to have pulled 
 together to aciiicve this end ! Surely it is difficult enouii'h 
 in this poor country to induce capital to help us, without 
 endeavoi'ing to treat it unfairly, or to (juarnd over so small 
 a question as has caused th(^ present trouble, which will, I 
 fear, postjione tor a long time, if it does not entirely defeat, 
 the completion of an enterprise so valuable to the city and 
 province of Quebec. 
 
 My story is lini.shed, but I cannot close without append- 
 ing the following editorial contained in the Toronto weekly 
 
80 
 
 Glohr, which rathor meets tho case at issue, and entitled 
 "The C'ous! ruction of Ivuilwiiys." 
 
 m 
 
 THE COXSTRUCTION OF RAILWAYS. 
 
 The Toronto Globe savs : — It is sometimes virired that 
 railways which h;ive ))i'cn made to a very great extent by 
 means of bonuses irom municipalities ouii'ht to belonu' per- 
 manently to those who have thus supplied a lari»e portion 
 of the cash. The I'allncy ol' this can be seen wit hout much 
 difiiculty. Railways are now to all practical purposes the 
 common roads of every country laying claim to civilization 
 and progress. Without them the inha!)itants are at a 
 grievous disadvautau'e. The sparser the population and 
 the newer the country the more the necessity for such 
 roads, and the less the likelihood of the enterprise being at 
 once self-supporting. The object which the great mass of 
 the people have in view in helping a railway is that the 
 road should be made and kept running. L »t that be secured, 
 and thtn' have lull return for their money. If (rovernment 
 li'ives help, it is for a similar reason. But the ordinary 
 shareholders, and those who have advanced money on the 
 roads' bonds, are in a difierent position. They get no re- 
 turn unless th'-y have tluMr capital secure and their interests 
 forthcoming, lieason and fair i)lay alike say that when 
 they take the u-reater j^art of the risk they should have the 
 profit. In spite of the bonus assistance, and Government 
 advanc 's, most of t!:e railways not strictly public works 
 under luitionai control, would lU'ver have madt» a real start 
 without private funds pui into them. Suppose that, utterly 
 beggared, they had been brought to the hammer and sold 
 for what they would bring, there would be no doubt at all 
 about the reasonableness and propriety of the purchasers 
 exercising a controlling iniluence over them, so far as the 
 previous (engagements of the promoters woidd allow. They 
 
 ■■■ 
 
could only i)urcli;i.S(' \vh;i( Iho oilier Imd lo sell, and if iliP 
 property had Ixmmi cumhiircd witli cerinin (•ondilions as to 
 the rates oi' IVoiu'lit and the running of passenger trains at 
 certain tini^s and lor c.'rtain lares, on account ot'tlie jmblic 
 help previously received, of course Uie purchasers would 
 be bound by these conditions exactly in the same ^vay as 
 the orig-inal nianau'ers and directors were. What then are 
 railway bondholders in many cases but simply persons 
 occupying an analogous position to purcliasers under a deed 
 of sale ^ And who has a right to object to their occupying 
 such a position and exercising sucli an inlluence unless 
 those who are ready in the interest ol' the public to buy 
 them out and allow them to profit ])y the undertaking as 
 well as the other contributors to its completion .'' The bonus 
 givers have all they want when the line is in working order 
 and carrying their goods and promoting the development 
 of their district. The (Government has all it wants when 
 the country is benelitted. AVhat do the share and bond 
 holders get i The risk ol' lo.sing all they have put in or the 
 chance of making the enterprise bye-and-bye a paying one 
 after possible years oi' anxiety, and ai'ter putting additional 
 sums into the concern in order to prevent losing all they 
 had previously ventured. 
 
 I now leave the matter in the hands of the public, feeling 
 confident that an impartial judgment will be rendered 
 
 CIIAS. A. SCOTT. 
 
 Quebec, 29th March. 1877,