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Lorsque le document est trop grand pour dtre reproduit en un seul ciichd, il est filmd d psrtir de Tangle sup6rieur gauche, de gauche it droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent ia m^thode. 1 2 3 32 X 1 2 3 4 5 6 U-^ CUNADmN PACIFIC RAIL¥M COMPilNY. From The Gazktb, Montreal, June 15fA, 1885. The ttetementB Bubmitted at the ad- journed annual meeting of ahareholders of the Canadian Paoifio Railway com- pany held on Saturday mirror forth very clearly the position of that important enterprise. Of the consequence to Canada of the railway, of the marvellous ene)-gy displayed in its construction, of the confidence manifested in its work by the chief promot-.rs, and of the pluck with which serious obsta- cles have been met and overcome nothing need at this day be said. The practical illustration of *,he value of the road, and especially of the enterprise of the company which the necessity forJihe speedy transport of troops to the North- west has afibrded, has brought home to the people of Canada the liveliest sense of the wisdom of the policy which inau- gurated, shaped and guided to a success- ful consummation the construction of a railway to the Pacific coast on Cana- dian (ioil. Ilr. Stepb'jn points with jus- tifiable pride to the achievements of the company over which he presides, and in- dicates what, until recently, has been in- BuiBciently appreciated, the imperial value of tho railway, a value scarcely second to that of commercial develop- ment and political cementation. The re- port and the speech of the President convey the ftallest information as to the position and the prospects of the enter- prise. Occasion is also taken to clear away many mistaken impressions as to the policy pursued, oonveyed by persons hostile to the company and igixious to hamper its operations. The statement, for instance, that the leaned and acquired lines are a drain upon the company's re- sources and have constituted a charge upon its capital to the detriment of the main line contracted tbr, is shown to be wholly unfounded, these roads east and ■outh of Calknder actually producing a net revenue exceeding by 25 percent, the fixed charges upon them, and ex- ceeding by above 10 per cent, the inter- est upon the entire cost of thes* extensions and leased lines, in- cluding the fixed charges upon them. The necessity of providing an out- let to the seaboard scarcely needs to be dwelt upon. A railway running from Callander to the Pacific coast, relying wholly upon independent lines for its subsidiary traffic and its connections with ocean potts could never hope 'o V.3come a profitable enterprise, and in the de- velopment of trade would be seriously hampered ; it would, in fact, under such a condition of things be im- possible f •» make of tlie Canadian Pacific a transcontinental liighway capable of successfully competing with its American riv^, and giving to the people of t' 9 Xoithwest that expedition and cheapness of ii-ansportation so essen- tial to the settlement of the country. The President is able to report that the outstanding capital stock is more and more j >9sing into the hands of per- manent investors, and of the 165,000,000 there is held in England some $40,000,000, in Canada $16,000,000, and in the United States $10,000,00, whUe the original promoters manifest in the most practical manner their faith in the enter- prise in the fact that to-day they hold a larger amount of the stock than at any previous time. The close of September is named as the date of the final completion of the track-laying, there remaining to be cover- ed at this time only 203 miles in British Columbia, from near the summit of the Selkirks to Savona's Ferry, and at the opening of next spring the oompanv will have efficiently equipped and provided with adequate terminal, elevator and other fiKtilities, nearly Ibur thousand miles of roAd, that, as to the character of the road-bed, the grades end curves, thi» equipment, and cheapness of operation, is not equalled by any other transoon- tinental line. The statement, in thia oonnection, that during the past two years, with 1,-500 miles of railway, from Port Arthur westward, in operation, not a single detention of trains from snow-blockade has occurred, is moat gratifying. The financial position of the company is detailed mi- nutely in the accounts submitted, from which it is learned that the floating indebtedness amounts to $6,893,461, the greater part, $4,702,000, having been created during the post year by the pur- chase of rolling stock and the provision of elevators, termiiuil facilities, etc., necessary to the proper conduct of the traffic and to aid its development and enlargement. Upon these latter services a further expenditure of $5,045,000, the details of whicn are set forth, is requu«d to place the road in a thoroughly efficient condition from the outset, and this it is intended to make out of the proceeds of the sale of $15,000,000 of bonds which the company will have at its disposal under the rearrangement of the terms of the loan of last session about to be made. The balance of the loan and subsidy in the hands of the Government at the opening of the present year, !»^,633, 082, will suffice to complete tie work in accordance with the terms of the contract, and at that date the assets of the company, valuing it» lands at $2 an acre, exceeded the liabili- ties by $110,000,000. When finally com- pleted and operated throughout, the fixed charges of the Canadian Pacific Railway gvafem •;il! reach $3 000 000 onRiiall"' about a million of which arises out of rental of leased lines, and the bonded charges on acquired lines, and $1,200,000 out of the indebtednesg to the Oovemment. Lut year, as is already known, the net earnings reached $1,191,- 900 ; in the first four months of the present year they exceeded those of < ) corresponding period in 1884 by 192^,- 014; the directors feel warranted in anticipating for the current year a net profit of 12,400,000, while in the first twelve months tucoeeding the oper ing of the line throughout a gross traffic of 112,000,000, and a net revenue of 13,600,000 is predicted, or more ;han half a million in excess 3f all fixed charges from the very outset of the operation of the whole system. That is, indeed, a magnificent prospect, one whieh all Canadians will r^oio* to He realised, and which, from the rMulta alt«ady achieved, there is reason to b«- Uevo will be fiilly accomplished. There ia much more of interest and of proAt in the report of Uie direetora and the meeeh of the president, to which we ■tiMct the eareful attention of our r«Nul- 3ln,who will in the statements sulimitted ind the fiilleit vindication of the policy ^ieh initiated the Cuiadian Paoifio nkitway, and the highest testuuony to Ok. plaek and enterprise of the gentlemen Who have carried the work to a suomss- ftil oompletion. l^lonrned Annual Heeling of the SliMrehoklers. THE PBESIDENT'S ADDSESS. In^ortant Statements of the Position of the Oompaay. I > t ITS iJU£T8 AID LIABILITIB8 the riMa Oharrss aad Probable Bivmie of thsTear. The isUowinR is a report of the proceed- togs at the adjourned annual meeting of •nareholders of the Canadian Pacific railway kald at the offieas of the company, Hontraal, r-. «• Satardar, June latb, 1886 :— InBttbmltting the .annual repert of the «recters fbr the year 1884, Mr. George fltsphsD, president of the coaipaDy, said :— la laovlac the adoptiea of the i^ort which ftas Just been read, I desire to say a few words wwch I think necessary fully to exnlain the pcffljiw, ,^ Uti» company's afltUrs at present, •ad whioh could aot well be oempreaMd wltUa the limita of the ottcial report Ton will, no doubt, concur with me in thinking that the statements which the direc- tors have laid before you In the report are such as to inspire confidence in the success of the undertaking, while, at the same time, they indicate much that remains to be done before that success can be secured to ita fullest extent I congmtulate you upon what I think I may venture to call the unparalleled rapidity with which the railway has been constructed, and upon the reenlta which its opemtion hat already acoompUshed. The Igures placed Before you are not approached in the history of railway construction, aad as well from the reports of persons skilled in such matters, as from my own observation, I can state that the efficiency and thoroughness of the work are as remarkable as the iapidlty with which it has been performed. In the recent unhappy disturbances in the Northwest the company has been fortunate in behig abls to assist ia the tnuisport of troops and material to the field of action, and although, of necessity, some discomfort WM SKperleneed by the vo^nateera ia their passage north of Lake Superior, the speed with which that transport was eflfected, con- tribu! J, in no small degree, to the suppres- ilBa of the onhreak. This cireaustaaoe has drawn attention, both here and ia Barope, to the probabilit} that the railway may, upon its completion to the Paclflo ocean, bear a sUil mora impertant part in the dvAmee of Um limpin, and that ita usefulness, ia that respect, will form an importaat adjunct to ita value as a peaceful instrument in the con- salidatieu and development of the resources oftheOoadnioa. One of the subjects which are most debated with reference to the railway, is the position aad value of its acquired and leaded lines. Ob this subject vou have some statistics in the report, and I would only desire to add a few words to the i')formation so given you. The main line of the railway, as you are aware, terminates at Oaltander, but for the purpose of u>nnecting it with the sea- board, with inland navigation, and with the railway systems of Ontario ssMl Quebec, aa extension of it to Mont- real and Brookville has been acquired, and the consolidated line known as the Ontario M Quebec railway, passing through Ontario and oonnectiag with Americaa lines and with Lake Huron, has been leased in perpetuity. These acquisitions by purchase and lease have been frequently referred to as involving the expenditure of menev more properly ap- plicable to the construction of the main line. But as respecta the original expenditure upon these lines, it is sufficient to say that it has already been repeatedly shown that the cost of the aequisilioa of the exten- sion to Brockville and Montreal, with many other similar expenditures, was more than provided tor by the company Itself from funds derived from ita own stock ; and that the Ontario ft Quebec system was aequired and constructed by individuals, independent of assistance from any portion of the funds of this company. What I desire nowto potatouttoyon is, that returns of the actual traffic on the atiiuirod and leased lands east and south of Callander show, at this moment, a net revenue cceed- tag by 29 per cent the fised charges upon wem, and exceeding 'ey above 10 per ceat ..!-.., ,51- raiiic L-U31 UI ECCoC OS- tensions and leased lines, including such fixed Jkarg^ This gratifying result, as it seeau to ae, shoald put aa ead to the atatementa so freely mode in variius quar- ters, that the acquisition of these lines by the company constitutes any burden upon the enterprise, to say nothing of the argument, which I fully endorse, that their importance to the Canadian Pacific railway, in securing for it the handling of traffic, will be at least equal to, and probably greatly exceed In value, the revenue directly derived from them. I am pleased also to be able to point out to TOO that tbeadvaniMse afforded by the com- pany's stock as aa io vestment are beginning to be apprecfatted by foreign investors. Large numbers of persons In Briuiu are holdera of the stock, and as very little speculation pre- vails, these persons seem to have purchased mainly for investment. I am enabled to state that of the $65,000,000 of stock issued by the company about $40,000,000 are held hi Snglaud, about $10,000,000 in the United States and about $15,000,000 in Canada ; and it may aot be uainterestiug also for yon to know that the amount of stock now held by the original promoters of the enterprise U greater than at any previous time la the his- tory ef the eompaav. Another subject has been engaxing the at- tention of the directors which had not rCMChed a position to be mentioned ia the report. I refer i« the infbnnal diMsasaiena which hav* been taking pUce during the past vear with reference to obtaining access to the port of Quebec, and towards procnring the eonstrac- tionofasborter line ef railway ftom Moat- real to the Atlantic coast In the Maritime provinces. The directors have felt the importance of obtaining aeoeat to the city of Quebec, aad •• the sea-board at pointa open in the winter season, and resolutions are now before the House of Commons tendiuK to further both these objeota. The haportaneeefa f^ee ac- csM to Quebec was strongly felt at the time of the acquisition of the western section of the Quebec, Montreal, Ottawa and Occidental railway, and conditions were inserted in the agreement of purubase from the Quebec Government which, if carried out, would have afforded the company the desh^ exit for its snmmer traffic. Those eondiUoas, however, wera not per. formed by vbe company which obtained con- trol of the Eastern section, and, although as yon will no doubt have perceived by the pabiished oerreepondeace^ every effort was made by the Caaadtan Pacific Bailway com- pany to obtain the carrying out of the agree- ment wHh the Quebec Government, short of prooeedfaigs at taw for eaibreing them, tiiese efforU were not successful. And the discou. tent which arose among the citizens of Que- bec respecting the very imperfbct connection with the interior which ;ru afforded by the North Shore railway, through tif) ooatwl- ling influence under which it haid Mien, had culmhiated In an agitation for an effleieat and eonvenient access, to and from the city for the internal and foreign trade which natunuiy appertains to that im- portant seaport. Such access this company is equally soIlcitouB with the dtliens of Quebec to have placed on a proper foothig, and no effort will be spared on ita behalf to obtain such aooeM, either by acquiring the North Shore railway, if that be practicable upon reasonable terms, or by making arraagements for suehaccMS aa will operate aa eiectaaiir as would the actual acquisition of the railway itself. The Airther alternative of procuring the eonatroction of a second line of railway flmit llontrwkl to Queb«c, by a company to b« i»> c4wp«r»Ud by tbv Oov«rnmrat for Uukt piu- poM, aud to b« operated by this compuiy, is cont«mplat«Ki auU cunditionally nubsidiaad by the Ooruruiuebt measure ; but is an alternative which I siocerely trust there will be no neucHiiity tor retortiug to. While on thi« aubject I woukl lilie to take the opportunity uf uxprutwiug my regret that the precideut of the Grand Trunk Itailway company sliuuld have seen tit, at the halt- yearly meeting ut the vbartholdura of tliat company, liuld recently in Lundou, to indulge In an ULilair and uncalled fur attacli upon thin uuut|jauy. It would uerve no UHeful purpoMu fur me either to answer bin peroonal attackii ov to notice the inaolent laugiiage uf lomo of thu other spuakerH at that moutiug— gpeakuiM who are regularly put furward at 8uch meetingH, to speak not only of the Canailiun Pacitlu company, but aWo of the Canadian Government, in termti that wuuld be impulitio fur thu prt-Hident himself to une. The Pienidunt of the Grand Trunk cum- pauy, after expressing grave doubts as to tile possibility of tliu Caiiadlau Pacific ever being able to pay its own working expenses, and pointing out the couseciueut worthlessness of it« obligations to pay tlie rental of its leased lines, the Ontario and Quebec in partioular, becomes sympatlietic over the troubles he pictures for us, ijuito forgetting his own for the time. He goes on to say that the ques- tion is n(it how much protit we will make iu the first few years, but how much loss We will Bufler in workiug our railway, and how much more muuey we will want to complete it. lie winds up his mel- ancholy forecast of our future by observing that tlie bast thing for tlic Ooveinmeut and ourselves would be that i a railway should be taken over by ..the Guveiument, i«ijj,t)iat when that happy time conies, as he thinks it must come, there will be an end U> undue competition ; and he promises the fiieudly assistance of the Grand Tniuk propiietors to enable the Government to work our liue with as little loss (IS possible. What weight the Grand Trunk shareholders attach to tne oracular utterances of their president I do not know, but I think, in fair- ness to them if nut to ourselves, he should have stated that his information was entirely second hand. I doubt if lie has ever seen a mile of the Ciina(i mile.s. <»n the Government section between I'urt Mo(Mly (the present Pacific oi ean ti'imiiiU8> and .Savona's Ferry, a distance of :il.i miles, the rails have been laid ; and this seelioii of the line, which will. soon be haiiiletl over by the Guverumunt to the com|>aiiy, has been upuiated for some time past by thu contractor who built it. On the section between Suvonn's Ferry and the present end of the track, near tli'o stiiuinit of the Si'lkirks, a diniame of 20:i tTliles (the onlv r< iuaiuiiiggap betwi'MJ Mont- real :itid the Patifie ocean), the work is so til' adv.iined, as to justify the expectation tli.u lie laii : will bo laid before i lie end of Sipteiuber — compleliiig the track from end to epd of thu entire muir. line. The directors, therefore, ran confidently assure the shareholders that by the early spdng of next year the through line from Montreal to the Pacific ocean (a distance of '.',8U,'J miles) will be finished and iu perfect condition, tlioroughly equipped, possessing every reiiuisitu facility for doing its work ecouoiuically and efiiciently, and at luast equal to the best of Its competitors in all respects, particularly as to curves and Mradients, permauent way and rolling stuck, the quality and character of the railway being far above the standard ti.xe latsd that the line to be built by itia cass* pany should t>e of a quality and ohamo<> ter equal to the Union Padfio railw^ as it was in Febraaiy, 1873. Bnt since that date the Union Pacific railway has bssD greatly Improved, nnd other Paciflc railway* of a IiIkIi clatg havu boen built ; and it will bo olivliiiis to the Hliaruholdeni, that in order to eiiiiiiro tho conipluto Ritccoag of the enter- t>rfiti', ag a cummciiiiil Hndertatclng, it is ab- suliituly necesaary that the railway, on its opeiiliiK for fhroiij;!! trallio, Hball bo in all respticlH, At K'ast w being nmde ; addiitonal faoiiiiieK will hill-,- lo be prjviiied iranie- diatelv, mill then uii' iaijiioveraeuts incident to all new lines nm^t be made from time to time. Ail the v.iions needs of a new rail- way i'l .1 new Hiiil liipidly growing country, anil e' ( lytliing H' > - iiry to secnro economi- ca\ aiMJ (niiient ih-.iiiion, and the full de- veloiiinent and p. rnianeut control of its traflic, muti bu su|)i)lie I. Foi tliese purpobe- tne ot-timatcd amount reqiiind will bp,.K follows ; — For sleeplnot cars, passenger cars, dlnuiK ears, Ijiigisauo, mail aiul ex- press curs, eml|,'rnni cars, box and catile curs, conductors' cars, tler- rlek, tool niul other uuxillary curs, loooinoilves. Iiiiiul cars, pusii cars, track tools, seinapliores and oilier euiii|imeiit r. niilsHu for operation of liii , also lor restoring const ruc- tion luiv, motives to good working coinllt ion 51,000,000 lor I' evuloi>, III Port Arthur, Fort Wllaiiin, Montreal, etc.; eoal- bUMi;er», Monii-eal; iijititlonal reai isiiiie. Moiiircal unit elso- wli.'.' : I- veliiieii! walls iil Mont- real ; uMiiloimi (Icjiols and Iriieks ami oilier laellltles, .Montreal and olh ■! points; addlllonul yard nwui anil t melts, coal ami other docks, ami orinr tennlnal facilities at Fort Wlliliim an I Port ,\rtliur..,. l.SOO.OOO For Ul visional shops aud niachlnery at nine points, coal dix^ks iinU macliinory at two points on Luke Superior seel Inn; Stat Ion buildings, seelioii lionses and lulseelianeous buildings at vari'ius points; addi- tional siatlon slilings and crossing trucks at various points ; extou- 8lon of divisional yards; acidl- tloiial eiiKliie houses; Itnprove- nieiit III w.iti-r supply ; addlilonal tanks; pennuneiU bridge work at the various crtwsliigs of How rlvor andou other see'ions; additional ballasting, tilling tiosllos and rais- ing roadway 800,000 Forconiplutlun of lelugraph oyslem, main line and brunches 275,000 For connection with Coal Harbor and Knglish buv ; Rbops, build- ings, docks, tracks ana other laolll- tlesat I'acltlc terminus 760,000 Oontlugout expenditures 9lo,uoo $5 046,000 At the end ot December last, according to balance sheet submitted, the total assetB ot thocomi)any amounted to $210,711,725,58, as under : — 9.658 mllnn railway iin<} appiar- 'tunanoes, including steam- ships and telegraph lines.. ..,$116,178,416 36 713 miles railway, built by uovurument, aud given to company free, aa part of lub- ■Idr 86,000,000 00 31,809,737 acres acrloultural lands valued at $a per acre . 43,709,474 00 Amount In hands of Govern- ment to pay years 3 per cent, dividend on capital sUick of thueoinpany 14,388,388 87 Balance due on lands sold 3,078,386 66 Land grant bonds In treasury, . 738,500 00 Outside assets 8,U43,75l» 80 Total asHOts $316,711,735 68 Represented by total liabilities ainouiiiing to $106,014,303 Asunder:— Capital siiHik $05,000,000 Caoaila Central bonds 1,823,333 tiuebec province (duo on acconnt(;t' M. O. iftO. railway) 3,500,000 Dominion liuvern- ment loan 28,007,512 Land Orant bonds (outstanillng) ,S,«88,000 Floating debts 8,805,481 $100,014,;100 Assuiniiig that tho rcarrangumeut of the comjiany's tiiinuccs now under the considura- Uon of Parliament becomes law, and that the $15,0011, Oiji) mortgage bonds provided lor iiuder this reanangement arc soldat par, the following may be taken as the prospective iinancial position of the compaity at tho 1st of Tune next (!8«iJ); after having expended the $.S,ij;):),l)HJ remaining in tho hands of lliu (Joveriimint for tho completion of the main line, after liaving provided for tho payment of the iliiatiiig debt amounting to $0,Sy5,4iJl, and after liaving expended the estimated §5,045,1)1)0 required tor additional equipment and facilities : — 2,058mllos railway and appurten- ances, inclmling steamships and telegraph lines ; 711! miles built by fJovernmont! rorniiu:^ purl of subsidy 21,;i(>|i,737 acres of land valued at 9- per acre Amount remaining In hioid Vo pay :< per c-nl. dividend on capital stock lor 7}^ year Haluiico due on lamls sold Outside assets Cash l)ulance from proceeils mort- ^■ige bouds $128,851,108 35,000,000 42.700,474 12,,'(2a,020 2,I17H,2H8 0,043,730 3,050,630 $23J,UU0,585 M.vnii.iTrE.i). fapltui stock.. $ 83,000,000 Canada Cent rui bonds 18") fit Province of tiuebec 3,'30o!obi) verninent loans [secured by O bonds] ....... 20,009.000 •Cioveriinient loan balance [se- c-lied Ijy lumls] 880,918 t *l mortgage bonds [outstand- ,,""«J, .•;•■••.■ 13,0110,000 •Uiiid grant bonds 3;(18(i;ooo $118,802, -.'45 The fixed churges will then be approxim- ately as follows { — $20,000,000 Gjvornmenl loan, 4 per $ 1 5,ooo,'(i6b' ilVst mOTtgage bondk! 6 ^^'"'''""' percent 7-,on(in $:(, 500,000 duo Government Quebec ""■""" [account (i., M., O. 4 O. railway], Bpercont '. 175000 $1,82:1,000 Canada central bonds aud sinking fund, 6 per cent 107.400 Rental leased lines 778,4J4 Add— $0,880,912 Government loan, so- cured on land grant, 4 per cent. . , $2,610,834 395,236 Total fixed charges $3,O08,07o •Theso Items will be reduced by land sales. As the shareholders are already aware, ner. .■!!„u.,.. ..,!!..!-, o, i„e cBcQiica or tnc company at home and abroad, to destroy co»fldence in the enterprise, have been so far successful, that the J35,000,000 of unsold shares of the 4 caplttl stocit of the company bare become practically nseless as an available resonrce. The director* haro in consequence been obliged to apply to the Dominion Oovem- ment for a modification of the terms of the act under which tho loan of last year was granted to tho company. And a measure is now be- fore the Dominion Parliament which provides amongst other things for the cancellation of the $315,000,000 of unsold shares, and the substitution therefor of $35,000,000 five per cent, flrft mortgage bondi. The raeastire also provides for tho postponement of the payment of the indebtedness of tho company to tho aovernment, amounting to $'.'9,,S80 . 912, to iHt May, 1891, and for the reduction of the rate of interest f.om five per cent, to tour per cent.; tho Ooveriimont agreeing to accept $20,000,000 of the nropo.Hed bonds as security for the payment of an equal amount of tile debt; and, as security for the payment of tho remaining $!),880,!il2, to retain a first lien on the unsold land of the company, sub- ject to tho outstanding land grant bonds. Tins measure does not air.ird rai-ans for so complete and advantageous an arrangement of the company's alfairs as would have boon attained umler the conditions suggested in the prefidenfs letter ou the istli llavch last. But the proceeds of tho §15,000,000 of first raorlgHg.! bonds which will be available for use l.v tho companv, will be Hiillicient to en- able it to i)iy the Houting debt, aud to pro- vide fir all the udditioiial equipment and fa- Clllties which will bo needed to |.lace tho carrying jiowers of thecompiuiy, and its ac- coinmoduiioiis for tramc, in the highest con- dition of convenience and clliciciuv. But the compiny is being pressed in sev.Jnil quarters tor extensions nnd lulditiimal |■a.■ilitie.^ be- yond its muiu line, some of wliich it desires to prcyide ; and altlioiigli tlie diicctors hope thut the measure propose 1 niiy also enable them to meet the more imiiortant of these roquiivmeiits, it remains to be seen how far the Government measure, i,, ledueing so largely tbe relief the companv requested, may not restrict its power of providing {,n tho ex- teu-iioiis of Its connections, which tho com. paiiy and the public, ami it is believed tho Goyernmeiit also, desire to seo carried out ; and may not also interfere with the intentioil and wish of the company to anticiiiate the period of the repayment of the Government loan. Should this mei'suro bocoiuo law, tho posi. tlon the company will occupy on the opening ot the through lino next spring may bo summed up as follows :— " ' It will have a cash deposit in tho hands of the Dominion Government, sufficient to pay semt-aunual dividends at the rate of 3 per cent, per annum on its $65,000,000 capital stock for seven and a half years, or until the end of the year 1893. It will own 3,299 miles ; aud will hold under lease 695 miles of fully completed and thoroughly equipped railway, forming a total mileage of 3; 994 miles. It will own more than 21,000,000 acres of agricultural lands. It will own three fine steel steamships on the great lakes, and an extensive nnd well appointed tele- graph system, with power to extend its tole- graph lines to ail parts of the country. All this property, together with certain outside assets, in all valued at $230,960,585, will be represented by a total indebt.ednflBH of«';»- o92,:^45, bearing an unusually low rare of interest ; and by $65,000,000 capital stocli, for which dividends for seven and one-half years will be in hand. be TBArno AMD lAflNIIiag. The openinc oftta« through line to the Pacific Ocean for regular traftic in the aprlng of nest year, will be the Ml accompliah- ment of the natiotial and politioal objects which the Uorernment of the Dominion bad in view In aubHidiclDg and aiding the con- Ntruction of a tranHcontinuntal lino through Canadian territory ; the company will then have fnlfllled all its obligationn to the Oorem- ment undtr its contract ; It will be in the same poHition as any other purely commer- cial enterprise, and will depend for its pros- perity upon the development of traftic and prudent management. The value of the pro. BSty as an investment must then be mea. sturedand determined solely by the amount of money it can earn. The following results of tho operation of the railway for the i.;st two yearn have been obtained from it as i\ new and incomplete railway, only in partb.l operation, and hav- ing to a large extent to create its own trefflc. and that, too, during a period of iiue.Tampled commercial deprcHsion ; — E.\JlNINOH AND E.\PEMSES. 18N3. FaasongerH $1,404,631 37 KrtlKlU il,755,»15 110 jr " ' " Mai Express Sleeping oars. MlseuUunuouH 00,1011 16 67,171 16 24,071 : 75,700 54 t 25,027 811 74 816 84: 131,031 10: 154,004 18' 181, h:;!) 62 232,211 U4' 207,4)8 40, 245,213 or 171,315 08 15,750,521 27 4.558.63 75'l,]01,890 52^ t Deflelt. ~ — ^ During the first four months of the present year, 1885, the earnings and expenses have been us follows -.— Month. Earnings. Expenses. ™ Net Earnings. Jan Feb.... March . April... 423,764*'io 401,608 14 489,151 80 802,141 43 339,058 50 334,301 71 300,624 60 367,776 59 S 0. 84,705 66 67,146 43 128,527 23 334,264 84 Total 2,080,665 62 1,401,82140 004,744 18 There is thus shown an improvement in net results over the first four months of last year of $022,014. ft„H*itf"""'"'.°f*'°"''"''^"°'» material car- ried this year being sSi 29,313 gross, as com- iMt^ellr *'*"''"' ^°'' ^°' "^" "^^^ t*^« According to the above statement, and as- suming that the net earnings for the U«t eight months of the present year will b« no more than they were for the last eight months of 1884, the result tor the present year will ^je a nut profit of $2,113,904. As an ln(Te<«e la net earHingi for the last eight months of this year may fairly bo ex- pected, tho directors believe that the net resultof the present years operations will not fall short of $2,400,000; and without pretending to be able to forecast the future, or wishing to indulge in what might socm to be extravagant estimates of the prospective earning power of tho jiroperty, they telleve themselves justified in estimating that for the year beginning Juno lat, 1886, which will bo the first year of the full operation of tho throni,'h line, the gross earnings will not bo less than $i:!,ooo,i)00, and the net profit not less than S.),iioo,ooi); and the directors feel confident that every succeeding year, as tho country traversed by tho line is brought un- der ciiltivutiun, there will be a largo and constant increase in tho earnings and net results. The Ontario an8. I The land sales for tho past year have been j as follows ;—7U8, 584 acres, at an average ' priceof $3,01J peracres. Tlie total sales up to December 31st, 1881, were 3,730,187 acres Less cancelled sales 120.024 '• 3,000,283 acres These cancelled sales were tho re.sult of failure on tho part of tho purchasers to carry out the terms of their contracts— in some cases as to cash payments, in others as to cultivation. Whore the lands were held by speculators who defaulted in payments or in ! conditions as to cultivation, it was thought best that the lands should revert to the com- j pany ; but the most liberal treatment has been accorded to all bona fi,U settlers who I appeared to have acted in goowed by a hsavy foiling olT io loaA sales, owing to the pteseuce of vast quantl- tioH of free Qovetnmcut lands ; but as these were taken up by settlers, the sales of rail- way Unds iucruased and prices increased as well. Profiting by the experience of others, this company has extensively advertised the free (iovernmeiit lands, and made every effort to stimulate their settlement. The settlements along the main lino now extend something more than 400 milee west of Winnipeg, and for this distance the greater part ot the Government lands within ten miles of the railway have been taken up, and there are indications of renewed activity in the sales of the lands of tho company. LA.-*tl ranted co8t....$:is,»uo,000 HQXtiimi'iit— Riilllni? HKx'k 7,369,930 Lahe MtoimierH 007,389 HhopM and Mucliliie- rv at and near Jlontreal 003,106 ^— — 8,060,464 Plant, Tools and outm 208,291 Real estate at and near Moutiual.,. 408,807 Afhditcef find Ex- jivntliivre oM Leaned l.incH— 8outb Eastern Ilail way $1,606,280 St. tawronco and Ottawa Hallway. . 227,165 Atlantic uud North- west llallway.... 202,837 Manitoba South- western Coloulza- tlou Railway 1,264,678 Ontario Leased Lines 1,266,460 [4,645,402 Accounts receiv- able 2,008,367 Material on hand 3,887,780 Dominion Oovern- vienl Outirantee fund— Amount on deposit to guarantee S w esnt. end on atoek t Irlglnal dapoalt. 8,7tO,>40 Adfttlonal^ie- ,,.,,. poatl 147,1<« Amount ad- .„.«.. vaneed by govt 7.880,918 16.38«,88a Lefw dividends .„.«„„„ ^^ _M50j000 ^^^^^^^^ Balaooa doe on laudii sold (de* ferreearlng luterebl.... 13,006,000 $3^88,000 8,888,000 Government Loan. Amount applied on account ol^ fund for Oovemmint guaran- tee of dividend 7,880,919 Total loan on account of construc- tion 22,600,000 Amount re- ceived 18,026,600 18,888,800 _: 1 ._— ^ 96,007,612 Amount to be recelved. $3,873,40Q Loans payable ?'415'9f Z Unpaid vouchers 4,480,413 Cash NUbsldy paid by Government: . „.„„„„„„ Total cash subsidy 26,900,000 Amount received 20,240,317 30,340,817 Amount to be received.! 4,769,883 tand Grant. S,eOO,2U3 acres sold amounting to $ie,80«,9S4 IMS— Kxpenaea and ~lo peroenl. premi u m onland grint bonda taken In payment. 1,111,847 Town sue: . ^ Aiaount received fbr aale of town site* not cuvereU by laud grant mortgwe..,. Bonascs rocel ved^from municipalities Nett revenue from road III date during coimtruollon (all In- leri-Ht and rentals having been de- ducted. 9,S04,8$0 804,675 383,e0» 1,636,064 $138,913,361 I. a. OODBM, Auditor. Montreal, June 12th, 1885. The report waM adopte. Oreufell, R. V. Mar- k ; IIou. W. . Harris, oi m. j)eii8l in ptir- UQuual meet- mogf certain ttio fiuancial der consider, ttiori/.ing the n and to act :ctiDg tiie ox- of the com- imo informal tiie Qoveru- of obtaining icials of tbo ! Kortb Sbore le resolutions )nH it waa ex- be Bharebold- gpect of that inferred upou LTBD, this Company rized to enter Government ng the North itermina upon Bnary to meet ilutions and of :herewitb. Dgg were then 15th instant, i Ibo new board cted president sident of the