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STATEMENT TO THE G0VER:.,MENT RESPECTING IT. -•♦•- Ottawa, 12th February, 1884. SiK, — 1 have the lionor to submit for tlic co))sideration of the (lov- ernnieut, the following; statement in support of my proposed General Railway Act for the North-West, and to request the assist- ance of yourself and your colleagues in securing the passage of the measure during the present session of Parliament : — 1st, — A general or uniform system of local or subsidary rail- ways is imperatively demanded in tlie interests of the peop e of the Noi'th-West. In suj)port of this proposition I beg to call your attention to the fact that the fertle belt, west of the Red river, extending westward and north-westward for about fifteen hundred miles, is, on an average, over one hundred and fifty miles wide- Supposing the main line of tlie Canadian Pacific Railway to run through the centre of the greater portion of this l)elt, and, admit- ting that the farmers can successfully haul the products of the soil fifteen miles to avail themselves of this railway, we find that the main line can be made avilable only to the settlers in a narrow strip of country, say thirty miles wide, or less than one-fifth of the Agricultural lands now open for settlement. To make the great transcontinental line serviceable to the whole North- West, or to the fertle belt generally, a system of side-lines is requisite, by which the settlements distant from it mav be accommodated. 2nd.— A General Railway Act applicable to the North-West is necessary to promote the construction of such a system of rail- way. The history of railway legislation for the North-West, during the past five years fully sustains this proposition. The getting of charters from Parliament has served little beyond purposes of speculation, while Railway Acts granted by the Manitoba Legisla- ture have, for the most part, been disallowed. When we consider the number of charters which have been granted, and the almost entire failure of the compo ies thus favored, one is forced to look upon further legislation of this kind with disfavor. A General Act is therefore needed to take the place of further special legis- lation, since, by its provisions paper railway schemes may be abolished, and only honafide enterprises encouraged. The condi- tions of the organization of companies under the Act, while suf- iiciently liberal to afford every opportunity for the investment of capital in North- West railway undertakings, may, at the same time be framed so as to prevent incapable companies holding the ex- clusive right, for any length of time, to a projected line of rail- way, to the exclusion of capital available for its construction. Such an Act will establish confidence in local railways as a profit- able investment. It will settle the question as to what authority shall shape and control the system of North-West lines, and afford permanent protection, as far as Federal legislation can properly grant protection, to foreign capital that may find its way into such undertakings. In short it is the only suitable means for the con- struction of a much-required system of local railways in the North- West. 3rd.— Such an Act should be passed during the present ses- sion as it is exceedingly important that the work of constructing the lines should be commenced the present year. 8 It is now quite certain tliat the Canadian Pacific Railway will be completed and in operation from the Atlantic to the Paci- fic within two years from this fall. With such a result accom- plished, what will he the position of Manitoba and the North- West in respect tliereto, provided little or nothing is done mean- while by way of building subsidary roads. Simply that of being unable to make the line available, except to a few settlements. Nearly four-fifths of the fertle belt would still be without railway communication, and the most productive sections of Manitoba, while almost within hearing of the sound of the Pacific Railway cars, would be excluded from their advantages. Provided the Act is 2)assed this session and the work of construction under it should immediately follow but a few hundred miles of road could be made ready for operation by the close of 1886, and for these rea- sons I urge immediate action. 4th.— There is a strong probability that the passage of the Act which I propose will be the means of facilitating railway construction in the North- West. I am not in a position to state positively, but from represen- tations made to me, which I cannot but accept as trustworthy, I regard it as very probable, that immediately following the Act which I propose, a strong company will be formed, representing English, United States and Canadian capital, suflficient to con- struct, at least five hundred miles of local railways in the North- West during the next four years. With suflicient encourage- ment to the enterprise on the part of the Government, I have but little doubt that such a result will be accomplished. 5th. — The operation of the roads which I ask Federal legis- lation to authorize will be a profitable business for the companies which may control them, and a decided advantage to the settle- ments which will thereby obtain connection with the Canadian Pacific Railway. I do not think it necessary to advance anything in support of this proposition, except to refer you to the vast systetn of purely local roads now in successful o])oration in the State of Illinois. It is estimated on the evidence contained in the Keport of the Railway Connuissioner uf that State, that two-thirds of the far- mers in the ^reat cereal districts there have to haul their pro- duce on an average of hut eight and one-cpiarter miles, while the other third have tu perforin the same service on an average of but ten miles. In the same report it is shown that these railways are operated with fair returns, in most cases, to their owners, and upon a schedule of tariff rates uno])pressive to the farming com- munity. 1 submit that the fertile belt of the Canadian North- West is vastly more productive than the best portions of the State of Illinois, and tliat a system of local roads in the latter is as necessary and will be as valuable to shareholders and farmers as it ever has been in the past, or ever can be in the future, in any por- tion of the United States. 6tli.— The system of local or subsidary roads which I pro- pose is necessary in the interests of the trans-continental line as well as to the advantage of the settlements in the North- West. Such local roads will serve as the great source of traffic supply to the Canadian Pacific. They will be to that trunk line as tributaries to a mighty river, ever swelling the volume of its business. I may say that the Canadian Pacific Railway Company fully recognize this important fact. In an interview on Saturday last with Mr. George Stephen, the President of the Company, and Mr. W. C. Van Home, General Manager, I was assured by both that they were in hearty sympathy with my proposed measure. They expressed the belief that such a system of roads under a General Railway Act should have been undertaken at least a year ago. 7tli. — The fviuiadiaii Pacific Railway Company arc not In a position to {j;o forwanl witii the construction of tiicsc needed ])ranch lines. This is clearly shown hy the record of the past. While tiiey have pushed forward work on the main line at a most comnicU- dalde pace, they have not heon ahlc to meet the wishes of the people of the North-West in respect to branch lines. Aside from this inactivity regarding side lines in the past, we have the assur- ance that the next two years will atford us hut little im})rovement, by the fact that the company is now askinic Parliament to strengthen their hands in the work of the main line: and that the aid which it is proposed to grant is for the main line only. We must therefore look to some other source than that of the company for the immediate construction of local railways in the North- West. 8th. — The Government in my opinion should take power from Parliament to aid the construction of these proposed local rail- ways by way of cash subsidies. It will require at least five thousand miles of local railway lines in Manitoba and the North-West to make the counti-y any- thing like available for settlement and successful agricultural pur- suits. At the rate of two hundred and fifty miles a year it will require twenty years to complete a system of this magnitude, or, perhaps the more reasonable calculation would be the construc- tion of say five hundred miles by the end of 1 8S6, one thousand five hundred more by the end of 1888, fifteen hundred miles more by the end of 1890, and fifteen hundred miles more, or the whole five thousand by 1892. If Parliament would undertake to grant, in aid of these roads, say five millions two hundred and fifty thousand dollars, at the rate of about one million dollars annually on a progressive plan of say three thousand five hundred dollars a mile, it would I have no doubt, secure the construction of fifteen 6 hundred inilcH of tlio iiiOKt urgently ro(iuircil hnmclics in tlio courKo of tho next tivo or nix years. Witli the constrnetion of fifteen hundred miles hy thin proposed assistance the North-West would 1)0 placed in such a position that our people could, without further !>id, if necessary, <^() forward with the work of local rail- way construction on their own acccmnt, prohahly at the rate of progress which 1 have indicated. If land grants instead of cash suhsidies 1)0 urged, 1 roply that there is no serious ohjection^ to such a proposition from the standpoint of the railway companies which would bo created by the ])roposed Act. From this (piarter 1 talvo it that land grants would be most acceptable on the grounds that the assistance received in that way would likely be much greater in the end, but looking at tlio whole question I am in favor of cash subsidies. I look with disfavor at any measure to further tie up the lands of the North- West. These should be left as far as possible open to settlers on the most favorable terms. Grants to different railway companies have a great tendency to confuse the minds of emigrants. The intending settler has already met with too great a variety of land regulations. There arc the Government terms of sale and settlement, the Hudson's Bay Company's regulations, the Canadian Pacific llailway Company's rules, the Colonization Company's plans, and also regulations of sale, differing more or less, of each landed railway company. I have always regarded this cutting up of the public lands as a neces- sity much to bo regretted, and hope that should the Government see fit to oncoiiragc railway construction such as I have proposed, they will do so by cash subsidy rather than by land grants. Notwithstand- ing all that has been said against the Government's land regulations, I hold that the lands thus administered will be more rapidly settled U])on and developed than the grants that may be given to railway companies, no matter how stringent the rules made for their ad- ininifltnition. However, as asHistance to local railways in the North-Wust is all Miiporf iiit, I leave the Government to docido, with tlicso su^r^estions, in wliat form that aiil . i bo f,Mven. It in liardly necessary, 1 think, to detain yon with any ar^n- montrt in Kni)port of our claims for aHsistance to local railways. The principle has already been adoptt'l. Thei-e are those. 1 know, who say that the (Canadian Pacific, which is costing the country so many millions, is to the advantage, chietly, of the North-West. I would be the last to under-rate the value of that line to our section of the Domim'on, but I hold that it is of c.jual importance to Kastei-n Canada. Moreover, the lands in theCJreat North-West will, in tlu; end, liquidate much or neai-ly all, of the cost of the national work, so that in view of the fact that the Gov- ernment of Canada have repeatedly assisted lines of a Icjcal character in the other provinces, having granted over $2,00(>,()(iO in that way two years ago, I do not hesitate to press the claims of Manitoba and the North-West to an equal proportion of public aid in this respect. Besides the public lands in the North-West that will remain to be administered by the Ceirtral Government, after all present demands are satisfied, will yield vastly more than the amount of tiie assistance i-ctjuired to encourage the building of the roads in question. In view of all the cii-cumstances, therefore, I respectfully re- quest the co-operation of the Gov»M-nment to secui'e the passage this sessi(jn of a General Raihnay Act to Encourage the Con- struction of Local Hallways in Manitoba and the North- \Yest. — An Act that will provide Ist.— Just and equitable facilities for the organization of i-ail- way companies authorized to construct and oi)erate railway and telegraph lines in the Noi-th-West. 2nd. — Reasonable cash or land subsidies in aid of such railways. 8 3rd. — Such other provisions in respect of Government ap- proval of proposed lines before construction ; accepting municipal aid ; issuing mortgage bonds; powers to acquire from the Canadian Pacific Railway Company uncompleted branch lines ; authority to make proper connection with the main or branch lines of the Canadian Pacific Railway, etc., etc., as it may seem wise and pru- dent to grant. «• Should the Government see fit to encourage my proposals, I desire to know as soon as possible their views in regard to the question of assistance — whether they will favor cash or land grants, as the proposed Bill cannot w-ell be introduced until that point has been settled. As the work of the Session is now rapidly pro- gressing, I beg respectfully to urge this matter upon the consider- ation of the Government, so that should the proposed measure l)c agreeable to the Ministry, the Bill which is now in course of pre- paration, may be completed and submitted to Parliament. I have addressed circulars to the various municipalities in Manitoba asking for an expression of opinion on tlic question. In reply resolutions are coming in from all quarters urging upon the Government prompt action in favor of the proposed measure. These, as soon as a sufficient number to be representative of the Province arrive, I will enclose to you for consideration. Meanwhile, permit me to say that the people of the North- West are exceedingly anxious to see the measure carried, believing as they do, and as I do, that by it much relief will be obtained and discontent removed. I Lave the honor to be, sir. Your obedient servant, The Honorable TIIOS. SCOTT. SiK CUARLES TUPPER, Minister of Jiailways^ Ottawa. f