%. ^'k <>.\^:j IMAGE EVALUATION TEST TARGET (MT-3) /. // <.* i?< 1.0 I.I •ttllM 1125 ° IIIIM ' Illitt 22 :ia IIM 1.8 1.25 1.4 1.6 -^ 6" — ► Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 872-4503 4^ L

signifie "A SUIVRE", le symbols V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dtre film6s d des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul clichd, il est film6 d partir de Tangle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 4 5 6 THE PROPOSALS FRENCH SYNDICATE PRESIDED OVER BY COUNT DUCUOS TO THE Government of Canada SUAFMARY :— 1 o Letter from Count Ducros to Hon, J. H. Pope— 2 ?. Letter from Mr. E. Kamper to Hon. J. H. Pope.-3 P. Appendix i, 2, 3.- 4 ?. Map of the Great Eastern Railway of Canada. Paris, March nth, 1887. Honorable J. H. POPE, Minister of Raihvays and Canals, OTTAWA. Sir, I have the honor to submit to your approval the following definite proposals : 1 9. Concerning the contract for the construction of the four lines of the Eastern Division, from Moncton to Oxford or Pugvvash ; from O.xford and Pugvvash to Pictou, from Sydney to Louisbu^i-g and espe- cially the line from Hawkesbury to Sydney , the Grand Narrows. 2 9. Concerning the establishment in Nova Scotia of a manufac- ture of rails. 3 = Concerning the Great Eastern Railway of Canada including the /«/«'^ri7/stimated that to complete the plans and esiimates of the projceled hues and put tl:e Intenolonial upon a lational and econ- omical basis, a delay of a year will be necessary, counting from the day the agreement is signed. 'Ihe delay of one year having expired the above co'/litions will change and from an ivcntiial will become a pcnnancnl and acjiniti contract. It IS understood that in case the above mentioned eventual ■A\\M-<\'i< {coticcssious I'vcniiicllcs) embodied in A'os. i, J, 3 would not be converted by the Gavernmont and Parliament into awards of a final and permanent cliaracU;r, (concessions d'cjinitives) the present eventual award, which the syndicate now asks, w,'!! be of right null and void and the syndicate will not be entitlerl to the refunding, by the Government, of the sums expended. Mr. Kamper, now at pres.Mit in Canada, will deliver you this letter and enter into negotiations with the view of bringing matters to a successful issue. I have the honor to be Sir, Your most obedient servant, 7 he Presicieni 0/ ihe Syndicate. COUNT DUCROS. To the Honorable J. H. POPE, Minister of Raihvays and Canals, OTTAWA. Sir, The Syndicate which I have the honor of representinf? in Canada has sent me the enclosed firm proposals with regard to the three projects which have been now under consideration for some time. 1 P A proposal for the lines to be constructed called " The East- ern Division of the Short Line" 29. A proposal for the establishment of Rail works in Nova Scotia. 3 o The working of a system called the Great Eastern Rail- WAY OF Canada with the Intercoloniai. as a main line. Allow me, Sir, to add to each of these three proposals a few words of explanation, in order to show more clearly the views and intentions of the Syndicate. T. EASTERN DIVISION four lines. The work to be accomplished to complete the Intercolonial sys- tem and extend it to the extreme East, as far as the Atlantic, msiy be designated under the general title of the Eastern Division and com- prises the following lines: A— MONCTON TO OXFORF) OR PUGWASH. On this line the surveys and estimates are wanting. The Syndicate would, however, undertake the building of this line after due discussion of the figures and subsidies to be granted by the Federal Government. This is the only line, which would be sub- jected to a delay, the inconveniences of which are not great conside- ring the fact that the line is already completed at both ends. B-OXFORD AND PUGWASH TO PICTOU. The work to complete this line, which is about 66 miles long, would be awarded to the Syndicate which is ready to furnish a tender as soon as the Federal Government has settled with the Grke.v Co'v. all questions now in dispute as to the value of the work already done by the latter. C-SYONEY TO LOUISI3URG. To maintain communication between Sydney and Louisburc- harbour, a harbour which is open all the year round, is a necessity which can be met in either of the followino-; 1 9. By widening for a length of 42 miles, the actual line and by rebuilding all the line works with the excejition of the Mira River bridge and the South Sidney and Louisburg wharves by repla- cing the rails now in use, by rails of 56 english lbs per yard, over one third of the distance; by providing the whole line with new ties. 2 ?. Or, by building a new and much shorter road from Sidney to the Mira River bridge, and then widening the remainder of the pre- sent road, from the Mira River bridge to Louisburo-. In both cases, the Syndicate is ready to negotiate with interested parties for the transfer of the line in its present state. D-HAWKESBURY TO SIDNEY BY THE GRAND NARROWS. LENGTH 91 MILKS The surveys on this line have been made, and the Syndicate res- pectfully requests that the work be immediately awarded. The tender for the construction of this line, was remitted to you. Sir, on the nth of January last. Its total represented a sum of f> 3, 000,000 If this price. Sir, seems to be high, the Syndicate having made this line the object of a special study, respectfully beg permission to give the reasons why the figures appear high, by furnishing the parti- culars of the work to be done. They feel satisfied that by calculating upon Schedule prices, the sum they ask will prove in conformity with the estimates made of the i cost by the Government itself and in no manner of an exaggerated character. They feel confident further more, that any difficulty on this point could easily be adjusted between the Government and them- selves. The following gives a correct idea of the work to be e.\ecuted on the line : 'I he line runs from Hawkesbury to South Sidney, passing over the Grand Narrows; its total length is 91 miles. For the passage of the Strait of Canso we have provided a ferry boat capable of carrying ten cars, with suitable wharves. For the passage of the Grand Narrows, two wharves and a second ferry boat capable of containing ten cars have also been provided. A principal station at Hawkesbury, with warehouses for freight, and an engine-house for two engines ; a similar station at Sidney ; an engine-house on each side of the Grand Narrows and eight interme- diate slaiions, which makes an average distance between stations of eleven miles. The road which is to be Standard gauge road, will be laid with rails weighing 56 english lbs. per yard. The rails will be laid on lies numbering 2600 to the mile and thouroughly ballasted. The telegraph wires, two in number, will be fi.xcd on poles situated !>t a distance from one another of 50 yards. The viaducts, culverts and other line work.s will be of two kinds : 1 ?? Works with an opening of less than 20 feet, in masonry, i 16 culvens measuring altogether 2413 feet; 10 smaller culverts measur- ing from 2 to 3 yards each 2S 28 bridges and trestling.s varying in length from 12 to 60 yards ; Abutments in masonry, metallic trusses of a total weight of 2,500,000 kilograms or 2,500 tons ; Fences in barbed wire ; The road is to be cleared of trees on each side, for a distance of 20 yards from the centre of the road bed ; 29 level crossings, 16 de- viations from the straight line, 91 deviations of water courses have been allowed for. Finally, after examining tlie line and boring holes in the ground to ascertain the nature of the soil, the following results, obtained as much by calculation as by experiment have been arrived at : Cuttings 2.200,000 cubic yds. Plaster, boulders, tufa and soft stt)ne. . . 245.000 Hard rock , go,ooo " Total numberof cubic yds 2.535,000 The above figures are absolutely correct and show that the works on that line exceed in difficulties of all kinds the work generally done on other Canadian railroads, and the price of tender is therefore not exorbitant. The construction of the two lines mentioned under B and C would cost as follows : (Appendix I.) I ?■ For the line from Sidney to Louisburg by the mines of the Reserve a total sum of $5Si.99[. That is for the total of the 42 miles an average exiienditure of ^'3.857 (ill making use of and widening the now existing road.) 2?. For the line from Oxford and Pugwash to Pictou. a sum of $1,625,818 will be sufficient to finish it in taking into account the work already done by the Green Company. With regard to the line mentioned under A. that from Moncton to Oxford or Pugwash. it is more convenient to wait until we know the intentions of the Government regarding the direction of the line, junction, etc., etc ; yet even in this case, the Syndicate is leadv to tender for execution of the works. After a careful examination by our engineers, of the territory, of the two lines mentioned under B and C with the view of obtainino- as correct an idea of its present and future advantages, it is self evi- dent that for the first years this tralific will not even cover the working expenses; there will be, for the line of Cape Breton, a deficit of «25,ooo per year, and for the line from Oxford to Pictou a deficit of $20,000; viz: a total deficit for both li.. is of 845,000 per year. The future generations being called upon, in the natural course of time to profit of the many advantages deriving from this Railroad, it is but just and fair that they should shoulder to a certain extent the burden of its construction. 10 We have then proposed to the Government, sliould the construc- tion of these lines or one of them be given to us, to accept instead of cash payments, annuities bearing 4 "/„ interest and running civer a stated period of years. With regard to the amount of security to be deposited into your hands and as to the delay granted for the full execution of the works, we are ready in advance tn submit to the Governments decision. Ad. 2— RAIL WORKS. As stated in the annexed proposal for an annual production of 40,000 tons, the cost of these works is estimated at $1,500,000. I he capital is ready and the capitalists show a certain impatience at their funds remaining unproductive at a time when money can find ready investment. Allow me, sir, to summnri/e the conditions of the proposals con- cerning these works : The output of 40,000 Ions, must bj taken as a minimum [produc- tion. As it is in the interest of the manufacturers to meet all demands, once the woiks are opened they will, if needed, increase their capacity for i^roduction « It is evident, that the railway companies will object to the increase in the price of the rails; they will submit to this increase only with difficulty and may combine together in order to bring about the clos- ing of die works; experience leads us to believe that such will be the case. For this most important reason we ask from the Government the guarantee of a minimum demand for a staled term of years. This, the Government can easily do, by giving rails instead of money when dis- tributing subsidies to companies asking help. The Government can, also, require that in the future rails be furnished by Canadian manufac- turers. This system of protection has worked well in I'rance, Italy and in Russia, and has, not only neutralized the opposition of those interested in the old reozmc, but has permitted of the establishment of large and important works. A delay of four or five months, will be sufiicient to enable our I' T II 11 engineers to examine on the spot and determine on the c|uality and in the productive power of the mines. If the Government therefor accepts the principle, and the condi- tions which follow the same, the works can be commenced as early as the month of August of this year. Again, with regard to the establishment of the Rail-works. I can affirm that Mk. dl Montgoi.kiku, in order to secure experienced and skilled labor on which he can rely, intends to send at once, 500 skilled mechanics from Europe, who with their families, viz: from 12 to 1,500 colonists. You will agree with us, sir. that it would be difficult to find a more practical mode of developing the mining industry of Nova Scotia, than the project we propose. Ill NNING OK TIIK (JHEAT EASTERN RAILWAY ..k CANADA. You will please remember, sir, that, during the month of Septem- ber last, we sent, with your permission, the engineers, Messrs. LeHrun. de Montgolfier and Bailly. over the unexplored region, to examine thoroughly the working oi \\\(i Intercolonial, also the cost of construct- ing the four lines above mentioned in Appendix No. I. Mr. LeBrun, under whose direction the commission worked, con- cluded in his report, that the working of the Jnlenoloftial oiicrad dif- ficulties of a complicated nature, especially on account of the lines to be constructed, and also because of its being threatened in its very ex- istence by the construction of the Western Division of the Short Line (direct line from Moncton to Montreal through the State of Maine.) This objection presents a formidable alea of disadvantages, to be over- come only by granting the conditional proposals mentioned in the conclusion of his report, which I have the honor to remit to you. ( Vide Appendix No. II ) All the conditions above mentioned, in regard to the eventual award {concession eventuelle), can be realized within a year ; this delay having expired, the Syndicate is bound to ask for a definite award based upon the studies and surveys made during that year but the Government will always be at liberty to accept or refuse this definite 12 award {concession dijlnilivc) being the proper party to docidc as to whether or not the proposals made are in the interest of the public. The delay of a year wanted for conditional award is otherwise necessary to complete the negotiations of purchase or amalgamation of the several lines, which will complete the Grrai Eastern Uaiiway of Canada and which are under No. Ill of Appendi.v. You will notice, Sir, that the mode of conditional awards which we offer and which is often adopted in L-lurope, especially m iM-ance, does not bind the Government to any obligation^. It i> always within the i)rovince of the Government to break off a provisional arrangement without incurring damages, whilst it gives the Syndicate, ample time to consider, study and digest the work confided to their care This provisional award would give to the Syndicate sufficient and indispensable time to make all the special examination and surveys required either for the construction of the new lines o,- th:it of the Quebec bridge, and to consider and take into account the runnii'g of the existing lines ; it gives time also for the negotiations with the .several Riiilway companies, which must bj purchased or amalgam- ated in order to complete the Great Eastern Railway system. Finally this conditional proposal is necessary as a starting point to the finan- cial combinations which the r.^mbers composing our Syndicate must necessarily make, before launching in so great an enterprise. (Vide Post Scriptum.) Referring to this same subject of a provisional award, I wish. Sir, to call your attention to this other point: It is the C(^-operation of the St. Cmamond Co , assisted by first class banks, bankers and men of a large capital, under whose auspices the execution of the construc- tion of the Eastern Division and the establishment of the Rail works is assured. It is by increasing the influence of this group of manu- facturers, bankers and capitalists, that the creation of the Great Eas- tern Raihvay o{ Z^wviA?^ will become Vi. fait accompli. The Bank of Montreal will give you, Sir, all the information you may require as to the Financial strength of our Syndicate, with Mr. DE MoNTGOi.FiER and his friends at its head. ^ wmmmm ■■■■■■I 10 In cage our proposals should meet with any objection 'wc greatly desire to receive from the Government the expression of its wishes, so that n-c may know how, and in what mcasue we can adjust the diffi- culties, if any in the way, and solve all questions P|,on which the Government and ourselves may be at variance. Confident of the fact that in the future as in >hc ])ast, I shall be honoured with your confidence. I have the honour to be, V'our obedient servant, (Signed,) KAMPER. Ottawa, 1st May 1887. J'- S.— The Syndicate is composed as ft )llows : Count Di:ckos, Chief Engineer of the Fonts ict Cii.vusskls. Grand Ofificer of the Legion of Honour. iM. i.E IMakouis dk Beauvoik, Vice-President of the Hanque des P.ws AusTRo-IIoNGROis. Commandcur of the Legion oe Honour. M I.K CoMTE DE ClIEVlLLV. M Ma.xi.me Desmaisons, President of " La Societi' de \AVK;.vno\ DES Bateaux de la Seine." with the assistance of the " Soru/e dcs H^ •ts Fourncaux, Acierics d Fovi^es pour la Marine el ks Chcmins de /l'/- (Capital 20,000,000 fcs.,)" Cie. de St. Chamond, General Manager, I\L de IMontgoleier, and a grotipc of the principal Banks of Paris. HI I ■■i t LINE FROM IDNEY TO )UISBURG FlY TirK fcsof theKeseivo. Kiirth work. Shitif)h8, Siiiidri,'8, lixiu'iuliiurc at liouiaburg, APPENDIX I. This is a narrow gauge road, and should be changed to the same gauge as the new road from Sidney to Hawkesbury It is 4" miles long (68\o78.) From Sidney to the mines 26 miles the Mines to Louisburg ..16 " The latter part has been abandoned since four years. The repairs to the line would comprise; With the exception of the loading wharves of Sidnev and Louis- burg, the iron bridge over the Mira river; and the large woocien trestle works over certain valleys, a// the other line works would have to be rebuilt; namely: those oHess than 20 feet in wood and masonry, those of more than 20 feet in masonry with metal trusses. The first number ^ j " latter " jg The gauge is only o."'96 ; it will have to be enlarged to i'"4y. An a consequence the cuttings will also have to be enlarged ; the crossing of Catalogue lake would require to be stone i on both sides All the level crossings will require to be rebuilt. One- third of the rails will ha\e to be replaced by others of steel of 56 lbs per yard; all the sleepers will have to be renewed. One-third of the ballast, 43,500 cubic metres will have to be renewed. Repairs to one-third of the portions still t.\istinj -r^ station, fences and I elcgraph Lines 27,500 ^'"'''TxiM.n.c.,. Unforeseen ex])enses 27,500 8i.62S,Si8 Average per mile $24,633 To complete the means of communication by railway to the East- ern extremity of Cape Breton it would be necessary to add to the cost of the Sidney line, the cost from Sidney to Louisburg... . $582,000 From Oxford to Pictou 1,626,000 i otal !!;2, 208,000 n ! \i\ It. c ! I ii I i if m\ APPENDIX II To Ireport (If R Lebrun \ivil Engineer I" Till-: NDICATE COUNT DUCROS. EngiHcer-in-Chief of the Fonts i;r Ciiausskks, Grand Ojficcr oj tlie Li;(;i()\ of lIowoUK, &-e., &e.. &e., PARIS Sir, You wish me to furnish }'ou with tiie conclusions of the Report of my mission to Canada; I hasten to do so, awaiting the moment when I shall be prepared to give you thu Ri?port itself. 1 his mission with which you honoured mc, consisted : 1 P In a careful examination and study of the new lines to be constructed either in Cane Breton Island or on the coast between Moncton or New Glasgow to Pictou by the sea shore. - ?■ The study of the I'ort of Louisburg. 3 ?. I he study of the management and running condition'of the Intercolonial Railway of Canada. Your object in obtaining the above information was to determine the basis of a project embodying the conditions upon which conces- sions could be asked from the Canadian Government allowing the construction and proper working of the above mentioned lines. In the course of my mission 1 was struck with the difficulties in store for the system comprising these \-\q.\\ lines, when the direct line between Montreal and Moncton granted to the Canadian Pacific Rail- way co'y will be completed and I have thought it my duty, in con- sequence, to offer to your consideration fresh combinations whicli would secure a more direct traffic between Nova Scotia and New- Hrunswick and the region lying North of the St. Lawrence, thus esta- blishing a new channel of e.vportation to the valuable mineral resources of these Provinces. These combinations, if ever carried out would, I feel satisfied, res- pond to the wishes and requirements of both the Federal and Provin- cial Governments. X 17 You liavc been kind enough to approve of this novel idea and I have tried to give it full development in the Report which I am no^v engaged in preparing, the conclusions I now beg to submit to your approval. 1 CONSTRUCTION of the NEW LINES. A— LINE OF CAPE BRETON. The course followed by this line, which was traced by the Gov- ernment, commences at Hawkesbury upon the Straits of Cansi), oppo- site Port Mulgrave, terminus of the Inhrcolonial, crosses the Grand- Narrows, follows the East Hay frc m Bras-d'Or, and terminates at the city of South Sidney. TJiis course which was adopted to give satis- faction to the most influential portion of the population of ( ape Breton, crosses the most populated and prosi)erous jjart of the Island, but it presents the double inconvenience of requiring a transhipment at Grand-Narrows and oflers a very imperfect service to Louisburg. Following the Bras d'Or in nearly all its length, the line will always have to compete with navigation during the summer season. I believe that the survey by Loch Lhomond, brandling off at Mira River to Sydney, on one side, and Louisburg on the other, would have remedied to these objections and lessened considerably working expenses. Crossing an agricultural and mineral region, de- void of means of communication, this latter course would in our opinion, favour more practically the colonisation of Richmond and Cape Breton. The traffic of the Island which, on account of the ice can be depended upon onl) in summer, consists in lumber, the Sydney coals and the Fisheries. The passage through the Straits of Can.so being open in all seasons by means of a ferry specially built for the j^urpose, the line would be in constant communication with the continent, whereas the crossing at the Grand-Narrows would be closed at inter- vals or offer difficulties until a bridge was constructed to keep the line opened all the year around. 18 Apart from the lumber, the other branches of traffic are clestined to a vast development ; numerous and important mines of copper and iron could be worked all the year around, the fisheries would develop considerably and by its natural position the port of Louisburg, being opened to navigation all the year, Cape Breton would reconquer it" original importance and become, as under the French, over a century ago, the great market for fisheries of the Gulf St. Lawrence and Newfoundland. This development would be hindered somewhat by the difficulty of crossing the Grand Narrows in winter. The population, although on the increase, does not develop in proportion with other countries less favored by the climate, on account of the isolation of the island; the impetus to industry which will fol- low the construction of the railway will bring new c(jlonists, but it must be acknowledged that in its present condition, the resources of the country will fail to meet the working expenses of the railway. If we take as a comparison. Prince Edward's Island, the popula- tion of which exceeds that of Cape Breton (51,0 inhabitants per square mile, against 25..^o only in Cape Breton), we can calculate at once upon the following results during 1884-KS85. Total Receipts .... $158,188 thus per mile 5752 Expenses 211,207 " '" " 1000 Deficit 52,679 •' " " "^^ We cannot therefore hope for a better result in CapTYrcton during the first years, nor until the mines are fully developed We must also consider that, by its configuration, half of the surface of the Island and more than half of its population, will not contribute to the railway. Ifthe Coal can be worked at 5 1. 00 cheaper than that of New Gl.sgow upon a tariff of $o,oo8 (o.f. 025 per kilometre), per mile, which will hardly renumerate for the two crossings of Grand-Narrows' and of Canso, we find only 125 miles, a less distance than that from Sydney to New Glasgow. A great development in the transportation of coal cannot, under these circumstances, be expected. An annual loss, during the first years, of ;g3oo per mile, or for the entire line of ^25,000 to $30,000 must be expected. B PICTOU- OXFORD LINE. What we have said of the Cape Hreton h'nc can be applied to the line from Moncton or Oxford to Pictou. If the country is better cul- tivated, or if the population is greater than at Cape Hreton. cxccptinKFICIT or G.M.V. Total. i .V.f Mile. j Total. + 9,0(58 - 73,324 -106,043 Por Mile. 1883-1884 1884-1885 1885-1886 840 8G1 8(51 2;!53,G47 2300 2,3(58,154 1 2752 1 2,383,296 2707 2,344,579 2,411,478 2,489,244 2791 2836 2890 - S4 -12.-! If we compai-e these figures with those of other Canadian or /American lines, doing an equal amount of business, one is struck with the high rate of expenditure. The principal cause of this trouble is to be found in the unprece- dented lowncss of tariffs which the government grants to traders in the Eastern provinces. Even admitting a very large tonnage, the rates are not calculated to cover the working expenses. Economy could probably be introduced, in locomotive power by utilizing to a belter advantage the loading of trains, and by reducing their number, which, under the pressure exercised over the manage- ment by the people have been too largely increased upon certain sections. Lastly, a company reducing the expenses as ■much as possible, and capable of commanding more work f.oin its staff could reduce considerably the working expenses. But the fact is not to be concealed that it is due to the insufficiency of the tariff if the budget of expenses is so crippled ; in the hands of a company which cannot allbrd to work at a loss, it will be necessary to raise the tariffs. If, in certain cases, it was advantageous to carry goods under cost price, cither for the purpose of developing a certain industry, or to utilize the return of empty cars, it would however be preferajjJe to renounce to a traffic, whatever might be its importance, if it only shows a dead loss. It is also to be considered if in raising the tariff make them productive, we will not diminish greatly s, in order t(j the receipts; 1 r i; ,i I I have not yet been able to find an answer to this complicated question, rendered more so, by the competition from navigation, However, by the calculations which will be found in the report, based upon comparisons either with neighboring,^ companies, or com- mercial information, I think that we could arrive at a '■eceipt of. , <2.ooo.ooo and reduce the expenditure at a figure of 1,800,000 Leaving a net gain of 5200.000 Should be deducted : Annual deficit of Eastern extension $5225 Probable deficit of Cape Breton line and New Gla.sgovv, O.xford 45.000 50.223 Leaving a balance 149,777 or in round numbers 1 50,000 '1 his would be the net income upon which // /////los did imi chauirc, after the completion of the new lines and in capitalizin<>- a rate to be agreed up.Mi, the actual value of the JnU'radonial could be determined. Hut the problem is far from being as simple as it appears to ]k>. Several lines belonging toother companies are in course ofconstruc- tion around and near the Intcnclonial\ if they bring any traffic to it, it is to be leared that they will carry away from it more tonnao-e than they will bring in return. In first instance, we must consider that the Canadian Pacific, by its line from Montreal to Moncton. which is much shorter than the FntcrcoloniaL will undoubtedly command all the general traffic from Halifax, St. John to Montreal, taking at the same time most of the local traffic between Moncton and .Miramichi. The Northern and Western line of New I^runswick will also, by way of Fredericton, Edmonston, Riviere du Loup, and so tar as Que- bec, remove most of the freight presently carried by the Inkicoionial. What will be the ultimate result of the construction of these lines ? It is impossible to .say so long as the .system of the ruinous com- petition which seems to be prevailing with Canadian and American i companies is being carried on, while with tlie disadvantage of its great mileage, the Intercohmiai will not be able to compete with advantai2 kilometres) could be used as the nucleus of a system of railways communicating with the North, Centre and West of Canada and with the Eastern Extreme Ports on the Adantic. This system of railways would comprise : 1 9 The North Shore Line, from Montreal to Quebec, length This line belongs to the Canadian Pacific Co., since three years and would have to be boucht from this Company The Canadian Pacific C^, according to reliable information would likely offer no material objection to its lease or sale. 2 9. The New Brunswick. Northern and West- ern R W. This line is not yet finished, total length This line whi( h will have its terminus at Cha- tham harbouron the straits of Northumberland, would become by amalgamation with the Intercolonial 7>. producing power of the new Railway system, instead of being as it is at present, by its isolation, a rival of the hitercolonial. 'I he sum necessary to complete this line may be estimated at §500,000. 3 9. The New Brunswick R. R., of which Ed- mondston is the terminus, length. This line is completely finished. 955- 20 4 ' 5 664 . 00 Canled forward 721 1953.60 2S Brought forward The balance sheet for 1884- 1885 shows the fol- lowing results : S ^ francs. Total receipts 624969 Receipts per mile 1482 " kilometer 4630 Total expenditure 4395/6 Expenditure per mile.. 1058 " kilom. 3306 721 1953.60 Total net proceeds .... 1 75391 Net proceeds per mile.. " kilometer 424 1314 If the above figures are correct, the surplus of receipts over expenditure for the year 1884- 1885 would be sufficient to pay at the rate of 44 % the interest and the sinking fund on a capital of .$3,879,- 400. With respect to this line of 415 miles, a careful inquiry into its running in order to obtain the cor- reci- statement as to the conditions under which it is run should be made. This inquiry made, nego- ciations with the company could be commenced. l ?■ The extension from Edmonston. of the New Brunswick line along the Saint Lawrence in direction of Quebec. The whole of this line has to be built, length about The cost per mile may be estimated at $24,000 or for the whole line ;^2, 592,000. 5 ?? On the Saint Lawrence at Quebec, the crossing in summer is done by ferry boats. Durino- Carried forward 108 172.80 829 2126.40 Ill 29 Brought forward .... winter, the crossing of persons or light freight, is both costly and difficult, as to heavy freight, it is hardl)- worth while speaking of it as it amounts to a trille only. This great inconvenience paralyses the traffic of the numerous lines which require free communi- cation between the two shores. .'\ bridge over the Saint Lawrence has become an urgent necessity both for ordinary traffic and for railways. The length of the Bridge and abutments may safely be put down at a maximum of The estimates already prepared by different en- gineers vary in price from 84.000,000 to $7,000,000. 6.° The Intcfcolonial co\k:x% 1051 miles... In adding to its actual length the projected line, destined to extend it to the Eastern Ports. 'Jotal !9 2126.40 6.40 1051 1681.60 1S84 3014.40 At the present moment the Intercolonial g\\Q<. very poi.r rdurn.s, and every jear Parliament is obliged to vote large sums t)f money to cover the deficit of its operations. Time only and certain combination of a rather difficult character for the present, will, by proper economy in exjx'nditure, effect good results and yield some profits. What malt rial results can we expect.' In what delay can we hope these results to be realized.? 1 hese are delicate questions, to which I\Ir. Lebrun, engineer of tin; Syndicate in spite of all the care and attention he has given to his mi.ssion has not yet been able to answer in a positive manner. I 'I I n conclus ion, we may say that the coinbiiiation which \\v pur] )()se carrying out, forming a railway system of 1884 miles, which may well be called the Great Eastern of Canada would by means of the 6 above mentioned lines answer three purposes : I 9. It would be an active colonization agent; 2° It would prove a powerful factor to the industrial development of Nova Scotia: :; ?. It would be a connecting link between Canada and Europe, creating the shortest maritime route between the two continents of Europe and America.