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Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc.. peuvent hue filmis d des taux de reduction diffdrents. Lorsque le document est trop grand pour Atre reproduit en un seul cliche, il est filmA A partir de I'angle supirieur gauche, de gauche d droite. et de haut en bas. en prenant le nombre d'images nicessaire. Les diagrammes suivants illustrent la mithode. 1 2 3 32X 1 2 3 4 6 6 iiillHinHiHIIIiRliRlliiliiP ilMWM > iJi-it»»«lMW*i«l.- pr^pus,! uf H,.. ( luvnuMrut In ai,I ,1... (.anii.Iian Pacific Railway l.y ;, ina>, uf i|,i,.,v ,nilliu„s of ,|o|I „ . Th,. matter IS so iniiH.rtant, an.l th.. a.iin,„,ts invn|v,.,l s., lai-.- ti,,t the public have scarc.ly yrt n.aliz..,! thr full srnp,. an.I ].,.„•?„'. ,,( ulint IS proposal to hv. .1...,..; an.I it is nianilVst that th- ( ;.,v,.,M,n.M,t inton.l to rush the n'soluti..ns whi.h th,.v hav.. sul.n.itt.Ml i. tlio IIc.usc of Connnons thr..ugh I'arliam..nt l...f,nv th.> wh..I.. suhjcct can have l)(.en thorouf,'hly taken in by the public min.l. Tho first questi..n which naturally su-ests ifs.-lf ,n connoction with the CTOvernment's [iroposals is, FROM WHOM CAME THE PHOPOSITlON T.) HAVE THE LINE .■OMPLETEl) BY THE END OK ISSA ? The contra.^t with the Cana.lian J'aciHc C.nipany was to finish . the line by 1.S91. It canimt be pr..ten.l..,l that k-.I faith t..war,l l.ntish C.hnnb.a necessitates th.' coMipleti..n of the ma.l ..arlier Th.> contract was .l,.lib..rat..ly .Mit.^v.] int.,, an-l th,- terms „f it, fully .liscusse.l an.I well un.l.Tst,M.,l l,y all the IVoviu.M.s. The I'resi.h.nt ..f the Cnipauy states that it is in a o„siti..n to c.nipl.-te the contract b..f.,r.- tli.> expirati.,n ..f 1S9|. It' th.uvfore naturally ...Turs t.> .-n.^iir.. if th.- ( J.»vurnni.-nt haw ask,.,l i,, have the r..a.l c..,nplet,-.l by th,- cl-.s.- ,.f 1SS.-5. [f „„t, then th.- Cn.pany must have nia.h- tin- suj,-.'stion ..r the ,v.p„.st, an.I, w.- may fairly presume, in its own interest. If n.,t in its ,.wn int.-r.-st, then why It may be asked, shoul.l tho cunlry b,- calle.l upon to supplement' a l.beral contract by a loan of thirty milli.ms .,f m.^ney, to be converted probal)ly into a very permanent investment. 2 Tf the s|ip»Mly fillini: u]) of tlir Norfli-AWst is tlir impcllinp inntivo, tlif iiiiswtT is tli;il till' railway aln-ady rcachrs into the territory which can he ciiltivatnl ami where scttlciiniit is c.\|icctc(l and desired. To carry the r^ail across the Rocky Mountains will not 1»rin)4 settlers into tlie country, nor will it in any way conceivahle to ordinary minds expedite the liiliuL; up of the North-West Territory with population. Enii;4rants roveiuents on lines tr;insferred hy (lovernnient to the Comjiany (no ]iartii'ulars L,nven) 353,601 Rolling stock, not all si)ecially reipiired to operate Tana- dian Pacitir Railway 8,710,210 ^Materials said to lie on hand 4,025,601 810,480,101 Deduct from this sum floalin^: debt, to he ]iaid liy the rioveriiment und(M' the pro]iosed arran;4ement 7,500,000 Net expenilitur.' 832,980,101 It is manifest that the amount ])ut down for rollin,:; stock is far in excess of wliat should he rei|uii'eil to opei'ate the main line of the (.'anadian I'acili<-, ami it is hi-hly prohalile that a very considerable piirlion of the stock said to have liecn procured has heen added to what were the Canada Central ami ()ccidenlal lines. Then the amount for material on hand is simply r>normous, hut takitiLT the whole expenditure as it stands, and deducting; the amounts which are adniitteil to he outstanding in the .shai):- of tloatin;^' debt to be paid out of the money projiosed to bo i^'iven by the (lovcrn- meut, the total expenditure, it will be seen, is 832,950,101. ip motive, (iry which Mrt'd. To ttltTS into iiry miiiils lojmlntioii. .hey likely aincnt, the ;ic Railway 23,563,564 3,S27,092 3:)3,r)01 S,710,210 1,025,001 10,180,101 7,500,000 32,9S0,101 ock is far in line of tlu' (■(•nsitlorahlc ■en ;i(M('il to lonnous, hut tilt' amounts floating th'ht tlu; (iovcrn- Di. 3 It is interesting to note what the company has received from the Government. It has he en paid in cash on account ul the $25,000,000 suhsidy 812,28l),21I It has earned and is entitled to have transferred to it 13 million acres of land, which, valued at S2.3G per acre (the Company's price), amounts to 30,080,000 Total 842,909,211 The ])Ositive contrihutions, therefore, of the Dominion up to this time have ht-en more than suthcient to meet all the expenditure ad- mitteilly incurred, an expenditure wliich is, no doul)t, very much in excess of anythine; which was really reipiired. lint it is stated that the Company has not lieeii able to realize on tin; lands transferred hy the ( lovernment: it is a natural ipiestion to ask why, and tht> answer is not dilliruH to ,uive. The Company has so conducteil its operations as to destroy all coniidence in it, and it has, in aildition, irritated every otlier interest with which it has couu' into coutact, to such an extent as to create enemies where it ou^ht to have had friemls. Its land Imnds were launched at a time wlien mouey was [»leutiful and the security was a favorite one, anil, in the hands of others, would have speedily realized all the money needed to carry on the woi'k. I'ut the gentlemen haviuL; tlie control of the company, not con- tent to ilirect their attentiou to the great work of comjileting the Canadian Pacific line, and with amhitions extending far lieyoiid that enterprise, which to ordinary individuals would seem a vast under- taking, have launched (Uit iu all direi'tions and incurred liabilities for KXTKXSIOXS AMI SfHSlIUAHV LINES to an enormous extent. They report having paid : — (1) For the liaes fnuu Callentler to .Montreal and Brock- ville $3,203,050 (2) To secure a route to the sea board 3,482,251 (3) Land for termini 390,789 (4) Expenses connected with land bonds, &c 372,880 $7,448,970 It dots sefin to poor ordinary mortals, not intoxicated with their own .sflf-iinj)i)rl:ince, that itrudcncf wt)uld liavu dictatotl the conii)le- liiin i»f tlie work which tlicy had contracted to do, before launching out into extensions costing' such vast sums of money, and for which the\ had iiiailc Ud ailc([uate tinancial provision. Let us lodk at tht'st' items of exj)enditure. From whom was the Callendcr line, or, in other words, the Canada Central line, pur- chased and why was it purchased? Tlie Vice-I'resident of the Canadian Pacific Company, it was well known, controlled the Canada Central line. Therefore, the con- clusion cannot he avoided that in his capacity as a Director of the Canadian Pacilic he purchased from himself, as a Director and the controller of the Canada Central, that railway. "Would not ordinary resjtect for the representatives of the people in Parliament dictate that they should know exactly how much money was exchanged in con- nection with this transaction? Tlie Canada Central line had received a large subsidy from Mr. Maiken/ie's ( lovernment. It was bound to afford facilities to the tratlic of the Canadian Pacific, in fact it could do nothing else, it was its manifest interest to do so. The same remark may bi' made in regard to the Occidental line. The oliject of constructing that line had been avowed over and over again to be the securing of the traffic of the Canadian Pacific line wlien complete. What urgent necessity, therefore, was there for the Canadian Pacific Company to expend money on either of these lines? As to the propriety of a director in a great corporation being a party to transacti()ns between the corporation and himseK, there can be but one opinion. I shall refer you to the law on this subject be- fore I close this letter. The items fornung the total expenditure put down under the head of " ROUTE TO THE SEABOARD," are interesting. They are : h their coiui»le- lUcUiug r which was the ne, pur- ^vas well the con- (r of the and the ordinary ;tate that A in con- froni Mr. es to the se, it was nital line, and over icific line •e for the ese lines 1 [1 being a there can Lbject be- lunder the 5 Paid in ronnoction with the (1) South- Kastein Railway 81,582,327 (2) Th.' St. Lawr.-n(M' \' ( )tlawa G9,900 (3) Thf Atlantic and North- W.'st ir)G,C46 .^1,808,873 (4) Canaeen vouchsafed in n^gard to the ex- penditure in connection with the Atlantic & North- NVest. Mr. Blake, in his adniiralde speech, which ought to he read by every taxi)ayor in the country, asked some very pertinent ipiestions in con- nection with this operation. It is understood that the (.j>uebec ( !ov- ernnient left in the hands of the Canadian Pacific, when the transac- tion in regard to the Occidental line was completed, 8100,000 for the completion of a line at tht; back of the mountain at Montreal ; and it seems to bt; very well umlcrstood that not half of this amount has been paid on work actually done (and l(jng iigo abandoned) in making the line. It would ))e interesting to know if tliere was included among the recipients of the large sum paid away, any nu'iubers of the House who were in.strumental in getting through the legislation connected with the Atlantic- & North- West. The Hon. Ministi'r of Railways explained that the line was in- tended to make a connection with the Grand Trunk. In this, as in some other questions, the honorable gentleman was not careful to ascertain the facts, or he would have lieen aware of what everyone resident in Montreal, who takes any interest in thtise subjects, i»er- fectly understands, that the line was projecteil to pass across the Grand Trunk by an over-head bridge, and no connection was in- tended to be made. This leads to another entpiiry, namely, as to the expenditure put down in item No. 3, lands for termini, $390,789. It is generally ( supposed that tlu' priivipal olijert of Ijuildiii^ the railway, as it was propiisctl tit lit' iiiailc, was to n-acli certain lands near tiie Itank of the river St. Lawrence and lying west oi the waterworks, whi(.h had heen purchased fur terminal facilities. Is the rost of these lands in- rhnled in the item I have refc'rred to, and, if so, to whom was the money paid ? The item under tlh- head of advances to contiactois is a lar^e one to pass without more particulars Iteing afloi'ded to the llnuse iu re;4,ird to it. It would he ;i pertinent (piestion to ;isk whether the amount was di-;ltursed in coinu'etion with the Noith American t'onstructictn Company. If not. on what account wa> it advanced i Tl 11- lion. M mister i .f Kail) ays has given an exphinalion a liout till m investment in North West land stock, which will strike every hiisim man as hcing most unsatisfactory. For a Company like the Caiiadi I'acitii; to try to sustain the stock of other companies liy purchases i> a singularly irregular proceeding, and although tlie powers of tin Canadian Pacilic are extensive, and such as I'arliameiit would not hi. willing to give to any other railway corporation in the country, it wciuld puzzle the Hoii. -Minister of Railways to point to any legisla- tion in regard to tin; Company authorizing such use of its funds. The sixth item of 847.'},:iSl may mean anything ; the terms in re- gard to it are so very indelinite that it may cover |)ayiiients of any description. The point ahout all these items is whether, looking at their charac- ter, Parliament should he content to [lass the proportions of the (!ov- ernmeiit without a minute ami searching eiii|niry into tlie expenditure of the Company. (Jne thing .seems to lie certain, that the gentlemen alxiut who.so wealth and aViility to carry out this contract we have heard so much in Montreal, seem not to have put a single dollar of their own money into the cori>oration, excejtt it he that they have purchased a few shares of the Company at prices helow what was heing oll'erod in open market. The transaction with THE CREUIT VALLEY COMPANV is a curious one. The President of the Canadian Pacific was known to be a large holder of securities of the Credit Valley before the con- tli IS it was k of the lich li;i'l liuuls in- I WilS till- lari^c out- ill r(;^;inl I,. jiiiiiiUUt iistniclioii , ;il»iut tin; ' V liiisiiii'SJ^ . (';iiiii as.-.n(iat('s was iiiailr liv the ( iovciiiiiniit l^f tlic cMiistrurljoii of tlic Canailiaii Pacific The tcnils I'f that fontrart rfi|uirfil a niiliion dollars in casli to he (Irjiosilcil with the ( InvcrnMii lit. Wlini the ( '(iiii|iaiiy ^ot slmrt of fuinls, it apipfars that thiy nnui -!iil tlic ( iovcrninciit to rclca.sc the 81,000,000 cash, and a coiii|irniiii.NC appears to have hecn ed'ected. The Canadian I'acilic ( '(iiii|iaiiy appear to have purchased from their furu /'o'si-fr.if II, r Hi-'ilil Vulliij smiriliix^ and tlien to liave taken thelll to tlie ( ioverniiieiit, who colll]>hlcent Iv accepted securities vahied at .Slf^ljOlO, fur one niiliion dollars in cash. Ila|ipy Coiiipaiiy I Most ohlii,'iii;.( ( loveriiiiient I The Company, l>y the transfer, ,L;ot the use df §r)ir),:{!)0.,f.'ash. W'v are told now that these securities are to hccdiue a^'ain the property (d' the I'residriit <.f tiie Canadian Tacilic. W.dl, we may tliiiil: whiit We like. It is curious, ti. siy the least of it, that these [larticiilar securities should have liecii the most availahle and acceptahle for (h'posit with the Covernnii'iit. The Consolidated Kailway .\ct, l.^7tt, contains the following clause :- — " Xn pcrsKii liiildiii^j ;iny offico, place, or uiiiiilnyuicnt in ur Iieing concerned or intercHted in any Cdiitnicts under or with the C'lunpjiny, sliall i)e ciiialile of Immuj? cho.sen u director or of liolchnj,' tlie ottice of director, iior .-.liii!! any person lK'in(< a director of tiic Coiniuiny enter into, or Ih; directly or indirectly, for lii.s own u.se and benefit, interested in any contract with the Company, not relating to the pur- cliase of land necessary for the railway, or l)e or hecoinea partner of any contraccor with tln! Company.' Don't h't any one suppose that the word "contractor" as used in tliis (dau.se means only a person who has undertaken to liuilda railway. It has a niucii wider sioiiiticaiice ; and if transactions sucli as 1 have referred to Were entered into hy any chairman or director of an KiiLilish railway company he would not hold his position tweiityd'our hours, and would pi'oliaMy he suhjecled to I'Xtremeiy unpleasant proceediiio's. When we come to examine into the details of the arrangements, ahoiit rilK ISSIH UK TIIK Sl'Oi'K or Till-: C.\X.\IU.\N r.M II'IC C'OMIWNV we oet some iiniioitant lessons in tinancing. I notice that ^^r. lilake has asked for a return in connertion with the twenty-tivc millions of stuck said to have been taken by the ori^'iiial irn'orixirators — nr, iiiutlicr wimls, ilii'r<'tr)r.s —f>f tho Company. Tt will Itc, (iiirioiis to ascertain at what rate this was taken. An im- pression prevails that it was sold at forty edits on tiic (hijiiir. If so, there have Immmi uppdrtimi'ics since ihe transaction was enteral into fur tiiDse, who hi»ii;^fht it, to realize a larj^'e, prolit ; ami one wmiM naturally anticipate that if such pntlit was reali/.eil, it WduM, on the tiieory upon which the (."onipany's all'airs hav<^ lieen cimdncttMl, find its way into tlie cullers uf the t'(»uipany. Th(^ total amount of th<( slock issueil and pledujeil appear to lie 865,000,000, and the aniuunt of money received upon it is re[)orted as 8:}0,000,000. When it is c.,iisi(lered that the (" pany has already [)aid away nearly .S-, 000,000 in interest, has to pay the (lovernment for interest upon the stock somethin,i,f like sHI, 000,000, ami to dishursi' ahoiit .$'?,000,000 more for interest — that is the dif- ference, l)(!twe(!n three percent and live peiveiit duriuLC the period of construct i' 111, n-hich is estimated to he, two years -it will he seen that the di>l)ursenients for interest, wln'ii taken out of the amount vc- por',ed to have hcen receiveil, leave tln' manniticeiit sum of .S^^j^OO,- 000 as net I'cceipts on the stoi:k. \V(i>! I'l'rr .^ih-// (I'/ni/i'ah'i' jbumciuij hr/dl'c s/'/'u ? The explanation e^iven in regard to TIIIC NOIITII AMKFUt'AN CO.NSTRUCTKJN COMI'ANV in tlie ]Ious(; l>y our fellow-townsman, the member for Cardwell, isof the moHt interesting,' cliaracter. We are told that the Construction Company, which ('onsiste(l to a very lai';,^' e.\tent of those who were inten'sted in the ('anailiaii I'acilic, aipl were ai'tively en.L;a,L,'ed iti car- rying on its opei'ations, made a contract with the Canadian I'ai'ilic to build the railway for a certain sum in cash and slock. The ohject of making the contract, we are further told, was to enal)le the railway company to put its stock on the market and he ahle to satisfy those who might he disposed to huy, that a li'UKijiih contract had lieen en- tered into on tile hasis of the ('ompany's e~:timate as to the cost of the line. You will si-e at a glance that n00,- ili'f jinancinij 'arilwcll, is of (\)nstnii'tii)n (isc win I wciv ^aujt'il in citr- iaii I'at'itif to 'I'lic olijci't I if ■ till' railway satisfy thiiso hail lii'i'ii t'n- llic cust