^. IMAGE EVALUATION TEST TARGET (MT-3) //^.*^5^ v^ ^^ ^ Ui2 12.2 •« 136 i^ 1.1 l."^ 1^ 1.25 U 116 6" Hiotographic Sciences Coiporalion ^>^ as WEST M/ilN i 'SBfT WnSTER.N.Y. MStO (716)172-4503 '4^ ^ % 4^ &t CIHM/ICMH Microfiche Series. CIHIVI/iCIVIH Collection de microficlies. Canadiair Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques > > Technical and Bibliographie Notaa/Notaa tachniquaa at bibliographiquaa Tha Instituta has attamptad to obtain tha baat original copy availabia for filming. 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This Item is filmed at »he reduction ratio cheeked below/ Ce document est film* au taux de r*duetion indiqu* ei-dessous. 10X 14X 18X 22X MX 30X 12X 16X 20X a4X 2BX 32X lilt Ju differ ina Tha copy fiim«d hww hat b«an raproduead thanks to tha ganaroalty of: 4gMMura du QuMmc quality iafllbillty Tha imafwa appaaring hara ara tha poaaibia eonaidaring tha oondMon of tha original copy and in kaapfcig filming eontraet apadfieatlona. Original eoplaa in printad papar oovara ara fllmad baglnning with tha front eovar and anding on tha laat paga with a printad or illuatratad impraa- •ion. or tha back oovar whan appropriata. All othar original oopiaa ara fllmad baglnning on tha firat paga with a printad ar Illuatratad impraa- ■ion, and anding an tlia laat paga with a printad or illuatratad impraaaien. L'axamplaira film* fut raproduh grica A la g«n4rositi da: Ligiilatura du Quibw Laa imagaa tuhrantaa ant 4ti raproduHaa avae la plus grand soin. oompta tanu da la condition at da la nattatA da raxamplalra fllmA. at an eonformltA avae laa aonditkma du oontrat da filmaga. Laa axamplalraa origlnaux dont la eouvartura an paplar aat imprimda sont filmds on commonpant par la pramlar plat at an tarmlnant salt par la damiAra paga qui eomporta una amprainta dimprasslon ou dINustratlon, soit par la aaeond plat, salon la eaa. Tous laa autraa axamplairaa origlnaux sont fllmAs an common^ant par la pramlAra paga qui eomporta una amprainta (Jlmpraaaion ou dlilustration at an tarmlnant par la damlAra paga qui ccmporto una talla ata iluro. 3 t2X Tha laat raeordad frama on aaoh microfieho shaH contain tha symbol •-^(meaning "CON- TINUED"), or tha symbol ▼ (moaning "END"), whichavar appHaa. Mapa. piatr^. charts, ate., may ba fHmad at ■ diffarant reduction ratloa. Thoaa too large to ba entirely included in one OKpoeure are filmed beginning in the upper left hand comer, left to right and top to bottom, aa many framee aa required. The following dlagrama llluatrate the method: 1 2 3 Un dee symbdee sulvants apparaltra sur la damlAre Imege da '^leque microfiche, seion le caa: la symboie — *»slgnifle "A 8UIVIIE", le symbole ▼ signlfio "¥IN". Lee cartea. planchee. taMeeux. etc.. peuvent Atre filmAe A dee taux da rAductlon diff Arents. Lorsque le document est trop grand pour Atre reprodult en un soul cllchA. il eet fNmA A pertir do I'angia supArieur gauche, do gauche A droite. et do heut en bee. en prenent le nombre dimeges nAceesaire. Las diagrammes sulvants iHustrent le mAthode. 1 2 3 4 5 6 •mr^rv^F' J" ^^!p""l!PiPPPi!|Pippnp^ MEMORANDUM OF LEGAL PROCEEDINGS, Based upon Agreement dated August i8th^ /pi«!ip^^ i : i PLAINTIFFS DECLARATION. The Plaintiff in the annexed Writ described, complains of the Defendant, also therein described, and represents : That the Plaintiff is and has been for many years, a G-eneral Consulting Engineer, acting as snch more espe- cially in so far as relates to the construction and equipment of Railways, at Quebec and elsewhere. That the Defendant was, from the twenty-first day of February, eighteen hundred and seventy-four, to the twenty-fourth day of September, eighteen hundred and seventy-five, the Contractor for the construction of the North Shore Railway, then being built and constructed by the North Shore Railway Company, a body politic and corporate. That in the month of August last, the Defendant entered, into negotiations with the Government of the Province of Quebec, with a view of obtaining from the said Govern- ment the contr>ict for the building of the said North Shore Railway, on the basis of a cash consideration ; or of being relieved from the contract already entered into for the construction of the said Railway, which it was then ex- pected would be taken in hand and built by the said Govemment. * . mmmmmmm^ 2 LEGAL FBOOBSPIMOS. That daring the said negotiations, the said Defendant applied to the Plaintiff as G-eneral Consulting Engineer, as aforesaid, for his aid and assistance therein. That on the twenty-fourth day of September last, the said negotiations ended, and a contract was entered into between the Government of the Province of Quebec and the Defendant, for the construction of the said North Shore Railway, for a cash consideration to be paid the Defendant for performing the contract therein mentioned ; which 9ontract was subsequently ratified and approved by the Legislature of the Province of Quebec, on the twenty- fourth day of December last ; and the said Government authorized to carry out the same, and to build and con- struct the said road. That during all the said negotiations, the said Defendant had the aid, assistance, counsel and advice of the Plaintiff, as General Gonsulting Engineer, as aforesaid ; and that the Plaintiff rendered the Defendant many and important services in connection therewith, all of which enured to his profit and advantage. That in consideration thereof, the said Defendant, by paper writing bearing date at Quebec, the eighteenth day of August last, promised and bound himself toward the Plaintiff as follows : " In consideration for your extra services, (to wit : those " above mentioned) I hereby agree that if I close an " arrangement with the Provincial G-overnment of Quebec, " by which the Government either takes the North Shore " Railway contract off my hands, or pays me a cash con- " sideration for performing the contract, I will pay you " five thousand dollars upon the closing of such an ar- plaintiff's dbolahation. 8 " rangement, also five thousand dollars additional within " one year from that date, and five thousand dollars addi- <• tionj^l within two years from that date, making in all " fifteen tnousand dollars." That in view of the premises, there is due by the De- fendant to the Plaintiff, the sum of five thousand dollars, being the amount payable upon the closing of the said arrangement, which the Defendant refuses and neglects to pay, though often thereunto required. Wherefore, the Plaintiff prays judgment against the De- fendant for the sum of five thousand dollars, with interest and costs. Quebec, 9th June 18*76. • -r RF* DEFENDANT'S ANSWER. And the said Defendant, for answer nnto the demand of the said Plaintiff, in the Declaration of the said Plaintiff in this cause fyled contained, not confessing nor acknowledging any of the matters or things in the said Declaration set- forth and alleged to be true, save and except as hereinafter stated, by this his perpetual Exception piremptoire en Droits saith that the said Plaintiff, bylaw, cannot at any time have or maintain any action against the said Defendant for or by reason of the matters and things in the said declaration set forth and alleged, or in of any or either of them. For that during all the period during which the said Plaintiff in his said declaration alleges that he performed services ^or the said Defendant, he the said Plaintiff was the salaried officer of the North Shore Kail way Company, to-wit : at a salary of five thousand dollars per annum, which salary was paid him during all the said period ; and any matter or thing done or performed by the said Plaintiff du'-ing the said period, in relation to, or connec- tion with the said North Shore Railway, or its construction, or in relation to the contract for the construction thereof, was so done and performed by him, the said Plaintiff, as such salaried officer of the said Company, and not for him the said Defendant, or in his tbo said Defendant's interest. ■T i defendant's answer. T^ That the continuing by the said Plaintiff to hold the said office under the said Company, disqualified and pre- vented the said Plaintiff from rendering the said Defendant any services in connection with the said Bailway, its con- struction, or the contract for its construction. And in fact the said Plaintiff, far from rendering the said Defendant such services, or in any manner advancing the interests of the said Defendant in the premises, acted adversely to the Defendant's interests, opposed the Defendant's wishes and desires in the matter, and purposely injured the said De- fendant, both by his wordfi and deeds, in connection with the said Railway, and wit^ the Defendant's negotiations with the Government of Maurice, and Ot- tawa Rivers. — All other bridges to remain of wood. " ** 5. All changes in grades, plans, Ac, to be made by the Contractor, in conformity with Government require- ments. " " 6. The Contractor to pay for the entire right of way. " '* 7. The plans and detailed n)ecifica- tions of the diiferenl worlcs, stnictures, buildings, and equipments, to be ap- proved by the Government Engineer. And all work and materials will be subjected to his inspection and aj)- proval, before being accepted and paid for by the Government. << 8. The Main Lins to be fully com- pleted and equiped to the satisfaction of the Government on or before the..." " 9. The entire consideration for the Main Line to be $4,266,000. " '< 10. A revised Schedule of quan- tities and prices, to be prepared, sub- ject to the approval of the Government and the Contractor, which being com- puted at proper relative rates, shall " The party of the Brst part coven- ants ani agrees also to build iron truss bridges of the best Quality, and most approved plans, for the crossing of the Ste -Annes, Batiscan, St.-Mau- rice, and Ottawa Rivers. All other bridges to remain oi wood. " « The party of the first part hereby covenants and agrees to make all changes in grades, plans, specifloa- tions, and otherwise), in conformity with the Governmeiit requirements." '' Notwithstanding anything in any one of the Contracts hereinbefore re- fered to, the said Contractor shall be bound to furnish, at his own proper cost and charges, any and all grounds necessary and required, in the opinion of the Government Engineer and Com- missioners, for the service of the said Railway." " And it is fully understood and agreed by and between both parties hereto, that the profiles, plans, work- ing drawings, and detailed specifica- tions of the different works, structures, buildings and equipments, shall be made by the said Contractor, and t\illy approved by the Government Engin- eer, before work is begun upon them. And that all work and materials shall be subject to his inspection and ap- proval before being accepted and paid for by the Government. " <' That the whole line of the Main Road and Piles Branch, with all the buildings, rolling stock, snow fences, Ac, steamboat, Ac, as referred to in the above recited Contracts and herein, shall be fully completed and delivered in first class order, so as to be accepted by the Government, on or before the 1st day of December, 1877. " NoTK. — ^1 he consideration named in the Contract is $4,732,387 SO. which includes Main Line. Piles Branch, and $50,000 for debts of Company. " That as to the manner of settling for work already done, on the said line, the amount thereof shall be as- certained by the Government Engine eer, its value shall be paid by the 18 LEGAL PBOOBEDINQS. aggregate the sum of 94,766,000 (for the Main Line), upon which Schedule an estimate of the woric already done, materials procured, and expenditures incurred shall be based. — And pay- ment shall be made therefor in cash, upon the certilicate of the Government Engineer, after deducting the amount received by the Contractor on account thereof from the Hallway Company, together with — per cent, which shall be retained as security for the full and faithAil performance of the Con* tract. " '< 1 1. Monthly payments, based upon the same schedule, to be made upon future progress estimates, as certilied by Ihe Government Engineer, on or before the 10th of each month, from which the same percentage shall be deducted, until the total amount of •aid percentage shall reach the sum on " 12. If the location of any portion of the line shall be changed — or if the length of the road required to be cons- tructed shall be either greater or less than the distance of 158 miles now contemplated and provided for, the increased or diminished cost resulting from such chinges, ns compared with the cost of the present line, will be computed at the same schedule rates above provided for ; and the total con- sideration will be adjusted according- ly, by either increasing or dim*ni«hing the amount, as the case may be. " Schedule of prices hereunto annexed marked "B,*' bearing date 1st Septem- ber ; and the gross sum thus ascertain- ed, after deducting drawback h>^rein- alter mentioned, and the amounts already paid, the balance shall be paid to the said party of the first part. " " And as to the manner of settling for the work to be done hereafter by the contractor, it shall be done as follows : Monthly estimates of the quantities thereof, and of the materials which are bond j^de in poss*'Ssion of the contractor on the said Railway, shall be made by the Government Engineer under the said schedule by htm prepared marked <• B," and hereto annexed, arid the amount thereof paid on or before the t5tb day of the suc- ceeding month, less such deductions as are stipulated for under this con- tract, as a draw-back for the due and ultimate fulfilment of the said work." " That ten per cent of each monthly progress estLoiate shall be retained by the Government as security for the due fullilment of contract by the said contractor ; and when the amount so kept back shall amount to, at least $100,000, five per cent on ench month- ly estimate thereafter may be retained till the final completion of th") contract in all its parts, and the acceptance thereof by the Government. " " It is further agreed and under- stood that in case any alterations are made in the location of the line or road, or in the construction of such part thereof, which will increase the cost of (to) the ^aid contractor either in grading, bridging, or length of line, dtc , &c., the said contractor s'^nli hn paid such additional cost pro rnta with the schedule then in force, and at prices mentioned therein : and in case of any decrease in the cost of cons- truction consequent on any such change of line, a corresponding deduc- tion shall be made by the said con- tractor, as per schedule rates." ■•? MKMOBANDXnt. li ff '\ n *< Id. t^. upon Iho porreclion of the pinna, and the computation i i' the tinal quantities, it shall be fnund, liuring the progress or the work, that there are material 'leftcts or omissions, in the Schedule herein provided Tor, said 8ch<>dute may be revise4 already made bear too hard upon the Contractor; suMool however to the approval and ratifica- tion or the Lieutenant-Governor in Council ; but in no case sh^tl the cost of the Road exceed the gross jwice hereinafler mentioned. " « It is further agreed and wdei^ stood, that if the Contractor reAisos or negiects to meet within a reftsonable time, any of the obligations or pay- ments which he has assumed under these presents ; or if he delays for an unreasonable length of time, the pay- ment for labor pei formed or materials purchased for in connection with the Road, then and in any of said cases, the Government shall have the power to make such payments, and to deduct the amount thereof flrom the said Con- tractor's Bstimates. " <• Or that, if the contractor flails to prosecute the said work in a proper manner, or at a rate of progress tnat will ensure its completion "within the time specifled, that then, and in any of said cases, the Government shall have power to cancel the whole con- tract, and to enter into other arrange- ments for its completion." > It will be seen from the above, that all the Points as suggested by the Plaintiflf, are directly covered by the Contract^ except the " 2d," which is provided for in the " 12th" ; and also the " 14th," which refers to a sub-schedule, and is really provided for in the " 10th " and " 11th." The language and terms used, are also generally identical^ except where amplifications are introduceu for the pur- pose of adapting the ideas to the ordinary and more foroial terms of the contracts _\ TESTIMONY FOR DEFENCE. 1 ' X See testimony of Mr Charlea Oddl, 1. That witness is in the employ of the Defendant sir .e the summer of 1874, as his Engineer in Chief, in connec- tion with the North Shore Railway; and had a know- ledge of the last contract entered into with the Provincial Government ; and was engaged in the preparation of the details of that contract before it was drawn out and signed ; and the witness' office, and the professional skill which it contained, were quite sufficient for the purpose of getting up all the estimates and details with reference to that contract. 2. That subsequently to the 1st of May 1875, the Plaintiff was the Consulting Engineer of the North Shore Railway Company ; but witness had no communication with the Plaintiff as such Consulting Engineer. 8. That witness is certainly of the opinion that the Defendant could obtain from witness, as Engineer, all \h.% information he might require in relation to his con- tract, without the services of the Plaintiff. 4. That upon being shown Plaintiff's Exhibit " A A " at Enquete (to wit, " Points to be considered in adjusting the .^tt, T L TKSTIMONT FOR DBFENOB. ^1 existing contract to a rash basis") Witness believes that he saw a copy of the same in the office of the Defendant. 5. That witness' attention has been drawn to clause twelve (of said Exhibit) ; and it seems to him to be a clause which works both ways, and does not protect one party of the contract more than it does the other ; and as to the rest of the contract, it is rather binding on the Contractor, and the Government has the best of it. .^, 7 I L Gro88-Examrned by Plaintiff. 6. That witness saw the copy of that Document this morning in the Defendant's office ; and witness thinks it was not in the hand- writing as that of PlaintifiTs Exhibit " A. A." It was the Defendant himself who showed wit- ness that copy, which witness has examined, and believes to be a true copy of that Exhibit, which he has also exam- ined. 7. That the nature of the information given by wit- ness to Defendant, and which were subsequently embo- died in the contract, or used as a basis, is as follows : as to the quantity of Earth and Bock work, and the general clearing, grubbing, foundations, massonry of different classes, track-laying and ballasting, and general equip- ments of the Road. 8. That in obtaining the above informations, the witness took as a basis, quantities and items from the original sche- dules which were furnished by the Chief Engineer of the Company, under the old contract ; and to this, witness added and estimated the different quantities of the different classes of work required to bring it up to the standard as suggested) or called for by the (provernment Engineer.. 22 LEGAL PROCBEDINOS. 9. That upon referring to clause five^ in the said Exhibit " A. A," witness is of opinion that if said clause being em- bodied in the contract, and clause twelve being left out, the Contractor would not bo entitled to an advance, supposing the work increased, neither would anything be deducted supposing it was diminished. 10. That witness is not aware at present of the Con- tractor having as yet received any advance. There has been a change in location which may probably increase the work, to what extent witness cannot say. ' Re-Examined by Defendant. 11. That, under clause twelve^ if the works are increased, the Contractor is entitled to be paid therefor ; and if the works are diminished, a proportionate reduction, as the witness has already stated. t:> See testimony of Mr. John T. Prince. 12. That witness is in the service of the Defendant as Cashier and Accountant, since January 1874, and is aware that Defendant was and is the Contractor for the building of the North Shore Railway ; also that the Plaintiff was the acting Chief Engineer for the Company, during the whole time of witness' residence here, up to the beginning of the year 1875, at a salary of ten thousand dollars per annum, which was paid by the Contractor, through the witness, as his Cashier. After the Plaintiff* ceased to be the Chief Engineer of the Company, he continued to be the Consulting Engineer, at a salary of five thousand dol- lars, also paid by the Contractor. TESTIMONY FOR DEFENCE. 28 13. That witness is aware that, during this period, the Defendant had a Chief Engineer, that is to say Mr. Charles Odell, the witness examined in this case. Cross- Examined hij Plamtijj^. 14. Witness cannot say by whom was paid th6 salary of the Plaintiff, of five thousand dollars, as Consulting Engi- neer ; but witness knows the money came from Mr. McGrreevy, but the Plaintiff was paid at the Company's office; witness knows that, because it was afterwards charged to us by the Company. See testimony of Mr. Thomas J. Rash. 16. That witness has been following his profession as a Civil Engineer since the year 1 854 ; and has been engaged continually during all that time, in that capacity, in the construction of Railways, in Europe, Africa, the United States, and in this Dominion. 16. That the duties of a Civil Engineer in these matters are : first the location of the line, fixing the proper grades for the Road-bed, proper drainage, to see that the road is properly constructed, both in regard to the earth-work or rock-work, mt^sonry and superstructure for bridges ; as also the building of the Depots, shops, &c. ; and of course in regard to rolling-stock ; of course his duty is also to make out the proper specifications, and prepare the neces- sary estimates of work done and material delivered for the construction of the Road. 17. That the witness has parti oularlv examined the Plaintiff's Exhibits " A. A." " B. B,' ar>d ' T," at Enquete. mam 24 LEOAL PBOCBEDINOS. The first of these Exhibits contains the Rules for the con. struction of a first class Railway, generally used on the construction of most Roads. " B. B." is a schedule of prices ; and " T " seems to contain son.e amendments to the first paper, and some other matters that witness is not particularly acquainted with. 18. That it appears to witness, that some of the clauses of these documents are pretty strong in favor of the Grovernment, and against the Contractor. Witness espe- cially refers to clause seven in Exhibit " T " as a most arbi- trary rule not known to him as having been used on any Railroad with which he has been connected. 19. That the work and materials, and contents of the said Documents or Exhibits, three in number, are within the ordinary duly of a Railway Engineer. Cross-Examined by Plaintiff. *> 20. That, since three weeks after witness arrived in Quebec, about four months ago, he has been in the em- ploy of the Defendant as Chief Draughtsman ; and that yesterday the Defendant shewed witness the Exhibits spoken of in his Examination in Chief; and told him to read them through, and make up his mind as to the con- tents of the said papers, for the purpose of giving evidence, witness presumes in this case. 21. That witness has worhed, both as Engineer of a Railway Company, and as Engineer of a Contractor or Contractors. "When witiio^s worked as Engineer under a Contractor, the Contractor had not the control of the En- gineers and Engineers Department of the Road, except in pne instance, when he worked for Messrs Peto, Bras i TESTIMOinr FOB DEFBNOE. 25 -> »t sey and Betts, who had fall control. In the other in- stances it was the Railway Companies that had the control of the Engineers, and Engineering Department ; as the Contractors had work and were paid by the yard for masonry, earth or rock-work, &c., &c., which is entirely different from the system nsed on the North Shore Rail- way, which Road is contracted for a bulk sum. 22. That witness knows nothing about the contract which existed between the Defendant and the old North Shore Railway Company ; nor does he know any thing abont the existing contract between the Government and the Defendant. All that witness knows is what is con* tained in the Exhibits " A. A." " B. B." and " T," part of which he presumes is embodied in the present contract. 28. That when the witness was acting as Consulting Engineer on a Railway, had the Contractor referred to witness for papers such as Exhibits " A. A." " B. B." and *' T," the witness would have been bound to furnish papers of that kind, demanded by the Company ; and at the request of the Company only. i ( PLAINTIFF'S EVIDENCE IN REBUTTAL. See testimony of Mr. J. A. Gharlehols, Notary. 1. That the two Contracts filed at Enquete, Nos. " 23," and " 24," are true copies of the original contracts executed before witness as Notary; the first, between the North Shore Railway Company and the Chicago Contracting Company ; and the other between the Defendant and the North Shore Railway Company. See testimony of Mr. Philipjte Huot^ Notary. 2 That it was the witness who passed the contract between the Defendant and the Provincial Government, on the 24th of September of last year. A duly certified and authentic copy thereof is to be found filed in this cause, in Plaiutifi's Exhibit at Enquete " 0." See testimony of Mr. A. H. Verret, Secretary. 8. That the witness was Secretary Treasurer, of the North Shore Railway Company, during its existence. -> if 4. JPLA1NTIFF*S KyiD«NOE TN HEBTTTTAL. «7 /.' -^ t' i 4. That the Plaintiff's Exhibit " No. 22," at Enquete, is a true copy of Resolution passed by said Company, on the 11th of August 1876, (to wit, the Resolution " declaring the inability of the Company to construct the road under the existing arrangements ;" and that " the Company are therefore ready to allow the Government to deal with the question in any way they may in the public interests think proper, making such arrangements with the Con- tractor as may be found necessary") 5. That under the terms of the contract between the Railway Company and the Defendant, the latter was bound to pay all expenses connected with the Engineer- ing Department, as per Schedule ; and the Defendan furnished the Company with the vouchers connected with such payments. They were entered in the Monthly Esti. mates and repaid him by the Company. This sum of course included the salary of the Consulting Engineer, for his regular services as such. 6. That in August and September 1875, the witness is not aware that the Company called on the Plaintiff for the information contained in Plaitiff's Exhibits " A. A " " B. B." and " T " at Enquete ; nor indeed does witness believe that the Company took any step or action whatever, after the 1 1th of August of said year, with respect to the con- struction of the said road. Everything was at a stand- still, waiting for the action of the Government. 6. That, after examining said Exhibits " A. A." " B. B." and " T," the witness does not believe that, in the said month of August, it w^as proper, or necessary, or the duty of the Plaintiff', in his quality of Consulting Engineer of the said Company, to furnish the information therein con* i 28 LEGAL PB00EBDINO8. tained, to the Defendant, (the Oontractor) unless he were ordered to do so by the Company. It would be necessary if he were ordered to do so. It was not in witness opinion part of his (Plaintiff's) duty, as Consulting Engineer of the Company, to furnish such information to the Contractor. Croes-Fxamined by Defendant 7. That witness filled no other office than that of Secre- tary Treasurer of the Company ; and it was no part of his duty to direct the operations of any of the other officers of the Company. He performed the general duties of a Secre- tary. Witness has no personal knowledge as to the officer or person to whom the Plaintiff first communicated the papers above referred to ; nor at whose request they were prepared. Re- Examined by Plaintiff. 8. That witness may state generally, that all work to be performed by the Plaintiff, in connection with the road, was notified to him by witness, as Secretary, by order of the President, or of the Board. i -N See testimony of Mr. A, L. Light j Oovemment Engineer. 9. That the witness has already been examined as a witness in this cause. 10. That, after examining Plaintiff's Exhibits at Enquete " A. A." " B, >. -nd " T," the witness states that, with reference t (nformation therein contained, there would have ue ovj no impropriety, on the part of the Plain- tiff, in furnishing the Defendant, in August 1875, with said information, supposing the Plaintiff had furnished the same to the Defendant. plaintiff's EYIDENlCiE IN REBUTTAL. 29 i 11. That, as Consulting Engineer of the Company, it would not have been necessary for the Plaintiff to have done so (to wit, to hare furnished said information to the Defendant) without receivng any order to that effect from the Company. 12. That it was not the duty of the Plaintiff, in his qual- ity of Consulting Engineer of the Company, and acting as such, to furnish the Contractor ^^to wit, the Defendant), at his request, with the information contained in the said Exhibits. 13. That, upon comparing Clause No. 7 of Plaintiffs Exhibit " T," with Clause No. 2 of the contract between the Defendant, and the Provincial Grovernment, both of which apply to the appointment of Engineers and In- spectors, (the said clause No. 2 to be found at page 115 of Plaintiffs Exhibit " O,") witness states that the conditions contained in the said contract, are more stringent and binding upon the Contractor, than the terms contained in said Exhibit * T." See teatimony of Hon. J. G. Rohertaon. 14. That, in 1875, the witness was Provincial Treasurer, and a Member of the Government of the Province of Quebec. 15. That, in July and August of that year, witness is aware that negotiations were being carried on between the Government, and the Defendent in this cause, for the passing of a contract for the construction of the North Shore Railway, which the Defendant had previously con- tracted to build with the North Shore Railway Company. 16. That, owing to the proposed relingnishing, by the 80 tiBOAL ^BOOBBDlNOd. said Company, of its charter, it became necessary tken id have a new contract entered into for the construction of the Road 17. That it was thc^ witness, who represented the Gov- ernment, in carrying on said negotiations. 18. That witness communicated with the Plaintiff, for the purpose of obtaining a statement of quantities and kinds of materials which enter into the construction of a Railway; and the Plaintiff furnished witness with the details and information which witness required. 19. That witness addressed the Plaintiff in the matter, because witness thought Plaintiff had more information concerning it than any one else. 20. That witness found the information thus procured, of very great service, as it enabled witness to arrive at what would be, in witness' opinion, a fair value to offer for the work. 21. That in so far as it was of use to witness, the in- formation received by the Plaintiff certainly facilitated matters, and helped to the execution of the negotiations which ended in the contract. 22. That witness is under the impression that he received a document similar to Plaintiff's Exhibit " A. A.'' at En- quete, pending the negotiations, from the Plaintiff; witness certainly received the same suggestions in writing from the Plaintiff. 23. That witness knows that Mr. Light, the then Gov- ernment Engineer, was absent from Quebec, during a portion of the time when negotiations were going on re- specting the Railway ; and when Mr. Light returned to Quebec, the basis of the contract in question was mostly completed. t f(! + T > rr< I «'» 4 REVIEW OF THE CASE. IN BEHALF OF THE PLAINTIFF. In submitting the follovA'ing Review of the Case, it is proposed to con^ide^ it with reference to its Equitable, as well as to its Le^^al aspects. THE EQUITY OF THE CASE. In remarking upon this aspect of the Case, it is proper to consider, first, the relative position of the respective parties, both previous to, and at the date of the special Agrt^ement of August 18th 1875, vehich forms the basis of this suit ; and, second, the position in which the same parties would necessarily be placed, upon the consumma. tioii of the contingency which was contemplated, and evidently intended to be provided for by tlie same Agree- ment. It appears that the Plaintiff, who had for many years oc- cupied a prominent position in his profession, as a Railway Engineer, was applied to by the representatives of the 88 BEVISW OF THB 0A8E. North Shore Railway Oompany, at his office, in New York, in the year 1871 ; and then and there consulted respecting the North Shore Railway ; and that soon after that date, he came to Canada and was engaged as Consulting, and Acting Chief Engineer upon the said Railway ; both of which positions he held, at a salary of $10,00(^per annum, until May 1st 1875, when he resigned the position of Acting Chief Engineer, and retained that of the Consulting Engineer of the Railway Company, at the reduced salary of |5,000 per annum. It also appears, that after the Plaintiff's resignation as Chief Engineer, he changed the Sign upon his office door, to that of " General Consulting Engineer ^ " and thus gave special, as well as public notice to all persons who either passed or entered that door, that he was open and prepared to be consulted, generally/, in relation to any and all matters pertaining to, or connected with his profession. The expediency, as well as the propriety of giving such notice, on the part of the Plaintiff', will become apparent, when it is considered that, up to May 1st 1875, he had been receiving from the North Shore Railway Company, a salary of $10,000 per year, which amount had been mu- Wlly agreed upon by and between the parties, as repre- senting a fair and Just Equivalent, for the devotion of the Plaintiffs entire time and professional services, in the above dual capacity, to the interests of that Company. Whereas, after May 1st 1875, the salary of the Plaintiff" was reduced to $5,000 per year ; which amount was sup- posed to represent an equivalent for the proportion, say one half, of the Plaintiff's time and professional services* <» Consulting Engineer only, which he would be liable, if , I -k. '•1 X EQUITY OF THE CASE. 88 ^ \ '■if so required by the Railway Company, to devote to the service and interests of that Company. And the Plaintiff was therefore at full liberty to seek for, and to enter into other professional engagements, in order to make good the deficit, of $5,000, in his yearly income. It also appears, that the Contract which was in force between the Railway Company and the Defendant, during the period above referred to, for the Construction and Equipment of the North Shore Railway, [See Plaintiff's Exhibits Nos. 23 and 24.) contained a provision by which the Contractor agreed and undertook to pay " all the expenses connected with Engineering. " And also a fur- ther provision, that these expenses, together with those of the Railway Company, and all other expenses which were legitimately connected with the Construction and Equip- ment of the Railway, should he re-paid to the Contractor by the Railway Company, upon the Monthly or progress Esti- mates of the Engineer ; which Estimates were to be based upon a Schedule of Values, for the diflferent items of Ex- penditure under the Contract, which schedule would ag- grejjate the total consideration named in the contract, for the completion of the Railway. But the said contract contained no provision by which any of the Engineers named or referred to therein, loere under the control of, or sub- ject to appointment or dismissal by the Contractor. Neither is it a fact that any such power or control was ever exer- cised by the Contractor, under the said Contract. It also appears, from the said contract, that the Con- tractor, in part consideration for the performance thereof, agreed to receive from the said Railway Company, a large amount, (to wit, several million dollars) of the Bonds or 84 BBYIEW OF T^ OASB. debentures of said Ooppany ; upon the sale and proceeds of which, he relied chiefly for the means to carry on and complete the work. It also appears, from the Eesolution adopted by the Board of Directors on the 11th August 1875, (see Plaintiff's Exhibit " No. 22 ") that, by reason of the neglect or failure of the Contractor to negotiate the Bonds above referred to, and his consequent inability to progress with the construc- tion of the Bailway, the Railway Company was obliged to declare its inability " to construct the road under existing arrangements ; " and also to declare its willingness : " to allow the Government to deal with the question in any way they may, in the public interests, think proper ; making such arrangements with the Contractor as may be found necessary. " It also appears that, solely in consequence of the above failure on the part of the Contractor, and the subsequent action of the Rajlway Company in relation thereto, the Provincial Government entered into direct negotiations with the Contractor, with a view of closing an arrange- ment for the construction of the Railway, upon a basis wholly of cash payments therefor, instead of a portion thereof in the Bonds above referred to. [See Testimony of Hon. J. G. Robertson.) It also appears that, pending the above negotiations, between the Government and the Contractor, " negotia- tions were kept in abeyance with certain parties, [see testimony of Hon. Thos. McGreevy,) who, under a previous arrange- ment between the Plaintiff aiid the Defendant, " proposed to assume the position then held by the Defendant for the con- struction of the North Shore Railway ; " (see Plaintiffs Gxhi- X ^- 1 ."^^ i fiQtJITt OP TSEfi OASfi. d5 bit "L," being McGreevy's Letter of July 22nd iSTS,) and to complete the same, under the then existing contract with the Railway Company. It was, therefore, under the circumstances above nar- rated, all of which are fully established by the Defendant's admissions, and the evidence in the case, that the Defen- dant had communications with the Plaintiff as General Consulting Engineer^ for his aid and assistance in con- ducting his negotiations, and in consummating his contract with the Provincial Government. [See Defendants answers to Fails el Articles.) Viewing the case in the light of these circumstances, it will become quite apparent, that the Plaintiff had every- thing to lose ; and that the Defendant had everything to gain, by the proposed arrangement with the Government. The Plaintiff, owing to the lapse of time, and his entire devotion to the interests of this Enterprise, had, to a great extent, severed his professional engagements, and business relations, in the United States ; and he was therefore chiefly dependent upon the salary which he received from the Railway Company, for the support of himself and family ; which salary would be quite sure to be dis- continued, and his services dispensed with, (as in fact they have been) in case the road came under the control of the Government, who had its own Engineer. "While on the other hand ; if the road remained under the control of the Railway Company ; and the parties were brought forward who stood ready to complete the road under the original contract, the Plaintiff's salary as Consulting En- gineer, would not only be secured to him ; but also any additional advantages which might accrue to him under his previous agreement with the Defendant. J. -\ 86 REVIEW OP THE CASE. The Defendant had advanced largely from his own means ; and, by roason of his failure to negotiate the se- curities of the Company, he had nearly or quite exhausted both his means and credit,' in his efforts to carry on the work under the original contract ; and he would there- fore soon be compelled, either to abandon the work en- tirely, and thus lose the money which he had invested in it ; or to close an arrangement with the parties refeiTed to in his letter of 22nd July, by which arrangement these par- ties would, as stated in this letter, assume the position then held by the Defendant for the construction of the North Shore Railway ^ and re-pay to the Defendant the amount of his previous advances in connection with, the Contract. "While, on the other hand, if a favorable contract could be negotiated with the Provincial Government, the Defen- dant would not only secure the prompt re-payment of all past expenditures ; but he would also secure the prospect of / rg-e future profits in connection with his contract; together with all the advantages growing out of the sub- stitution, as the second parties thereto, of a responsible Gov- ernment^ in lieu of an irresponsible Railway Company. These prospective advantages had already induced the De- fendant to defer the closing of the proposed arrangement with the parties referred to in his letter to the Plaintiff of 22nd July 1875 ; and the same considerations now in- duced him to make it for the interest of the Plaintiff, not only to aid the Defendant, in holding " these parties in abeyance^ " until the result of his negotiations with the Government could be determined ; but also to aid a:id assist the Defendant in bringing these negotiations to a speedy and s .tisfactory conclusion. Or, to use the words r- If K I* 'V 18, 1875) ; also, that the Plaintiff prepared the draft of a contract to be executed by the parties {See admissions by Defendant^ clauses 15, 17 and 18.) It also appears that the Plaintiff prepared and placed at the disposal of the Government, and the Defendant, certain important documents ; to wit, " Points to he con- sidered in adjusting the existing contract to a cash basis ;" " Remarks upon the form of contract^ Sfc." " A statement of quantities and materials ;" together with " Schedules of rela- tive cash values, ^c." {See Facts proven by Plaintiff, clauses 6 and 11 ; also Plaintiffs Evidence in rebuttal^ clauses 18 and 22 ; also testimony for Defence, clauses 4 and 6. Also Plain- tiff's Exhibits at Enquete " A. Ar '' B. Br and « T.") It also appears, that the above information and docu- ments were found to be " of very great service "; and that th^y " certainly facilitated matters, and helped to the execution of the negotiations which ended in the contract ^ {See Plain- tiff's Evidence in rebuttal, clauses 20 and 21.) It also appears, that much of the language, and many of the entire paragraphs, which were embodied in the documents so furnished by the Plaintiff, were subse- quently embodied in the contract between the Defendant and the Government ; also that many of these clauses and provisions, were exceedingly favorable to the Defendant. {See Facts proven by Plaintiff, clauses 11 and 12 ; also " Memorandum, showing the identity or similarity of certain paragraphs, t^c") It also appears, by reference to " clause 7," of Plaintiff's Exhibit " T," that the Plaintiff suggested a provision to be embodied in said contract, which would have been much less stringent and binding upon the Contractor, than the m ,1 54 BEVIBW OF THE CASE. provision, with reference to the same matter, which was subsequently embodied in the contract, in clause 2, at page 116, of Plaintiff's Exhibit " O." {See Plaintiff's Evidence in rebuttal, clause 13.) Also, that two important provisions, which were con- tained in the original draft of suid contract, and which would have been very detrimental to the Defendant's interests, were recommended to be stricken out, by the Plaintiff; and were so stricken out, and not embodied in the contract, as finally executed. {See Plaintiff's Exhibit " T." clauses 4 and 12, and compare with Existing Contract.) It also appears that said contract was ready, about the last days of August, 1875 ; but that owing solely to the delay of the Government, it was not signed until the fol- lowing 24th of September. {See Admissions by Defendant, clause 17.) It also appears, that previous to the signing of the said contract by the Defendant, (to wit on the 23rd of September, 1875) the Plaintiff, by letter, called the partic- ular attention of the Defendant to the absence of a most important provision in said contract ; which omission was duly provided for " at the last moment " before the execution of the contract, when a " cash consideration was substituted by the Government, in lieu of the $125,000 subscribed by the Municipalities ;" referred to in the said letter. {See Admissions by Defeniant, clauses 9 and 19 ; also Plaintiff s Exhibit at Enquete " A.") It also appears that, several months subsequent to the negotiations, and the execution of Ihe contract between the Defendant and the Provincial Government, and also of the approval of said 'contract by the Provincial Legis- iT^^^ l| * tiEOAL ASPECT OF THE OASE. 55 latnre, (to wit, during the months of Febrnaiy, April and May lfc75,) the Defendant, without protest, or notice to the Plaintiflf of his objection thereto, made certain promises and payments to the Plaintiif, on account, (as alleged by the Defendant, in his Answer in this cause) of the consider, ation named and provided for in said Agreement, of August 18th 1875; which promises and payments, were accompanied by written and verbal assurances, on the part of the Defendant, that further payments would be made on account thereof, at some future day ; to wit : that, near the Montreal Bank, last February, the Dtfendant stated verbally to the Plaintiff, that he intended to call on Plaintiff, and give him a sum of money, in consideration oj the agreement made with the Plaintiff. (See admissions by Defendant, clause 20.) Also, that on April 1 7th 1875, the Defendant wrote to Plaintiff, as follows : *' / will call and see you without fail tO' morrow^ Also, that on May 1st 1875, he wrote to Plaintifi again, as follows : " / was unabU to finish your matter to- day ; but will not fail to do so on W^'^nesday, on my rt turn. 1 would have sent you the notes, but thought it no use without the cash.'' Also, that on May 4th 1875, he wrote to Plaintiff again, as follows : " I enclose you two notes for itvelv and fifty dollars each, at three and four months, which is all I can do at present at least for a feta days, until I get some money y iSee Plaintiffs Exhibits of said letters.) Thereby admitting, within one month before the commencement of this suit, and several months after the consummation of the arrangement with the Provincial Government, referred to in said Agree- ment, not only the Defendant's high appreciation of the services rendered by the Plaintiff; but also his obli- gation to pay to the Plaintiff, the full amount of the consideration specified in said Agreement. 56 BEVIEW OF THE OASE. If there had been the least foundation for the allega- tions contained in the Defendant's Answer ; to the effect, that the Plaintiff's services were performed in behalf of the Railway Company^ and not for the Defendant ; or, that he had acted adversely to the Defendants interests ; or, that he had used, fraud and deceit, in obtaining the above payments from the Defendant ; a sufficient time had cer- tainly elapsed, previous to said payments, and the com- mencement of this suit, to have enabled the Defendant to make good these allegations; but it appears that no evidence whatever has been adduced by him, in relation to these matters ; and they therefore necessarily fall to the ground, at least so far as this suit is concerned. In view, therefore, of all the foregoing facts and cir- cumstances connected with the case, it appears quite evi- dent that the Plaintiff, in good faith, performed, not only the Extra services, referred to in the said Agreement of August 18, 1875, in consideration for which, the Defendant agreed to make certain payments, as therein specified ; — but that the Plaintiff also performed other important services, in connection therewith, which enured greatly to the profit and advantage of the Defendant. 3(7. As to the payments already made. The Defendant, in his Answer, alleges that he, the De- fendant, paid the sum of two hundred dollars to J. Gr. Colston, Esq., Advocate, at the request and upon the written order of the Plaintiff. He ilso alleges, that the Plaintiff, through fraud and de- ceit, obtained from him his, the Defendant's, two negoti- able notes for the sum of twelve hundred dollars each ; LEGAL ASPECT OF THE CASE. 67 but he produces no evidence to establish either of the above allegations. The only evidence in the case, which seems to bear upon this question, are the Plaintiff's exhibits at enquete " F." " a." and " H." being letters addressed by the Plain- tiff to the Defendant, under the respective dates of May, 2nd, May 4th and May 6th, 1875 ; in the first of which the Plaintiff states to the Defendant, the terms by which the Agreement of August 18, 1875 may be paid and cancelled, to wit: " The payment of $2,300 cash, and the Defendant's note at sixty days for $1,250, and another for the same amount at ninety days ; which, with the $200 paid to Mr. Colston, will close up the first instalment o/" $5,000, due on the 24//t December last ; also for the other instalments of $5,000 each, the Defendant's four notes of $2,500 each, payable respectively Jan. 1, 1877, July 1, 1877, Jan. 1, 1878, and July 1, 1878 ; all of which notes to be made payable to the Defendant's order." In the second of these letters, the Plaintiff acknowledges to have received from the Defen- dant two notes, similar to those described in the Defendant's allegation. And in the third letter, after referring again to the receipt of the same two notes ; and staling that he, the Plaintiff, was quite at a loss to understand the Defendants mo- tive for sending the notes, the Plaintiff makes the following statements respecting the two notes, and also the amount alleged to have been paid to Mr. Colston ; together with a full statement of his account with the Defendant, at that date. " Upon consulting with my Attorney, however, the same evening; and looking over our previous correspondence respecting my claims againrt you, as per your Agreements 6S REVIEW OF THE CASE. dated June 21, 1875, and August 18, 1875, reepectiyely, it became quite apparent that you intended me to apply the proceeds of the notes in part payment of the amounts, long past due upon these Agreements ; and I therefore took the liberty, on the following morning, of placing the notes in the hands of a Notary, for sale, upon the best possible terms. " The Notary has just returned me an account of sales, from which it appears that the net proceeds of the notes amount to $2,150. " The account between us, a« per the Agreements above referred to, exclusive of interest, will therefore now stand as follows : Per Agreement dated June 21, 1875. " Amount of bonus due Sept. 24, 1875 $5,000 Balance of salary due monthly from May 1st 1875 to May 1st, 1876 $5,000 Total $10,000 Per Agreement dated August 18, 1875. Amount of first instalment, due Dec. 24, 1875 $5,000 f Total amount $15,000 Deduct amount paid Mr. Colston, April 22, 1876 $200 Deduct proceeds of two notes received May 4, 1876 $2,150 $2,850 Balance due upon both Agreements... $12,650 " You wonld therefore oblige me by informing me, at LEGAL ASPECT OF THE CASE. 59 yoar earliest convenience, as to which of these respective Agreements, you desire, or intended to have me credit the payments which you have already made on their account ; so that the amount due under each Agreement may be distinctly underutood." Inasmuch as the Defendant had not furnished the Plaintiff with the information asked for in the above letter, previous to the commencement of the present action ; and as he has produced no evidence upon the subject, it is therefore respectfully submitted, that it was evidently the Defendant's "aiention, that the payments therein referred to, should be credited to the portion of the account therein rendered, which had been longest due to the Plaintiff, to wit, under the Agreement therein referred to, of June 21; 1875. With reference to the amount of *' Salary as Consullirg Engineer i " which the Plaintiff is alleged to have receiT ed, between the 1st November and 1st May last, " of the money of the Defendant, paid to him by the Government of this Province " etc., it is sufficient to state ; first, that the same provision is contained in the Government con- tract, with reference to the payment, by the Contractor, of ^^ All Engineering Expenses.^^ (except those of the Govern- ment Engineer) ; and his subsequent re-imbursal through the monthly estimates, as was contained in the original con- tract. [See clause 11, page 111, of Plaintiff's Exhibit " O.") ; and, second, that any salary so received by the Plaintiff, must have been acknowledged, by the Railway Commis- sioners, as being justly due the Plaintiff, from the North Shore Railway Company, on account of his regular services as the Consulting Engineer of said Company, during the I 60 BBVIEW OF THE CASE. then current year of his engagement as such ; and that the amount was therefore payable by the Contractor (the De- fendant) under his contract with the Government : (See Plaintiff's Exhibit " O"— clause 21, page 119.) Attention is also called, in this connection, to the alle- gation contained in the latter portion of the " Defendant's Answer" to the eflfect, that the Plaintiff was not entitled to, and did not earn his salary as Consulting Engineer, be- tween 1st Nov., 1876 and 1st May, 1876, "inasmuch as the said Plaintiff did not render the said Defendant any services, and was not in his employ during the said time " ; from which it appears that this portion of the Defendant's Answer is in direct contradiction to the theory advanced by him in a previous allegation contained in the same Answer : where the Defendant alleges, in substance, that the Plaintiff was disqualijied from rendering the Defendant any services, by reason of his being the salaried officer of the Railway Company. It becomes quite evident, therefore, that this alleged payment to the Plaintiff, on account of salary for his re- gular services as the Consulting Engineer of the Railway Company, of which however there is no proof, has no re- ference to, or connection whatever with, the " Extra Ser- vices " rendered, or to be rendered to the Defendant, under and by virtue of the Agreement of August 18th, 1875. In view of all the f:icts in the case, it is therefore respect- fully submiHed, that the Defendant has no just and legal off-set to the demand of the Plaintiff, as contained in his, the Plaintiff's Declaration in this case. CONCLUSION. •«■ It appears, from the foregoing review of the case, that the following facts in relation thereto, have been clearly established : 1st. That the Equity of the case is clearly in favor of the Plaintiff. 2nd. That, by the language and terms of the Agreement of August 18th 1875, the Legal aspect of the case is prima facte in favor of the Plaintiff. 8rd. That the legal status of the Plaintiff, in his relations to and with the Railway Company, and the Defendanti were such as to justify him fully in rendering the " Extra services " referred to in said Agreement, and in receiving a specific consideration therefor. 4th. That these Extra Services were not only promptly, and in good faith, performed by the Plaintiff, in behalf of the Defendant ; but he also performed oiber services in connection therewith, Tvhich enured greatly to the profit and advantage of the Defendant. 5th. That the payments alleged to have been made by the Defendant to the Plaintiff, do not appear to have been intended by the Defendant, nor acknowledged by the Plaintiff, as applying to the consideration specified in the Agreement of August 18th 1875. And therefore these payments cannot justly be regarded as a legal set-off in • this action. 6th. That every allegation contained in the PUantiff's Declaration, has been/wWy corroborated by the admisH'*i* of the Defendant, and the testimony in the case ; while' not a REVIEW OF THE CASE. iingle allegation contained in the Dofendant'y Answer, is sustained by the evidence, except the one which charges the Plaintiff with having been the •' Salaried Officer of the North Shore Railway Company," which fact is freely admitted by the Plaintitf ; and must have been well known to the Defendant, both at the time of signing the Agreement in question, and during all the time when he was receiving the full benefits of the arrangement therein provided for. 7th. That the Defendant, having alleged, that the Plaintiflf acted adversely to, and opposed the Defendant's interests, wishes, and desires in the matter ; and also that the Plaintiff obtained the Defendant's money and tiotes by means of deceit, pretence, and concealment ; and having offered no proof, and produced no evidence in support of these allega- tions against the honesty and good name of the Plaintiff, has not only virtually admitted the untruthful and ficti- tious nature of his entire defence in this case ; but he has also shown a degree oi malice towards the PlantifF; as well as a disregard for his own legal obligations, which deserve the censure of the Court. It is therefore respectfully submitted, in conclusion, that in view of all the facts and considerations connected with the case, the Plaintiff is both equitably and legally entitled to a judgment against the Defendant, for the sum of five thousand dollars, with interest and costs. TASCHEREAU and FORTIER, Attorneys for Plaintiff. R. ALLEYN, Counsel. Quebec, December, 7th 1876.