'- ' ■?'*: .i»-*^'.'»'> CtHM Microfiche Series (Monographs) ICMH Collection de microfiches (monographies) Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiq ues ■-.■■■»■ ' ) historiques Technical and Bibliographic Notes / Notes techniques et bibliographiques The Institute has attempted to obtain the best original copy available for tilming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may sigi'.ificantly change the usual method of filming are checked below. □ Coloured covers / Couverture de couleur □ Covers damaged / Couverture endommagee Covers restored and/or laminated / Couverture restauree et/ou pelliculee Cover title missing / Le titre de couverture manque I I Coloured maps / Cartes geographiques en couleur I I Coloured ink (i.e. other than blue or black) / Encre de couleur (i.e. autre que bleue ou noire) Coloured plates and/or illustrations / Planches et/ou illustrations en couleur D Bound with other material / Relie avec d'autres documents Only edition available / Seule edition disponible r/1 TiQht binding may cause shadows or distortion along L— — I interior margin / La reliure serree peut causer de I'ombre ou de la distorsion le long de la marge inteheure. D D Blank leaves added during restorations may appear within the text. Whenever possible, these have been omitted from filming / Use peut que certaines pages blanches ajoutees lors d'une restauration apparaissent dans le texte, mais, lorsque cela etait possible, ces pages n'ont pas et6 filmees. Additional comments / Commentaires supplementaires: This item is filmed at the reduction ratio checked below / Ce document est filme au taux de reduction indique ci-dessous. lOx 14x 18x 12x L'Institut a microfilme le meilleur exemplaire qu'il lui a ete possible de se procurer. Les details de cet exem- plaire qui sont peut-etre uniques du point de vue bibli- ographique, qui peuvent modifier une imaoe reproduite, ou qui peuvent exiger une modification dans la metho- de normale de filmage sont indiques ci-dessous. I I Coloured pages / Pages de couleur I I Pages damaged / Pages endommag§es D Pages restored and/or laminated / Pages restaurees et/ou pelliculees Q Pages discoloured, stained or foxed / Pages decolorees, tachetees ou piquees I I Pages detached / Pages detachees [y/| Showthrough / Transparence I I Quality of print varies / D D D Qualite inegale de I'impression Includes supplementary material / Comprend du matenel supplementaire Pages wholly or partially obscured by errata slips, tissues, etc., have been refilmed to ensure the best possible image / Les pages totalement ou partiellement obscurcies par un feuillet d'errata, une pelure, etc., ont ete filmees a nouveau de fagon ^ obtenir la meitleure image possible. Opposing pages with varying colouration or discolourations are filmed twice to ensure the best possible image / Les pages s'ooposant ayant des colorations variables ou des decolorations sont filmees deux fois afin d'obtenir la meiileure image possible. 22x 26x 30x 16x 20x y 24x 28x 32x The copy filmed hare has been reproduced thanks to the generosity of: D.B. Weldon Library University of Western Ontario L'exemplaire film6 fut reproduit grdce d la g6nArosit6 de: D.B. Weldon Library University of Western Ontario The images appearing here are the best quality possible considering the condition and legibility of the original copy and in keeping with the filming contract specifications. Original copies in printed paper covers are filmed beginning with the front cover and ending on the last page with a printed or illustrated impres- sion, or the back cover when appropriate. All other original copies are filmed beginning on the first page with a printed or illustrated impres- sion, and ending on the last page with a printed or illustrated impression. The last recorded frame on each microfiche shall contain the symbol — ^ (meaning "CON- TINUED"), or the symbol V (meaning "END"), whichever applies. Les images suivantes ont iti reproduites avec le plus grand soin, compte tenu de la condition et de la nettetd de I'exemplaire film6, et en conformity avec les conditions du contrat de filmage. Les exemplaires originaux dont la couverture en papier est imprimde sont filmds en commencant par le premier plat et en terminant soit par la derni^re page qui comporte une empreinte d'impression ou d'illustration, soit par le second plat, s9lon le cas. Tous les autres exemplaires originaux sont film^s en commenpant par la premiere page qui comporte une empreinte d'impression ou d'illustration et en terminant par la dernidre page qui comporte une telle empreinte. Un dee symboles suivants apparaitra sur la darniire image de cheque microfiche, selon le cas: le symbols — •• signifie "A SUIVRE", le symbole V signifie "FIN". Maps, plates, charts, etc.. may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent etre filmis d des taux de reduction diffdrents. Lorsque ie document est trop grand pour etre reproduit en un seul clichd, il est film^ d partir de Tangle supArieur gauche, de gauche i droite, et de haut en bas, en prenant le nombre d'images nicessaire. Les diagrammes suivants illustrent la mithode. 1 2 3 1 2 3 4 5 6 MICROCOPY RESOLUTION TEST CHART (ANSI and ISO TEST CHART No. 2) 1.0 I.I 1.25 12.8 J^ m m Z5 [2.2 2£ 1.8 1.6 A APPLIED IIVHGE Ir =Sr- 't-'-J East Mam Street r-^: Rochester, New York 14609 USA '-= C'''6) A82 - 030J - Phone ^= (716) 288 - 5989 -Fax ioiQllI PRC TF GHA] THE m IVith Ft QhOBK JiwiiiiiMt i^.^ ^^. i .'.. "■'■■■■ ■-'" '''■•*~*««*»«««*rt>«4,w««*«« ill) PROPOSALS OF THE COMPANY IN RKKKK8N0K 10 THE CONTEMPLATED CHANGE OF THE GAUGE, — AND — THE GENERAL IMPBOKEMENT OF THE Umi mth Financial Statements, and Letters and Resolutions relating thereto. T O K O N T O : ^NY, PR] 1880. OLOBB PRINTmG COMPANY, PKINTKR.S AND ENGRAVfiRS, '«. ; 1 i \j TO THE ®0ra« Oentleme.v, 1. Tlip Dii beg herewith prouofials of tl of Chc gllll(r(> financial state bear upon tiie fact tliat in coi (iecidod to renc now submitted before tlie rate would cortainlj 2. The cliaj (iovornment n ules. The prir amount payabl brace any iiicri municipaiitiea, been made no old one. NoitJ sary to make in 'iiiy way lossoi) arrangement as perfect as possil witli all tlie rail 3. Tlie detic ing of the Gov you, been made found to be si Company, spreai placing that sui dui'ing the yeai liquidation of cl lower than the f 4. The Can.i March last, agree them and bear ( TO THE KATKPAYERS OF TlIK Ml NltH'AUTiES ALONa THE LINE OF THE Mmnio, mv mi f «,« Mmmw. Oentlemex, "^ ' ■ • 1. Tlie Directors of tho Tornntn <",«, i i. beg herewith to Inv iMolylTu^,^^^^^^^^^ of chogau,. and thl gJ^'ml ,7.; t^^t . ^V"^ hnancial .statements reUing thereto vTmh /'"'''^'"^ ' '^'^o the bear upon the subjeet. In loinrtht Si n ',""' '•^'«<'l"tion.s wJ.ieh fact that in consequence ot t e G^ov „ I 70*^, '''.■-'f ^"""^'"^ t'> the .lecidod to render no assistance t7Slvsth!"';'r' ^'"^'"''^ '••^^* '"'-''!«» now submitted diller in «o,ho part 1;%* ! *'"'"'«"''"'f ^-^fmates before the ratepayer, some til Sw^nH?"' t-ne which were laid would certain]; ottain Govlme^Tt L^illl^/ee ^"'^ *'""^''^ ''^" ^"'"I-">^ ules. The princip.5 item fdii^^^^ .riis\;rTnV'''' ■^'■'''^^'- amount payable by the bondholders. T]?' 1 nZs 1 1 ''" '" *''" brace any increase in the amount of tbn ^"""8'^" ,•"'^'1'' ''« not em- municipalities, which still ZZL ttS7^ 00"'t, '-""i ^'^ been made no larger u.ider the new sclien e than tbev '"'? ^'"^'" old one. Neither are the sli-dit alterationrwL' i -1 ,1 ^'''"' ""''«'' t^"" sary to make in the sche.Iules "If errfeSn; f^, /ir ' '"""'' "^'^^^■ any way les.son the efficiency of L S^^ 1^- ^ ''""^'r '''' "^^^^ ^^ arrangement as under the former one it i^ ^' . ',' "I"''' "^« "«^^ perfect as po.ssibie, and provdefadlTto's off' '^^""''^"^P^'^^' ^ make as with all tlLailways of ^C^^ S'S:: f" dSlirlr'' ^^ "-^ion ing tf i!;: 'G^Seir::::^:;^^^ • i^r 1' r-^^'^ '^ *"^ -^^"•-'^- you, been made up by niacin J'.snm.f u hT: ""^^ ^"bmitted to found to be «ho5, as^a c"mrl i?,l f'''\t^^''''^'^^> ^^e amount Company spreading that ^hri^e 'o -or ' " .„f ^f 'tr tJ •"•'^"^ .^^^ *^^= placing that sum as an additfonal burden upon the ' Ju u '"""^"^ during the years in which the revenue i heZZ ''°'^'"^?':'^[''. ^ho, iquidation of charges on capital acco nt ,n « ^ 'f Propnate,! to the under this new anauj-'-'iu'i.t, i.n,vi(l.!.l tli.; nmiiioipalities carrv out tliut portion ot tlie proiuml wliidi lias boon allotted to tiioiii ' Tho reso utioiis on the subject adopted l)y tl.c Canadian l.ondjiolders are an pendi'il licrcto. ' ' 5. During tl.o re.jent seasion of the Legislature of Ontario, the Coin pany applied for and obtained th.- nanction of rarliameut to the ap|.oint ment of a Conimissioner, who, in ease the munieipaiities grant the necessary bonus an.l the HclH^ine is earrie.l out. is to be nominate,! by the Lieut. -(.overnor m Council, and without his permission the l.omi holdern cannot receive a higherrate of interest tlian three i.er cent for the next three years after the pn-sent y.iar, or higher than f'nir per cent, thereafter; and before he can give such permission ho is to satisfv him.self both by examination of the railway and inspection of the Ijooks of the Company, that the physical con.lition of tlu^ lailwav is in every inr tieular suflicient for the safe and effective service Jf the public iiid If not, he may refuse to allow any further interest to bo paid until 'he necessary « ..k is done out of the funds which would otherwiae bo em- ployed in paying interest to the boiidliolders; thus standing, as it were as a pro eetioii to the public that their inten;sts shall bo looked after and that no future prospect of the municipalities being ever hereafter applied to for additional bonus shall arise. it «l .*;• ^%'' fi''-""''' gmirantee that tlie interests of the municipalities shall be fully Futected, the Company has provide,! in the Act before refeixed to, that in addition to the ]VIunici]>al Directors already sitting at shall r" 1 ;'■ .' ;^ °^ ^'"'""^ T'^ '''° ^"""^y «^ ^••°>'' t^^« "ther. shall be elected by the reeves of the municipalities granting bonuses; the one tor that portion of the railway situate between Toronto and Amaranth inc uding Orangeville, the other for that portion between Orange viUe and Teeswater. 7. The accompanying reports of Col. Gzowski and Mr. Walter Shanlv show what, in the opinion of these geutlemen, would be the rt'sult l.otii to the country and to the Company, were the line to remain on-er ham,K.re,l with its present narrow gauge. The advice of Messrs. Ozow^ki and bhanly was asked professionally by the Directors, as both these gentlemen are well known to everyone to be thoroughly well ,,ualitied'to express an opinion on such a subject, and to verify the estimates of the Company s own engineer. The opinion of Mr. Hickson, the General Manager of t^he Grand Trunk Kaihvay Company, was als-, sought and his letter on the subject is appended. 8. Mr. Hickson's letter of 9th inst., addressed to the General Manager, has just been received, and as it bears upon the subject, I have appended tions' IrLr^"^''^ consideration of the statements, copies of resolu- tions, and letters accompanying this is requested. It is believe,! that tt concS"''"^ " "^ *'" '"^' "^*""*^ °^ '''' ^''"^"•^ ---iP^I^ Toronto, April, 1880, I am, Gentlemen, your obd't servant, WILLIAM RAMSAY. TOR Vicc-Presider,t. PROPOSAL K( IT UPON Three co the present ( |)liysical am! follows ; First. T iJebt of the iiiid the bon Ii,.ad. ^('corul. tralfic for a years, and a.. •ipproaciiing rails are unfit which is uns been allowed Third. C — The two liii of the Great for traffic in tl The Loiuh Western of C; ties of Huron The Hami the IVorthern neighborhood . Itoad and Cha of Orangeville and I'leshorton The North the northern p, traffic of the U West. When the there was no R TORONTO, GREr AM) ji,>,:,E,>A|UA V. _ Thvw noml)riio(l circmn.staucp.s ron.l..,. if the pH.Hont ti„u, that a ra.lical I „ i . ' ,') T'"T^ ""'^ '''•'^''■'''''" ''' php.cal and fu.»„eial adairs of t N Ijl'l' "'n''"' '•^''■^'^''"''■" t« tl... follows : ""-^ IvaiJway. I hose may he .stated a. F>r,t. THE FINANCIAI. CONDITION TI, • . Bebt of the Company has not been oJl ' "1 "'T' "'"'" ^^' ""'"l-J auJ the bondholder; can mC a ' "t ■ ' ""; ',**' ''^' '^""•'"rv. I87H, I^'ail- I'liitiou at any time take possession of the ^Vro/w/. THE PHYSICAL CONDITION Tl t, -i t'-arfio fo,. a period, varying aeco d n^'^; I .'"•'"'' ''"'^ '^''"' "I"'" '"•• years, and a« a conse./u a- ho tin b. ' 1""'^^' '^ ^'■""' '""^ t" '^^^ approacliing dccav •il,J. ^^"' , ""I":' ■structures are now raT.idlv '•aii. are "iSit'a;r;£^Satr''':;StL: ;'^-^'-^"^''t 40 ]"' -2 "•l"ci. i-s unsuitable for use i a p. ^''f^'^y^ the Rolli„,, gto.k been allowed to deteriorate ^ ^'"''"'"'^^ "^ ^ ^''' ^^ "•"l' «^^'-^'o has -Thfut iirnrsr ". "^ ''''''-' -'-^ ^^ - — of the fireat Western of 'u 1 M^"' ^"'^ '""^ ^^'•"'■" '^''"'/""'^ (branehcs ^rt.tHeinthedS^tl^':^'tSlr'^""«^^ -ith thi/ ^al^^ westf ^'S;aii5':;dX ts.rt^'r ^^'" ^ ''--' '' ^'^ ^^-t ties of Huron and JJruce *'""' •^"'"Petition, in the Coun- neighborhood of the fowLhiWUi,?^^^^^ ^^'''^ (-.npunyin the Koad and Charleston SuSof th^ /'" ""'' ^"'"'^'"' '*' ^'°1^"" ^I-^^o of Orangeville it is ilso n "»« <^ompany ; and again to ' , .,,^1, and Fa^ton slSci^ o/ thS nto C "'"' %^^^'^^^-^^' ^ '-SI; , I au in tne district lying between the Northern i Hiulwuv ofCaiiu.l.i (whidi at that tiiiif lutil itn tcniiiiui8 ut Cdllingwoncl but wliifh lui.H HJiKi! lu'cu (.■xtciiilfd int. th<' turiitoiy a« far uh Mcul'iivd) on thoi'iwt ; thi- LtiiJIhlo iinJ iJodfiiih hranrli t)Jt)i"o (imiid Tiuuk l!«il- wayoii tlif wcht : iiiid t!i. main line (d'tlir (iiaml Tnnik Hallway oii tlw fidUtll. Till two liiuiulifs of tlic Wellington, tiify and lirn.." Itailway Wfie howi'vcr (•(in.-.tmctcd al tlio same time as this Hallway ; tliu London, lIuioM and Bruce Kailway wan oiifiicd for trallic in lf<7*i; The llaimlliin and >'orth-VV('stcin wan opcnnl in .lanuavy, lf'7S ; and at the lai'.-Miit tiino Uh' following,' adilitional Hailways arc aiH put it in such a condition as will at least enable it to comiicte ujion cciua! terms with its rival.^, and draw from them any advantage which may !",• forthcoming from an inU'rchange of traffic with any of them. I'he parties wh« have such Intel est in the' Hallway are three In number, viz.: The Government of Ontario; the various Jiiunicipalities served by the Railway; and the holders of the Bonds of the Com|.aiiy. The original Stockholders may bo omitted altogether from the calcula- tion, as their money may bo considered lost for ever. The propo.sal by the carrying out of which new life and vigor can he infused lnto_ the concern, and its tinances placed in such a condition as to bid fair for its prosjiorlty In the future, may be shortly stated as follows :— 1. To chanye the Gmtye oj the Raihcdy from Its present exceptional «)ni#lo th in .it Vl.iul. will 1„. r..ouiro,i ' ^ u^ -'"'"" '"'"" '^' ''"' "*■* Tliis au.oiini ,> ; '""•' ^"1." raiscil will )„• wsoo^noo of .uch n,anif^.t :l; o' i;:;;,b,['";,":n ";:''^^ '-'t-M.lat,.,! aro arc a.k..,l to n^ntrilna fron t ' ''\' ""' '''^v.nnnrnt of Ontario $200,f»00. *'"" '''^' '"""^ ■■•^ ''"•*'• ■''•^l-'sal an amount of i.aii^.s w;;i::;;in:;;;;t;;t;;.e' rrrr\ "' ''\ '''■ ^•-■-- ^'-"■'■ is ropre,s,.ntod by a o .^nooOO ™T •" '" '\"'H ^'''"■" "^ >'"' -''k than any othor intore h v.m .H. I ''", '" "I' '•""''' "'''* ^'"■>'' """•'^ of tlu,. Railway • fcl e ro.liK / ^"-"-' '"'""'it f'o.n the construction valuo of the land tu h 1 ' ■"'""^''''■^ '" '"' tl.o fact, and the assos.s.-d way and itrp« • , """"".1"'^'^>' '^fore the construction of tho liail- with therepres^n a ^e 5nc i ,;' v' ''"''■- r'"''"^r '"^" '^'^'^" ''^''^ qnestion between he m an d t.o P ' '^'^'"•"'r "' "'""' "'t'Tviews, the only ■muount. ''"^ ^'"^ Company bei.ig in man\ instances on- of tim•;^r t.S ,w. "^ C'ompa«y._Thi. amount, at the pi#ont time to .«2 000,000 hearing interest at the rate of six per cent per ■ninnn, out .vhich lias unfortunately only heeu ahle to be paid for two years since the i^sue was authorizc.l by the hon,lhoI.lor8, viz. : from the 1st of January IS/G. to the 1st January, 1878. The bonaholders have herefore already been sufferers to the extent of two years' interest on tlieir investment, amounting in tlie gross to .$240,000. They are asked in the pres(!nt proposal to forego any .dairn for tiiis loss, and to sacrifice their interest for one year more. The total sacrifice therefore, which is asked of the bondholder s will be $360,000. An informal meeting of the larger bon-lholders resident in Canada was held in Joronto 1,1 the month of October, at which a r.-presentation was present aniountnig to about .^700,000 worth of the bonds, or say one- h.rd of the toLil issue, at which, after they had carefully examined th. a fans ot the Company and its future prospects, they passed a r.3solution uh.h provides that the bonds, when they mature, shall be given up with tlie last SIX coupons ,n exchange for perpetual Five per cMit. Debenture J^tock, which shall occupy t]i,> same ground now occupied bv the First Morti^age Lond, and sha 1, like them, be a fi.st charge and mortgage upon eierv Inng upon which the present bonds are a first charge. It is further l.rovided that during three years no more than t<,rec percent, shall be, paid s*!^ ifLtt rf''!r?l'i V"i appointed by the Ontario (iovernment, sLlfarst certify that the Railway has been efficiently maintained, and that enough has been fairly earned to pay more. "The same safegiuu^d for duly maintaining and paying no more than has been fairiv earncH] by the Jvailway, is provide. 1 for in the years succeeding the first 'three years, by preventing the Company from paying more than four per cent.,' unless tl/e Commissioner shall in like manner certify as before that there is fairiy a nct> per cent, earned. '' The resolution further provides that an i.-sue of six per cent. Bond, maturing Jn twenty years, and secured by the Postal lievenue of -the frS t^^ ^«f' f i«7^^>l M the bondholders to an extent not exceed- ing ,^UU,UUO and this becomes a claim prior to the first mortgage bonds and to bc^paid oil' out of revenue prior to the payment of any interest to the bondholders ; and that a sum of .^5,000 shall be set askle annually rom the other earnings of tli.. Railway to prov:de for the redemption k the 1 astal Londs ny annual drawings. The present Revenue from tlie 1 ostal Service amounts annually to §12,000. 6 Corrohorath-e Tesihnouy.~\xx order that the best advice the country aftords shoul.l be brought to bear on the proposal for changin-' w 1^"^!'"','^ rcKionstructing the Railway, Col. Gzowski, C.E., lind Walter .Shanly, Esq., C. E., than whom there are no more eminent engineers in Cana.la, were invited by the Company to inspect the Rail- way, Its equipment, and everything necessary to enable them to arrive at a thorough understamling of the whole case, and the circumstances con- nected therewith. The result of their inspection has been embodied by tnem in a Report which is appended, and siiould be read with all the care that tlie opir.ion of such eminent engineers undoubtedly will command. •' Mr. Hickson, th ^ General Manager of the Grand Trunk Railway, has t the pi^cnl er cent, per paid for two . : from tlie lolilois have interest on y are asked to sacrifice ?e, whic}i is Canada was itation wa.s or say one- ;anuneJ tlie I ro.solutiou ven up with Dohenture ly tlic First ftgagu upon ft is furtlier lall lie, paid overnuicnt, ained, and fcgiiard for 'nod by tlie e years, liy , unless tlie 3 is fairly a ant. Bonds uie of -the lot exceed- ;age bonds, interest to e annually sniption of from the idvice the [• changing C,E., and e eminent tlie Rail- arrive at ances con- ibodied by ith all tlie ;edly will ilway, lias alsoJcK>ked into the matter, and a oopy of his Inter on the ..bjee. is also and Bruce Railway, and the Londo , , i 1 ,., V i^f '"'. '^"^^ standard gang,. Railways, in eompari on wi / v '/t . ] !" '^ 'T^' '" EDMUND WRAGf}]-:. Toronto, 2Ut November, 1879. REPORT OF COL. GZOWSKI, C. E., As^l^ WALTER .SIIANLY, Esq., V. F. Tn fhf P,-c.;,i. 4 in- Toronto, 13th Xovemher, 1879. V the rrpsutent uiul Directors Toronto, Greij and Bruce Railwa>i, of tb,!^''''?"'';'7,"/'" ^""°^^''"»' ""^""•nuuh.'m'u; givo vou our views ail?; .^nl'Z i " V ""^"f '"' improvoments in the ..han.ter of y^^- he remd' f n T"'^ ^'^'^""^ under its iu.proved condition, a. hi/f EnViie af w"^' °^ ''"■ ^""' -"I —"^ition of the a ienS'o/tS^ tClul^S^rSi^^^^^ '-'^^-' '^-"'^"^ from Toronto to Orangeville Junction ry> miles 'I Junction north-westwardly to Owen Sound.. 70 " ' Junction Avestwardly to Teeswatcr 70 " Total 102 miles. Showing its geographical outline .somewhat in the torm of the letter V— he tZ n < ""'^, '"'Kll™' °' I'^'°"8- '0 miLs long ; the points of In«,. tI ''"", "V^ ""'^ Teeswater respectively, being about 4.5 miles apait Ihe. road i,s thus well placed to command, and, were all- other con iitious ecpial y fovorable, certainly would command the chief local busnoss of a wide area of highly productive and rapidly growing country; Sf '■:,f""^fr ^"^"^ ^''^"^ navigation at Owen Sound .mables it to bid for " through " traffic from without. Your railwaj^ however, is not in undhpnted possession of the terri- tory trom which mainly its revenues are drawn, but is intersected, once 8 Z!^a^ue'7''" ""'''"""' ""^ ""^ "' '^->^'■-"'^ '»■ the «ndor.me«- " Huniiltou and Xoitii-\Vo.st(,'rii." " Purt Dover, Stiatfonl and Huron " "London, Huron and Bruce " (also a " Great Western " ai)Dendarre>, r...;f^'^I' *'•?, *''"' ^'"'^ "'"'"''' "^ ^'^"«'^ iuva.linjr lines, you sluill be in i ward "ll r "n"' T^"'' ^'"' "^' -^-•'■'''-.^« t-Ttic on e. ua t.ms To- wards the other two your attitude is one of coniDctition o,dv hot , bemg controlled by an interest entirelv adverse tfyJur But vo are .lot m a posxtion either to coxnpete or interchange vid the forn or to compete only with the latter two, advantageously to you see^ S i tirZ Hne^''!'^*,'" '''r ''■' °.' '"'"^ staldard-wSt^roff ett GAUGE. is the very foremost one to be considered in discussinir the rl.-n.,^, s ^sr:??," T'"^ "^' ^-^ ^^^^^' -^i>'-^-a.rtharwis make fbr oh.v ''' ''" ^"1°"''^ of expenditure tliat you mav fTiHy wTth 1 oZ'T'''"''^*:/"" ''''' •^"'^'^^^ ^'^^ *« cope' success- radical clanitl l^'l'^'^^^itl"" your territory; that without such W.fi. f °f, ^'","'"''J''''^'*'*^' embarked in it can never derive full benefit from the railway, or the property be made to pay inteiest ou IS^Sfort;;^^^'^^'^^^^ t^ith. having 110 /.direct adVantag^! wJV\^ niemorandum of particulars and details drawn ui. by. Mr ^\ragp tor our infornuition. he enumerates the many ways in which aSwarit^if "^r-"ff^^? T'"^' *''^ successnii^^S^ln^^'t railway It not only isolates it from connecting lines thus limifinr Its market to Toronto only; but even /. Toronto its 'eih a odSv d stTned'L I'-venting of delivery without transhipn'nt o ' freigu cars by sttd U.T "''!' ^T'""f "^"^ ^''''"''''' •"'''''^'^^^ *<. railway cais uy standard gauge tracks only. increased'Tn^'tti*^°r iZ^? ^o' encounter will soon bo still further Z.,1 :■ . '''■'^"'^* between Toronto and Orangeville by the construction into that town of a branch of the Credit VrileyRUwa Jour '" ""'"^ now aj>proaching completion, and alongs de of whSh you. narrow gauge " will have no chance at kll. "^ fortan;rK * t"' *^''' *''° ''^'y ^'^^ ^*«P *^°^^^«l« retrieving the say ng It fro u being crushed out of existence by its Mdde gauge rivals IS tlie immedia e conversion of its gauge to that of theirs. ^ ^ ' enuml-H eT'in 'cITyr*?'?'"**^^/"^" ^'''^ ""P^'ovement of the line are wZl: f '"'^"'^ ^ herewith, and while differing from Mr. Wragge m some matters ,f detail, we are quite in accord with him as t( i-estoration diture nec( result agre about .?[);■)( Against th csush value money re(pi The scl but a few r not be out i It is ])rc Sound — 12 traffic, and the Westerr — the iron idea of getti years, still , ffom revPiiw feel satisfied, further suhsi ing upon the The steel the whole an dency of pric Wragge has made, that e insufficient. Thfe secon straightening a new bridge objectionable ( improvement point will be a Jt is also d reconstruction culverts geners tion of the roa "spur" from i Mount Forest, o»tlay, but aba ^"illage is reach( of the place sho . Under this h la supplying a o 'Jiig the present ^ MUMiteM... **»eEaWBAMws(/->. '■icribiite the experi- does, our general needed outlay of age. ling ■ him as to the work.s most essential to n restoration, and though in several inst-n,"' '"T''/""' l«"-n"vnent . dxture necessary to sul.h restoratbn "^t ;, hT' " result agrees very closelv witl, ^,• i ' about 80^^000, i;Si::^^,^;-^^-^^ -ded outlay o Against this amount, however {7^0^ '•','';■'-'"» ''^^''^ g'^'ige ca.sh value of old rails' and o h 'r mater aIs"T;'' the e,ui„,,ted ^elli'ng money re-iuired to be raised inothe™ n " '"" '"'"» ^'"' '"""""^ «f , The scheduled items o m thv till ' '" ™m"'' "'''"'^^••■'^- •^'^'^0,000. but a few remarks here in rSLJo '^'om'/ .?■'''',"" them.selves, liot be out of place; and first, as to ""^ *'" ^"'^"' °''^' ^''H THK TKACK. -the iron is still in'goocl condi^^o; m l'"'' '° Teeswater-70 miles 'dea of getting out of it" al tlu ten ' . ^^'f.^?'"^^"'' i" Mr. Wragge's yeai., still left in it ; ren w Is- n ;t;ef ::;''l^^"- V^""^^'«^V fi-om rev.n,e, as a charge upon " „; in ^^ ^"'"'' gradually ,v.,/ feel satisfied, can be done wi hout invnf "? °^ '"''>' '' ^^'J'''^''- *« further subsidies or bonnes ad alowir^'''" ^'"'''''y ^^ «°«bi"g ing upon the bondholders '"'°"' ^°'"" "^ ='"7 ^aj draw- theSoifintiSjiSiu^liy; ^"ist' -"'"t ;""-^ *^-^>'^^f dency of prices, we have nut rj.iXr V T' "' *''' "l'^'*'''' t*^"- VVragge has done, it is nJt iutniSh . ? '^" "" '"'^^'^ ^''''^ Mr. Se^;s -- -" — s^o^it ;:::ir m- wl^r;--: -a^eSn!ie'S\r t^t^I^^?-'' "^ ---fon is for a new bridge over the river T'^- ? '*" dumber, and erecting culverts generally. The bridc.il n'f'S °* stability to bridges and /on of the road, and one o f h^c ieT ^I-. 7' ''Tf "' '^'' •^°''«^"- "«pur" from the main line ?We fn n" •'\°^- *''' '^'"d is on the Mount Forest, where it nLl.t n! i ?'^^«^o") i^to the Village of outlay, but ab'andonTn!' thf Lr r^' .^' ^''t'^'^"'^ ^'<^' ^° i"'^"' any village is reached, erect'a station n,-:\ ■'' ',"'''' ^'^""^ '^.^ ^-'"ch the «f the place should come " *^'' "'"'". '"'^' ^^ -bich' the business ROLLINCr STOCK. 10 the roadway in its improved condition, should give lolling stock enouj^h X.0 serve the existing needs of traffic, and as the hitter grows, additional pQwer can be prdx ided for out of increasing revenue. Under the above arrangement and expenditure the road, recoii structed on the standard gauge, would open with 17 Kngines. 16 I'assenger Cars. 3.'}.5 Freight Cars. 4 I'ost Office and Express Cars. 4 Baggage and Smoking Cars. 10 Conductors' Vans, etc. THE ROAD-BED. we found, for tlie most pai'*, in very fair ordei-, having been originally well constructed, and now refpiiring comparatively little work or money to suit it to the wider track. The estimate for changes and improve- ments in this direction provides for the " easing " of some particularly objectionable grades, and covers as much alteration in that resj)cct its can be judiciously undertaken. THE FUTURE OF THE RAILWAY. In looking into the traffic returns for tlie seven years that the road has been in use, we find that in one year (1876) the gross receipts were .$372,336, the highest figure ever reached, and were derived chiefly from " the Farm ; " the next largest source of traffic was " the Forest," — in many years the largest f f all. Under the depressed con- dition of business of all classes prevailing the last few years, earnings fell ofi" very much, of course, while— owing to the crippled condition of the line— working expenses ecpially, of course, increased. ihe timber traffic, the main i' 'in of revenue in the earlier history of your railway, now shows a marked declension year by year. This was_ to have been expected ; but as the forests recede, the area of cultivated land widens, and in its products will be found the enduring and always increa.sing wealth of the country. The townships ti'a\erse(l by your forked highway are simply splendid as agricultural districts, and with the projected improvements carried out, and having the metropolitan city of Toronto for its port of delivery, the Toronto, Groy and Bruce Railway should assuredly be able to appropriate, again t all competitors, the largest share of the local business, and to draw considerable traffic from the Upper Lakes besides. The amount of re '/enue already earned in one year (the " best year " as quoted above) xalls not very far short of enough, with working expenses brought down to a minimum, to pay interest on the bonded debt, and all other liabilities as well. That the revenue can be largely and speedily in- creased beyond the amount ($372,336), and that it will go on steadily increasing, we see no reason to doubt ; and we as confidently believe that there will by and by, and as wanted, be " surplus earnings " enough to provide for such further improvements as an improving traffic may de- mand. Steel rails for the Western Division, additional rolling stock and fetation accoi: for out of ea road thus brc payers being t)urden of w] prosperity of Estinuitf Revised h>j Sundry deviatioi Deviation and n. Bridges and culv Oattle-guartI ren( 'Shop.s and Tools Fencing (ordinar' (snow) . . Steel Bails Spikes and fasten: Ties Ti-ackJaying (chan f^allastiiiir O t'onnection with Y Station premises, ( Rolling .Stock ' for Contingen( Total e „t ,,f T St ot impro £«t™ateu,,„j,,„ ^.^ ^«"^"«< ^-equired to ■»«t*a~n-<»:«s«,^ 11 Respectfully submitted, ^- 'S. GZOW.SKr, W. SHANLY. # SCHEDULE A. TORONTO, GREV AND -Revised bii n \' /^. ? ■ BRUCE RAILWAY. Estinuiti'd .-o^t nf 1 -o.H oj dianrjing (Jai W. Shanh, on ISth X,n:., 1S7'.), grades, etc new bridge at Humber '^''^Oo f>G,30a 5. 3,000 2,000 15,000 10,000 I^eviatioii and bridges and culverts ■ ^\,.7 1" Pntfio , "® • S^neral renewals Oattle-gnard renewals. . Siiop.s and Touls Fencing (ordinary)'.'."." " '. " (snow).". -0 miles, $500 00 '^'««1 Rails.... 20 " GOO 00 1-Vooo ^Pikes and fastenings. . '''.",, ^^'^^^ ^-'"^S 40 00 tOo'oOO i igj^ WkJaying (change'of gau„;) ^^^'^^^ ^o' 20 28,000 'l^^'^^^^S ^^ 3G,000 ^onnection with Hamilton an,l n".- Western" v'i ^'^^^ ^tahon premises, Queen's Wharf - ^"'^'''^ 7,000 ^°"'"&«tock oo^OOO 195,000 * '-' for Contingencies $894,300 Totalc„. ,fT 55,700 Estimat ^'"Pi'ovements .... ■ — •^'-selling value of old rails "eti" 'etc' ' .>' ' \ ^^^^'^^^ ^-"«^-.ui.edtc, • , ''''■''''■'^'^^^^ 150,000 H^'teii to be raised... — 1800,000 12 MR. HICKSON'S LETTERS. Gu.vND TuuNK Railway of Canada, ,1>EN-BRAL MIANAGER's OkKIOE, MoNTRKAF., 19th Nov., 187'J. Mv Dkar Siu,— -I havo pemspd witli very groat interest the stak'. iiiefiti whicli you loft with mo a day or two ago rospceting tlie present position and proposed alterations and improvements of the Toronto, <-rroy and Bruce Railway. These documeuts consisted of a letter from yourself addressed to Mesfirs. Gzowski and Shanly, and the reports of those gentlemen on the i)resent state of tlio lino, with oortain estiiimti'- of the oust of widening the gauge, and placing the road in a proppi- position, hoth as regards its permanent way and its rolling stock, to do an increased business and give, that accommodation in the district througli which it passes which can alone secure its financial success, iunl satisfy tlie jjoople who contributed so largely in the first instance to it- construction. 1 cannot of course express any opinion as to the sufficiency of tln' estimates, but I should cerfeinly be disposed to accept on that sulypit the views of two gentlemen so eminently ([ualified to give an opinion as are Messrs. Gzowski and Shanly. The Toronto, Grey and Bruce Road was constructed since I becaiiir connected Avith the Grand Trunk Railway. I think you arc avare that I ventured at the time when the line was being made to predict tliat a Railway of an exceptional gauge would not prove a success, and that at no very distant date it an ould be necessary to cliange it to tli*- standard gauge of the country. The relations of the Grand Trunk Company to tlie Toronto, Grtn- and Bruce have been of the most friendly character, and I can sny. from pei'sonal observation and from my business experience, that every effort has l)een made to develop th(^ traffic between the two lines, ami that tlio executives of both have worked most earnestly to tliat end during the whole' time that the Toronto, Grey and Bruce- has been in existeuoo. I am also equally well aware that the results have been ■disappointing, and that the Grand Trunk has not received from tlie road the trartic wliich they liad a right to expect. The exceptional gauge has led to expense in liaudling traffic ai Toronto ; it has proved a complete barrier to the development of sone' classes of traffic. Under any circumstances, and in reference to all business, it entails expense whicli, in a country like Canada, wlioiv transportation must neces.sarily be clieap, no railway company can allorl I notice on looking over your statements that the following wer the earnings of the Toronto, Grey and Bruce Railway, per mile, '"^i' the foUowiiig years, ending June 30th : 1878 $1,68G 1879 1,48-i Tui-ning to the accounts of other companies, and i-otabk those worked by the Great Western Company, running into precisely the same district, Bruce line wei and of the Lou J know of no should not hav except that to peiise which Ji impossibility of exceptional gui: Companies. 'ihe earning doubt to some t drey and Bvuc. of the lines to \\ The district h and Sarnia, is t[ into the very he; at Toronto, wJiic wJiy, in addition the summer nion to Toi-onto, eithe drund Trunk Rai Witii the To gauge clianged t ftilly ecpiipped wi Dot do as well as fo'^n in tlie pape: herewitli. General Muna (h Jear 8jr,-I 1, the Municipalities r y will be closed i fern, as in the evei tie proposed change ""'1 work the Railw: ■ Bail trtlllh niiJXlUU.^^^^ 13 same district, I find that ♦!.„ 1879 • *2,0I0 and of the London. H„ron;.;{B,;.;e"li;.- ''''' 1878 . ■' 187!).. ..".'.* '.\\* •'Sl,7;]8 I know of no roc^,, i , ',*>40 should not have ::;"Lr'i^,'" ''"•°"'«' <-'-y and Ii..„ce f< ' except that to which I h!' f '\ '•«^'«»"e Per mio h-/''"T"^ pense which h,. 'i^^ t^-.^t^/'y^'' --l^/'^h ''::;,":::' the summer months a lame t. ff ^' ''"^ '*''°"''l notaIst)sp., herewith. ^''^^ ^^°" I^^'»-d - '"7 hands, and wirieKi'^'^.td r am, my Dear Sir, Yours very truly, J- HICKSOX, tDMUND Wraoge, Esq , ^W.a^ i/«,,„^,,. General Mana.jer, T. G. an.J B. />., Toronto. ••AuttMtHMHM 14 It is not neceft.Hai'y that I should sav to von t)(>rson,illv tlint „ am,.g,.nent betweon the two ,.on>,.anies kL eve. boo, Z ' 1 tLj ^ you are well awuiv o the faet. ' "'^'^''"" rn.„/ T^i ''''^' ^If^ ''° ftiT'ingement, as matters stand to-,lay, could h. rnmle between the companies of any advantage to either. Th' exee ,- tional gauge ot theToronto, Grey and TJruce^loes not admit of a V interchange of traffic between its railway and that of thc^"an, Tn , t:;r^;f y;!;;tr ^ ^^^'--^'^ -^*" ^^^ ^'^"^ ^-lop.ii if si .n,llY''''?/'''"""'^''VT^" ""^ *'"^ ^'t""t'°" '-^tthe present niomen* and un ess the gauge of the Toronto, Grev and Bruce line s "ould : changed to the standard gauge, I see no ob eet which could be at n by any further agreement between the two companies than that •" permit ' '''"'^^ *^' '^^''^"'y exceptional conditions mil I am ,iuite certain that tliere would be a large increase of tratBo on the loronto, Grey and Bruce if you should succeed in cl an . n t e 'aa^ and in,prov.ng the physicial condition of the road. Des pa eh fo,"S ness would be secured, and an exchange of rollincr stoVk wi h o 1 compan.es would afford additional facilitils to the pnhhl '" Ihe most fne.idly relat.ons have always existed between the Toront,, Grey and Bruce a..d Grand Trunk Co...panies ; I see ..o reaso whTth I a.u, my Dear «ir, Yuuis faithfully, J. HICKSOi\, Edmund Wkagge, Esq., ^-''""'''^ Manarr. General Maruiijei; T. G. and B. It., Tarontc, RE80 " Jie.io/v Railway CJoii of the Govei the sessio.i j Board of ])] of the Jiaih, Onta.-io, said as wei-e form Iwiidholdei's ; diat"""o toai)pi.aI totlie Municimlitio * ^ ""°^ ^he eoni„anv ti,„ . grant the neee.sa.y " Stf ;, Ij.^^'-" .-'-'ther thoy ..i^^X now Jaid hefoie „,s : ''^""'^ ^'°'" t'''"'" i""l''r the no^ scheme in -i^rS^!;^^^- ^-^J^^I^ alloj^ to the Hoard of Directors the JJirectors. and timt n 0^1?/ o"' ""'"■'' ''' "^^' I' < l-a Mumc.paliti,..s to^v■ards the sLnie this rr""f''"^ ''^ ^"■^'"te-i Ly Ue mend to the English bondhoM^t, '^ .^^^"'^ 'r''y "«'-- to rcio.'^ to re.,uo..t them to carry out the term 0/ 1 1 "'f ' ""^^ "'«'!«< ■'""l cial difteulties will then comi.el themYoT "'*''' •-°"'l'J''ted, finan- denved by them from the vJ^d'^l^^Z: ' "-^ '"^ '"'•■°"'" '^ '-^i" CHIEF ENGINEER'S ESTIMATE OF COst „K rH.. r -AUGE UNOEK AMENDE. AK^:;^;^"'^' '' an Alterations to Brid< ^encuig an.I S„ow Fencin ^teel Kails and Fastenin, ■Less old ations to Station Yards. gs. -8519,200 117,800 New Ties '" 391,400 20,000 Oarnecifonoard J^^^ « G7,000 4.5,000 20,000 10,000 16 Broiiffhf forward $63:1,500 Track laying, liallastitig and changing llailn 42,760 Elevator and Harbor Stock at Owen Sound l.'),000 Half cost of Junction' with H. and N. W. R'y 2,500 AltorationH and additions to Rolling Stock 107,435 Sundry Work and Contingencies C3,66G Deduct value of old Rolling Stock New Rolling Stock and other ecjuipments. (Shops at Toronto to be provided for by lease and paid out of Revenue) March 27tri, 1880. $794,761 133.525 1661,236 139,700 $800,936 $794,761 133.525 $661,236 139,700 |800,0;3C