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 ■fS^ntWfJsn^iMSfas/Fsm 
 
MICROCOPY RCSOIUTION TBT CHART 
 
 (ANSI and ISO TEST CHART No. 2) 
 
 2.0 
 
 
 1.8 
 
 ^ APPLIED INA^GE 
 
 1653 EasI Moin street 
 
 Rochester. New York 14609 USA 
 
 (716) 482 - 030O - Phone 
 
 (716) 288- 5989 - Fa« 
 
%-^*^ 
 
 '■V'- 
 
 :r 
 
 ^^' 
 
^..«:-^r^;':i' 
 
 ^THE— 
 
 CHIGNEGTO MARINE TRANSPORT 
 
 RAILWAY COMPANY 
 
 "V '.,• 
 
 
 V, 
 
 
 ^O 
 
 
 THE CANADIAN GOVERNMENT. 
 
 OTTAWA : 
 
 Payster 4 Abbott. Printers 4 Bookhindf.rs 
 
 1901. 
 
 
 V ..:*:•=. ■' -i 
 

 T;'.- 
 
Chignecto riarine Transport 
 
 Railway Company, 
 
 To tl. no„„ru:,e the Manl.., „j a. '"""'' " "'" "'"• """• 
 
 CvuLiia,, Senate ,„>,/ //,.use of Commo,,,. 
 f'l Nrr.KMKx,— 
 
 I'-v-:ome,o(:,,n:.daonl..hnlf,.f ,he mvcscors in the Company, .o 
 a.k ,or a rcn.val of the Sul-. id>- and Charter in order to enable us to proceed 
 wi.h and .-„„„.!,, ,h. R..„way on which we have expended about $,.000,000 
 and e., .ed fully twoth.rds of the work. Most o, the n.oney has been laid 
 -tinCanad, on labor, n..aer,a,s l.>con.ot,ves. plant. e,c., including about 
 ^.00,000 in duties on n.ach.ne.y whi^h h.d to be i.nported. The Company 
 has not received one cent <,f pul.jie M)oney. 
 
 Inaccurate sta.eu.ents are so rre,,uently made .bout the Railway, and so 
 -ny erroneous opinions n.rn,ec.re.ardin« it. that I have prepared the <ol- 
 lowi., sta:eu.ent m order to place before you, ,n brief ,„rn. the chief fac-s 
 
 and circums.,nces -lating .0 the scheme, of which I respectfully ask your 
 perusal. 
 
 Dur-n, ,he p.st six years I have been many tm.es in Ot.awa about this bus- 
 ■ness. but have always been c .mpell.d to submit to postponements of its 
 -n, cons,dered. I have now been more than ,wo months here en- 
 
 (l.'avourmg to have our case taken mo h.. ,\ c 
 
 cas. taken up by the Government and a settlement 
 
 rome to. I l,ave asked that a I'ar^amentarv S -1,.^^ o 
 
 , , amentary Select Committee be ai>pointed 
 
 to deal with it and on oi"i' n th..r, ■ 1 
 
 p.V.- 9 there ,s a letter to the Prime .Minister 
 on this suf>j.( t to which I am waiting for a re;,ly. 
 
 I am, 
 
 Honorable Members of the Canadian Parliament, 
 Your most obedient servant, 
 
 A. D. PROVAND. 
 
 A Director of the Company. 
 
 ■'-'j>iH3 
 
 ■ii7iJ«5. ■A'''.1iiVa«as.'^ V . fJ.eB'.f ' V/Sil 
 
c 
 
 I 
 
 "iEhc (Chignccto 
 ^larinc Uvausport illulluan CTompann 
 
 /'. 
 
 "Zht (Oanaliiiin Onibcinmcnt. 
 
 llic red line (,n tiic .Map slinw -, th.- |M.siiii)ii <.| the Ship iC.iilw ;i\', 
 which is 17 miles ioii;^'. [\v.- oVtjct <if inikiti^ i' w i-; \n ruaMr \cs„ 1, t.. p.i^J 
 between i)orts on the i?.i\- of Fmi.ly an,! Iiirtlur '.<.i:th aiwl pr-i-s ,,11 'he <;..lf of 
 St. Lawrence without j^'oin- JnK.'thi' Atl.intii aii<l n.niui tlic ..•a-t ni ' .,va 
 Scotia, vvhicii would elTect a saving olMViral I-utidrid mile. . n tl;.' \ v ; -> 
 
 
 UBUNSWi'cB 
 
 
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 -9 . 
 
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 Ml 
 
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 ■'T^ffii-n 
 
^^^^^^TI..fol!uuln^i.. I.n..r ■,„„......,„ ul , I... i.iMun or f|„. 
 
 '. Tlv original intrnti..,, u ., ,.. ,„t „ ship (anal across the 
 Isthmus of ( h,„,,cto. an,lak,,val ( •o,n,ni.,M,.n a .(.ointc-.l in ,S-, ' 
 l«.Jte..n.n,l>.iniN,av..„,.. Th. ..,,..„,„ ..,,,J,Lu ...;:,■,;,;,::; 
 ■-ccl withits cmiiK rrM!a.l\a;ita".> that thrvini,.,,,!, I , . ■•. 
 
 I 1- "• " ""-> "llClKU (I toKlllStlUl t It Ult 1 
 
 ..,!■ .-,,,,,„., ,„, ,.,,,„„„™, >,„.,, «„„. „.„..„, i,„ „,;„",:; '^ 
 
 '•V,. 1.-1,4, „„I,M i.s;;, llu.,.-li„,„l.-|-.,r.li.,Sl,i|, C,,,,,,] «„«- ,,r, 
 
 t:;'.;:;;^; ■■""' " ' ""■ ■■' '"- "» -h.mc *;..„ai„„i 
 
 aDcj.nicc (or m.iik' >(ars. 
 
 -;. In .«SoMr. Kctchun,,ancnnnc:nt.'ana.lian civil cn.incvr.proiK^^^^^^ 
 
 t thCovcrnmcnt to construct a Ship R.il.ay instead of a Ship Ou.al 
 
 .schcn^uas .,n„n,itt.i to an.l approved hy the C'hief Railuav Kn: 
 
 .•MM., to the (.uud.an < ..uniuunt ,„ a R.port dated ith Kel, ' , SS • 
 
 -.1 was adopted l,ytl,e Canadian (.over '.t u, pla,e o a S p c W 
 
 exccmo„a,o,,d.ulM,tnte,or the prop..cd Ship ( anal cMvonl.l 
 
 mL^trp"ll '^ ".'"" -'^ ^" •-—'- with public 
 
 ..M.tlc k.uluayuast.. be constructe.l by an Kn,l,sh co, ,p,nu 
 
 w>h I ..^d.shcap.tal. the subsidy f. which uould c, „t the(;over, „ u 
 only about one h,iir,.f th.- estimated cost o, th,. ' ovt-'-'in.nt 
 
 ft,,. ,.1 1 , '""''" ^' '-•'^f "I '"'■ canal and moreover 
 
 the .s ,1 s,dy was not to be payable nntd ,he U iiu,, ,,,, completed 
 and while ,t was worked to th.ir satisfaction >mplctcd 
 
 3. Tlie Canadian I'arliament thin fore p,.sscd 
 M.corporating the Railway- Co.npanv. an.l ^M-antn- it 
 ooo per annum for J5 years. The twenty one i,,. 
 Promoters) were name.l in the Act of Incorpo, 
 Canadians with one exception. They included CT 
 owners, Merchants. Mannfactu. s, a Senator, an ■. 
 Jud-es of the Suprc-me Courts, .nul the lead.T of tii. 
 Cco-islature. many of whom were well known public me- 
 t.onand hi.^h character were in themselves a o,,aran. 
 >|^^ of the urKlertakin^. They did not promote the wr. ->r ., .^t 
 but from motives of public spirit. Their object was ... !! : 
 
 capital m London, and carr>- out what thev believed to be . .. 
 public undertakin-^r. 
 
 4 In i.SSs the Canadian i'arliament passed another Act . 
 
 capital of the Company at Aoo.ooo-' - - ' ' 
 
 ture Honds to meet 
 
 • .\cts in I MS J, 
 nbsiily i,fS: ;o.- 
 
 '■"ors , , the 
 
 'd '.lere all 
 
 Is, Shi])- 
 
 •'I'or. two 
 
 >^ l>runswick 
 
 1 1; -ir posi- 
 
 ^ tii ■ 'i'»/,t 
 
 estimated cost of the raii\ 
 
 ni I 
 
 'ay. 
 
HE 
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 ; Miaiitir • • ihr icpri-scMitativis ,<( the prntnotcr^ avmc to I.oiulon 
 ami < on, lilt. (i Su M'lij.ii.iiii Kak.r, tlic .iniiKiit l';ii-iMccr. and 
 at tiic same lim:' Mi.h-.'v.ur.l i.. ,iiiaii-c for t))i' t.ipital, liiit tln.y 
 IouimI till- . Mui,| ih.t 1)1 >'i.t..iii' ,1 nil tit.- t.Tiii- ..(C'ritl l.y tile (if.vcrn- 
 iiKiit I licy iriiiiii'il i" ( iM.'d I, ,111(1 ii; I S.->'' tin- I anadiaii I'.irliamiMit 
 tliLTcf.irc 'Ja-^Mci aiiwth. I A' t ( li,,ii!^iiiL, li ■ tili-i.i\- fn.iti Si^d.cxjci |)lt 
 a imiin fur .•; \t.'..f. t.) llu actuarial . '|iii\ aKnt. ii.innly, Iijo/m.j for jo 
 \ear-. to uiiahu tlu ( ..iii.li in pioii..,! r- lo obt.im Mriti'>li capital. The 
 Canadian pn.motcr> tin n hi.kK a.dnlract with the (iov^mmciit to 
 Construct tiiL' Kaiiuas 
 
 (>. On tlic ah'ivr ti ini>tl)r . ipii,,] \x,i. promised in London, provided 
 that the l-.ii-iiKcrs' coinpUtr snrvrx ., plans, an.l sp.citi.ations w.u- ap- 
 prov.'d In- tlu- Canadian ( im i rninciit | iir pr, paration of tl,isr ncccs- 
 sariiv (Hinpicd a .onsid.iahk- tinir, .IS Sir iU-niainin llakcr had to ^jo 
 twice to Canada ni ordir to jji-ipai.- llu ni. ain! tlir\ ueic not accrptcd 
 l)\- tlu- ( anadian (;o\. riinu !it nnlii .Ma\ : ;rd, i .s.s.s \s it u-,is then 
 oijviondv inipo^sililc !m ;1, ,.-Ji tlu work on |iil\ i-t i,s;s.,, the dale named 
 ni the contract, made l)i-f.\e. i, ih,- Can.idian proiiu.iers and the (Govern- 
 ment, the Canadian I'arli.ime;!!, alter the approval of the pknis. passed 
 another .\ct making,' tlu .kile fo- conipletiiv^ the Railway July ist. ^S<)2. 
 ///<•/,'/•,;;'■,.■, /,'^- ,/,•/.< .-,■'/. ,>ll [•n.ss,;! h'l- llii Cniiiiii'iii;/ inoiitofrrs to 
 iiuib!,- til. hi to .■hi, fin t/i. ,,,/'/!.,/ n/ l.oii,l,<n. Ihis hul w.js st.itoi in I\u- 
 liiiiini/t I'otli /') Mii!isl,rs <iihl }[< mhri .. 
 
 -. rhecai)it,d ollhe Compuiy t.. be issmd to the public was 
 /700000 in i-'ive i'er Cent i )ene)Uine Hond- and ,{.' :;oo,( >co in I'refer- 
 cnce .Shares. ihc- l'rosp,.ttUs was prenared in .M.trch, iS.Sy. when .ill 
 th(- .shares and debentures would iia\ e l)een subscribed for, but it was 
 then foiind that subse.pient to passin- the Company's Acts, the 
 (Joveriimcnt had in the prc-vious Session pa.ssed an amended Gen- 
 eral Railw.iy Act. to which ,dl r.n'lway- in ' anada were subject, and in 
 this they had insert<-(l .1 neu sub-section to clause o;, which enacted that 
 no Honds..r iXrbentures could be issued until jo per cent, of the cost of 
 any w.>rl< had l.-en .-ictually e.Kp.,nded 0:1 it. On a.:couiu of this the 
 Company was c )iiipelled to hol.l back the Delxntures. and the .{."^,(X),ooo 
 of i'refcrctu-e shares onl)- were then issued. 
 
 S. The Railw.iy was proceeded with as rapidly ;is pos.^ii.le. but it 
 was .November 1.SS9, before the necessary twenty per cent, of the total 
 cost— which amounted to nK)re than one million dollars — w.-i.s 
 expended on it entitling; the Company to issue Debentures. The 
 monetary crisis which afterward-^ parah-ed the wh^le nnancial woiid U 
 several years was then threatening. aiuJ lor this reason only i,2so,ooo of 
 
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 :W^''^- 
 
 -«-■: 
 
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 the l)cl,rr,ttliv> nut ■! t l,r /> « . . m . . .i,it|„ „ j .,.,! U . 1 -• ••.it.s. i il» . I |, ,r. .in, 1 
 wlu-n tlu-CMntr.utur,.rvh,u,>U.| th- pi.n v ,1, ,.r tlu-r .i.i.l ..I-, tl,. ,, .,u,; 
 mean,, tlu-y urr.-. l.if- i.i i.Swi, Mnijullca t . u.p.u.l ■ .,n,trtut,.„, ..ttlu' 
 K.lllw.iv U'lvii .ilKJiit tw,. tliinl. (.1 t!u- wnk h.i>\ hnn ,|,,tir 
 
 'I'llC- (nlUIKlM) S rui\,UVi\ . , .1,1, ,!|,ui. , ■ uitil t'lc Mil, m. li..,: .|l„,w IV 
 f.Tlv.l tu I-rcvcilt.-.l the whnl;, ultl,.. , ,,|.ltal Lrill,; ,,l,t,iuir,| r.irly ,„ ,S.S,,. 
 
 'I'liis ini,t.ikcn l--i-.|atiui, u- is th i.- .an- ,,1,11 ilir .Iiiiiailth > ulm li 
 
 liavc tK-falK'n tht; ( '(iiii|iain . 
 
 ,v{„iitlni;' th-U i;^ .■„,„■!,„. „t .->',o ,' /,.,-,./,/;,-,■ r!n,„Lu- .,,„! ,!,,„,; 
 
 '/ TIic Kailwasua-, tc. !).■ ,,,in|,kt..l hy Jut.v i -!, i .S.,j, |,i,t tfir 
 attiial pliyM'i.il .lifliriilti.- .-MciinM-.l i:, . . .n.tnir'tinj, th. ,|.'„|... ,,,ul 
 .vnnaiunt ..vay v.civ m, -,vat il.at L. lou' »lu i, ,t '1h raiiic cvi.'lrnt 
 that ovrrythin;.. nail, ! n,.t .,■ c,,;..|,!.-ir.,l In ihai .i.,t,- ri,r r.ma.liaii 
 I'aiiiaintnt tlirnforv, on t!ic ( ,,!niMny-. api.hV.ai,,,,. ,,,,-,-,,■,' ,,:, \, t in 
 iSiji ;^'ra!itiii;4 .cic >-t ar'-, cxtMi-i' in nftiuK'. 
 
 Ill 1N'>-' tin- C.ini-.Mu .ipnh' d t.) tl,,' < .mv ,-, i,„v;it f.,,- a lurth, . cv 
 tension (,f time-, ^vhuh, huw,..,,',, u a. n.,-.,,uii ■,!. i,nt tlu-v i.-,,,,-.! ..n 
 OrcL-r in Cuiincil, .lat-l July wl!i, n, v. in\!i. alt. r a, knouK-d.^in,. Uua ihr 
 snsponsi.n..fth.-v«.,aU u-,,^ ,,\vi.:, ... unl .,,■.,.,. . .r. iniwana^. thc\- 
 l.n.inisci t!iat, pn.vi.h.i the U(ak> uvi.. artua!i>- in pnM^rr.s aiui the 
 capital sc.uml t<. o.mplcU- thr k,,i!\v,u- !,\ July i ;t, iS-lj, tii.y ,u,ulil 
 rccominchd railiameiit to rxteiui ili,: lini,- l,\' .uK.tiicr yvuv' 
 
 lO. In June, IS,,;, the Caiu.M.,;.- h.nl .., uiv,! tin- .ap.-.d ,v,n.iiv,i to 
 c-oinpli-tc the Raihva>, l.nt the (;..xcinnirnt -ai>l that il ua-. then i,„, 
 iatr in the session -., ,I,;i! uiih the ,|ti, Mi..!, I lurin- tlic l,)ilouin.. year 
 iSy5. tile (iovcninu-nt u.-ul.i i„.t lav the n.att-r before i'arjiaincn't oti 
 the -n.nnd th.at livy uci.' not intro.lu, it:- aii> Ihlis that :,es,ion in\,,lv- 
 ini; inonetaiy liability 
 
 I I. In the earl>- session of iS,/, the f ;,,vei,nne!,t pn-nuV.! to:-evotethe 
 Subsidy and therefore a private Bill \va> :ntr,„lu(:ed to revive the > harter 
 but it was thrown out on a -nap divisi,,u by a in.ijorlty of ..d-. .\ feu- 
 days aftcruards h(,uever, it was repl.i.red ,'.m-Ju; paper tor se, .,n,l readin- 
 by a majority of s.venteen. There w;.,. no further oppertunity of brin-"^ 
 the Hill before the House durin- that session, which tennniated shortTv 
 afterwards. 
 
 1 2. .After the Parliamentary session closed, the (government issuetl 
 an Order tn Council approved .Maj- 3Jnd. .;s.y,, whici, referred to the 
 previous Order in Council of July 9th, kS<jj, and placed the facts on re 
 
 «:^S 
 
 %/h^4^_ ■ • 
 
HE 
 
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 c 
 
 I 
 
 4 
 
 corci, namely, that the Company had secured tlu- capital necessary to 
 complete the Kaihvay before Jnly ,st. 1X04. and t!,ar it was now ready 
 to proceed with the work if an extension of time were -ranted Also 
 that the delay which had occurred had Invn owin- to circumstances be- 
 yond the control of the C:ompany, who w. re hnuo fide desirous of coni- 
 pletuijj th,.ir undertakin.L;: and lastly the Order recommended that at 
 the next session of i'ariiamcnt the (ioverninent should submit legisla- 
 tion to extend the time, in or.ler that the Company mi-ht fmisl? the 
 Railway. 
 
 Thr nlunr 0,;h-, ,„ Cuiiuci/ thnrtorr „rki,,>:.'/o/-ys ihat tlu- On"- 
 t'lHV i^',is „ot irsf^ousihlctor //„■ ,/r/.n i,hnli had /„/:.■>, /./,,.v, .i>,./ /v n/so 
 ^jJiiU r.uu,o;nfio>, br the Cn/.u/i,,,, (,..;■.•, „,„.„/. //,,•,/ /// of/hr, oftlu- C>m- 
 r.viys cl,u„i to ,n„slntn,u„! in possession of its ClMiier au.l Snbsuly. 
 
 13- A General laecli- .1 in CMiiada followed, and the Liberal partv 
 formerly in opposition, were placed in powe-r. 
 
 When the new Government came into office ,1 Sub-Committee <,f 
 the Cabinet was appointed to consuler the claim, and ,.n Sept ^nd 
 iSor., Mr. l>rovan<l laid b, ,,re them at Ottawa a statement in support 
 of the Company's case. l-:ii;hteen months afterwards, namely, in R-b- 
 n.ary, 1S98, a reply was receive-.! refusin- the Companv's api'.lication for 
 remstatement. in October. iS^a Mr. i'rovand a-ain met the Sub 
 Committee at Ottawa. He was then informed that the (nnernment 
 was not likely to renew the Charter an<l Subsidy, and was re.|uested to 
 make proposfils to the Government for a .settlement of the claim and 
 the.se were .sent in letters dated J.inu.My 1 sth, i8<„;. .., the Ri<dit Hon 
 SirWilfriM I.aurier, I'renner, and to the Hon. Mr. Fieldin- Convener 
 of the Sub-Committee, and were in substance as follows:---" 
 
 lMr.stI\-.--'rhat the Comp,in\- was ie,id>- to. complete the Railway 
 on the re-enactment of the ( h.uter ,uul Subsidy. 
 
 Secondly.- That if the Government would' not reinstate the Com- 
 pany, tiiey should p.iy .Sj,(X)0,cX)o tor the loss of the Subsidy. 
 
 Thirdly. That if this was not a-reed lo, the amount t.'. be ^o paid 
 as compens.ition should be referred to arbitration. 
 
 .All these rc.|uests were refused. The reply of the (lovernment was 
 that they would not reinstate the Company nor pay $_^ooc^ooo as com- 
 p.iis.^t ,,... nor si,h,„,t to arbitration the amount of compensation to be 
 paid. 
 
 The reasons ^iven for rcfusin.q to renew the Companv's Charter 
 and subsidy or p.ay compensation arc two : — 
 
 FIRSTLY, tliat they consider the Railway would not be a com- 
 inercial success. 
 
:t:;-^:^:;r:::::.r-^r::-:-;:::r 
 
 Govcrnmont c-oul.l^Ww. that i, had th.n-ap,>,-,.v:.!; ' ' 
 
 Tin- Il.,„. Sir kidianl ( ,uUvn,;l,t. Mini>t.T 
 
 't I'laiir aiiil Co 
 
 111- 
 
 iiK-rcc made the f<.Il,nvi,iLr .taUni nt h, r,,i, . , ■ 
 
 i\aii\\a>. 1 hoc are Ins uintls:-- 
 
 twenty ye;u-. '.., ;|..s r:„Ivv,,v ^uV. un.lv^u ih' r ■! ,^;.''-,^""' '' '''' '"^ 
 
 Cannd,an(i,v.mn,en-i, ; ■ , ; ' ""'■'■v i- .m.,i,.i, M.u ,|.. 
 
 boa vahml.lc w, ,i p ,,n T "^ •';^' "■"■»^- ^''■" "' -^ 'u.u.c, „. 
 
 isjdy." 
 (■..mmei.l cannot a.kl fon ,,• to tiie al.ov 
 
 e laiiiju !■ 
 
 Carturi.vht ^t.i . i-. , ' "■".^'"'. ". ■i-- Sir Richard 
 
 'l«' ■■ »..„l,l W ,va„.,;.,l,l> „,.,„i,„,,,, ^ ^^ "■ ■ '■ ■-■■"■'■ ""I 
 
 1-- Liiven. 
 
 Moreou-r in the .Act o..,ntin,: the Sul.M.iy, ti>ev „,.| it ,,,. , 
 
 "in <:onsi,!eration ot" til,' oHMt i,K-4.n-, , ■ i ,, '■^""'' 
 
 totheMamin,e,.n..ince.a,^;t;.:'; :;:^; ;;:;^',- 
 ^encraiiy. iron, ,i,e construction o,' a Ship K.nluay." i;. ■'""'" 
 
 Aftir w L' haw laid (.m ili. .nf J.. 
 I'li-^'Hv u-ith ,h. Act. of l-u-hnv,. i , '^""-'V"> -".- 
 
 ' =''^^''l'^n, (.overnn.ent to say that th.-v .■,!! not .,.„„ , [r ■ "'" 
 
 to complete it. Lecause thev do not nou ua , ti? V I'r '""^ 
 
 ^'-"^^'^tthatituouldhe pro.ital.ie o t : n , '^"'"■'^- '^^'"■>- 
 
 We oiih.- a-^k tile I 'anadian (invei ,iM,..,. t i . • ' 
 
 -.iNr,.isi,,.,,,,i„,,,k ,,,,„,,;;,;:;;:;;■'; ■■■;;■;; "'■•—-„ 
 
 profitah! ' 
 
 Iseijti.-necv wh-tiler 
 
 pr..Uat,ie or otherwise. The ( lovernnten l.n.uMh.. k d V- , 
 
 ;;^''-^''^M.rofital.!e..ndreeo,ni..<ithis,.ct,,e 'Lr ; ;;^ '^ 
 
 tl^e ter.ns of which they amended until th ■ V • . , ■'• 
 
 SKCOXDI.V. the (J.vemment sav the Commnv h.- 1 , 
 :ceivcd ren.- .tofi -..-f..,, •• n r • ^ '>mi)an\ has alreadv 
 
 ,..„, ■ • V", '" '""" '^' ' ""'I'K-te the hue. T|,is state 
 
 lent .., mislcadni- and is easily explained. 
 
 rcce 
 mciit '. 
 
 •V 
 
 
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 1 
 
 H^' 
 
 By the Act of Incorporation granted to the Canadian promoters in 
 18S2 the Railwi.y was to be comniriiccd uitiiin three and completed 
 within seven \e,irs. but it was in iSSf) ix-fijre tlie actual construction 
 contract was maile between the Canadian promoters and the Govern- 
 ment, and it was not until two years later, namely in ISSS, that the plans 
 and specifications were appr )ved by the Canadian Government ; that is 
 to say. six years of the seven in the orif^inal Act of Incorporation were 
 rc()iiire.l bv the Canadian promoters to accomplish the necessarv- pre- 
 liminary work for such a uiu'ijiie undertaking; and by the Government in 
 satisfying themselves as to the plans I'here was then only one 
 year of the original seven remaim'ng, but as it would obviously be futile 
 
 for the Canadian pnjmotors to go to London to obtain the capital 
 
 which was the object in view — unless sufficient time was given to carry 
 out th;j work, the Canadian Parliament i)as.>-.ed another Act in [88.S 
 granting the Canadian prom, jrs an additional three \oars' time, nam- 
 ely, to July 1st, 1S92. This extension cannot be described as given to 
 comulete the Railway, because the Railwa)- had not then been com- 
 menced and could not be until the capital was obtained That .Act was 
 passed and the extra time granted with the object, openly declared in 
 Parliament both by Ministers and Members, of enabling the Canadian 
 ]jromoters to obtain the capital in Kngland. 
 
 The investors, whose money made the scheme a living Company-^ 
 before which it was a mere thing of p;iper — received only one extension 
 of time namely, for one year, which uas applied for and granted 
 by jjarliamcnt in iS^i, because of difficulties in contruction 
 which could not be foreseen. These were stated by the Finance Minis- 
 ter of that da\- to Parliament befor.,- this extension was granted. They 
 also had a promise in 1.S9.? of another yi.ar, but wben they were ready 
 with their capital in June 1874, to take advantage of it, the Government 
 did not keep their proini.sc. There were, tlierefore, two extensions of 
 time, one yiven to the Canadian pronioters in the .Act passed to enable 
 them to induce English investors to find the capital, and one 
 given to our Com{)any after we had furnished capital ami were goin" on 
 with the work. 
 
 The refusal to recogni.se the Companj's claims by the Government 
 rests solely on the unsubstantial grouu'is above stated. 
 
 Some Explanations. 
 
 I. The Chignecto Ship Railway scheme in its inception and sub- 
 .sequent promotion was entirely the work of Canadians with the active 
 co-opcralion and support of the Canadian Government and Parliament. 
 
 
2 When ,t u-as brou^rht to [.oncl.m by the Canadian promoters 
 m order to obta.n the capital it u-as fortified l-v evidence and ouarantees 
 he ClnefKa.iwayKn^nneert.. the Canadian Government reported in 
 •ts favour, lioards of Trade an.l other public bodies in important cities 
 passed resoluuons cordially supportin,^ it on account of the co.nmercial 
 advantages uh.ch ,t uonld confer on Canada. It had Ciovernmental. 
 1 arhamentary, Mm.sterial, Kn^ineerinj, and Commercial ^-uarantees and 
 rccommendat,ons m its favour. The documents proved that it was 
 desired by the Canadian (K.vernment and Parliament and also by those 
 engaged m commerce, as a necessary pubh'c work, and would be .success- 
 »ul both as an engmeering scheme and as a commercial venture 
 
 3. It was on the faith of the Acts of the Canadian I'arliament 
 authonzmg and subsidising the Railway that the investors subscribed, 
 
 Lt.r"'"^'"'' :■'""" '^'^^' ^^""J^ --"d Have given only 
 about 4.6 per cent, mterest. as th.y were taken at tioS-^pcr ^-,oo 
 buna, and the Preference Shares were .ssued at par and could not reti" 
 more than , per cent, d.vidod, and might receive much less 
 rhe secunt,es were therefore taken on terms which thev could n tr 
 
 4. Intheca.sc of an orriinary railway, the subsidy is paid on the 
 omplefon of every few miles, and if the Chignecto Railway ha b 
 an ordinary one. almost three-fourths of the subsidies would have bee 
 earned and received, and there would, have been only a balance to re 
 vote. This entitles the Chignecto investors to special consideration 
 To rcftise their appeal will be to penahV.e them to the extent c^ the 
 who e of the money they have already expended on the ra, " t 
 
 Instory of snrit nitcrpriscs. P""'/''^ mtlie 
 
 5 The manner in which the Canidian r 
 deal with charters and subsidies granted'^^^Lia^^^XT"; 
 marked contrast to the way in which they have dealt with the' Chtnec 
 to Company lo re-vote these is their usual practice, subsidies W. 
 cnewcd again and again even when no work has been d C^^^ 
 
 treatment is, therefore, totally different from that given by the Canad an 
 Government to Canadian Companies. But no Canadian took o d 
 or Shares in the Chignecto Company, the investors are all i„ F. ^2^ 
 and Scotland, distant, voteless and without political intluen"e^^ 
 
 6 BntLsh investors have found the capital for i„nuM,..,ahie raihvav 
 and other nndc,takin<,s carried out in many Countries, and """"'^^^ 
 
 pending their own money, as they were .,n th 
 
 wlien ex- 
 
 C'liigiieeto Railway, 
 
 'm^M^ 
 
 'r'-Tni'^i~'niMrf -' - - .-^^si^mrjmih; 
 
HE 
 
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 I 
 
 
 h.ivo invarial.ly lia.l all tlie tiitic <rrr,nic{i to tlnMii icmired to compk'te 
 tilt' work. This is tliL- i-iacticc ..f all (iovcnmients. n^ (Jki,/„>Ho RnU- 
 imy is flu onhi r.rr<;,i;,n,, Tliu tmitrueiit acc^.i-.lo.l to tlio investors in 
 this work is not only at vaiTuicu with th-' rn!.; ot other <,'oveninientH, 
 lait is also, totally cuiitrury to that ..f the Canadian (lovermnent, when 
 «lealin<r with Canatliaii coiitiactois and investois. 
 
 7. The solo (a-ii:jinatin;^r cause of the Company's difficulties was 
 the enactment b\- the Canadian (knernment of sub-section 4 of Clause 
 93 of the General Railway Act of iSSS. The facts arc indisputable, 
 nPiTiely : 
 
 » That the law was changed in iSSS as herein described, 
 'b) That for this reason the Cotnpany could not legally issue any 
 Bonds before the liaihva\- was commenced in tf<H9, when 
 they would have been subscribed for. the whole cap- 
 ital obtained, and default in completing the railway 
 rendered impossible. 
 (ci That as soon afterwards as the Company became legallv entitled 
 t:. do so namely, ir, XovemlKr 1S.S9, the linanc'ial panic 
 which caused the barin-- crisis and affected all the world was 
 thieatem'ne. and only a portion of them was subscribed for. 
 (d) 1 hat the si. ction was repealed in 1X9.' because it was found 
 to be mischievous and unworkable 
 J5y this mistaken legislation r.irliament became morally responsible 
 to the Company for the consequences \vhich followed aiid it is signi- 
 ficant that the (love.-nment in i:s connnunications to the Company 
 has not altcnii)ted tc^ defend its position on this point. 
 
 S. -Many para-ranhs could be qutjted from the press in Canada, 
 sympathising with the position of the Com[)any. I take the follow- 
 
 iu.^ Iroin liic /',■/■.///,, GVr.'A' which said: 
 
 •I'hc question in. no imtiiediatcly con( einiiig the Canadian people 
 is tc what exlciii liie Dominion Government is lial/le. It is true that 
 the promise ota twenty years' subsidy was conditional on the completion 
 of ilie w,)ik,l)Ut u is eqaallyobvions that the action ot Parliament was the 
 bait whi.'i c.m.;lu the british investor, who would not have bitten at a 
 naked hu;)k. The original subsidy promised in i8Si was for $150,000 
 a year tor twenty-five years, but in 1S86 this was changed to a subsidy of 
 $170,000 a year for twenty years. If we repudiate ail --esponsibly, rt.y 
 tcchnu-aU\::<c should he warranted in ^w/..-, the credit of the Dominion 
 would sulfer, lor there can be no doubt that we have incurred a consid- 
 erable degree of moral respon-iblity in connection with the undertaking. 
 The foregoing shows that the denial of our claim would in the 
 opinion of the Toronto Globe, the Leading Liberal newspaper in Can- 
 ada, /'(• repudiation on technical grounds. 
 
 The other quotation is froin the Ottazua Daily Free Press, a sup- 
 porter of the Liberal Govcrnmeul. The article alter commentin"- on 
 the subject, says : — ^ 
 
9 
 
 m,tt... to \n.u- tl.o caso, .-onsi,!,., it, „.,, ,,,„„, t., |.,,lia,..ent. 
 
 Ottawa, MAKCHtb, 14 ujoi. 
 Thk Ri(;iii M„n. s.k W.mrii. I.aukikk, 
 
 I'rinie Minister. 
 Dear Sir: — 
 
 CHICINI-XTO RAILWW 
 
 result being arr.ved at andtjhe^.r 1 1^:^^;;;^'^^^;;;*;,:;-;;^^ -X 
 
 in,^ to rcarh a decision on tirs p,.mt. ^ ''" "''J^*"' ''^ ^''"^t- 
 
 -.ni^ele !;"":a,l^" "rlnveTL.] h;^"'^^ ^" r.con..ence construction and 
 
 th.s or to .:o,nncnsation and b se ,, Hv ^ "'"V '^'' ^''^ ''"^" '-'"ti^ffl to 
 
 '■' .he Canad.an ( overnma a^^ ^1'"^^'^^'-' ^'ab.iity 
 
 Canadian contractors in ren^w n. cha ,c ' '<" ^ ''r '""- " "'-' '*"'"''^ ""^ 
 
 of all governnunts in sinJlar ^a^es ' '"''" ""'' ''^° "" "'^ I'"'^''^'^ 
 
 questlcmhast^cn'r^felS;'';^;^:^""', "' ^''^ -h-co.m,t,.o to «hom this 
 
 '806 and that the /lovernnu nt J > '''"."'''"y ' ^"'"^'^'^ '"'^ we did in 
 
 -yOMnn,iaeein;h;3"SV' ^''^Z':'. f '" «" '-'"re the Rail- 
 "uanlin.e. In ,896 I had the promi e'o he r "' T''^^' ' '''•"-^''^ 
 
 revote the subsidy and wc thcref re n,r H , ^'"^•^'■"'"^■"' "i^t they would 
 .l^e charter. , lUr.\ve tZ pro us "o^^^^^^^ 777^'^ '"' "'^ ^^-^^>' "^ 
 will renew the subsidy. On L-rl,r.?Z > ' ' ^"^'^''"'"^-nt that they 
 
 tore merely entail on us the " ,f mn.h • '"'"'"' '"'' '^'""''^ "'cie- 
 
 .f we got it. ' '""''' "'"^' ^"'' •"""^•^- ^'"'i t'- without valuo 
 
 1 submit we should first be allowr.l -^n ^. , ■ 
 ment and the (lovernment .1 ./ we a "entlded?''" '"''i' "'. '"'''>'"^' ''"''''>■ 
 tion, and if the former a rcn;wa ',, Innc 'c./u Ll' f' P " "" v '"■ !" '""'^"'''''- 
 yoM are a-roeable we should hiv, snr 1 '' ^ "" ''•'^'-' ^''"^ ''^'it 
 
 bill committee wot Id. vet On- 0PI7n.n;ty and say that a pr.vate 
 
 pru-a.e bill to' r v-ue tl e rhnr^ '""n ^'^ ^''^^"' '^ '"'''' "'^ -^^ - '>f ^ 
 
 rns.,ora -vival ./the^J^ ;;;x:;rb: hr^"' """"^" whatever of our 
 ....ueeamo.t unl.kely course JX Hop e^ ^Z~r,!:::^:rT 'h t"" "'u' 
 -ntraryto.heestabHshed pracn.-e ot L ra,!..:; ' ^ ^^^ '^^ V 
 
 itself to evidence reining to the bill before them 
 to say It would serve no purpose as th-v k ■ • 
 t xrept that a preamble is proved' or "not ts'^th 
 
 t 
 
 J 
 
 • l!ut i! 'hoy hiard all we had 
 no rc.juiu ,i,ui maice no retwrt 
 e case my be, a-id therefor,. 
 
HE 
 
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 I 
 
 fO 
 
 Parliament and the (lovernnient would ^et no information on the subject even 
 if the Dill was passed, and if it were rejected those unfriendly to us would at 
 once say we had rcrx-ivcd another opportunity of laying; our case before a com- 
 mittee and had failed to satisfy it that we hid a grievance that should be rtcog- 
 nized— and this would be faid even although we had been refused the privilege 
 of saying anythmg in regard t > our claim. 
 
 The opportunity which you say would be afforded to us by introducir-g a pri 
 vate bill comes to this, that assuming the committee departed entirely irum its 
 established practice and allowed us to give evidence altogether outside of 
 the scope of the bill b-.-fore it which tley recorded and rejiorted to 
 Parliament, then we might have had the opportunity you desire us k obtain. 
 But I have consulted meuiijeis of the House, counsel who practice l)ef >re com- 
 mittees, and Sir John JJuurino', Clerk of (he Mouse, and their replies to my 
 (juestions make it clear to me that neither the Railway Committee nor any sub- 
 committee it might appoint would act in this way. If, however, y.iu can assure' 
 me that in our case the commiitee l)efore which the Bill went woul<l hear and 
 record all the evidence offered and report upon i' to the House alter the man- 
 ner of a Select f'onmiittee 1 shall re-consider you. cITer, but wuhour this assur- 
 ance I feel compelkd, in the interest of those I represent, to decline it as the 
 only result that could follow Irom it would be misleading and pri judicial to the 
 investors. 
 
 But as you have made this offer to us in order that we may have an oppor- 
 tunity of stating our case, there should be no objection by the (}j\ernment to 
 the ap|)ointment of a Select Comintttee, before which I could lay it for consid- 
 eration and rei)ort to the House. Snch a Committee would ensure us the 0|)- 
 portunity to state ourcas-:*, which you have told me you desire us to have. Fur 
 doing so there are many precedents. It is ihe usual Parliamentary method of 
 dealing with such (juestions, and in appointing it the (iovernment wou'd be ac- 
 cepting no responsibility — thty may write me to this elTect— of aioiJtm^ any 
 recommendations it made. On the other hand the rt port might su^^est a means 
 of arriving at a satisfactory settlement. 
 
 I am now in my ninth week in Oitaiva endeavoring to hive our claims 
 dealt with, and the (|Uestion of a (.'ommittee has been belj'e the (Govern- 
 ment most of that time. I most earnestly and respectfully re(]ue~t that you 
 will kindly send me a reply within a day or two whether the (lovernmenl will 
 agree to the appointment of a Select Committee on their own ir.ution or on that 
 of a private member to deal with this (juestion. 
 
 I have the honor to be, Sir, 
 
 Yoi'.r obedient servant, 
 
 (Signed) A. D. PROVAND. 
 
 tk'W. 
 
 f^i¥i> 
 

 
 'J# 
 
 f^-' 
 
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 ~-THE-^ 
 
 I 
 
 GHIGNEGTO MARINE TRANSPORT 
 
 RAILWAY COMPANY 
 
 V. 
 
 THE CANADIAN GOVERNMENT. 
 
 OTTAWA : 
 
 Paynter ft Abbott. Printers & Bookbinders. 
 
 1901. 
 
 *:.^k'-m:^fii^s)^^: 
 
1 
 
 •■•»i.Tr7'-'»''