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(illANIl IKIINK RAILWAY. 
 
 LETTERS to the Right Honorable Sir John A. 
 JVIacdonald, K. C. B, and James Beatty, O. C, 
 Robert Hay and John Small, Iisquires, members 
 representing loronto in the Dominion House of 
 Commons. 
 
'? 
 
 Grand Trunk ""attw-/ 
 
 LETTERS to the Right Honorable Sir John A- 
 Macdonald, K. C. 13., and James Beaty, 0. C. 
 Robert Hay and John Small, Esquires, members 
 representing Toronto in the Dominion House of 
 Commons. 
 
 Grand Trunk Raiiavav Company of Canada. 
 
 (iriicfdl Jl(i//(ii>rrs Oi/irc, 
 
 Fehiuary iSth, ISS4. 
 
 The Right II()!ioral)lo 
 
 ^^iR John a. Macdonald, K,CM>. 
 
 ,. OttiViOix. 
 
 >>ir, 
 
 l\\ a letter addre.st^ed lo you on the Uili in.staiil 
 by Mr. Van Home, the lollowiug was quoted a.s a cable 
 messao-e coming 'TVom one of the most p omiueiit suppor- 
 " ters oi'the Grand Truidv in Jjondon." 
 
 M 
 
 " London, February 4th, 1(S,S4. 
 tiiuiined opposition all Canadian Pacilic 
 ..J Aiudred securities being organized in press 
 " and o>her places here, on account Governmeni 
 " monies being ustd to help lormer to compete 
 " with Grand Trunk by Ontario and Quebec. 
 " Are Pacilic authorities still uiiwillinu' to tniter 
 " into any arrangement with Grand Trunk lor 
 "joint working of Ontario and Quebec :" Think 
 " we might negotiate for joint lease. This is 
 " ditferent to lormer [)roposal Ibr sale of road 
 " absolutely to Grand Trunk. IT reply favorable, 
 " would send out expereinced man to negociate 
 " when thought necessary." 
 
 Having made inquiries in regard to the matter, I am 
 instructed to say to you that the Directors of this Compa- 
 
liy neitlKM- itutlioiized nor had niiv kiio\vI<'tli.v ol the 
 sciidinn. ol' tills iiirssiiov, and I may add tliai so l!,r IVoni it 
 eiiiaiiatiiig IVoni a prominent supporhM- ol' the Grand 
 Trunk, I liave very uood reason ior sayiiio' il came IVom u 
 warm I'riend ol" the Canadian racilic, and one who lias 
 taken an actives part in opposini«' Die carryino- out ol" the 
 arrangement madi^ by this Company with the Toronto^ 
 Clrey (S: Hruce Railway Coy. 
 
 The point is important in the interest of truth and 
 because the messagv, read as comino- IVom a source 
 iriendly to the Canadian Paciiic Coy, is intelliuible and 
 evidences that thiM-iews which I haveheretolore^'entured 
 to express to you are entertained by both parties as to the 
 damage done to all Canadian investments by the diversion 
 of funds oranted lor a great public work to the building 
 up of undertakings in no sense needful to its success, and 
 which should either stand or fall on tlieir own merits. 
 I have the 'lonor to be 
 {Sir, 
 Your obdt. servt, 
 
 J. HIClv»SON, 
 
 General Manuoer. 
 
 ■ 
 
 GRAND TRUNK RAILWAY CO. OF CANADA. 
 
 General Manager's Office, 
 
 Montreal, Feb. J 8th, 1S84. 
 To James Beaty, Q. C, Robert Hay, and John Small, 
 Esquires, Members representing Toronto in the 
 Dominion House of Commons. 
 
 Gentlemen, 
 
 I notice that Mr. E. B. Osier has addressed you in very 
 energetic terms as to your duties in connection with the 
 proposed further advance by the Government of $:}0.000, 
 OOO, to the Canadian PaciHc Railway Co. and that he accuses 
 the people of " old Canada and especially of Ontario," of 
 
8 
 
 '8' 
 
 haviiii.. ooiio to sloop. You aro told that iVom the day 
 that tho Canadian Paciiic Unilway coas^nl to bo a Oovovn- 
 ruoiit work, tho (Irai.d Trunk liailway aulhoritios havo 
 been bitterly opposed to tho uiKhM'takiny ; that the aiui 
 aiulellbrt of tho <Janadian Paoilic Railway has boon too-ive 
 Ontario the bonolit olc )Uipotition. A bowiidorino' niaf..s of 
 liuuros ar(> quoted to show tlu^ advantaovs to Ontario of 
 the construetion of the Ontario ^S: Qnobec lilu^ and Mr. 
 Osier is good onouoh to toll you tho exact an'iount by 
 which tho Iroioht rates would be advanced by tho (irand 
 Trunk Company if certain Ihing-s happoiu^d. 
 
 I do not desire to occuppy your time with auy Jeng- 
 thened reforpiico to Mr. Osier's statements, but I would 
 like to remind you of some facts which that geutleman 
 has not mentioned and which may assist you to appre- 
 ciate the full force of his arguments. 
 
 First it is not true that tho Grand Trunk Railway 
 Company has been bitterly opposed to tho construction of 
 the Canadian Paciiic Railway, on the contrary the President 
 of this Company addressing the proprietors assembled in 
 public meeting in the city of London, on the 28th October 
 188'', said : 
 
 " There is one subject on which T ought, in reply to 
 
 " a question askod just now, to say one or tvAo words 
 
 '' that is, the subject of the Canadian Pacific Ry. The 
 *' Ministers of Canada w^'re over here not long since with 
 " a view to negotiations for constructing a railway to the 
 " Paciiic. We have, of course, nothing to do with the 
 " railway to the Paciiic ; we have only to do here— with the 
 " interests of the Grand Trunk, but I may safely say that 
 " by whatever route that lino is constructed, the more 
 " quickly it is made towards tho J\icilic the better for the 
 " (Irand Trunk; and in the course of the next ten years, 
 '• if it only goes on as we hope it may, we shall expect to 
 " get a considerable accession of traffic from that source, 
 " in consequence oi the emigrants who will naturally go 
 " in that direction as the Jvailway is built, in consequence 
 
" oltlu' liilxmr iiiid iniitfviiils ihnt will ho rcquirod lor the 
 " consmiclioii orihc liiilwiiy, iiiul in coi»se(|iienco oi' the 
 *• tiiillic thiit will coinc IVoiii it.'' 
 
 Till' (iriiiul Tiiiiik ('ofijpaiiy has opposed, and pro- 
 tested an-aiiist, iiioiiics L-iven lor the construction ol' the 
 C'anadiaM I'acillc line heiiiu' diverted to 'he buildiiii*- up of 
 uniiecessaiy c. nipetitive lines, the (•aj)ital I'or which hues, 
 if they were to l)(. const I'ucled at all, should, it is claimed, 
 have heen proviih'd by private enterprise. 
 
 1 need not point out to you that as the larg-est tax 
 payer in the Dominion, ih? Grand Trunk Company is in 
 the exercise ol' its legitimate and constit'itional rig'hts 
 when it,makes such a protest. The (.\)mpuijy may fairly 
 claim to have as much right to be heard on such a sub- 
 ject as Mr. Osier and those who are associated with him. 
 The cry of monoply is raised against the Grand 
 Trunk, but are not Mr. Osier and his Iriends making the 
 most vigorous ellorts to establish just such a monoply as 
 they very unfairly charge the Grand Trunk with desiiino- 
 to e&tabli^li in Ontario. You have probably not forgotten 
 than when last year a bill connected with the Canadian 
 Pacific was passing through its various stages in the 
 House of Commons, a proposition was submitted to have 
 inserted in it a 3lause securing for trajlic going into Mani- 
 toba and the Northwest territories by way of St. Vincent, 
 as favora])le rates as should be given for trafHe going by 
 w^ay of Nipissing. This clause was promptly rejected, and 
 the C'ompany was prepared to withdrav/ its bill rather 
 than accept such legislation. 
 
 Now it is pertinent to enquire what this really meiiiit 
 so far as Ontario is concerned. 
 
 If the Grand Trunk Company is not to be allow^ed to 
 compete for traffic to and from Manitoba and Ontario, 1 
 would ask what competition is likely to take place? 
 
 The lines which the Canadian Pacific Company is 
 seeking to control may give that company the opportunity 
 of carrying Ontario tralKc to and from the jNorthwest but 
 how competition which Mr. Osier appears to so muchde- 
 
i 
 
 .sire is to be secured under existini»' leifishitioii in rejrard to 
 the Canadian [*aeific, is not so apparent. 
 
 Mr. Osier accuses the people ol Ontariool' tiavini^i^one 
 to sleep, he will probably discover that they are very 
 wide awake althoutfh thev have not the same incentives 
 to individual exertion as Mr. Osier nnd his friends. 
 
 Ttie interest on some amount of capital not yet made 
 public assumed to be invested in the Ontario and Quebec, 
 the Credit Valley, the Toronto, Urey and liruce. the At- 
 lantic and Northwest and (it is presumed, inasmuch as the 
 arrangement is to extend from Montreal) the Occih-ntal 
 line, is to be i^uaranteed by the Caiuidian Tacillc Company 
 under a leasini«- arrangement. 
 
 It is understood that Mr. Osier is larjtfely interested in 
 all these Kaihvays excepting perhaps the Atlantic and 
 North w^est and Occidental lines. 
 
 In December 1881 he made an asfreement in reccard 
 to the Ontario and Quebec and Toronto, Crrey and Bruce 
 Companies, (which from no fauit of Mr. Osier's was not 
 carried out) to an extract from which, enclosed, I desire to 
 call your attention, and invite you to enquire if arrange- 
 ments similar in their character are to be carried out under 
 the now proposed contract of lease. 
 
 As the Cirand Trunk Company is a large contributor 
 to both the general and local taxes in the city which you 
 represent, 1 may f;iirly claim the right to address you on 
 matters which affect the Company's interests, and I there- 
 fore venture to refer to a letter from Mr. Geo. Laidlaw 
 which has been printed in the newspapers. 
 
 It is not for the purpose of entering into any contro- 
 versy with Mr. Laidlaw on the Railway policy of the 
 country, but simply to correct certain statements which 
 it is inexcusable on Mr. Laidlaw's part to make for the 
 purpose of creating prejudice. 
 
 Mr. Laidlaw says that this Company opposed the 
 narrow^ gauge railways, or in other words, the Toronto, 
 Grey and Bruce and Nipissing lines, and headed a vigo- 
 
6 
 
 r<ms <)p])()sitioii to lli«' uriiiitiiii»' ol' tlic CMiari«Ts ai».l the 
 huildiiii' ol'tli*' two lines. Wlicii I tell you that ins .'ad of 
 opposinu' tlu'Ui the (riaud Trunk Company ab.solutt'ly 
 took .stoik in hoth lines, tliat tlicy assisted liieni to i>ot into 
 Toronto bolh iVoni the oast and IVom the west on tlio most 
 liberal conditions, that they aich'd and lostered their trallic 
 in every reasonable Nvay, you will readily understand lor 
 what object such statements as Mr. Laidlaw has made are 
 printed aiul put in circulation. I believe that there is 
 not a single t)lUcer who has been engaged in the opera- 
 ting of these lines who will not say that^the policy of the 
 Urand Trunk towards them was of a most liberal and 
 encouraging- character. 
 
 Mr. Laidlaw is equall}; wrong in saying that the CJ rand 
 Trunk Company opposed the construction of the Credit 
 Valley line. What they did (►ppose was Mr. Jjaidlaw's 
 ettbrts to sei/e upon and use for the purposes of the Credit 
 Valley Company, the property of the (Irand Trunk Com- 
 pany in Toronto, without paying adequate compensation 
 therefor ; and if that was wrong, then the Crrand Trunk 
 Company were certainly to blame for the course they pur. 
 sued in regard to the Credit Valley, but I am inclined to 
 think that they only did what any private individual or 
 other corporation under similar circumstances would have 
 done. 
 
 I am, gentlemen, 
 
 Your very obedt. servt., 
 
 J. HICKISO^, 
 
 General Managtr. 
 
 Extract from Heads of an Agreeni'^nt as to the Ontario 
 and Qu»^bec llailway, dated J)ecember 9th 1881. 
 
 " The Toronto, Grey and Briice ami Ontario and 
 " Quebec Railway Companies, to enter into an interchan- 
 " sed traffic agreement for the working of the Toronto 
 " Grrey and Bruce Railway with provisions securing such 
 
" i«'l»iit('s out or llic Ontario and Quohcc iiitt>rchan<iV(l 
 " Iraliio roccipls jis may Ix; necessary to make up any doli. 
 '• t'loiicy ill the 4 por cent interest rclerrcd to in Mr 
 " O.slcr.s letter to Mr. (iranishaw (se«i Apj^endix A) and 
 " generally to carry the proposition in the said letter into 
 " elleet ; tiie terms ol' the agreement between the compa- 
 " nies to he subject to the usual conlirmation olthe share- 
 " holders ol" botli companies 
 
 " In the (»vcnt otthe requisite powers to amalo-amate 
 " tlH> Toronto, Grey and Bruce and Ontario and Quebec 
 " Railway Companies oci..,- obtained, and an agreement lor 
 " amalgamation ))ei/ig entered into, one ol'its terms shall 
 '• be that Osier iSc Co. shall rec(!ive par for the .S400,()00=^ 
 •* of Toronto, Clrey and Bruce stock held by them." 
 
 dollivr. 
 
 :l< This stock was pinclmsealilc in Toronto iit iibout lo cents on tlio 
 
 APPENDIX A. 
 
 London, December, 18iSl. 
 
 W. H. CfliAMSHAW, P]SQ., 
 
 Chairman^ 
 
 London Committee ol' liond holders, 
 
 Toronto, (h-ey and Bruce Railway. 
 Dear Sir, 
 
 On behalf of the Ontario and Que})ec Railway 
 Company, 1 beg to make the following proposals for uni- 
 ted working of the two systems of liaiKvay. 
 
 \. That the claim for overdue interest upon the exist 
 ing past due (I per cent Bonds of the Toronto, (Irey and 
 Bruce Railway be surrendered. 
 
 2. That the holders of such boiuls do accept 4 per 
 cent for thirty yeiirs from 1st January 1882, receiving 
 either bonds of the Toronto, Orey and Bruce, secured as 
 hereinafter mentioned, or in the event of amalgamation, 
 Bonds of the Ontario and Quebec. 
 
8 
 
 8. To insure tho payment oi 4 per cent diiiino- the 
 construction oi' the Ontario and Quel)ec, a sum shall be 
 di'posited sulHcient to i)ro\ide for two vears' interest on 
 the overdue IJonds. 
 
 4. Tliat upon the completion of the Ontario and 
 Quebec, a joint working norccment slinll be entered into, 
 from the net receipts of which a sufficient sum shall be 
 ai)propriate<l to meet the 4 per cent interest. 
 
 The fo going- proposals are subject to the following 
 conditions : 
 
 {at. The usual confirmation by the shareholders of 
 both Comi)aiiies to be obtained. 
 
 ib). To a decision in favor of the Toronto, Clrey and 
 ]>ruce in the present pending proceedings at the instance 
 of the Grrand Trunk. 
 
 (r). That from the present date peiuling the com- 
 pletion of the agT(>ement to be based upon this olFer, your 
 Committee do not entertain proposals from any other 
 Company or persons for the adjustment of your bonded 
 debt. 
 
 (d). That your approval of these proposals and noti- 
 fication of your intention to sul.mit the same to the Bond- 
 holders be communicated to us within 
 from this date. 
 
 Yours faithfully, 
 (.Signed) E. B. OSLER.