nu ^. IMAGE EVALUATION TEST TARGET (MT-3) 1.0 l.i 125 ■i> Hi 122 u ■2.0 IL25 II 1.4 I il.6 1 SdSices Corporation 33 WriST MAIN SIRin WIUTIR,N.Y. USM (716)172-4503 '4!IV ] CIHM/ICMH Microfiche Series. CIHM/ICIVIH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions hUstoriques m Technical and Bibliographic Notas/Notaa tachniques at bibliographiquaa Tha Instituta has attamptad to obtain tha bast original copy availabia for filming. Faaturas of this copy which may bm bibliographically uniqua. which may altar any of tha imagas in tha raproduction, or which may significarart in carrying through the scheme, reluctantly con- cluded to endeavor to place it in hands that would carry out his plans. HOW THE CHARTER WAS PURCHASED BY THE NEW COMPANY. It having become known that the charter was for sale, negotiations were opened between Mr. H. S. Howland, one of those interested in it, for the sale by himself and his friends to W. Gooderham, Jun., representing large moneyed interests in Ontario. These negotiations continued for some time, and after the lapse of some months, were finally brought to a conclusion, through the inter- vention of Mr. W. B. Hearth, a well-known gentleman in Toronto, and the sale was concluded by the following instrument : " MEMORANDUM OP AGREEMENT ** Made the ticeniy-Oiinl day of April, 1880. " Between William Hepburn Scott, of Peterboro', Esquire, and David William Dumble, of the same place, Esquire, and Alexander F. Scott, of Brampton, Esquire, hereinafter called the Vendors, of thfr one part ; and William Gooderham, the younger, of the City of Toronto, Esquire, hereinafter called the Purchaser, of the other part. "WITNESSETH that the vendors agree, for the consideration hereinafter men- tioned, to assign and transfer, or cause to be assigned or transferred, to the pur- chaser, by a good title, and in a clear and indisputable manner, and to the satisfaction of the purchaser's solicitor, all the subsisting stock in the Toronto and Ottawa Railway Company except ninety shares thereof ; and should any objection be raised by them as to the transfer of said stock which vendors cannot agree to, then the same shall be referred to the Honorable Matthew C. Cameron, whose decision upon such point or objection shall be final between the parties. " That they will deliver, or cause to be delivered, ever to the purchaser the stock book and all other books, and all papers and all property and assets of every kind of the Company. " That they will, before or at the time of payment of the consideration here- inafter mentioned, pay, or cause to be paid and discharged, all debts, demands, and liabilities of the Company due or accruing due, except any contracts or engagements (if any) which may be bindirg on the Company under any municipal by-laws. " That they will procure to be assigned to the purchaser all and every claim and interest which John Fowler has in oi against the Company, and his agree- ment with the Company, or the said Scott and Dumble, or either of them. " That they will assign and transfer to the purchaser all claim which they or either of them have against che Company for promotion of the Company's undertaking to this date. " That an election of Directors shall take place at such date as the pur* chaser shall fix, but not later than the first Tuesday in June next, and the vendol chasei (I by th^ pany, Conipl prove! cost ti chasei procu Cana( all th( line o the Srt the b( being menti privil the V the p and i payi dulla him StOC' a|»i»c the Six the thei ord 3 ▼endora will do all in their power to have a new Board named by the pur chaser elected. I '* That no new stock shall be subscribed by them, or permitted, or allowed by the present Board to be subscribed by others in the books of the said Com- pany, without the consent of the purchaser. *' The vendors covenant with the purchaser that the subsisting stock of the Company consists of seven hundred and fifty shares and no more, and should it prove otherwise, the vendors covenant to get in, and without further charge or cost transfer, the extra stock, free of all liens ov claims as agreed, to the pur- chaser. "That they will use every exertion and use all means within their power to procure to be withdrawn or defeated the Bill now before the Parliament of Canada known as the * Quebec and Ontfirio Railway Bill:' •' TuAT they will, at the expense of the purchaser and upon his request, give all the assistance in their power towards obtaining from municipalities on the line of Railway such bonuses as may be reasonably asked for in the interest of the said Railway. . " The purchaser agrees that on the ti-ansfer of stock, and on delivering over the books, pajiers and property of the Company, and on satisfactory evidence being furnished, that all debts and liabilities of the Company, except as above mentioned, htive been discharged so that the Charter with all its rights and privileges shall l>o intact and clear of encumbrance, and on the performance by the vendors of their part of this agreement in all respects, to the satisfaction of the purchaser's solicitor, or the Honorable M. C. Camenm, as above mentioned, and immediately after the election of Board of Directors named by him, he will pay to their attorney or assigns the sum of Thirty-three thousand five hundred dollars. "The pui-chaser agrees that if required by the vendors, on the transfer to him of five hundred and sixty .shares of the said stock, and on delivery of the Stock and Minute Book of tiie Company, he will pay over to them or their duly appointed a,i:ent, for the purj)ose of enabling them to procure an assignment of the Fowler claim and the di.scharge «»f the debts of the Company, the sum of Six thousand dollars, and will pay the balance of the said purchase money on the complete performance by them of their part of the agi'eement. " in witness whereof the said parties have hereto set their hands and affixed their seals the day and year first above written." HOW THE CHARTER WAS PAID FOR. Subsequent to this, Messrs. Scott and Durable gave to W. B. Scarth an order on W. Gooderham, Jun., for $10,000 in payment of the interest of Messrs. ■ Hpwland, Aikins, and Smith, who held 200 shares of the stock. This order was duly accepted and paid, as will be seen by the acknowledgment given below : William Gooderham, Jun. Sir,— Please pay to W. B. Scarth, Esquire, Trustee for Hon. J. C. Aikins, Henry S. Howland, and A. M. Smith ten thonsund dollars oiit of the last pay- ment, payable to Scott & Dumble, under contract for sale of Toronto and Ottawa Kailway Company's Stock, when they shall have assigned to you two hundred Shares of the Toronto and Ottawa Railway Company's Stock. (Signed), D. W. DUMBLE, A. R SCOTT; W. H. SCOTT, Per A. F. SCOTT. - April 23rd, 1880. Accepted — payable under terms of agreement with A. F, Scott, W. H. Scott, and W. D. Dumble. (Signed), W. GOODERHAM, Jun. Received on account, 15th June, 1880, the sum of Eight thousand dollars. (Signed), W. B. SCARTH. Received in full, 25th June, 1880, Two thousand dollars. (Signed), W. B. SCARTH. WHEN THE NEW COMPANY GOT PO -SESSION. >i»-i4-** It was then found that no legal chiinge could be made in the Director until the Annual Meeting, nor could the present shareholders till then get con- trol of the charter. The Annual ^Meeting A^as held and the necessary changes made on the 8th day of June, 1 880, being the first Tuesday in Juno, as stated in our agreement for the purchase of the charter. WHAT THEY HAVE SINCE BKEN DOING. Immediately after the Annual Meeting Mr. J. C. Bailey was appointed Chief Engineer of the Road. Mr. Bailey was at that time engaged as Consulting Engineer in an inspection of the proposed line of the Ontario and Pacific Junc- tion Railway, and on his return started at once to commence work on the Toronto and Ottawa Road. His first report is as follows : Toronto, July 9th, 1880. Dear Sir, — On the 22nd of last month I received instructions from you to make a survey of the lino between Peterborough and Ottawa, over the pro- posed route of the Toronto and Ottawa Railway. I started for Peterborough the next day and began work at once, and now lay before yon an estimate of the cost of both the northern and southern routes. As you will observe by the accompanying memorandum the northern route is three miles shorter than the southern, one being 155 miles andthe other 158 miles in length; there is, however, little diflerenco in tho actual work of either line. Should we yo by Perth, we cogjd not very well connect with the Canada Central at Carleton Place, btit must build an independent line right through to Ottawa ; H<{ai]i, if wo take the north line and join the Canada Central at Carleton Place, it will bo nijcossary to well consider whether it is better to run on and use their truck right through to Ottawa, or build an independent line parallel with thoir present fence. It might pay to build an independent line, as I notice a few of the grades on the Canada Central are sixty-five feet to the mile; and if all these grades had to be made up by the other road, this, with the annual rent or charges, might amount tip to more than the building of our own independent track. Perth is the only town of importance through which the line passes on the scuth ; Lanark, on the north, is quite small, but has several mills and does a large business. The principal trade, as far as local traffic i'j concerned on either lines, will be that derived from mining operations. There are numerous mill sites with first-class water power, and only now await the opening of some railway through the country to bring the mills into full operation. As far as the building of the road is concerned, it can be done for the figures in my estimate, for although it is very rough, rocky and broken, yet by careful location we can get a good alignment — no curve being sharper than three degrees (1910'), and the maximum grade one in one hundred (53 per mile). The only formidable stream is at Peterborough; thi; others are small, and without exception all have good rock bottoms, so that there will be no trouble with foundations. Ties can be delivered on the track for 15 cents ; timber plentiful, and the very best stone for culverts, bridge piers and abutments ; so that should the Company build the road themselves, a great saving can be made with ties, tim- ber, stone, and right of way, which cannot possibly come up to my figures in the estimate. As i said before, a great deal of time must necessarily be taken in locating the line, as it will be no easy task to escape the mountains of rock unless more than ordinai'y care is bestowed upon the work. One thing in favor of the country is, thali,the valleys as a rule run parallel with the proposed track. Yours truly, (Signed), John LbYkS, Esq., Solicitor, Toronto and Ottawa R. R. J. C. BAILEY. Mr. Bailey is onj^agod by the Company for three years, and has had a large staff of men at work locating; tho linn, and has done so under instructions to spare neither time nor money in finding the v«!ry best route from Toronto to Ottawa. Ho is proceedinj; as rapidly as jiossihle, jjetting over the {ground as fast as is con- sistent witli findiiij,' the hest line to he had hetweun the terminal points. A very (ionnidifnihlf sum lias hccn spent in engineering,', and a tinancial arrangement has hoon made to go on with the work as soon as the lino is located through. ANOTHKK CHAKTKH ASKKI) OVEK THE SAME LINE. The present ownera of the charter having purchased it in g Gordon, the other to the Legislature of Ontario by Mr. H. W. fanu'son, a clerk in the law office of that lirm. NOTICE IS HEREBY GIVEN THAT an apih^oatiun will be made to the I'lirtiunicnt of Canada, at its next Session, f»)r an Act to Incorpo- rate THE "ONTARIO AND QUEBEC RAILWAY COMPANY OF CANADA." to eunstruct and work u line of riillway running in a north-easterly direction from tlie City of Toronto to the Villa),'c of Carluton Place, in the County of Lan- ark, with power to aniulifimiutc with any lines of railway running westerly out of the City of Toronto, or easterly out of the Village of C'arluton l»lnco, or itut of the City of Ottawa, and to cross and make running; arrangements with any lines of railway on the route of the said railway, or toucliin;^ ut points connected therewith, and to make arran;foinenti with any ninnl- cipality through which the snid railway laoy pass, and to authorize and empower any such niunioipulity to transfer to the said Company any bemuses that may have been ciinditionully awnrded to an; ither Railway Company on conditions on which the said bonus was awarded not being com|>liod with by such Railway Conipany. MORRISON, WELLS & GORDON, Holicitort /nr Applicants. NOTICE IS HEREBY GIVEN THAT an application will be made to the Parliament of the Province of Ontario, nt its next session, for an Act to Incorporate THE "CANADA WEST RAILWAY COMPANY," to construct and work a line of railway running in a north-easterly direction from the (Mty of Toronto to the Villa<;c of Carlctoii Place, in the County of Lanark, with power to umulj^amate with any lines running westerly out of the City of Toronto or easterly out of the Village of Carleton Place, or out of the City of Ottawa, and to cross and make running arrangements with any lines of railway on the route of the said railway or touching at points connected therewith, and to make arrangements with any municipality through which the said railway may puss, and to authorize and empower any such municipality to transfer to the said company any bonuses that may have been conditionally awarded to any other Railway Company on the conditions on which the said bonus was awarded not being complied with by such rail- way company. R. W. JAMESON. Solicitor for Applicants. WHO WANTS THE NEW CHAETER. Mr. W. H. Lockhart Gordon, of the firm of Morrison, Wells & Gordon, and Mr. Chaffee, a gentleman from Vermont, now residing in M ontreal, and inter- 7 I large 3 spare ittawa. is con- nancial located paid a lild the jrainion ;ncorpo- charter Dver the -the one other to office of THAT Parliament lion, for an inning in a I Toronto to of Lanark, 38 running isterly out ; the City of rangements the said therewith, municipality i, and to cipality to [a that may ler Railway I said bonus such rail- \>licant$. Ion, and id inter- ested in an Amprican Railway, will be fo'nd to bo parties to the petitions pre- sented both at Ottawa and Toronto The following is a «opy of the petition in both canea : — I To the Honorable the Legislature of the Province of Ontario, in Parliament aa- aembled : The Petition of Itirhunl Wcllit Jameson, the Honorable Ku pert Mtarae Wells, Edmund B, Osier, A. H. (Via fee, and William Ilenry Lockhart (lordon, Humbly Sheweth: That Whereas, the uonstruction of a railway from the City of Toronto to Carleton Place in the County of Lanark and Province of Ontario, and from thence to the City of Ottawa, would be of great public advantage i by affording facilities for tlie settlement of ' the back country, and for bringing to the market the produce thereof. rf And Whereas, tlie persons before men- tioned arc desirous with others of being in- corporated as a Company, to construct and work a line of Railway running from tlie jsaid City of Toronto iu a north-easterly direction tlirougii the said district to Carle- ton Place aforesaid, with pow er to amalga- mate with any lines of Uailway running ■ westerly out of the City oi Toronto and easterly out of the N'illage of (!"arleton Place ■tor out of the City of Ottawa, an»l to cross •nd to make running arrangements with other lines of Railways on the route of the inid Railway, and touching at points con- ifected therewith. Your petitionei's therefore pray : That it will please your Honorable House to allow a Bill to be introduced (and passed) incorporating your petitioners tfor the purpose of building and work- ing the said Railway under the name of the Canada West Railway Com- pany. And your petitioners will ever pray,&o. To the Honorable the House of Commons of the Dominion of Canada, in Parliament assembled: The Petition of h. S. Hotoland, Duncan Mc- Intyre, A^^haffee^ L. Rufjgles Church, G. J. Campbell, and W. H. Lockhart Oordon, Humbly Slievfelh : That Whereas, the construction of a Railway from the City of Toronto, through the Counties of Ontario, Durham, Victona, Peterborougli, Hastings, Wellington, Fron- tenac, Lanark, and to Carleton Place in the County of Lanark and Province of Ontario, and from thence through the County of Car- leton to the City of Ottawa, would be of (Treat public advantage by affording facilities for the settlement of the back country and for bringing to tlie market the productions thereof, and forming through the centre of the Province of Ontario a most valuable line of communication for national defence. Ani> Whereas, tiie persons before men- tioned are desirous with others of being in- corporated as a Company to construct and operate a line of Railway from the said City of Toronto through the said district to Car- leton Place aforesaid, and from thence to work and operate a Railway to the City of Ottawa, with power to cross the Ottifiwa River at or near the City of Ottawa, and to unite, amalgamate and make running ar- rangements with other lines of Railway in the Provinces of Ontario and Quebec, and to lease or purchase the same. Your petitioners therefore pray: That it will please your Honorable House to allow a Bill to be introduced (and passed) incorporating your petitioners for the purpose of building, construct- ing and operating the said Railway under the name of the Ontario and Quebec Railway Company. And your petitioners will over prayt-fto. ir i It will be seen from the Act that the Legialature of Ontario at its last leasion extended the time for the commencement of work on the Toronto and Ottawa Railway to two years ; that owing to Mr. Scott's unfortunate illness and the inability of his associates to prosecute the work, the churtcr became b} pur- chase the property of its present holders ; that in good fuith they paid $33,500 for it, of which sum Mr. H. S. Howland and his particular aHsooiutes got $10,000 less than eight months ago; that the sellers to uh ai'veed to cuuho to bo with- drawn or defeated the Bill known as the Quebec nud Ontario Bill then before the Parliament of Canada ; and that they agreed to aid us in every way in their power in getting municipal aid. As a matter of fact, we have been met with opposition at every point. Mr. Lockhart Gordon, one of the solicitors above mentioned, appeared in Ottawa when we were endeavoring to get a by-law passed there, and told the people that they were foolish to grant us aid, as his friends would go on und build the road as soon as they got a new charter, without municipal aid. They did succeed, by what means we do not know, in getting the Quebec and Ontario Bill withdrawn at the last session of Parliament, but after wo had paid our money and gone on with the work, we find the same bill agnin intro- duced this session in the Dominion Parliament, and by the same parties in disguise, to the Ontario Legislature. The present owners of the charter respectfully submit that, until they have had a reasonable time within which to satisfy the public of their honest intention to build the road immediately, no charter should be granted over the same territory to another Company, and that most certainly no new charter should be granted to parties some of whom received within ei^ht months u large sum of money for an interest in the existing charter. DOES THE GRAND TRUNK CONTROL THE TORONTO aND OTTAWA CO.? Since the above was written, it having been stated in the Railway Com mittee at Toronto that there was an impression existing that the Grand Trunk Railway Company controlled the present charter, and that no denial of this had ever been made, it is considered advisable to reproduce certain articles from the Globe, with certain letters written at the time, showing that as soon as the charge was made it was emphatically denied. The Toronto Daily Globe of the 29th November, 1880, contained the fol lowing editorial : TORONTO AND OTTAWA RAILWAY. " The present proprietors of the Toronto and Ottawa Railway charter seem conscious that there is a public prejudice against Mr. Gooderham's management which may defeat the proposed grant of municipal subsidies to the scheme. J. theGrn if Mr. < Grand tion ? /Cannot ^hc GrI with a I that M , intoresl conceri Mr. gI it its last jnto and InesH and e b) pur- i $33,500 t SI 0,000 I bo with- en before ^r way in )ry point. in Ottawa ihe people build the JO Quebec er wo had i>\\n iutro- paities in until they eir honest II over the ew charter months ti Iway Com and Trunk of this hail ;8 from tliH the charge Led the fol liarter seem aanagement the scheme. ThiTo Is. till loubt, a stroiii,' .siispiiiion tliut .Mr. CJoolcrlmiu'.s iiiteroHts are those ■ of the (iiiunl Trunk. His course iiiiiy have been a peifnclly independent oiif ; : if KO, it is lo be ni^ietted that numy pttople HJuuiId entert.iiii doubts concernini^ ■' it. Mr. I.ev« stati's thiit the decision whether the railway shall be built rests entirely with the cities of Toronto and Ottawa. It would be a great pity if they should lefnse to ussist the scheme just as the company seems ready to '^d on with it. To remove the tiuspicions of the public would not be a hopeless task if Mr. (Joodeiham woidd frankly answer one rpjestion ; Did he receive ",^'Mi,(HH) from the (!ninil Trunk with which to buy the Toronto and Ottawa 4 charter frotn the Scott combination ? It is said that Mr. Hickson's Compuny .ifurnislH'd the money, and Mr. (ioodeilmm cannot deny the assortion — in jtlnin I terms, the inference must bo that t; o Grand Trunk has a Hen on him. It is ■ also alleged that Mr. (xooderham is the only mendxjr (>f his wealthy connection I who lias an interest in the projected roa I, neither }tlv. Worts nor any other 1 Clooderham being concerned. 1 "We wish so much to see the Toronto and Ottawa Railway built that wo I would willingly assist the holders of the charter if satistiod of their indepenil- j^ence of Grand Trunk influence. Ibit it is not possible to meet and dispose nf Mthe damaging statements which are continually cropping up, except by refer- ence to a clear statement of his position and int^iitions, wliich Mr. Ooolerham refuses to give. Should ho continue the policy of reticence, tlio subsidy ;iski!il of Toronto is not likely to be granted." Tho above appeared op Monday, and in the Olobe of sVedn.tflay, Decem- ber Ist, it was answered as follows : ( To the Editor of ty Ghhe.) "Sir, — In your editorial referring to the To. onto nnd Ottawa Railvv;r,, in to-day's issue of the Globe, you say :— ^ "Tliere is no doubt a strong suspicion tliat Mr. Gooderham's interest's are those of the Grand Trunk." "To remove the suspicion of the public wouUl not be a hopeless task if Mr. (ronderham would frankly answer one question : Did he receive §30,000 from the Grand Trunk with which to buy the Toronto and Ottawa charter from the Scott comhina- • 'tion? It is said that Mr. Hickson's Company furnished the money, and Mr. Gooderham cannot deny the assertion. " " My iuiswor to this is that I did not receive $30,000 or any other sum from "the Grand i runk, nor did Mr. Hick son nor Mr. Hickson's Company furnish me with any money for any ich purpo*^. You further say : — * It is also alleged that Mr. Goode .am is tl, only ra«m "r of his wealthy connection who has an interest in the projected ro.i ' neither Mr, Worts nor any other Gooderham being concerned,' This allegation, like the other, is unti-ue, as both Mr. Worts and , Mr. George Gooderham have ai equal intt est with myself in the undertaking. 10 " I have reason to believe that this statement has been set afloat by parties connocteil with a short road inn.nng from a small town a few miles east of tliis, the owner? of whicli have been making great exertions to divert trade v.hich now liiids its way to Toronto to another point. I may take this opportunity of con- tiiniing what was stated by Mr. Leys, Solicitor for the Company, at Ottawa last week — that on Toronto granting a bonus of $300,000, and some of the other municipalities who have already voted over .|80O,000 modifying some of the conditions contained in their by laws, we will be prepared to go on at once t{> build the road, to finijih it with all speed, and run it as un independent line free from the control of any other Company. I am, &c., " W. GOODERHAM, Jun. "November 30, 1880." Upon which the Globe made the following editorial remarks : MR. OOODEBHAM 8 DENIAL. " We publish to day a letter from Mr. froouerham which should set at rest the rumor that he purchased tlie charter of the Toronto and Ottawa Railway with Grand Trunk money and on Grand Trunk account. As he appeals to be acting on behalf of an independent company, including important members of his wealthy family connection, there is no reason to su[)pose that his piomise to keep the line indepen