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Thoaa too iarga to ba filmtoi daa taux da rAduction diff Grants. antiraiy included in ona axpoaura ara filmad Lorsqua la document ast trop grand pour Atra ■^ baginning In tha uppar iaft hand comar. laft to raproduit an un aaul clichA. il ast filihA A pqrtir right and top to bottom, as many framas as da I'angla supAriaur gaucha. da gaucha A droita. raquirad. Tha following diagrams illustrata tha at da haut •!% bas. mn pranant la nombra mathod: d'imagas nAcassaira. Laa diagrammas suivants ♦ lllustrant la mAthoda. • 1 2 3 n > 1 \'^ ' 2 % » ^ • 3 ( 1 2 3 \ 4 5 6 '■'; -■ ■ - ■■'■7 32 X - * rf - .m \ ::tw^' GRAND TRUNK RAILWAY COMPANY OF CANAOA. VERBATIM REPORT OF TUB PRIESIDENTS SPEECH ' AT AN ORDINARY GENERAL MEETiljIG OF THE COMPANY, HELD AT TUB CITT TERMINUS HOTEL* CANNON STBj£T, LONDON, E.C., On D^sday, 0(t(^et 30th, 188S, . tN PURSUANCE OF THE FOLLOWISG ADVERTISEMENT:- Notice is hereGy Given, that the Ordinary General Half- Yearly Meeting of the Gr^d Trunk Railway Company of Canula will be hthi at the City Terminus Hotel, Cannon Street^ London, E.C.. on Tuesday, the 30th day of October, 1888, at Four o'clock in the after- noon, (or the purpose of receiving a Report fiom the Directors, and for the transaction of other bu«ness of thle Company. Notice is Further Given thit a resolution will be submitted to said Keeling, authoruine the directors to ficquire the First Mortgage Bonds of the Toledo Saginaw and MuslcegQii^aillroad Company by e- chang- ing therefor a psition of the Peirpeititi' Four per Cent. Couolidated Debenture Stock now held by the Coqftpany. Notice is al-o GiveA that the follo^ti^vg traffic cohiracta will be sub- mitted to the said meeting for apprOvdl,^or otherwise, viz. : — A traffic contract between the Itnited Stites and Canada Railioad Company and the Grand Trunk Railway p)mpany of Canada. Also a traffic contract between the Be.iuhamoii Juncion Railway Company and the Grand Trunk RailWay Company of Canada. Notice isltlso Given that the Transfer Books of the Company vtill be closed froni Saturday, the 6th day of October, to the day of meeiiog, both days inclusive. By order, \ H.W. TYLER, President J. B: RENTON, SecreuuT. Dashwood House, 9, New Broad Street, September 28, 1888. ,"-I^JB. •VjJs^'^ W^Sf^.' *~ '-."i %A ^ A i^\ 1^1^ I *. ' * /' T^i: -*.,, (- V 's \' ■■■,•> ► ' I. 1 ^•., o '^^ ;:^V r^?;,.Mi,)r,.„.^ ri i-iit, :. i A'- -\ ' I. ©RAND f RUNg RAILWAY OP CANADA. VERttATIIi RER^RT PBSSIQIiNT'B SFSSIpQ ' §/iBimBY 9£^gRAL ItEim^ OF WE OOm^AHV, HELD AT THK OITT TKtlfmns flOTBL, CANNON SV. LONI>0>^ On niesday, 30th Odobtr, tS88. Tltf Secretary (ftf r. j. B. Renton) read the aotice ^Bveping the meeting, and the report and stateipent QC ^Q|*im were t^keii as read. The Chairman (who was received with cheers), In moving the adoption of the report, said : I have only recently returned, gentlemen, from rather an extensive tour in Canada and the United States. I have visited, as you may imagine, many points of interest in those countries, and have had long discussions with our officers, upon various porats upon which we are much hiterested. I went first to New York, and from thence to Samia, in reference to our tunnel, the works of Which I desired to see at qpce, there being questions 1 connected with it which I wished to dif- cuss with our engitteen. I went next eastward to \ #" ^ m The Crand trunk Railway ef Canada Montreal^ and aft^*- that I came westward again tO our Midland system, and passed over our Northern and North- Western system up to Lake Nipissrn^. I may report to you that the Northern part of this last system'-'which was only opened, as you will remember, in May, 1887— promises to give better results to us than any other branch which we have taken over. There are very extensive timber limits— the best, perhaps, which are left in Canada—to which it gives access, and which will give us for thje next twenty years a good traffjo in lumber. I then went westward over the Canadian Pacific to the Sault Ste. Marie and saw the bridge which has been constructed there —though the approaches had not been ballasted— and forward over a line of which you have heard a good deal, and which has been the suuject of contention, and from which it was stated that we had been cut off " —the line from the Sault Ste. Marie to Duluth. It is quite true that the friends of the Canadian |^ific, by means of a large sum of money, have, for th^oment, obtained control, for what it is worth, under certain con- ditions, of that line, but we have not yet suffered in any respect from that occurrence. It is a question how far that fine will be able to do very well in the immediate future. There are parts of it over which th« traffic is very heavy. There is a good deal of traffic in con- nection with the copper mines of the Hecla and Calumet district, and there are extensive iron mines which find their outlet at Marquette and Escatiaba ; but tie new portion of the line has been built through the forest, and there has not been much through traffic \ . Retort of the Presidents Speech, Oct. 30, i888 J coming from that district, though there is plenty ot timber to be dealt with iij future; No agreement had been made with the Northern Pacific There was no workiiig connection with Duluth — no organisation for through traffic. We have time before us, and we shall have opportunities, to take advantage in the future! of is4ja*^may happen in thct,t d ireqtion. I next went westward over the Northern Pacific to the Pacific coast, and visited the ports of Tacoma, Seattle, Port Townsend, and — what I was. most of all anxious to see— the termii\us of the Canadian Pacific at Van- couver. I then went southward to Portland, Oregon, San Francisco, and Los Angeles, and eastward over the Atchison Topeka and Santa F6, which you will remember is our new connection at £hicago, from which we have already derived a great deal of advantage, and from which we may hope to derive greater advantage, in the future. I shall say more in regard to that line by-and-by. Returning th^|^ Chicago, I was on our own system again. ^w' I always prefer, when it is possible, to see and judge for myself, and I thiiifk no amount of labour or . of travelling or of inconven!::nce should be spared to attain that object I have also beeil more impressed than ever on this occasion with the great advantage of su6h visits, in our own interests, to the other side of the Atlantic, for obtaining information, and for use- ful discussion with Mr. Hickson and our officers ; and for establishing, improving, and extending friendly relations with other companies, and with those with ..whom ,we,dp faii)siiiea9 ia^t^ and I may. ex* 'i « Tfu Grmid, Trunk RaUm^ »/ Omada add that many of our officers have expressed to me the gre^t pleasure and satisfaction it gives them fo sec me over there as representing so large m interest m this I country, as a i sort of bond of junipn between! y^u gentlemeji on this side, and dur officers on the other sidd-that it gives them, great enojuragement to see one who is able to appreciate their effiarts and to give them good advice, arid to be the means of commum'caiion between them and the board. (Applause.) I presume we* may takfe the report, which we for- warded to you a week ago, ^ read. You will have seen from it that the results whi years »-ere 25 pe. y U' J I Rtportoftk$PrtsidtntsSptech,Oct.%%\%%% 9 cent higher. I have here a detailed list' of thirty- - seven compaflies with -which wt exchange passenger traffic, and I find that there is a general increase to and frpm those"cdmpanie»-on to the Grand Trunk sys- ^ torn. Of <:©ursc there are fluctuations as regards fndi- N vidual companies ; but, faking them as a whole, there^ is a general incjsa^e in traffic exchanged wijh these thirty-seven companies. ' The local passengjer traffic has not beeti buoyant in the half-year under review. No doubt it was affected by the deficient harvest^ in thQ previbus autumn. The s^ibyrban traffic has been growing, and our officers have increased the passengisr trains, or maintained the passenger train service, as ^ much as was justified by the circumstances, or required - \n the face of the competition to which the company is more and more.subjected? • They are obliged ta do more than they otherwise would do, by the amount of , competition they meet with, but they have been very careful h^j^so adjusting 'the passenger train service- to xxmX the competition, and at the s^me time to work as economically as possible; WtfUave had some increase of immigrant traffic on the Grand Trunk by way of the Niagara frontier, . but a decrease by way of the St Lawrence, ^htch is the natural result of the Immigrants ^y the St Lawrence being directed to the North-West along the Canadiain Pacific. It must be recollected that in 1883 and 1884, when the passenger receipts were so good, we had a monopoly yli all passengers going to» the Norlh-iyest, which naturally_,we havie^. lost since thf n:anadian Pacific has been constructed. Our ^ \- ■^TT- lO ilr'. i "* ^"'my' tf Canada 'hot ttae „hi,e r„L T' •""■*"« <■" a •« the half-year of «2 L to„T ^ !" "" ^^"^'^^ *^9^d.to&6d.,a„dn„^P!' '»» decreased fa.„ -which you will think ttr ""■""■'" '■''"«»«i (because there was i„" "*" '^°'"^'°"^ Perhaps •Orou^h h,ffic>^f„;" ~'- -o™ local and ,e^ -'hat is, by about .,^T, °f ■'«"*^ "fa cent No», of the total dlCl^tl"""""" P"™''". decrease of .5.,o«, ^Z.^Z""'^~''^' '^ «-e ti>an four.fif.hs. was "n^CTl"^' ''*"'' ""-'^ >o8.oooiOoo ton-mile, 6,:!!"^ '"*"=• '"-^ °> the tt^e-fifths.wasinth^ughrr'"":"""' "»«"'/ way or the other, the d^^^t^,? *''f ''"« ''' ""^ foT-fifths in through tLjT V ■" ""•"■«'"» to "-•n falling oiT^as tu^ J°" "?« *« «e our •ISO a considerable falKn» X . • 8 *"" »"» »f -M.O0O tonsk or rath* ul'" '"''' '"'"'^-ntoely, two-fifthi of tke total^ *''~°-'^'°""'le».Or ■»'•"»• LetusnexTl^fctr^ -' '°«-<^«» t™. "■» west . bound "^I' ''"?':°" »f east-bound ""•■l-o-hd, ft was „e^: """<•• <*f east and ™" to 40 per ^^^ ^^^ '■i-ssBsua^ s^/»'!f^»J>'V4' '88;^, Repott of the Presidents Speech, Oct. 30, 1888 11 bound— but the percentage of , ton-miles was 66 per cent, east-bound to 34 per cent, west-bound, against 65 per cent east-bound to 35 west-bound for 1887. But it is very important to notice that of the total decrease of the through traffic above referred to— that isithe total decrease of 208,000 tons— 90,000 tons . was in east-bound and 118,000 tons in wfest-bound; and of the total decrease^f l?3.ooo,ooo' ton - miles, 26,000,000 was in east^ndand 37,000,000 was in . west-bound, t shall say something about that by- and-by. With regard to the local traffic, tliere was a decrease of 52,000 tons east-bound, and an increase of 8,000 tons west-bound, making a net decrease of 44,000 tons ; while the total decrease of 45,ooc^ooo ton miles was made up of a decrease of 39,000,000 tons east-bound, and a decrease of 6,ooo,ooq tons west-bound. You will thus see that oxxt losses of freight have been ni^ly in through, but also con- siderably in local traffic, and that the losses of through traffic— which wouldnothavebeenexpected— have been more in west-bound than east-bound, while the loss in local traffic has been much more in east-bound than in west-bound. Now, we should naturally expect that a seriously defective harvest in the area from which we draw our traffic, such as that of last year, would lead to a considerable falling off of east-bound freight traffic, through and local, and also that the passenger traffic might be injuriously affected ; but that the west- bound through freight traffic should be even more redu^ is a somewhat astonishing and anqm ^teasTwilt, and ©Hi tfial owrfeMy merits more atten- i,tf®M£j>,««>?. 1 >l tion on the part of ourselves and .ur office™: So fa, as we can at present understand it, it seen,, that ft" volume of ,„ported and through west-bound bus n«, has rea ly been sn,aller. and also that compedUona^ W rates have prevailed for that traiBc by lakeTd «.I gainst all-rail routes, which have i^^ a porfion of it. Well. I may mention he« tt"^ fte .«h of tWs month those rates have been^^C but I do not know that it i, nowof very much imp^ ance. because the frost is coming on befXe very ^l tl.« reg,on, and that would put a stop to Ae c^m" peffon by Jake and rail as against all-rail Jt™ In concluding the subject of our freight traffic TLt CenW_of 44.000 tons f«m Squire's hog trafKc ; fL he Chicago and Grand Trunk 7.000 tons, about ;hich ;ons.m.deupTJ:;r,rto?rtirdM'::: ons fcs, ,0 Mont«»I ; ^^ t^ ,^ ^ ^^ ' '-'^ ITCZT T T •" *" ^"«^^- w!k l, """^ '"»''• increases-from the a««as. in we^runrf:e,h?'.^"jr:: «^ZorwZ;rrs"'V"-'''^"" ♦K.v J " '^ *°"® ^*« ^n coal. Well Centra^ which sent us 43«>o tons more coal- „d partly bythe Uhi,h v„,^,„m. ,,^ ,^';,T.'^ 'i A :J^i^i^, ..4 '.'-^ Ajaildt. ..W.,!',,'^'* t^ '*r. *.»■»*-. icers! So far ems that the >und business ^petition and by lake and we diverted iere that on een restored, nuch import- veiy long in o the com- l-rail routes, raffic, I may east-bound le Michigan traffic ; from ibout which stroit Grand last 28,000 'and ; 1,200 the Central ra frontier, -from the oledo and important ^ere— from n the Erie •al. Well, ^ew York coal; and ttW-mofe-;- Re^ti of the Presidents Speech^ Oct. 30, i888 13 ithe Delaware Lackawanna and Western, with 23,000 tons more ; and the West Shore, which gave us 3,000 tons more. But these figures from different lines are, of course, the results of niunerous additions tutid deductions, the figures showing increases and decreases by the different routes to and from the systems referred to. ^ For instance, I have stated the decrease from the Chicago and Grand Trunk as ;^ooo tons, but that is made up of a decrease to Montreal of 8,000 tons, and a decrease to the Niagara frontier of 76,000 tons, making a total decrease of 84,000 tons ; whilst, on the other hand, there were increases to Portland of 9,000 tons, to the Atlantic district of 10,000 tons, to the Central Vermont of 49,000 tons, to Toronto and the Don of 3.000 tons, and to local points of 6,000 tons — the total increase being 77,000 tons; and, deducting , 77,000 tons from the above 84,000 tons, there is a r.et decrease left of 7,000 tons. Of course, these matters are constantly changing, and require to be very carefully watched. But I fear, gentlemen, that I have kept you almost too long going into these details, which have not the same interest for you as they have for us. Mr. Halb : We cannot follow your figures, Sir Henry. The PRESIDENT: I am sure it must be \ex^ difficult to follow all these figures, but if anybody can follow them Mr. Hfcle can. (Laughter.) It would be probably fbbra interesting -fo' you if I summed up - 1? t'i'l*s««.' »->. . i«t«ftl, 'V^ 'u* 4if'*^*fc> .'ii.'Vr^V*'^-* / \ »f /\ these r. "^^^-^^We^fOtoA -^ »? WM » JiT! '^"'°*' »e«>tS could !„ ^""^ «"i' one felTtv :'*■''•""«•'» to «te^T •« " Which cniiu L '^ was the • routo ,„ ,!!'"'' *"d«' amongst tt? *'**'= ■««-«enHal,^:^''„7'»«'o«; bufttft ""*<»" "Was Mnfortunati.i„ 'J«teni of « nought by «« aclion „f tr "'"''»««4 millions in 1887, and 5,600,000 in ^888; so that you see the imports into this country from the Atlantic ports of the United States diminished from 18,500,000 in 1887", to 5,600,000 in 1888. Now, that accountsibr a good deal of our loss of traffic Again, Indian corn, which is even more Important to us— and I shall have something to say about that presentlyVthe amount of Indian com imported fell off from 25,(^,000 cwts. in 1887 to 19.70 0,000 cwt s. ini 888. The values also diminished. Ifibiigh not quite In the same proportion. I need not ai \^ ^m-^ in' *--TP ¥ii^^l_ \ • ,\rf( \ ' .'I H ,':* i6 ^he Grind Trunk Raii^ of Canada trouble you w|4 that Here also is a return to Mr. Fairchild, the Secretary to the Treasury of the United States, from Mr. W. F. Switzler, chief of the Bureau of Statistics, showing the exports of breadstuff's, dated June, 1888 ; and I find from it that, for the twelve months ending June 30 last— which included -the half-year under, discussion, and the previous half- year-the exports from New York of corn diminished from 14,157,394 bushels in 1887 to 8,667,649 bushels m i88j<; and from all the ports in the United States they diminished from 39^ million bushels m 1887 to 24 mi/lions in i«88. Taking also the twelve months ending June 30. the wheat exported from New York diminished from^40 million bushels in 1887 to 25 million bushels in 1888 ; and from all the United States ports it diminished from 100 millions in 1887 to 63 millions in 1888. You will not, on hearing these official figures, wonder that our traffic fell off) when you find there was so much less exported from America, and so much less imported into Great Britain. I may mention, however, that during those periods we did not get a smaller pro- portion of the total traffic out of Chicago than we had before, but a larger proportion, which showa that our officers were dping all they fairly could for us under disadvantageous circumstances. »• I am happy to say that we are coming in this cur- rent half-year, and for the next twelve months, to an opposite set of condiUons. (Cheers.) The regions trom which our through fail "" " ^pr^v; I'V ' Report of the Presidents Speech, Oct. 30, 1888 17 ' -—viz., Michigan for wheat, and the Westerti States for Indian com* which is still more important — are blessed with plenty this year, against comparative failure la^t year ; while the North- West wheat gfrowing States and* Manitoba have suffered in some parts very severely from early frosts. You will remember that la^ year they had an abundant harvest — more than they could CHrry — ^but it did not do us much good, and the rqgions wc serve then suffered severely. Now, this year it is just the opposite. There have been early frosts and failures in the North- Western region, while there has been, as they told me, and as I saw with my own eyes,ln the South- West and West the most abundant com Crop the world has ever seen. I^ Michigan they have had bad harvests for the last four or five years, but I am glad to find they have had better results this year, because 4t will be a help to the Chicago and Grand Trunk,, and the Detroit Grand Haven and Milwaukee lines. When 1 say the com crop has been so ^ood, I should like to give you also an idea of the figures of it. Here are the calculations, based upon a special telegraph to the Daily Trade bulletin by the Department' .of Agriculture, compared with the actbage and the yield in 1887. I won't go into all the, details of the eleven States which are included in the return, but T will give you the total. In 1887, the total acreage of corn was 39i537.9io. and in 1888 it is* 41,691,551; wd the yield is estimated, in 1888, at i,3io,ocx)lOOO bushels, againsi 86 4, 000,000 o f bush els in 1887 — SO per cent increase fbr this year over 1887, --d- ■g' A" II I ■ '••^'■ii^r^^iiyi *» ""J'''9<^MPfipR|||m|| m •.+'-;3g^V;:;, u- •- . eleven «fo*-. *"*^^«« «» the production xd Amme, <»©vwn .S)itat«$, according to A^^ a ^^^ of Chicago wiil ^yl bfset^ tsS'-'t ""* Canada, I am sony to sav- I a„, nil TT °*'' '" good an account of the whierf-r'' '° ^" » of Cobuis and To™! "T ^ *' """"t^- West «.d that .deludes ^"onta^: TS 7 T^'^' « «■« point, between Cobura^j'^Z^'^/ "l' "^ "' suSered from early d«,u2 ^L ^ '"' *">' '**«' of Montreal and Vt^rj^^r^rb*"^ rains and early frost. >"»tncts from heaiy Ifow, I come to say a fe„ .„„,^. . «ve,ue expenditure. As ZrJTl " ' "^ wlwch hwe been cha.^ ^ '^ ''P™^ 9b«rve that they Cv^tj^ jT^"' J"" *«' J««e-thii?4 of «»ch e^cpmsm, Muder Kour aanc^tiofl, t^ bmvh x^harged to jbbe ^r^ ibal&y^, «o you wtU wiiidcMPstand that tiie redttctiCHi 90 ^t accoiint in ibe .csuJireat iialfryear idll he sltHl i^eater. You will observle that there Is fOBie reduction, which we have o^ationed in ^e j«{K>rt,iwder.€9refy other head oi »a4 ytou wiU 6«d ithe mu9i i^^^o^ m4 in the xepon^of (4 the head« f^ Che viurjous mechaai^ I juayf ni(«9tigMed 4i9 you ^t 4itfi fm» 4»il«ag9. la coeseiueaqs mmM • 4a»»lbr i^i^oM^t of )tir»i$q, m i k» i i fn »Bi>ely, foam 8,021,963 Kii8£,. „. ,,._,„ io ii8887-f ^e evtra M^k performed ^n mgiqei, mM piuliy ,f. ■ wA :■ '■ ;;7i»'^^-^r'?rr»^!Pw<^^"««iip«ip -^^^^rW- M cents. ^ ^-^^ «^"t«» as against motive and cr^ablu" "^'"^ '° P'»« -»' loco- '«omotiv. h" Xh ™'^"'* ^"'~° to "» 38^ squarS; ^ °t "k,"' ""^ "*« *° e'™ -- .o dor l^i:^™';:^"'""''- "■'■*'''>' >« objeceed to in son, 'T "?--««<:» Would l»vc been now built, and ,^ • '""""o*^ *op» admirably adapted for tte d ^7 ^ f ' '""''"'''^ Po»* They 4t altoThe^^ ^^Z"" *" *•'■• P»'- Grand Trunk '^T^^otZ'^l^ "^ '*'» from Hamilton, Thich ^'^' u" *' ™<*'""3' locomotive station, ts hi '"'' «"«» W«te„, Mr- Walii, who- hasten^, r'^. '° "■""• «««»«" » long^ theGri^HV'^"'""'* "P^" «ake.ha,«*of trwhot „?r Jrd'r" f '^'"^ J "i: .-/- i:fr«-?*«• iiHi.rJ-4* i v-ji^4i. ■*ife*' Air '\ IJ ut^"'^ t-?""^^ *»'*«'• ^*4 ".S ^«>«rf ""' ? ""= *'«' '"fei *> «ri^^^^>&i*&ival»"C«fe&- * V. ■I'j'j'.- ^^. ..« t f ^4. Repm of th* Pr$$idmtts Simtk^ 0«t. 30^ f 888 »| yMT* It is abo interesting to compare the j^riec* of mat^rta]^ and fuel^ and wages with those '^ jning in England. I find that the wages of schamcs in Canada are 33 jw ♦•nt high^, and the coW of the materials are from 24 to 72 per omt higher. Looking- at the matter as a whole, I find — allowing lor these differences of cojoditions— that the results w^iich we have obtained coinpare very fefvourably with English practice. I may mention^ abo, that out of revenue since the year iS/.^— during the last f^rteeh years» that is to say— there have been profiled for tSa Grand Trunk 18 iron turn-tables 71 ifsw water tanks. 33 frost-proof wate# taffks, 00 diiTerent parts of the ^stem, all of superior construe' tkiii^ ^ that the Grand Trunk division is now admirably provided for in all iCa sections in theie respects, vtiry different from what it was when I Bte^me presideat here twelve years iagsr~~ I eO«ilery goott report of the condition of the Ghics^ and GranA Trmife Railways— thanks to the exertions of ila presidtint^ Mr. Hickson, and its ipneral flUiMiaiger^ Mr. W. J. SpiiQer— and of- ow* positioli> Seinsrally. in CfaicsgOy as well as of our connections Aktb with other roods ; and last, but not leas«, with the AteiliaMi 'f opeka and Santa F^ RaHway ; and I may flMirtbn to you that of thef many thoasanids of mXm iHidiiirat^d over the United States loads, iSnH / I' » 1 Y t... a 1^ ^i- C i,J,i'^^ ^l m., »nd baths to cleanse, themselves In ; and th^ JL oowpto v idedrttllth e l ^«otfveitatfi^BW',.«jlaany aii^ their company are on the most friendly terms. (Cheers.) I waa ^^y glad of the opportunity of running over khttir line and basbmlng a cquainted with^ kr^wwH^iaiy •>., n t 4 .,- . ' IT 1 1 '„ '.*-\' J i .^.. , ( *,',J4L •'.',, iti^ffp^ "Repmtftke Pfiiitknts SpitJt, Oct 30, 1888 Vf Y'^?"' td^^, fti f^strd t»fh« east^ portion of it— wliteb i^ flhit which l^or« ^articlitaifiy interests ns-^thi^oagh tfttf S^ettei' of Kansas, Missotft^, MA IHinois, that it runs through splendid country-^^^ome of the finest in the United States ; and Kansas City, a great manu- facturing centre, with its 250,000 inhabitants, id still gfdWihg rapidly^ It \a uill of cable traimways', the cars of which travel oonststntly and with great velocity, and almost make you giddy at every corner of every street/ (A cry of " Time.") Well, if the meeting wishes^ me to stop I shall be most happy to do it. (Cries of "Gro on.") I will not detain the meeting one minute longer than it wishes to hear me, but if/there is one gentleman who does not wish to hear me there is an obvious remedy {6i him— he » mot obliged to stop and lisfen. (Cheers.) The458 miles, as I mentioned, from tCaiisas City to Chicd:go wad only opened this suntnier^' and dSOMfe improyementd are still in progress on that-partof file lifie; but ftie' traffic over it is now roilning regulat-ly sMd' finely, ^itld the equipment of the line is of the most Modem/typci, and of the best possible doscriplion. Tht txkn b]^which I travelled had vestibule FuHoiftn ^afs (jQie Comiiiimiciition from car to car beli^ through H very handsome vestibule), heated by steam, and ligl/ted by the electric light throughout ; and even art! freight cars are fitted with the W^tinghouse itomatic brake ; so that it is, in afl respect, a fifst- i^lass corporation with which we have thus g<$f into ^connection, and wiA whom we hope to excfarfijss more and more of traftic As a straw to shd# S. i»V|...'->«. ..ki-. •■'&*'. * *■ ?- : ! 1 \^ / lift i i r'" 38 Thi Grand Trunk Railway of Canada which way the wind blows, I must bring to your notice an interesting little incident In the Detroit Evening foumal of October 9, 1 happened to see the following paragraph :— . "Agtrl, only t«n years old, went through Port Huron on Saturday, on the Grand Trunk Railway, having come alone from Loa Angeiet, Cakj and being bound for Parkhill, Ont Pinned toherdreMwasa card saying, 'Lucile Anderson, an orphan, going to her grandmother, Mri. James Williams, Parkhill, Ont Conductor, please see that she makes proper connections.'" I may say, gentlemen, that the English for making " proper connections," as used in the United Sutes, means that the conductor is to see that she changes cars, or trains, &c, 'at the proper places when she ought to do sa " She had money to defray expenses, and reports being care* fully cared for on her long journey.* This little lady had to travel by the Santa Fe Railrqad from Los Angeles to Chicago, to exchange on to the Chicago and Grand Trunk line at Chicago, and to go forward on the Grand Trunk system to Parkhill, Ontario, no less a distance than 2,623 miles, by herself. That shows you how safely a little girl may travel in America with only a card pinned on her dress to say where she is going to. (Cheers.) I ought to say, before leaving the subject of Chicago, that Iliad the pleasure of seeing in that city Mr. Armour and Mr. Swift, the principal shippers Of dtesied beeC Our relations with Mr. ArmoMf ■T^ «*»^i • Rtport of the Prtsidenfs Speech, Oct. 30, 1888 29 are of the most cordial description. Mr. Armour is a man whose offices you would take very great pleasure to visit He has very large offices in Chicago, and you may imagine the extent of his business when I tell you that he can telegraph from a division of his office— and stand there while he gets replies — to all parts of the world ; and that he pays to the Western Union Telegraph Company £lIone for his messages no less than £20,000 a year. He is now utilising all his by-prpducts in slaughtering beef. His productions are all of first-rate quality, and, if you doubt it, ask, for instance, for one of his ox tongues in tin, which you will find excellent. Mr. Swift is the gentleman whom we originally helped in building up his traffic— almost helped to make his fortune, I may say. I was sorry to find that there were still some small differences ot account, which he considered to be outstanding, and I only hope that our conference may assist in leading to a renewal of the good relations which formerly existed between him' and our company. One point I have been very anxious about in visiting America was as to the Detroit Grand Haven and Milwaukee Rail- way. Whilst the Chicago and Grand Trunk Rail- way has been doing better and better, the Detroit Grand Haven and Milwaukee has been doing worse \and worse. I learn that this result is owing mainly tVtwo causes — first, to the deficiency of the harvests in Alichigan for the last few years ; and secondly, to thexompetition of other lines. The local traffic Tm that line used to Be ¥ej^ good. Tf"ll84^ i-f^iA'^&4:i^kAiLJ* ^.^"j^&^j^^t'"''' -w ^*--~S5. W It 3P Th$ Qr^nd Trunk RaUlmy o/ CaiMdti i«»S the xesuite were excwniiagly satisfactory, iwt «naj then we have had th«ie bad faarveat, and th,s competition, and the traffic has been xapi^y ftilwg off. ^t WAS to avert any further evil in regard^ to that competition that we todk' over the Muskegon hne last. A*igust, in regard to which our <3«ee« ^e very sanguine, and Iput thisquestion poiritedlyto the^ ; « Do you think, when you get better harvest in M«^ miks; from Brownsville to. Cornwall, APH mk» ; from Brockville to Ganf ooque Junction, 29}i mtiBs; i^iom Belleville to Sidney, 61^ miles; irofp SfiM-bswough to Taio0to, 9 m\\^. These hgures / .^nS^Ur. .■i^^ ■ «• '" ' t',. 32 TAe Grand Trunk Railway of Canada proportion of the distance between Montreal and Toronto, nearly a third of it; and, including the Great Western section and some other points, we have now got altogether 1 93 miles of double line. We hope also to be able to make some little pro- gress this autumn in grading a further portion, and by the end of next year to Have no less than one- half of the whole distance between Toronto and Mon- treal completed as a double line.^ Of^-^rse, tn doublingthe line we have also improved itrj-i tdpiovedthe gradients and curves \jirhere we could. The opening pf the new piece from Lachine to Dorval is a great relief, enabling the main line trains to avoid the Lachine bank*, and the trains can therefore take heavier burdens over that portion of the line: The sections of double line already opened h^ve proved most valuable in facilitating the crossing of trains, and the avoidance of delay to freight trains on this, our main line, carrying, as it always dpes, a very heavy traffic. We had expended on this account up to December, 1887, as we showed you'^n the accounts last half-year, £77,2^2, and in the accounts now pre- sented to you we show an expenditure of £1^,1 19, making a total to June, 1888, of ;^ip5,36i. *I mentioned to you at the beginning of my address that one of my first duties on reachinif America was to visit Samia, and^ Jto discuss with Mr. Hickson and Mr. Hobsoii, the .engineer of our Great Western division/ the question of Uie construction of the tunnel which we are going . to make under the St/Clair River ; and whidv as yga W' <■ I Report of the Presidents Speech, Oct. 30, 1888 33 Icnow, will connect our Chicago and Grand Trunk line, en the American side of the river, with the Samia' branch of our Great Western section, on the east side of that river. To make this connection, as you will remember, will require altogether three miles of line, of which one mile enly will be tunnel, and of which twnnel half-a-mile will be under the river. V^e com- menced, as you will also remember, by making arrange- ments with certain contractors to sink shafts on each side, and drive an experimental heading, to test the malerialthrough which we had to make the tunnel. ^^y means of the heading we ascertained precisely the difficulties \Vhich have to be encountered, jind we were then afele to prepare the exact means and .ap- pliances that we required to surmount these difficulties. We found it was necessary to have shields working from both sides of the tunnel, to meet in the middle, arid we have since been preparing those shields. They are of elaborate construction, and will be worked, each ** -l^^™' ^^ eighteen hydraulic presses ; and are very macli larger than any which have hitherto been used. The largest that have beeri used previously arc fitmi 16 ffeetlo 12 feet, whereas the shields that we shall use for our tunnel will be 20 feet or more in diameter, arid our tunnel will be about four times as large in area as any tupnei previously constructed ***! ^"^f^..? P'"oces8. lATe have now prepared tl)jj fiiaclifnery— namely, the shields for wccavating the iunne^the means for lighting the works by electricitj^ ****? f??" Y^°**!.f *"!?;*"? purapiiig, and all the appt^ 4ii4ready for the worfe; and we have cdfisidered tHc <. t IvSifjoiaS,* ^ .?• - t.v •■If '. V* y 34 ^f^ Grand frunk RailvMy of Canada question as tp how the work should be carried out The first idea was to begiiv the boring of the funnel from a sh^ at each end; but, after fulj deliberation and disc^is^n, we determined that by " far the bettV plfn would fe>to put the shields down 111 the first instance, at the portals of the tunnel '« as being the simplest mode, and as givihjl> the engmeers and workmen the best oppoi^t tunity of getting thoroughly into practice with tQ shields before they came to what they considered (but * which I do not think they will find) the most difficult work-viz., that under the river. That necessitated that we should at ohce purchase the land, and while I was in Canada the land was accordingly W^hased on either side of the river for the approach^fapd I am glad to say that, w|th the assistance of a local director at Port Huron, the land on the American , side as well as that on the Canadian side was bought within our estimates; and now Mr. Hobson is » ready to commence his excavations on the approaches to the depth at which the shields will be fixed, and I hope at the next meeting to report that consider- able progress has been made. I may al«> state that up to the present time the cost in cash has only altogether-in all these experiments and preparations and in everything that has been done to ensure success - r-the cost has only been ;C2o,odb. When they get to work under the surface money WiU be more rapidly expended, and I think the coi^rsc which you have already |>ractically approved is the most desirable- aod that i% that instead of raising money for the ... ^ 1 Report of t/u Presidents Speech^ Oct. -30, 1 888 3 5 tunnel, we should use our own financial reserve for the purpose, so far as we may^find it expedient to do so; and that we shall then, when the tunnel haS been made, float bonds of the tunnel company to repay us the mqney which has been so expended. I think that will be the most" economical mode of doing it. I will not trouble you '~Tvith any resolution on the subject at this meeting, but if that meets with your approval, I hope to propose to yott-a^orm il resolution at the next meeting with a view to cariying it into effect. And now I come to the most delicate portion of my duty. I am afraid I Have detained you too long, but ' ^ I know you will expect me to refer to the Canadian Pacific Railway ; and I, will begin by reading a letter which I have -received from Mr. Miley, one of our proprietors: — " Dear Sir,— On the eve of the half-yearly meeting of the Grand Trunk Company I wish to make a few remarks about the treatment we are now receiving at tlie bands of the Dominion Government. When the Great Western and Grand Trunk Companies were primoted, the Government of the time, recognising that in a thmly-peopled colony sbareholdeis would be induced tc invest more from the fature than the immediate prospects of dividends, was careful to point out, that, J>eing brought out under the eegis of the Government, they would be protected from the opposi- tion of rival companies. How ha» this promise been kept ? I will pass by the building of the Canada Southern wbirii directly opposed both the old lines, for I quite agree with your remark at the last meeting, that it is useless opening ap old grievances ; but the patience of our shareholders ae^ma only to provoke further attacks on the part c^the Canadian Pacific^ and ^i^Mt^ now threatened 1^ by »b< bwildin g '\i^-^ffrvnr K' ,•f^=^.:■^ 36 "^f^ Grand Trunk Railwy of Canada of » line from Londop t» ©itrait. which «d» aive the almiMt raileace has I b«)i»Jl ill *t"***2Si; «flce then the Well. gentlemen, there l3 a good deal ift this letter ^d„pdoubtwehave^Itmorethaft^ei»ave3^ ^ tnoivT'*"'^^"*'*^ "*""y^"»^ve thought pontic to say ; but I am not sure that we have b^n ^ght. and Ujat we ought nPt to have spoken ouU little mote than we have done ; and 3^ n«y„«da^ understand that the sul^'ect of the cTad J ^^ -a^»^4-el*tH>ntptheqr^Xwi*f«rq^^ U^ -B'''i'e*^*J>i«^ijp^ m /) Re^t tfftJu Presidents Speech, Oct. 30^^888 37 of a great deal of anxious disrussiori between myself and Mr. HicksoB and the Grand 'Trunk officials on my recent visit to Canada. I have never underrated the importance . of this, question, though I have , not feared that the competition of the Canadian Pacific would be such a serious maftet as some gen- tlemen—especially those wh6 afe sometimes interested fn lowering the price of our tecurities— -pretend to believe. But I have always held the same views, and stated the same views. I have always said that the Canadian Pacific prop«r, extentfa'ng from the Atlantic to the Pacific, and connecting various Canadian Pro- vii9ces ono.wfth another, and establishing a Canadian route betvvccnthe two oceans, was an object of Imperial as well as of Canadian importance, calculated to enlist our sympathies and our warmest wishes, and even to ensureour co-operation; but when that laudable object was mixed up and combined wit^ a series of projects through other portions of the Dominion, unnecessarify, and I may say ostentatiously, competing with the Grand Tnuik Company at eveiy point, then we should have been more than mortal and less than human if we had^ not experienced some sense >x)f injustice^ and some prickings of indignation. (VdlCE : " Shame.") I do not know what that gentleman has been calKng out " shame" for. Does he refer to us Or the Canadian Pacific? (Jhe Shareholder: The Canadian Pacific). Quite right»sir, and more espe- cially s» wheaParliamcntaiy assistance and Govern- ment interference were thrown openly and heavily into the scale against us, and when gp o d f ai t fi a nd friendly _ — '''t^^ ^ ejfeK^i ,iafe&iiV«<4)3iH~'yest Ontario Pacific Extension has been subsi- dised, and-is being constructed parallel to the Grand Trunk and Canada South'ern Railways for i lo miles, from London to Detroit ; and I am sorry to say that tve have not found it possible to make an arrangement with the Canadian Pacific on what we consider reason- able terms to use our existing line, of which 80 miles is double, in place of making a new line between those points. Mr. Hickson was most anxious to make such an arrangement, even though it would give them a means of at once competing on very favour- able terms against v% We received various telegrams and letters from Mr. Van Home on the subject. We replied to them, and tried to negotiate on what we thought a reasonable basis ; and we also said. If we give you this opportunity on the very low terms proposed, of using our line, and of being practically jointowners of our line between London and Detroit ought you not to give us similar facilities from' Nipissing toSault Ste. Marie, and make fair arrange- ments for exchanging traffic at Nipissing for Toronto and Ontario points ? We had a right to expect that tue y w oul d reoipreqtte, anrf ghre nr Wch TacTir:' h« ^^Eir^t U*«'iE»^\ ^*k-\ i% 't^'tXt^ L ^Vt^ .I^Ufe^ l^^^i Report of the PraUents Speech, Oct 30, 1888 39 ties. But no ; that was a very different matter, and we could obtain no favourable reply on that point ; inde^, they are still sending traffic for Ontario more than 200 miles round by. Smith's Falls, rather than allow it to flow over our line from Nipissing direct to Toronto and other points. Much correspondence iias passed, but Mr. Van Home has not answered / the very courteous letter which Mr. Hickson wrote to him on September 27 on these subjects. It would really appear that the Canadian Pacific are deter- mined, if the British public will subscribe the money, to make their own line between London and Detroit ; and they are to have a meeting on the iptii of November, with a view lo a guarantee of the capital for that line by a lease of it to the Canadian Pacific ; and in the correspondence with Mr. Van Home he asserts that he can raise the necessary money at 4 3-iOths per cent In the course of the above correspondence, Mr. Van Horne referred to another line the Canadian Pacific Comi)any have obtained powers for, and intend to construct, from Sud- bury Junction to Claremont, Ontario, which would be, say, 300 miles long, and would cost, say, ;£ 1,500,00a It remains with you, gentlemen, and others on this market to decide whether they can do so. So long as they can get money from London they will go on building, but is It worth while for us in London to subscribe for competitive projects of this description ? That is a question for you to answer. The Canadian Pacific have— besides constructing and projecting such nn(M---bcen contemplating an extension from {*lt> iJUfe^ i&^i^i*: > W''-' M , 40 ^^ Grand Trunk Hallway of Canada Woodstock to HaraUton. They are also completing extensions iato Montr«il »nd Toronto at very con- sidcrable cost, and are pushing out in ndmerous other directions, wWch I «eed not here refer to. ITife, being so, I feel that tHe Ume has come ^vhen I can- not, tn addressing you. ignore these questions of so much importance to the Grand Trunk Company • and I cannot avoid, therefore, alhiding to the sub' ject,and discussing it m puWic. at the same time keepmg, I hope, within the bountfe of prudence and good poKcy fa. doing so. 1 earnestly des«-e that all such questions between the two companies should be discussed without any per- sonal fcelmg. and simply from a business poLt of view; but from that point of view we are bound, m order to determine in many respects our own action and our own policy, to ^n- SKler senousbr what are the probabihHes in regardto the future of our aggressive competitor You fc,^w that up to the present time the Canadian Pacific Company have been very successful in obtain- 'ng, as they required them, lai^e measures of assbt- ance from the Canadian Government ; and they have also obtamed, whenever they have asked for it, large sums of money from the British public I ha^ always understood investors to say. -We do not know much about the Canadian Pacific, but they are sure to get further assistance from the CaJdIap Government, which is bound to cany thcim through!- There has been a feeling, in fact, that, whatever ^hefr difficulties might b^ the Canadian Govemmenj; V^ .;:r^V' / Report of the Presidents ^ech^ Oct. 30, 1888 41 bound to assist them, as the Governm.ent agents have by issuing their loans. Having regard, then, to these extensions which the Canadian Pacific are now making, in competition with the Grand Trunk Conipany, and to the future course, and the > future action, and the future commitments of the Grand Trunk Company, it is of the first importance for us, I think, to seek' a re]^ to a few very pertinent, ^QUgh perhaps pot very agree- able questions, which we would oth answer that question. Th«o, the third questioh I have to a9k is this : As tinve g^oes on and renewals are required, and as the accounts of the Canadian Pacific Comp^iny come down to an ordinary basis, will their net profits suffice to pay their fixed charges, amountipg as they did to £2y),ooo a year, and as they now do — since they obtained their last $15,000,000 guarantee from the Canadian Govenip meut— to;^837,9^ a year— upwardsof ^^^400^000 every rsa|Bt== V ^ / ^«L,U:^ W^j&U4 4wr.4, y!fi4^-#''*.lv«. ^^^Aj«vi-:iA „ ^4j«^ itj... « h ,ti^ * . .'ir'ii* ,*. ^^fo^-*-*** .^'1/ V '^^ 1 { *' Tl" Gi-'ni Trunk Shlway of Ca,,aJa 'tl' Tk'''k" ''"° ' "°'^ '■°""'"'»'"= ri™' 'o con. tend ,„th ; but „e shall not b= found, depend up^ n«t profits are not sufficient in any half-year om^ a 1 these fixed charge, «,en. gentlemen, whatl^ ™s.rti:~'"""'"""''^™''°^-''j-«^^^^ mu«tm thatcascanse,as to,vhether.,W..«/i,,,heCan,- ^«" Government „ill„„t, i„ anycase.havetotakeov« M„„f ? °'1"l''"' '""■■•'" "f "■* '™ "hich connect, on 11 *' ''r"^ = "•"' '"'^' '^ *en to become of the otter parts of the extensive system which they have been constructing, and are constructing, mostly n compe.,„on with the Grand Trunk' RaiJav ^ throughout Canada and even beyond its bo Z^" These, gentlemen, may be inconvenient questions, but . hey .r. vital in importance to us, hav'n g cha^ : he enormous interests of the G„nd Trunk ComTany Mhmkweshould be absolutely neglecting our d„ J not al^ at th,s juncture di,«:t your attention to them Sir George Stephen has, as you ^ aware, retired ^ the presidency of the Canadiah Pacific cCnl^ A«& has stated hi, reasons for doing so ; and we afe . !»""<"°«>nsider whether any crisis is Ikelyto^u" .n the afrai„ of that company, and, as far I TZ *~^ • I M . ? """ """= « »« probable, it i, poss,bIy to be expect«i. These, gentlemen, ar^ som. ^'^ ^ ''° ngl^ J «tni if w i ir t o si y .u„. , ^ •% Report of the Pr^sidenfs i^ech, Oct. 30, 1888 43 present, but I may have to return to,\ and to deal further with, this subject at future meejtings. Meanwhile, you will have observed that the NortHern Pacific has taketa over, and has commenced to work, the Red River line of the Manitoba Government, and that, therefore, some of the grain and produce 6f Manitoba may find its way to Duluth, and so by pro- pellers to our lake ports, if some of it does not come to us by rail in the- meantime. In fact, the Canadian Pacific Company, now that they have spread their net-work of lines over so extensive a territo^, will, necessarily, be exposed to the disadvantages of competition, which they have so eagerly applied to us ; and they may not, perhaps, accept sq patiently and with so little complaint, and will feel even more keenly and sub- stantially, evils such as they have nowhere hesitated to inflict. You have read something of the recent proceedings in Manitoba, and that they have come in conflict, if not to actual blows, with the local Govern- ment over the extension of the Red Riverjine. It is not the line from Winnipeg to the boundary that they are now fighting about, but it is apparently an exten- sion to Portage la Prairie, intended to connett the Northern Pacific with the North- Western of Manitoba, whicli joins ( the Canadian Pacific at Portage. it is so late that I am afraid I ibannot go further into detail, I feel |^reat compunction in addressing ycmnipt-sticlHength,iwt floras going^OTr to tsby some-^ fev-i.^ »S* ,•* .;!' ■ 1 44 ^n, Gn,J TrmiJtaam,^c„ai/a th«g,*out th. h«toy of the d«ssed.l«f »„., oU«, ates ..„« I Ust add««ed y(«. (Cr«s of "(ioS^. It .s «or k,„d of you, gentte^en, after an hour a^a Wr, U, he » p.u«t You will ««„Ae,, i ^^ to you m J„™, the conditions up to te «.« T^ "dtorijr ,bm«M fa,«.u,i„ OctobBi ,««. ^ Juve bee, fuUyj„s,,s«^ j .fc;^ j^ ^ OToag moot dome «o; b«t wt thought it better at th« to. to pi..»o^,., ,„u^;«. ^ ^ « ^ a>. oA,rooo.,„«^«, of the T™L I^ ^^ «one« TheyadaUtt«i,tt»t«.w.„i,j^,^™^ propottK,™ of *..d«»«,.beef.,affi..„d a.^^-^ ^todurg. «Uifc««ti.l «.t.s i,<,der.o^l;t ' »«*««■«■.;. b«ti»fortunatdy,OMr eflbrt, to tbis di«c- "»P«.«. WJ«>»e«lopted.difle,«aa,,^olto "*«*.U.^«b«^ *<=, „ a^ although th^ »«»*«.« * the Vanderbilt Jines, and when it came to jUrthef reducmg the rates our officers adopted a course, which they afterwards /-a^ered to, and that was that they never would reduce the rates upon the mere report coming to them from freighters that other companies had done so. They waited for forty-eight hours until they saw the officiaf.tariff8, and then &ey only followed the reduc tion of other company Precisely the same down- ward course was again adopted, led by the Penn- sylvania, and followed by the Erie, and then other • lines. Still our officers would only foUow after forty- eight hours. Thfe warfare was thus continued, and at last ourofficerswould not <«duceanyfarther.andkeFt upthe rateswhiletheothers were jroing far below the rates we were obtaining. Then, unfortunately; Ais rate^ttttfeir wa»«xt«irfed to other items. The eattit rttc to New Y5brk -ffenio 9^ cttits from 25. cents ; live hog* to . 30 cents from 3acent»;.provisiona-to 30. eeotft Axm 30 centj to New York, and to 25 cents fVom 35 cttit« to BdstOD, and so on ; and in Jufy they Wenflow^r and lower. There| seemed tb be no end to it, and^ i| ' becamenothinglessthaniudlcrous. On Jiilrifi, 188S tte ' dreaed-bed^mt es came down to 6?if cent8,-w hfbt' We ■cHraratatfilUiratestoaodBiiW. Wherwuihifttt^bu^'^ *" ■ id 46 ^f>^ <^raHd Trunk RaUway of Canada to hav.e been 65 cents, they were neduced.'as I have stated,to6>4.,On July ,5. Mr. Reeve reports that cattle, by the Pennsylvania lines were carried at 5>i cents, and by the Vandert?ilt lines 5 J^ to New York arid ,o>^ cents to Boston. s,nd that the dressed-beef (which ought to have commanded 65 cents) was carried at /cents, and so on. ^Now. here is a little extract from the Chicago rrtbune of July 15. 1888. from which I should like to read you a few words which will show you how we were keeping up the rates when other companies were takmg absolutely absurd rates :— "Cattle rates have touched bottom. The Vand^rhsu 1:- «.sed .0 „ake further reductions. iThen^K STts'^Chtgo" ' f*e„.y?^ M*"v"*?*^- "^^^ Pe"»y'vania went as loJis 5 cents to New York, 3 cents to Philadelphia, and 2 «n« ?« BaUimpre, and then stopped." ^ ^°** *" I should think so ; they might almost as well have carried It for nothing. r^HUK*^"''^""**'^™"'''"*^ *»*«' «»d» went out of the cattle business some time ago. The war on dressed.beef Vat„ however. IS continued with undiminishing vigour Selrie P«nsy,vaniaUvarde]Lt li-^s." T^eCr^eSl^S .he Boston rates to ,7 cents. The tariff is towonl^.^ce^^^^^ tniD^o^W *"" ^"*' '^** *^ »•>« Vanderbilt. id the Trie will probably contmue to reduce until it is the same Th. Now that gives you an idea of what we have had to con- tend with. Even while they were cutting rates to 6 cents and 7 cents against one another, we were cariying at 30 cents. You cannot get much profit even out of that The condition of. affairs was deplorable. I ■J . rBSs ft ' g0 ■ ^?i^ > .^ Report of the Presidents speech, Oa.yi,i%%Z 47 aj^tion this to you because you have seen what ou^ .reipetpls have been of late. - 1 wish you to understand it is not alone from want of tiiiffic, but it is still more from reductions of rates that we have, recently ^uffered. At the end of September a settlement was arrived at as to rates, h^ the lines north-west _of Chicago ; and on September 28 the Pennsylvania Company agreed to a partial restoration of provision rates up tp 25 cents for lOO lbs., and a full restora- tion of high-class rates; but they declined to assent to a restoration of dressed beef, cattle, butter, eggs, or grain, and flour rates. The new rates were to come into force on the loth, and were afterwards postponed tothe I sth October. I assure you, gentlemen, that ounofficers have been doing all they possibly could, working with other companies, to try and restore rates. While I was out there I co-operated with them, and I ca^ tell you they did all they could. But even recently the Pennsylvania Company reduced their rates fronts cents to 20 cents for grain at a time the traffic w^s coming on, and Wc all had more than we could pdssibly carry—- that is to say, we could have employed a great many more cars than ,were available. One day Mr. SeargeUnt— our excellent general traffic manager— told me that if we had 2,000 more cars we could have em- ployed theiu all, and that was the time they thought fit to reduce the r&tea. When I was at Chicago we went seriously into the quesiion, whether we should not put up these gr^in rates ourselves, and leave other comp a nie s te dP whatthev liked> , The^aoBwer »» f t «^f -^ 'i^^s^d-py^V^^ . 'U 1. «;>i.«'iv.^i»'A, ^^(,|ttl,V / * . . X 48 ^OrandTrunJtR'aiiway of Canary regard o the traders, then we tried to get other ^m^nies to join us in Increasing the rateUen if the Pennsylvania Company would not do so. the Michigan Central and the l>ennsyrvania were, how-- ^, mainly the means of keeping the rates down, tven at^the present moment, although tHerfi is, I hope^ better prospect, and although the class rates h^ve been a 1 restored, the grain rate question and the t^l^'T^T^ 'r "°' ^^' »>een%ettled. but I hope they Will be before long. It is abundantly evident gentlemen, that there is not enough proper feeling amongst us m America to keep the rates up without some further legislation; and if there should be any further legislation on the part of the American Government, and if the Inter-State Commerce Com- mission should obtain some further power. I do not thmk .t would be to our disadvantage, or to that qf the American companies, because, as I have said before ,n this robrt, „o legislatiftn. no intetferenci by any Government or any Commission between the different comj>anies, could dd anything like tli6 harm that we do to ekch other. . Wejgentlenien, lamhowcciiflthg'toW dbttAi6h i^^ST^Vf l^^'^^'^t h4ve mi ha^a^offtjiatisfkctdFy attdiidt to pi^nt'td ydu f l^rii^ clea«y expl^flfcd ^ diffifcultles und«^ w^ w* Hf«re kbourtddur^rtiie hliftij^rivRicfi^t !?^ revleiir, And I stertsly trtS^ W re^fds'ttie futui^ . "^t^^aiaytebfefefbgtt^firtil^thar^^ ^ ; .f&.'-V.Li,* k^ite.,vi,jf A^^j^a'*--^; */■ » Report of the Presidenfs Speech, Oct. 30, 1 838 45 far obtained in the current half-year. The enormous corn crop in the States supplying Chicago, the excel- lent wheat yield of Michigan, and the better results' than last year in many parts of Canada, ought to tell in our favour; Whilst the wheat failures unfortunately reported from Mani- toba and the north-western ' States, however disas- trous they may be to others, would not so much'affect our system. As I have told you, the question of the maintenance of fa^r rates is tl>e one important question, " not o|ly for us, but also, and not less, for our com- petitor They are all suffering from it, and the prospect in this respect, I hope, is now better. And here is what is said by one of the impartial journals of New York, the New York Financial d7/n?«*c/f of the 2oth October : "There have been quite a number of favouring features the . most important of a general nature being the disposition shown nearly everywhere to advance rates to a profitable basis. The trunk hnes have announced a higher schedule, some of the Western roads have made a further advance, and even the ' Soo ' Yoad has followed suit, both on the east-bound apd west-bound tariffi. ^ ^/ So, although one requires a great deal more than the patience of Job in^ this matter of rates, I do hope we are ^[oing to end this business, and that we shall have rates restored in a satisfactory manner; but in any case you may be assured that the best efforts of all the officers of the Grand Trunk Company will be constantly directad to the imprbvement of these rates and to a fair distribution of traffic, with a Viey to .ayoi^l in ...I'!' / ■*>-»«v,^,^ ». «>> so "^^^ Grand Trunk Raihvay of Canada future undie competition ; and you need not be assured that in all other respects they have your interests at heart, and Iwlll lose no opportunity in averting evil and taking advantage of any good fortune that taay offer. (Abplause.) I now beg to move :- hJf «f *5*^^*?°" ""^ *'•* ^''«^'°" and tlie Accounts for the ^li? K*r"*^J""'3°^ -888. now presented, be and thesamr Z^T)!^:^'''''''' '''''' ^^'^'^""^ *»'»'»'*» - dividend at t^e thl holfe j o?*/ '"" P*' """"" ^''^ *''« ''^"■-y"' be paid to the holder^ of Four per cent. Guaranteed Stock." Mr. Gllespie seconded the motion. After kome remarks by Mr. Wright, Mr. Hale, and Mr. Boyidell, i A. The ^RESIDENT put the resolution to the meeting, which \^as carried unanimously. The ^RESIDENT : The next resolution is :— - FJrJ M* J***''«f;°" •>« authorised toacquire the Five per cent Rai ofd SmL °;''.K ' *'*'J*''*''° ^^'°*"' ^ Muskegon STr c!n? St/ ^.*i* "'^''^"Se therefor of Perpetual Four S^ytt 2r««Jr''''^'"^ Stock, no* heid^ the col pany, at such times, upon such terms, and subtect to nu^h conduipnsasthe directors may approve." i " ■ ' "■ ■ ' -■' You tave previously agreed to a contract-that which Is referred to on page 9 of our report —in f^ard to the Muskegon Railway; and our only object now is to economise to sonife tsMsm by the purchase of the bonds of th^ raflwa^ If we can get them at a sufficiiintfylo^prtai td jOsti^ «8 in making a bafga%. Eip^you give ua m m. - Wi L ■_ ^' — ~t- - _ t-'' ■ ■%;■■ *.s ■ .#'XK' Report ^ the Presidenfs Sfeeeh, Oct io, im 51 power we do not propose to use it unless we can obtain a substatptial benefit, as we have suggested In the report, f* the company. I b^ to move thii resolution. Lord Claud Hamilton : I b^ to second that The resoli^tion was agreed to unanimously. The President : The third resolution is :— " That the traffic contract, dated the 27th day of September, 1888, between the United States and Canada Railroad Companj, the Montreal and Champlain Janction Railway Company, and the Company, be and the same is hereby approred." And the fourth resolution, which I shall put at the same time^ is : — " That the traffic ccniiMt, dated the 27th day of September, 1888, between the Beanharnois Janction Railway Company and the Company be and the same is hereby approved.* These two lines with which we have made £^ee- ments, and which agreements you are now asked to approve, have been constructed under very pecollar circumstances. We have made many good bargains for you, but I do not think anything can be held to beat the bargain we have made with r^ard to these two railways. To begin with, the Beauhar* nois Une, which is the subject of the fourth resolution, is 20 miles long, and is constructed through a good coiiiitry as a branch of the Montreal and _ Champlain Junction R||l«ray. Beauhamois is a town of some importance nekr the River St. Lawrence; with paper and cotton milla. The Beayhamois people wera iou«-4 b f r ai lway c^iiee t ioB, and-h«ye~been f' - * I ' / *i Report ofthePnsidenes speech, Oct. 30^1888 $$ > THE G8AIID TRUNK RAILWAY COMPANY OF CANADA. » ■ /Vt the Ordinary General Half- Yearly Meeting held this day (Tuesday) at the City Terminus HoteU Cannon Street, London, E.C. — ^ , Sir Henry W. Tyler, M.P., President, m the Chair— ' ^ . . ^ The Secretary having read the notice convening It wJflked by the President, seconded by Robert Gilles(P|p| » and unanimously resolved— " That the Report of the Directors and the Accounts for ^e half- year ended June 30, 1888, now presented, be and the same are hereby approved and adopted, and that a dividend at tbe rate of l\ 10s. per cent, per annum tor the half-year be paid to the holders of Four per Cent Guaranteed Stock. It was also resolved — n ^ •♦That the directors bs authorised to acquire the Five per Cent. First Morlgage Bonds of the Toledo Saginaw ani Muskegon Railroad Company by ihe exchange therefor of Pe/Petual Four per cent. Consolidated Debenture Stock, now held by the company, at such times, upon such terms, and subject ta * such conditions as the directors may approve. It was also resolved — •• That the traffic contract dated the 37th day of September, i88», between the United States and Canada Railroad Company* the Montreal and Champlain Junction Railway Compai^. and the Company be and the same is hereby approved. It was also resolved — " That the traffic contract dat«d the 37th day of September, 18^ between the Beauharnois Junction RaUway C«np«ny and tb* Company be and the same is hereby approved. H. W. TYLER, President »" A cordial vote of thanks was then passed to tha ■ 6*" : •■ President and Directors. J. B. RENTON, Secretary. '■■)i Dashwood House, 9, New Broad StreeTi^ E.C Octo6ef 30, 1888. 1^ • " '■. " . " . ^' ' •