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Lorsque le document est trop grand pour Atre reproduit en un seul clichA, il est filmA A partir de I'angle supirieur gauche, de gauche i droite, et de haut en bas, en prenant le nombre d'images nicessaire. Les diagrammes suivants illustrent la mAthode. 1 2 3 1 2 3 4 5 6 ■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 , c ) H*urAli 7 ■ / t^ / ^ H"c T < • ! ^ -9 . s ^ '■"°^l ■ C /.-.,=Br O C f I i ;•"■■•''■■'■ 5%"v Ml S'^i'ii^ «?^t!W ■'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 C c I ; 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 .: : ,Vi :W^''^- -«-■: •J*^ ^^^1 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 c 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 HE c c 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 c c 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 c c 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^-' •s? he! c ! ~-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'-'»''