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Sir,— Referring to some informal conversations with members of the Government about the Railway to Canso, we have the honor to st^e we will be glad, whenever the Government de^ sires it, to meet and confer with any of its members on thai matter. , » vi. ._ f As a preliminary step to discussion, we take the liberty of suggesting that the Government should possess itself of the surveys, and also one of the charters now current for buildmg the line ; with these in hand, and an examination of the country made by us, we would be in a position to make an offer to the Government for the entire completion of the line ; such an oflfer we would agree to leave open until after the House met. As the season during which an examination -of the country would be difficult, if not impracticable, is near at hand, we would require to move in the matter at an early day. We have, &c., (Signed) Shanlv & Plunkett, Contractors. Hon. P. C. HiLT., &c., &c., Halifax. Ill 11 ^;^-^a^..^^^ (Copy) N 2 Provincial Secretary's Office, Halifax, Nov. 27, 1875. Sib,— I have the honor to acknowledge the receipt of your let- ter of the 25th instant, in reference to a railway to Canso. With regard to the suggestion made by you that the Govern- ment should possess itself of the survey of the proposed line of road, I beg to say that Mr. Schreiber, of the firm of Schreiber & Burpee, by whom the surveys were made, is expected in Halifax shortly, and I will take the opportunity of ascertaining the terms on which those documents can be acquired. The charter now current to which you refer is, I presume, that which expires in May next, and it rests with the corporators interested to decide whether they will relinquish any rights they may possess under such charter before its expiration ; I may, however, be able to ascertain this fact also, when I will commu- nicate further with you. In the meantime, I have, &c., (Signed) P. Carteret Hill. Messrs. Shanly & Plunkett, Digby. (Copy) Provincial Secretary's Office, Halifax, 29th Nov., 1875. Sib,— I have the honor to enclose herewith a certified copy of a Minute of Council passed on the 27th instant ; and in view of the importance of the subject to the Government of this Pro- '<;-'>^- . s vince, I would venture to request as early a reply as may be convenient to the Government of the Dominion. I have, &c., (Signed) P. Carteret Hill. The Hon. Alexander MacKenzie, Minister of Public Works, Ottawa. ^- (Copy) Minute of Council passed 21th Ifov., 1875. Whereas the time limited by the Legislature of Nova Scotia by section 1, chapter 30, of the Acts of 1875, for any Company then incorporated, or thereafter to be incorporated, to give security to the Governor in Council to construct and equip a line of railway from the Strait of Canso to the Harbor of Louis- burg, expired on the 1st day of September laat: And whereas no such Company has given the required security to the Government as aforesaid : And whereas in view of the failure of any company 'to avail themselves of the provisions of the said Act, it is desirable to secure the building of a railway from New Glasgow eastward as far as possible : And whereas the Dominion Government did heretofore offer to convey the road known as the Pictou branch in aid of the building of a line to the said Strait of Canso : Therefore Resolved, that this Government would earnestly request the Dominion Government to grant the said Pictou branch for the purpose of promoting the extension of railway ^wtnrwmrm^^ communication Eastward on such terms and conditions as to them may seem meet. Certified. (Signed) P. Cartkkkt Hili,, Clerk of Council. (Copy) Office of the Ministf.h of Public Wopks, Canada. Ottawa, January 3rd, 1876. My Dear Sir, — Recurring to the question of the Eastern extension of the railway system, I have not been able to obtain the acquiescence of the Cape Breton members to the proposal to give up the Truro branch merely to reach the Strait of Canso, and I am somewhat at a loss what t) do, while feeling very desirous ot meeting your views before the Session of your Legislature. One other plan has been suggested, which I will mention to you, not at present at least as a definite proposal, but c.s one which, if you agree to it, might perhaps be pressed upon the people in Cape Breton. It is this : That in the event of a Com- pany getting the concession of this branch, on the condition of their building the road to the Strait, such Company to be bound, as one of the conditions, to give running arrangements to any other Company building eastward in Cape Breton, over the Pic- tou branch, by the mere payment of what would be the mileage proportion of their traffic as compared with the whole traffic on the road ; in other words, that they should simply pay their proportionate share of the maintenance of the road, and no pro- fit to the Company building from New Glasgow to Canso. Of course the running arrangements would have to be granted, also upon the new line from the Strait to New Glasgow, but upon 5 that portion the terms would be arranged, as is done now on other roads, by arbitration, and would embrace a fair profit to the Company. You may let me know at your earliest convenience what you think of this proposal, and I will then communicate with some friends in Cape Breton with a view to arrive at some definite conclusion in time for your meeting. Yours, &c., (Sgd) Hon. P. C. Hii.L, &c. &c., Halifax. A. Mackenzie. (Copy) Pkovincial Secretary's Office, Halifax, January 10th, 1876. Gentlemen, — When Mr. Plunkett, of your firm, was recently in Halifax I called his attension to the Itgislation of this Province on the subject of Railway extention Eastward, and requested him to take the matter into consideration, and let me know whether, in the event of the branch line to Pictou being given by the Do- minion Government as a bonus, your firm would be disposed to enter upon the project. Mr. Plunkett was of opinion that both Mr. Shanly and himself would be in Halifax early in the present month, when I might expect to hear from you on the subject ; as I have not had the pleasure of seeing you, and the meeting of the Legislature is drawing near, I write to ask whether you have considered the subject in connection with the legislation as it at present exists ; and also to ask whether you would be disposed to entertain the proposal to build a line of railway from New Glasgow to the Strait of Canso, with the following modi- I N K'iai^-"'^'^*;^ it 6 fications in the grant of the Pictou branch ; assuming it to he granted by the Dominion Government, viz : In the event of a Company getting the concession of this branch on the condition of their building the road to the Strait, such Company to be bound, aa one of the conditions, to give running arrangements to any other Company building eastward in Cape Breton, over the Pictou branch, by the mere payment of what would be the mile- age proportion of their traffic as compared with the whole traffic on the road ; in other words that they should simply pay their proportionate share of the maintenance of the road, and no pro- fit to the Company building from New Glasgow to Canso. Ot course the running arrangements would have to be granted, also upon the new line from the Strait to New Glasgow, but upon that portion the terms would be arranged as is done now on other roads, by arbitration, and would embrace a fair profit to the Company. I shall be glad to hear from you at as early a day as conven- ient, and in the meantime I remain, &c., (Sgd) P. Cartekbt Hilu Meswa, Shanly & PltUKKett. (Copy.) PKQVlKClAt SeCKETARY^S OFFlCt!, Halifax, January 10th, 1876, Gentlemen,— Adverting to my conversation with Mr. Schreiber of your firm, when that gentleman was recently in Halifax, on the subject of Railway extension eastward, I am still without a .Wl^S*2*'U^l>^-=^.3," reply to my request on that occasion, that you would take the subject of building a line as far east as to the Strait of Canso into consideration, the notice required by law from a company undertaking to build to Louisburg not having been given to the Government. Such a propo8iti76. My Dear Sir, — I am in receipt of your letter of the 3rd instant, but have been unable to replv until I had endeavored to learn from such firms of railway contractors as were accessible to me, whether the modifications suggested by you in the transfer ot the Pictou branch would affect their action in making a proposition to construct the road. I lost no time in making such enquiries, and bebeve that the terms proposed would not form an insuperable obstacle to a T ] proposal, although one of the parties referred to expresses a tear that the value of the road, subject to the conditions sug- gested, will not be so high as if those conditions did not exist, and that it may be, if onerously exercised, such conditions would prevent the sale of securities altogether. Notwithstanding these fears, however, I am in hopes of recei /ing a definite proposition from one or more firms of railway contractors for the construction of the road. In each case I have asked for a proposal to build a line not merely to the Strait of Canso, but also from thence to West Bay at the head of & Bras d'Or Lake, including a steam ferry across the Strait. The distance f^om the Strait to West Bay is about 11^ miles. It is hoped that a line thus extended would meet, for a large portion of the year, the requirements of the traffic, and prove generally acceptable to the people of Cape Breton and of the Eastern portion of the Province. I shall be glad to hear as early as convenient of the decision of your government in connection with this matter, so important to our interests, and in the meantime I remain, &c., (Sgd) The Hon. Alk\ani>;;» Mackenzie, -Minister of PiiWic \Vork<, Ottawa. P. Carteret Hill. (Copy) Halifax, 24th January, I87f). Sir, — I have the honor to acknowledge receipt of your letter of the 10th ultimo, addressed to Shanly & Plunkett, refer- ring to the Railway proposed to be built to Canso and West •T^V'- "^-««&i- -^JS mm 12 • Bay, Cape Breton. At the time I mentioned that project to Mr. Shanly we supposed the Pictou Branch would be granted, if at all, unconditionally, and it was on that basis we considered the matter. I cannot, therefore, now speak advisedly as to Mr. Shanly's views on the project, under circumstances so different from those assumed by us when discussing it. The value of the security issued on a line subject to the conditions you name in your letter of the 10th, will not be so high as if these condi- tions did not exist ; and — it may be — such conditions, if oner- ously exercised, would prevent the sale ol securities altogether. As, however, I am assured by yourself and colleagues that these conditions will be made to bear as lightly as possible, I will, on that understanding, undertake to advise Mr. Shanly to make the offer originally contemplated, notwithstanding the altered cir- cumstances. I forward to Mr. Shanly to-day your letter of the 10th, and pending his reply, or probable arrival here shortly, I will pro- ceed to obtain the necessary data to enable us to submit to your Government, at as early a day as practicable, before the meeting of the House, a formal offer for the construction of the line referred to. Before undertaking the laborious and lengthy examination preparatory to such an offer, I would respectfully submit the following propositions for the concurrence and assent of the Government, in order that the basis, upon which the negotia- tions are to proceed, may be defined and understood. 1. The Government shall, if our offer is accepted, obtain from the next meeting of the Legislature a charter of the usual character for a company formed by us. Such charter to provide for the right of way, service scrounds, &c., being furnished free of charge. 2. The kind and amount of the securities to be issued under said charter shall be such as the company decides. 3. Existing legislation, which provides only a bonus from your Government of $5,000 cash per mile and 150,000 acres of ..J IS land (being evidently insufficient in view of the entire absence of municipal or private aid), it is to be understood that new and more liberal legislation shall be introduced by the Grovernment, and such additional aid shall be commensurate with the resources of the Province, the importance of the work, and the require- ments of the case. 4. The Government to use its influence to have the condi- tions attached to the grant of the Pictou Branch made as favor- able for the new company as possible, and also to obtain for the new company early possession of the Branch in good order and well supplied with suitable rolling stock and appurtenances, &c. Upon receiving the assent of the Government to the above pi«liminary propositions, I will at once proceed to make the necessary examinations, &c., so as to be able to submit an offer on behalf of Mr. Walter Shanly and myself. I have, &c., (Signed) 'Jlie Hun. V. Cakteuet Hill, Provinciiil Secretarv, Halifax. E. W. Plunkett. (Copy) St. John, 2nd February, 1876. 7 he Hon. P. G. Hill, Provincial Secretary, Halifax: Dear Sir, — I have the honor to acknowledge your communication dated 24th ultimo, and your subsequent telegram urging an immediate reply thereto. In the absence of advices from Mr. Burpee (who is now in ;^>^d«^ 14 England) I ara unable to give you anything more definite in re- lation to the construction of ' ■ Railway from New Glasgow to the Strait of Canso than is contained in Mr. Burpee's letter which I enclosed to you with my letter of the 13th ultimo. With reference to the modifications suggested in your letter o the 10th instant, in connection with the transfer of the Pictoii branch I certainly am of opinion that they will mateiially affect the action of intending contractors in making a proposal to con- struct the road. So soon as I hear from Mr. Burpee upon th<- »ubject 1 shall do myself the honor of again addressing you. I have, &c., (Signed) Coi.LlNGWOOD SCHKEIBER, Jelegram. Montreal, 9th Feb'y, 1876. Hon. P. C. Hiix,— Please send me in writing statement of what you want and I will see as to furnishing it ; it will take some time to prepare. I understand it is the work between Pictou and Truro, (Signed) C. J. Brydges, °^ Halifax, 9th February, 1876. The Hon P. Carteret Tlill, i&c , &c , Halifax. SlK, — ■ I'he following 'm^ a statement of the information 1 would like to obtain respecting the Pictou Branch Railway : ^A^^^r' •■- - *( it 15 1. The No. of passengers per annum for the last five jears. 2. The No. of tons freight •* 3. The passenger mileage " 4. The freight " " " . - 5. The cash receipts from mails and sundries per annum for last five years. 6 The gross cash receipts per annum for last five years. Assuming the five years to end 30th June, 1875. will answer my purpose. , v v. j • Inasmuch as the information referred to above is published m the Minister of Public Works report every year (although not exactly in the form I desire to have it, being incorporated with the entire Intercolonial Railway returns), there will probably be no objection to furnish the information on the part ot the authorities. I remain, &c., (Signed) E. W. Plunkktt (Copy) Telegram. MoNTKEAL, lOth February, 1870. lion. V. r. Hill, llaUfax,— It will take some time to pick out figures, because traffic .oes for longer distances and calculations have to be made to see how much the traffic was in each case. Please send me written application and I will have it attended to at once. (Signed) C. J. Bridges. 16 IIamkax, Fefyniarv lOtfi, I87<>'. (Copy) Dear Sib, — I have the honor to acknowledge the receipt of yoar telegram of this day, requesting rae to send a written application for the information I wish to obtain, relative to the Pictoii Branch of the Intercolonial Railway ; and of which I beg now to append the following particulars, viz ; 1. The No. of passengers per annum for last fire years. 2. The No. of tons freight *♦ " " 3. The passenger mileage *' " " 4. ITie freight " " " 5. The cash receipts from mails and sundries per annum for last five years. 6. The gross receipts, cash, per annum for last five years. Assuming the five years to end 30th June, 1875, will be nufficient for the purpose of information. I have, &c., (Signed; P. Carteket Hill, C J. Brtdges, Esq., General Siiiwrintendent Govcrnineiit Railway!*. (Copy) Dkpaktmeiit of the Secretart of State. Ottawa, February 10, 1876. Sir,— I have the honor to transmit to you herewith, for the information of your Government, a copy of an order of His n -11 »^i-_ n — „-«^- riG^y VJtUTCiiiUi ••-iviici cii 111 T_ v-'-aiivii, i'SjavsTv iv.- a Wi'- \s^- 17 posed transfer on certain conditions therein named, of the Truro & Pictou Branch of the Government R .ilwrys in the Province of Nova Scotia. I have, &c., (Sijjned) His Honor The LiKUT.-tJovEitNOK ot' Xov:i Scotia, Halifax, N. S. R. W. Scott. [Copy of a Report of a Committee of the Honorable the Privy Council, approved by His Excellency the Governor General in Council, on the 7th February, 1876.] On a memo, dated 2d Feb , 1876, from the Hon. the Minister of Public Works, reporting that to the present time no definite offer has been received by the Government from any company or individuals willing to extend Railway system from the neigh- borhood of New Glasgow to any place in Cape Breton, although negotiations have taken place between parties interested in the Railway system of Cape Breton, with a view to that end, and although the Government of Nova Scotia have obtained Legis- lative authority for the payment of a certain bonus to any com- pany which may construct such line : That an offer was received from Messrs. E. R. Burpee & Co., representing the Eastern Counties Railway Co , to undertake the construction of a line of Railway as hr as the Strait of Canso, on condition of the transfer to such Company of the Truro and Pictou Branch of the (iovernment Railways, under the resolu- tion of the House of Commons of May 19, 1874 : That a strong feeling exists in Cape Breton in favor of the .'rtici-: «• ■ ^^=ar%^ 18 extensioa of the Railway system through that Island by means of the proposed transfer, but that no definite proposition has been made which could possibly secure that being done : The Minister, therefore, recommends that the Nova Scotia Government be informed that the Dominion Government will submit, for the approval of Parliament, a proposition to transfer the said branch to a company undertaking the construction of a line to the Strait of Canso, and from thence to West Bay at the head of Bras d'Or Lake, including a Steam Ferry across the Strait, subject, however, to the following conditions : 1. That the said Company shall be bound to give running powers over their road from West Bay on the Strait of Canso to New Glasgow, to any Company which may extend the Rail- way Eastward to Louisburg, or to any other Poit, upon fair and reasonable terms, to be determined by mutual agreement, or by arbitration ; one arbitrator to be appointed by each Company, and the third by the Government. 2. That any such Company obtaining the Truro Branch Railway shall give running powers for the trains of such Cape Breton Railway Company over the Truro and Pictou Branch (to be transferred) upon such terms as will simply provide for such Company paying a pro rata share, according to the Trains mileage, of the cost of the actual maintenance of the road- way and station expenses ; no allowance to be made for any profit to accrue to the Company holding the transfer of the line ; pro- vided always that mutual arrangements for the transfer of traffic over the combined lines may be made by the respective compan- ies, if such arrangements can be made without arbitration. In the event of any dispute as to the proportion payable by such Company in Cape Breton, of the cost of maintenance of the 'J'ruro and Pictou Branch, the matter shall be referred to the Minister of Public Works, whose decision on such reference ^U ^>^. V 4f 19 shall be final, and who shall also settle such further details aa mav not be provided ior. The Committee concur in the foregoing recommendations and submit the same for your Excellency's approval. Certified. (Signed) W. A. Himsworth, C. P. C. (Copy) Telegram. Ottawa, February 2l8t, 1876. Hon. P. C. Hill,— We can have no objections to any point in Cape Bretoa as a terminus that you agree tO; I am asked to say. (Signed) A. MaCksnzib. -i. r^F»r._