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 PETITIONS IN OPPOSITION TO BILL 
 
 RELATING TO THE NORTHERN 
 
 RAILWAY OF CANADA. 
 
 
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■»'■ 
 
 COPIES OF PETITION 
 
 
 PRESENTED TO 
 
 His Excellency the Most Noble John Douglas Suther- 
 land, Marquis of Lome, Kt, G. C. M. G.^ Governor 
 General of Canada, 
 
 To the Honorable fhe Senate of the Dominion of Canada^ 
 in Parliame?it assembled. 
 
 'is ». 
 
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 i 
 
 To the Honorable The House of Commons of the \Dom- 
 inion of Canada, in Parliament assembled. 
 
 PRAYING THAT THE BILL RELATING TO 
 
 THE NORTHERN RAILWAY OF CANADA 
 
 MAY BE REJECTED. 
 
 
 A- 
 
 ii • ■ ■ 
 
 Bell & Co., Printers, 13 Adelaide St. East, Toronto. 
 
 
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 M»-n* U ^ ii** ». In. 
 
/. — Petition of the Bondholders of the Northern 
 Railway Company of Canada, 
 
 To the HONORABLE THE HOUSE OF COM- 
 MONS of the DOMINION OF CANADA in 
 PARLIAMENT ASSEMBLED. 
 
 1 
 
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 1 1' 
 
 The Petition of the undersigned Bond- 
 holders of the Northern Railway 
 Company of Canada. 
 
 
 :i 
 
 HUMBLY SHEWETH 
 
 That your Petitioners have observed with much concern a 
 notice in the " Canada Gazette " that application will be made 
 to the Dominion Parliament to introduce a Bill to amend the 
 Act respecting the Northern Railway of Canada, passed in the 
 Session of 1877, so as to enable the private Share) olders of the 
 said Company to elect from amongst themselves three Directors 
 on the Board in the place of one, as now provided by Section 
 Twelve of the said Act. 
 
 
Your Petitioners would humbly represent that the Capital 
 required to reorganize and keep open tiie Northern Railway 
 when it was about being closed in 1859, was provided by means 
 of the issue of Bonds, the Share Capital bc'uv^ then considered as 
 nearly worthless, and the owners thereof decliiiiiig to make the 
 further advances necessary to reinstate tlie concern. 
 
 That, as an inducement to, and condition of, raising the 
 required Capital, it was proviiled that the holders of the Bonds 
 should have .1 power and control in proportion to the amount of 
 their subscriptions, the right being reserved to the Corporations 
 of Toronto and Simcoe, who had subscribed stock, to be repre- 
 sented each by a Director. 
 
 That afterwards, when furtiier additional Capital was 
 required to be raised, the same right of representation was guar- 
 anteed to the Bondholders, and that right was throughout retained 
 as an essential condition of the subscriptions. 
 
 That finally, by the Act of 1877, which authorized the issue 
 of ;^85o,ooo of First Mortgage t'onds, partly to pay off the 
 Government lien and partly to meet other pressing demands on 
 the Company, it was expressly settled with the concurrence of 
 all parties interested, and was embodied in the Act (Section 
 Twelve), " that the private Share' olders in the Company should 
 no longer be entitled to vote with the Bondholders at the election 
 of Directors, but might thereafter, by their exclusive vote, elect 
 from amongst themselves one out of the ten Directors then 
 cho.sen by the joint vote " of themselves and the Bondholders, 
 and the Bondholders should elect the other nine by their exclu- 
 sive votes ; the two Corporations of Toronto and Simcoe 
 continuing nevertheless to nominate each one Director as there- 
 tofore so long as such Corporations continue to be Shareholders 
 in the Company. 
 
 That on the faith of the foregoing provisions, and the various 
 Acts of Parliament embodying the like conditions, your Peti- 
 tioners have purchased, acquired, and now own Bonds of the 
 Northern Railway Company of different descriptions, especially 
 those issued under the Act of 1877. , , 
 
 ' And that they would regard it as a violation of a most 
 important and essential guarantee if the constitution of the Board 
 
were to be in any way altered, or the conditions of the Act of 
 1877 dcpart-^d from. 
 
 Your Petitioners would further represent tiiat in order to 
 extend and iniprove the Railway, and give the additional faci- 
 lities to the localities through which it runs, large advances have 
 been made in England, and they are aware that the creditors, in 
 lending their money, relied on the control which the Bondholders 
 through their Directors might exercise over the administration of 
 the Company's affairs. 
 
 That although they claimed to retain the power of adininis- 
 tration to which the faith of the Canadian Parliament is pledged, 
 your Petitioners have always been solicitous that the affairs of 
 the Company should be managed so as to meet the legitimate 
 requirements and convenience of the public in Canada, and as a 
 proof of this they can point to the names of gentlemen of the 
 highest standing as to business capacity and position in Toronto 
 who have from time to time been selected as Members of the 
 Board, and to the fact that no complaints have been made 
 against the manner in which the public interest and convenience 
 have been served in Canada. 
 
 Your Petitioners would further point to the accounts of 
 past years and to the financial position of the Company to show 
 that the parlies chiefly interested in the Railway are the Bond- 
 holders. The bonded debt of the Company amounts to;^i,233,- 
 90c beyond its floating engagements, while the private share 
 capital (not including that of the Municipalities, amounting to 
 about ;^78,ooo, which is -pecially represented), is only about 
 ;^85,ooo. 
 
 The demand now put forvvard by the private Shareholders 
 is in direct violation of the understanding arrived at during the 
 Session of 1877 (which was embodied in the aforesaid Act.) 
 And your Petitioners cannot for a moment believe that it will be 
 entertained by Parliament. 
 
 Your Petitioners would finally beg to call attention to the 
 fact that a considerable part of the money raised under the 
 Act of 1877 was received by the Government in liquidation 
 of its claims as stated in that Act, and that many of your 
 
 ;?1 
 
 ct ' ■'■ i 
 
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8 
 
 Petitioners subscribed this money on the fnith that the con- 
 ditions of the Act as to representation would be adhered to. 
 
 Your Petitioners therefore humbly pray that your Honor- 
 able House will be pleased to reject any Bill which may be 
 introduced in accordance witii the notice above referred to. 
 
 And your Petitioners will ever pray, &c. 
 
 * 
 
 W. H. SMITH. 
 
 HY. MATHER JACKSON. 
 
 WILLIAM LETHBRIDGE. 
 
 WILLIAM FORD. 
 
 JAMES CAPEL & CO. 
 
 JOHN LAWSON. 
 
 SYDNEY LAURENCE. 
 
 LAURENCE, SONS & GARDNER. 
 
 MARSHALL, PAINE & CO. 
 
 JOHN MORNHAM. 
 
 ARBUTHNOT, LATHAM & CO. 
 
 FRED. W. BISCHOFF. 
 
 FRED. J. UNDERWOOD. 
 
 F. J. CUTBILL. 
 
 WALTER CUTBILL. 
 
 And others, together representing a holding of ;^337,000 stg. 
 in bonds of the Northern Railway. 
 
 
2. — Petition of the London Committee of Direct- 
 tors of the N Of them Raitway Company of 
 Canada. 
 
 To the HONORABLE THE HOUSE OF COM- 
 MONS of the DOMINION OF CANADA in 
 PARLIAMENT ASSEMBLED. 
 
 The Petition of the London Committee 
 OF Directors of the Northern Rail- 
 way Company, of Canada. 
 
 HUMBLY SHEWETH 
 
 That your Petitioners iiave observed a notice in the "Canada 
 Gazette," that application will be made to the Parliament of 
 Canada at its next session for a Bill to Amend the Northern 
 Railway Company Act, 1877, so as to enable the private share- 
 holders of the said Company to elect from amongst themselves 
 Three Directors on the Board in the place of one, as now 
 provided by Section Twelve of the said Act. 
 
 Your Petitioners would refer to the Acts stated in the 
 Schedule to this Petition, to shew that the representation of the 
 Bondholders was an essential condition on raising the necessary 
 capital for the re-organization of the Company in 1859. The 
 Government of Canada and the Shareholders at that time in- 
 vited subscriptions of new capital to make the necessary outlay 
 to work and improve the road, and from time to time as further 
 capital was required the like condition of adequate representation 
 of the Bondholders on the Board has been adhered to and 
 sanctioned by Parliament. 
 
 At the same time your Petitioners would represent that it 
 has always been their earnest and sincere desire to meet the 
 legitimate requirements of the district through which the road 
 runs, to work it in harmony with Canadian interests, and also to 
 construct new branches to meet the growing wants of the district. 
 
 i 
 
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 To that end they have at all times sought to obtain as represent- 
 atives o?i the Board in Canada gentlemen who would give effect 
 to this policy. 
 
 \ our Petitioners further represent, that in order to carry out 
 these objects, they have from time to time had to obtain large 
 advances of money, and also to issue loans to the English public, 
 and they are awi're hat the representation of the Bondholders, 
 as defined by Parliament, was at all times regarded as a most 
 important condition by subscribers and creditors, atid your 
 Petitioners especially point out that under the Act of 1877 it was 
 after much discussion settled that the private Sliareholders 
 should have the right to elect one Representative on the Board 
 from their own number, and no more, the City of Toronto, and 
 the County of Sim^^oe, continuing to be represented as befoie. 
 
 Ycur Petitioners further represent that the bonded and 
 other debt of ti^ 2 Company amounts in round figures to about 
 ;^i, 320,000, while the private Shareholders' amount to about 
 j^ 1 63.000. 
 
 That the proposal now made that the private Shareholders 
 should elect three Directors on the Board would altogether 
 violate the equilibrium as regards the Bondholder's' represent- 
 aiion. 
 
 That while your Petitioners would refer to the condition of 
 the Company to shew that the Shareholders have more than an 
 ample representation for any present or prospective value which 
 can attach to the Share Capital, they cannot too strongly repre- 
 sent that the change now proposed would be regarded by your 
 Petitioners, and by the Subscribers to the different loans, and by 
 the Creditors of the Company in England, as a distinct violation 
 of the condition on which their money was obtained, and they 
 believe it would in every way have a most injurious effect as 
 destroying confidence in the efficacy of safeguards deliberately 
 provided by Parliament. 
 
 Your Petitioners therefore humbly pray that your 
 I Honorable House will be pleased to reject any 
 
 Bill which may be introduced in accordance with 
 the notice above referred to. 
 
 
 And your Petitioners will ever pray, &c. 
 
II 
 
 THE SCHEDULK HERELMBKFORE 
 REFERRED TO. 
 
 m 
 
 ACTS OF THE LEGISLATURE OF THE LATE 
 PROVINCE OF CANADA. 
 
 I2th Victoria, Chapter 196.— Incorporating the Toronto, 
 Simcot,', and Huron Railroad Union Company. 
 
 13th and i4tli Victoria, Chapter 131. — Changinpr name to 
 ''Ontario. Simcoe, and Huron Railroad Union Company, 
 and extending limits of authorized Railway. 
 
 13th and 14th Victoria, Chapter 81. — Empowering Muni- 
 cipal Corporations through whose jurisdiction the 
 Railway might pass, to assist in its construction and to 
 appoint Directors in case they should so assist. 
 
 i6th Victoria, Chapter 51. — Empowering the Company to 
 construct a Harbour on Lake Huron. 
 
 lOth Victoria, Chapter 244. — Extending the limits of the 
 authorized Railway, and empowering the Company to 
 construct other Harbours on Lake Huron. 
 
 19th and 20th Victoria, Chapter 73. — Empowering the Com- 
 pany to have, and employ Steamers on Lake Simcoe, &c. 
 
 20th Victoria, Chapter 143. — Containing various other pro- 
 visions relating to the said Company. 
 
 22nd Victoria, Chapter 117. — Changing the name of the 
 Company to the Northerm Railway of Canada, and 
 containing various other provisions. 
 
 22nd Victoria, Chapter 89. — Vesting the Railway property 
 and Corporate rights of the Company In the Crown, for 
 the purposes therein mentioned. 
 
 I2th May, 1859. — Order in Council re-vesting in the Company 
 the said Railway property and rights on the conditions 
 therein mentioned. 
 
 23rd Victoria, Chapter 105. — Declaring that the Company 
 had up to that time complied with all the requirements 
 of the last-mentioned Act, and of the said Order in 
 Council, and confirming the said Order in Council. 
 
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 27th Victoria, Chapter 55. — Making provision for the con- 
 struction of a Branch from the Railway of the Company 
 to the town of Barrie, anc| enacting that such Branch 
 when constructed (which it has since been) should form 
 part of the Railway of the Company. 
 
 ACTS OF THE PARLIAMENT OF CANADA. 
 
 31st Victoria, Chapter 86. — Declaring that the Northern 
 Railway of Canada is a work for the general advantage 
 of Canada, and making various other provisions con- 
 cerning the Company. 
 
 38th Victoria, Chapter 65. — Rearranging the Capital of the 
 Company, consolidating the enactments relating to the 
 Company, enabling tho Company to change the gauge 
 of the Railway, and to amalgamate with the Northern 
 Extension Railways Company, and for other purposes. 
 
 40th Victoria, Chapter 57. — Authorizing the issue of Securi- 
 ties of the Company, and making provision for the 
 election of Directors. 
 
 HENRY M. JACKSON, 
 Chairman of London Committee of Directors^ 
 
 
'M 
 
 i^ 
 
 S- — Petition of Proprietors of Northern Railway 
 Company of Canada, in Annual General 
 Meeting Assembled. 
 
 
 To the HONORABLE THE HOUSE OF COM- 
 MONS of the DOMINION OF CANADA in 
 PARLIAMENT ASSEMBLED. 
 
 The Petition of the Northern Railway 
 Company of Canada in Annual Gen- 
 eral Meeting Assembled. 
 
 HUMBLY SHEWETH 
 
 That it has come to the knowledge of your petitioners that 
 notice has been given in the "Canada Gazette" of an appHcatioH' 
 to the Parliament of Canada, for an Act to Amend the Acts 
 relating to this Company, and to authorize and provide for a 
 change in the compocition of its Directorate, by securing to the 
 Shareholders a representation upon the Board of five Directors 
 instead of three, as now established by law. 
 
 Your petitioners now humbly submit : 
 
 1. That the petition for the Bill has been presented without 
 the knowledge or consent cf the Company, and without any 
 measure having been taken to ascertain the opinion of the 
 Company thereupon. 
 
 2. That the existing capital of the Company (almost exclu- 
 sively of foreign subscription) has been raised under the pledge 
 and security of succes::tvfc enactments of the Parliament of 
 Canada, especially providing for the exer'^ise of the franchise by 
 holders of the Company's Debentures, and that in the absence 
 of the security of such franchise the said capital could not have 
 been raised. 
 
 3. That by Act 23 Vic, chap. 105, sec. 135, May 12, 1859, 
 authority was given to raise ;^250,ooo sterling, under the special 
 provision "that" all holders of the first and second preference 
 
 i-;' 
 
 
 
14 
 
 bonds then authorized should be entitled to vote in the same 
 proportion as the holders of the Stock. 
 
 4. That by Act 31 Vic, chap. 86^ sec. 10, 22nd May, 1868, it 
 was again enacted that all holders of an issue of third preference 
 bonds thereby authorized, to the extent of ;^I50,0(X) sterling, 
 should be invested with a similar right to vote at all meetings 
 of the Company, including the election of Directors. 
 
 5. That by Act 40 Vic, chap. 57, sec. 3, 28th April, 1877, it 
 was again enacted that in regard to an issue of ^850,000 sterling 
 of five per cent, first mortgage bonds, all the holders thereof 
 should be entitled to vote as aforesaid, excepting that in addi- 
 tion to two Directors representing Municipal Stock holdings, 
 one Director should be elected by a separate vote of the Share- 
 holders from amongst themselves. 
 
 6. That as a matter of fact the seats at the Canadian Board, 
 which are filled by the vote of the Bondholders, are at present, 
 and have been for very many years, occupied exclusively by 
 Shareholders qualified to serve as Directors, as Stockholders, 
 and not as Bondholders. 
 
 Your petitioners therefore humbly submit, that the Parlia- 
 ment of Canada has been pledged by repeated enactments since 
 1859 to secure to the investors of all the capital of the Company 
 since raised in England a stated and definite participation 
 in the organization and administration of the affairs of the 
 Company, and your petitioners humbly protest that the Bill now 
 presented to your Honorable House would be repugnant to the 
 spirit and letter of past enactments, subversive of the rights thus 
 created, and contrary to the just principles upon which the Par- 
 liament of Canada has heretofore held sacred the pledges of its 
 la»vs. 
 
 And your petitioners therefore humbly pray that the said 
 Bill may not be passed into law, but may be dismissed. 
 
 And your petitioners, as in duty bound, will ever pray. 
 '; (Signed) FRANK SMITH, 
 
 President. 
 (Signed) FRED. CUMBERLAND, 
 •^ * Managing Director. 
 
 (Signed) WALTER TOWNSEND, 
 \'nS '• •, ;.. ■\W'^-.- Secretary- 
 
1 
 
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