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Sw^Xqx

GRAND TRUNK RAILWAY COMPANY OF CANADA.

VEEBATIM

REPORT OF THE PEESIDENT'S SPEECH

AT THE OUmXAU^

Half-yearly general meeting,

HEI.l) AT THE

CITY TERMINUS HOTEL, CANNON STREET,

LONDON, E.G.,
On THURSDAY, the 6th October, 1881,

IN rURSUAXCE OF THE VOLLOWIXG AmERTISEMENT :

THE GRAND TEUNK IIAILWAV COMrANY OF CANADA.

VOTICK is hcrobj- gi von, that, the Ordinary Half-yearly General Meeting of the Company
-^^ will be bold at the City Terminus Hotel, Cannon Street, London, E.C., ou Thursday,

the 6th day of October next. I'or the purpose of recoivinK a Report from the Directors, nml
lor the transaction of other business f the Couipniiy.

And Notice is further Riven, that the Transfer Books of the Company will bo closou iii
LoDdon, from Thursday, the first day of September, to the day of Mectiuj?, botl; doys inolusive :
»n.il in Oftnada they will be closed foi- ir.u- month before the date of Mectin'^

My Order,

H. W. TYLER, President.
,1. B. RENTON, Secretary^

Grand Trunk Railwiy Offices,

21, 01(1 Broad Street, Eondoii, E.C.
23rd jiuffnsf, 1881.

LONDON :
WATERLOW & SONS Limited, PRINTERS, LONDO.S WALL.

Ubl.

^ranb S-nmk liailfajajr of €mu'lin.

VERBATIM

EEPOET OF THE PRESIDENT'S SPEECH

AT THE OBDINAUY

Half-yearly General Meeting,

HELD AT THE CITY TERMINUS HOTEL, CANNON STREET, LONDON,
On THURSDAY, 6th OCTOBER, 1881.

Sir Henry W. Tyler, M.P., President of the Com-
pany, having taken the chair, and

Mr. J. B. Kenton, the Secretary, having read the
notice convening the Meeting,

The President, who was received with cheers, said :

Before proceeding to our ordinary business, I feel
constrained, gentlemen, to say a few words to you to-day
on a subject in regard to which you will, I know,
welcome a few brief remarks. As proprietors in the
Grand Trunk Railway Company, we have lines of con-
nection, and we have very large interests and valuable
alliances in the United States. It is fitting, therefore,
that we should, assembled as we are at our usual half-
yearly meeting in considerable numbers, join in sym-
pathy with our friends in America, and with the great
American nation, upon an event which has so recently
thrown them into mourning and which has stirred up all
their and our best and finest feelings. (Applause.) I do
not. intend to propose any formal resolution for your
acceptance, but I am confident that you would wish me,
as your ehsirman, to express what will be your feelings

Tho Orand Triiulc Bailway of Canada.

and our feelings, and what are the feelings of all good
and thinking Englishmen on such an occasion.
(Applause.)

An honest man, the noblest work of God, fighting
a good fight in the battle of life, worked his way up
from the lowest to the highest position in the great
American Republic, and then perished in the prime
of life by the weapon of a dastardly assassin. We
all watched, as it were, with our friends in America, by
his bedside, during eleven long weeks of suffering, as
he hovered between life and death, hoping against hope
for his restoration to life and health and strength. The
utmost efforts, however, of the physicians and surgeons
who so assiduously attended him were fruitless. They
were even unable to discover, during his life, the actual
course of the fatal bullet, or to ascertain the nature
of his injuries.

His lingering death, gentlemen, and his great suffer-
ings have not been in vain. They have evoked from all
sympathising and good hearts, not only in America, but
also and equally on this side of the Atlantic, from our
gracious Queen to the peasant in the field, the deepest
and the best sentiments. There never was a time when
80 much good feeling existed between the two great
nations. Great Britain and the Uniled States of America.
We may fairly look forward to an era of rapprochement
and of joint action for good between the two countries.
The voice of those Irish- Americans, whom you will re-
member as Sir Yernon Harcourt's Vipers, w-lio preached
dynamite and assassination, have been hushed, at least
for a time. And the death of General Garfield has had
another effect. It has drawn forth here and in America
an f\Yij\vpo\i\\\c\n of what is s^ood and G'reat, in opposition

President's Speech, (jih Ociober, 1881.

The

to those operations and rings and corners and specula-
tions, which are too much the fashion in these times on
both sides of the Atlantic, and have of late absorbed
too much attention. (Hear, hear.) General Garfield's
character stands out in marked contrast and mighty
opposition to the characters of those wealthy miUionaires
who control railway systems too much for their own
private benefit, and too little for the good of the public
and of their shareholders. (Hear, hear.) His fair fame
will outlive their ill-repute. His life and his death have
further been, are, and will be, protests against all those
odious " ismfe," Socialism, Communism, Eenianism, and
Atheism; and his agonies have left footprints on the
sands of time which will serve to elevate human nature,
and thus br a lasting benefit to mankind. (Applause.)

There is another melancholy topic, gentlemen, on
which I must touch before I proceed to the business of
the meeting. We have lost from amongst ourselves an
old friend, and a valued friend ; a gentleman who has
attended most regularly at all our half-yearly meetings,
and has always spoken to us with words of honesty and
good sound common-sense. I refer, gentlemen, to Mr.
M'Gavin. Meeting as we do here periodically, with the
common feelings of humanity towards one another, we
become, as it were, old friends in this room, and I
may properly say, therefore, that we look upon his loss
as that of an old friend from amongst us. (Hear, hear.)
At one time we invited Mr. M^Gavin to become a
member of this board, to represent the Glasgow and
Scotch shareholders ; but he refused to do so, as he
refused many other invitations of the same sort from
the Scotch companies. He preferred to live a quiet
life, and merely to attend the various half-vearlv

C The Grand IVunk Railway of Canada.

meetings, and assist with his advice at other times, and
he was of great assistance to us and to other companies.
I am glad to say that his place has been ably filled,
since his refusal, by Mr. Eobert Young, who worthily
represents the Glasgow shareholders on our board.

Well, gentlemen, to proceed now to our proper
business. Tlie half-year, the operations of which wo
are met to discuss, has been a most unsatisfactory one
in very many respects. The winter of 1880-81 was
the worst that has been experienced in America for
the last forty years. The through business of our
line, and more especially of the lines connected with
us, was at a standstill for weeks together. At
Chicago we had to encounter the diflSculties of strikes
and of snovr, and at Buffalo the snow^ actually stopped
the traffic on different occasions for weeks at a time.
The cars loaded to go eastward were standing by thou-
sands between Chicago and Port Huron, and between
Buffalo and Detroit. Then, again, the lake steamers
were a w'hole month later tlian usual in bringing ua
their cargoes, and we thus lost large amounts of traffic
at Sarnia in consequence of the lato opening of naviga-
tion. The live stock traffic of the United Stales, from
which in past years we have derived so much benefit,
was lost to us in consequence of the prohibition, which
still exists, against importing live istock from that
country into Great Britain. There was also a con-
siderable rise in the cost of materials, of labour, and
of fuel ; and I am sorry to say that this was very much in
consequence of the fiscal policy of the Dominion Govern-
ment. That policy makes ever,v thing that a poor man
requires dearer for him to purchase, and in consequence
of that policy he requires higher w^ages in order to bd

PresiienVs Speech, (jth October^ 1881.

onabled to exist. I have repeatedly spoken m this room
as to the duty which is placed upon fuel. I cannot
conceive anything more nnwiso in a nation like
Canada, that ha«» to import a great part of its
fuel, and wishes to encourage its manufactures, and
to encourage its railw^ays, than to place a duty upon the
article of coal. \Ve had considerable extra cost in
clearing the snow away over the Grand Trunk, and
in maintaining the Chicago and Grand Trunk Kailway,
which sufft;red very much from the severity of the
weather ; and the amount of extra fuel that was re-
quired, not only to work the traffic, hut at the stations
and at all other points on the line, was very groat.
And also, in consequence of this state of things, there
was a largely increased expenditure in shunting, to
enable east-bound trains, all loaded and ready to
proceed on their journey, to be got out of the way,
during these detentions, of westward trains travelling
in the opposite direction.

It is satisfactory to be able to state, in spite of all
these very serious disadvantages under Avhich we wcr(^
working, that for the paet half-year the results have
been so good as they have been ; and it is very en-
couraging to find that under such conditions onr
gross receipts for the half-year were no less than
£1,073,437. And not only is it satisfactory to find that
we have received that amount of traffic, which is the
largest by far that we have ever earned in any previous
June half-year, and the largest, except in two cases,
which has ever been earned in a December half-year —
not only is it satisfactory to see that amount, but it is
further satisfactory to see the way in which it has been
earned. The increase we have thus earned has been

The Grand Trunk Iiailicoi/ of Cunada.

partly in pfisscngcr, but mainly in froiglit traflic. Tlicro
was UP incpoaso of C20,000 in passenj^or traific, and of
i^60,000 in frcii^ht tratlic ; and the freight increase was
not from through business, b\it from locnl tratfic, princi-
pally in Canada. I think vve may all agree that we
shall havo no difliculty, with the (!onnoeti(ms which
wo have made, and those which we arc making, and
have in prospect, in accumulating to ourselves as much
through trnffic as we shall be able to carry ; but one of
our principal objects is to develop the local traffic of
Canada. The increase from the Chicago and Grand
Trunk was nearly £10,000, and 70,000 tons of traffic,
(\Kchanged Avith the Grand Trunk ; and there was also a
satisfactory increase, which I hope will be much larger
ill the future, on the traffic exchanged at the Niagara
frontier with the New York lines.

Well, that amount having been earned in gross
receipts, the next point to look at is the Avorking ex-
penses ; and those were at the rate of 68*80 per cent,
for the past half-year, against 68*08 for the correspond-
ing half-year. Now, considering all those circumstances
which I have detailed to you, of the disadvantages under
which we were working, I think it reflects the greatest
credit ii.pon our officers that they have been able to keep
the working expenses so low as they have done ; and it
encourages me very much for the future to hope that
we shall be able to achieve — what I have always had
in view — the reduction of our working expenses to 60
per cent. I say advisedly, seeing this result before us,
that if we have only reasonable rates — and some day
we shall get them — I have the hope, and the sanguine
hope, that we shall ultimately be able to reduce our
working expenses to 60 per cent. Deducting, then, the

President's Speech, G/// October^ 1881.

gross

uiuount oC workini; expenses — £738,000— tlicro rotnaiiin
a net profit of £33 1*,899. That is a very large aruouut
for a June half-year. Not very long ago a statement
was brought to ray notice, in one of what arc called
the " Society " papers, to the effect that the Grand
Trunk Company did not earn enough money to pay for
the grease on its wheels, \ think £334,899 is a very
respectable sum of money with which to grease our
wheels for a half-year. (Hoar, hear.) And the most
satisfactory part of it is that it affords a full dividend
upon the First Preference for the Half-year and also
upon the Second Preference ; and this is the lu'st June
half-year in which we have ever f^ ;ne anything like
earning a full dividend for our Second Preference Stocks.
1 sliall propose a resolution by-and-bye, asking you to
allow these to be paid on October 12 ; and I can assure
you that it is more gratifying to us to be able to pay this
amount of Second Preference interest in the first half-
year than it will be to you to receive the money when
you get it. (Laughter.)

You will see from paragraph G of the Eeport that
the length of line worked by the Company has
been increased from 1,273 J miles last year to
1,406 this year. That arises from the fact
that we htive taken over the workinsj of certain
other lines — namely, the Montreal and Champlain
Junction Railway, the Michigan Air Line Railway,
and the Grand Trunk Georgian Bay and Lake Erie
Railway. I may mention that the Montreal and
Champlain Junction line was completed during the
half-year to St. Isidore, and a further section of it to
St. Martine is in progress. Then the Michigan Air
line, thirty-six miles long, has been completed to

The Orand Trunk Railway of Canada.

PontiaCj and -sve hope before long to extend it to Jacksoiu
Avbicli is one of the principal towns of Michigan, and
a very important centre of traffic. You will see Jackson
marked on the map just oelow the word Lansing, which
is in very large letters. The extension of that line to
Jackson will involve an expenditure, including the 3G
miles already completed, of about £300,000, and it will
be, when the time comes for making it, an excellent
investment. The Grand Trunk Georgian Bay and Lake
Erie Railway will be finished this autumn as far as
Colpoys Bay, which will give us some accession of tralfic.
All those lines are worked in accordance with agree-
ments submitted to you, and which you passed at the
last half-yearly meeting ; but, as you will see stated
in our Report, we have only credited our receipts with
the revenue accruing to the Grand Trunk for those lines,
and not witii the total receipts for those linos.

You will find on page 6 of the Report a refer-
ence to the workinsj charsres for the half-vear, and
you will observe, as far as the maintenance and renewals
of permanent way and stations are concerned, there is
very little increase over the corresponding half-year.
There was rather less ballasting done during the half-year,
in consequence of the cars being required for traffic pur-
poses, but it is going on during this half-year and will
be fully done for the year. As regards the expenditure
in the locomotive department, it is a good deal larger,
and the reasons are very obvious. I shall give them to
you in detail when I come to the locomotive superin-
tendent's report. The total working expenses, you will
observe, have only increased by '72 percent., the charges
jior mamtcnancc and renewals of read and rolling stock
being less by 'S4i per cent., and the increase as regards
all the other cliarges being 1*06 per cent.

Fresidenfa Speech, 6th October, 1881.

The amount charged against capital account seems at
first sight very large, namely, £522,059. Of that sum
£459,-%8 consists of the preferential securities re-
deemed from the proceeds of the issue of one million
of dehenture stock ; and the remaining expenditure is,
I think you will admit, very moderate for a line of this
length. At all events, the money has heen well and
economically spent, and you will find details of the ex-
penditure at page 22, under table No. 5. That for new
works, £17,500, includes certain sums expended in the
construction of the coal dock and elevator dock at Sarnia,
and the Point Levi Wharf opposite Quebec; and part of it
is expenditure on the new general offices, £4,109. lis. 9d.;
— in the new sidings and extensions, which will be of great
value to us economically, £1,958; — in stations and build-
ings, £2,071 ; and there are other items, such as replace-
ment of wooden bridges by others of stone and iron,
£1,'138, and new machinery at Point St. Charles and
fort Gratiot for manufacturing purposes, £1,950. Then,
also, we have expended £31.600 in new rolling-stock,
and we should get very great advantage from that new
rolling-stock. There is at certain seasons more traffic
than we can carry, and we expect in future to require
still further additions to our rolling-stock, to enable
us to do the business that will come upon us. Then
we have spent a large sum— £28,561 — on lands. We
have found it necessary for our business to purchase lands
at Port Gratiot, at Toronto, and at Detroit ; and as these
lands are becoming more and more valuable, evidently
the sooner we purchased them the better for the com-
pany ultimately, and the money, I think, in those re-

RnPAfs nl«n l*i /^VPAfrlJnn-lw ivpII or»onf Tf. rjQO Anrto oft/ii*

great deliberation, and if it had been done sooner I
think we might have done better still.

12 The Grand Trunk Uailwaij of Canada.

I now come to parai^n-aph 15 of the Eeport, which
refers to the prospectus that we issued towards the
close of the half-year for the balance of the £2,500,000
ordinary stock. I think it wise to say a few words
Oil that subject, because I know, from the letters
which we receive at the office, that some few
people are naturally a little sore at the results of
that issue. (Hear, hear.) Now, there are two classes
of people affected by that issue. Tae proprietors of the
company form one class, and those individuals who took
part in the issue are the other class. As regards the
proprietors of the company, I think that they ought to
give a special vote of thanks to the directors for the able
way in which that issue was made, because it is quite cer-
tain that all classes of proprietors, including the ordinary
stock liolders, have derived very great benefit from that
issue being made at the highest price oP the market.
(Hear, hear.) There should be no doubt or difficulty on
that score,and I may mention to you that it was, I believe,
the cheapest issue of the sort that was ever made. The
total expense of advertising— and that shows that we did
not try very hard to cram it down anybody's throat— was
only £135. lis. 6d. I have no doubt that frequently in
advertising issues that are sent out to the public from
£500 to £2,000 is spent ; and you will therefore see that
£135 is a very m.oderate amount indeed. (Hear, hear.)
I am afraid that we incurred the hostility of one class, and
a very important class of the community, by confining the
expenses to so narrow a limit ; that is the gentlemen
who own the newspapers. They would have been very
much obliged to us, no doubt, if we had spent a great

deal mnro innnoTr ir» oflTr/!««f Ioim™ ♦>.,> ic^^-^ci. Til i.i- „

^ ^^i till V -v-iLioJu^ LiiU i:5SUC XUUU LllU

whole expense of printing was iJSll. Therefore, I

Tresidenfs Speech, 6th October, 1881.

irt, which
rards the
2,500,000
3\v words
e letters
Dme few
esults of

classes
Dvs of the
who took
gards the

ought to
L' the able
(juite cer-

ordiaary
Tom that

market,
ficalty on

1 believe,
ide. The
at we did
oat — was
uentlv in
blic from
3 see that
ar, hear.)
jlass, and
ining the
entlemen
)een very
it a great

ni i.i-„

i-UCU luC

refore, I

think, as far as the company are concerned, there
certainly can be no ground of complaint of the way that
issue was made, or of the result of it.

I come next to the individuals who took part in the
issue. They have our warmest sympathy. There is no
doubt that a good many of them, having had experience
of our previous issues, applied for more than they
expected to get; and they received more than they
wanted; and there is no doubt that there has been a
great depression of price since that issue was made. I
can sympathise with them, perhaps as warmly as any-
body, because I am one of the sufferers. I have mado
it a rule whenever I have sent out an issue to the public
to identify myself with that issue. I will not under any
circumstances send my name forth upon any prospectus
to tlie public without taking part, as my means will allow,
in that issue. (Cheers.) I did so in this case, and I mean
to hold the stock until it goes to a much higher price
than that at which it was issued. A gentleman wrote the
other day, and said he would be much obliged to us if we
would return him his money, because he would now be
able to buy some of the same stock at a much smaller
price, and save money by the transaction. (Laughter.) I
really wish we could accommodate the gentleman, but we
were obliged to reply that it was entirely out of our power.
We had made the issue in all honesty and in good faith ; we
liad no idea there was going to be any reduction of rates,
and it is quite out of our power to return the money or
alter the conditions on which thn issue was made.
Then there are other gentlemen who, since that issue,,
have been, it is understood, bearing the stocks, and

+,,

who at one time complained that we ought not
have made that issue, and considered that we knew, or

Id-

The Grand Trunk Eailwat/ of Canada.

if not that we ought to have known, that there was going
to be this fall of rates. I can tell you on that subject
a little secret : I may reasonably conclude that those
gentlemen did not know it either, or they would not
have been subscribers to that issue. (Laughter.) Any-
body must have been endowed very largely with the
gift of prophecy to have been enabled to say what was
going to happen, and to foresee what has been happening,
during several months after that issue was made! It is
true that ever since that issue we have had a continuous
fall of rates, and a lamentable competition going on, with
regard to which I shall have something to say presently ;
but you may believe me when I say we had no more idea
of what was going to happen in that respect than the
Man in the Moon. Nor can I tell you now what is going
to hnppen in the next few months.

Well, there is not much to be observed upon in Mr.
Hannaford's (the chief engineer's) report. The money
spent in the first half of the year always varies accord-
ing to the season, and tlie quantity of the rails that can
be put in, and the quantity of ballasting that can be
done. He has done what he could, and made a very
plain report ; but when the end of the yerr arrives he
will tell us what he has done for the whole year.
You will observe that he says—" The sidings are being
extended between Toronto and Belleville, and on the
Detroit district, so as to provide for i)assing longer trains,
now being hauled by new engines. These works are
beino- executed so as to form part of a double track."
That is tiie system on which wo are going. We are
extending the sidings from time to time in order to
i-i-.-T...... ^^vyxo iauiUties lor the crossing of trains, and

as our traffic becomes heavier it will become neces-

Preudcnrs Speech, {Mh October, 1881.

sary to dc so to a still greater extent, ia order to avoid
delay to the trains ; and v^hcn these sidings have been
sufficiently extended we shall link them up into portions
of double line by degrees, so as to avoid the large ex-
pense of doubling the whole line at once.

The report of the locomotive superintendent, Mr.
Wallis, is very interesting. He also refers to the con-
templated sidings, and he says, " when they are complete
it will be possible to effect a considerable reduction in
shunting, and a diminution in the delay to trains." He
gives a list of the 434 engines, and you will see that we
have now 19 duplicate engines. He gives us all the
reasons for the excess in the expenditure of the present
half-year, which you will see on page 12 :— Increased con-
sumption of fuel caused by much severer weather during
the past winter. 2nd. Advance in prices of fuel, wages,
and materials. 3rd. Outlay in working the extra traffic,
which of course requires extra fuel, and so on. As
regards fuel, I should like to tell you what we are doing
in that respect. We are gradually economising, and
using more coal and less wood. In the half-year ending
June, 1S80, we used 60,000 cords of wood, and in the
half-year ending June, 18S1, only 48,030 cords. Fer
contra, we used in the half-year endin.? June, 1880,
109,000 tons of coal, and in the half-year up to June,
18S1, 143,000 tons of coal ; so that we had a decrease of
12,000 cords of wood and an increase of 34,000 tons of
coal. As wood becomes more scarce, and there are extra
facilities for getting coal, we shall hope, in working our
traffic, to effect further economy in this respect. Then
as regards the car stock, you will observe if you look at
pngc ^-j, .iiSu vre xiave no less than 412 duplicatfi carsj we
have increased the number of cars to 9,806, and besides

The Grand Trunk Maihcay of Canada.

those we have 412 vehicles. There is also an interesting
statement, at the bottom of page 16, and on page 17, of
works and maehinery provided at the cost of revenue,
with the details of which I need not trouble you. Mr.
Wallis also says, "The standard freight engines, twenty-
six of which, since January, 1880, have been built in the
compary's workshops, would have cost 30 per cent, more
if ordered from manufacturers, with the addition of 25
per cent, customs duties." So you see we are also
making a large economy in extending our worKS at
Point St. Charles. He adds—*' The same remark would
apply in a still greater degree to twenty-three engines
of the same class at present under construction, which
could not now be purchased exclusive of the duty at
less than 50 per cent, advance on what they will cost."
There is one item at page 27, in account No. 12, of
which, perhaps, you w^ould like to have an explanation,
and that is the increased value of materials on hand.
It is there mentioned that the stores, fuel, old material,
&c., on hand for Juno, 1880, was £208,000, but for June,
1881, it is £281,000, an increase of upwards of £70,000.
Now, that arises because we have ties, that is to say,
sleepers and rails, in considerable numbers on hand for
renewals and other work yet to be done ; and our stock
of fuel was rather too low last year, in consequence of
the strikes which occurred at the collieries, and we have,
therefore, a much larger stock of fuel on hand this year.
Then, again, we have a quantity of seasoned timber in
store, which will be brought into use in the construction
of further rolling-stock during the present half-year ;
and 1 may mention that this timber was bought at a
much cheaper rate than that at which it would be
possible to buy it at the pres(}nt time.

'ft'

Fresidenfs Speech, 6th October, 1881.

terestins:
ge 17, of
revenue,
)u. Mr.

twenty-
ilt in tliP
nt. more
on of 25
are also
vorKS at
k would

engines
Q, which

duty at
ill cost."
. 12, of
lanation,
m hand,
naterial,
or June,
£70,000.
\ to say,
hand for
\xv stock
lence of
WQ. have,
his year,
mber in
itruction
ilf-vear ;
^•ht at a
ou Id hi^

I spoke of the relative proportions of the local and
through traffic, but I should like to say also a few
words on what we were doing as regards the west-
bound and east-bound traffic, which is of great import-
ance to our working. Now, the relative proportions of
the local and through tons running one mile in the two
half-years were as follows : — In the June half of 1880
the proportion was 38 of local, to 62 of through traffic.
And you will see how that has increased during the past
half-year— the local from 38 to 42, while the through
ton-miles have decreased from. 62 to 58. In fact, we had
an increase in tlie ton-miles— that is to say, of the total
number of tons of freight which we moved one mile in
the half-year— from 489,000,000 to 508,000,000 ; that is
to say, an increase of about 19,000,000. But the in-
crease of the local ton-miles was 26,000,000. Then the
division of the traffic into east-bound and west-bound is
as follows :— In 1880 it was as 34 local, to QQ through,
east-bound ; and 51 local, to 49 through, west-bound :
whilst in 1881 it was as 37 local to 63 through of
east-bound; and as 56 of local traffic to 44 of
through traffic west- bound. But whilst the volume of
the whole traffic has increased 4 per cent., the relative
proportions of east and west-bound continue to bear
almost the same proportion to each other as in the
corresponding half-year. Here I have a comparison
between the years 1875, 1876, 1877, 1878, 1879, 1880,
and 1881, and this shows that in the years 1875—77
and 1878, the proportion was 80 east-bound to 20 west-
bound, whilst in 1879—80 and 1881 it lias been from
77, 72, and now 73 east-bound to 23, 28, and 27 west-
bound. Therefore, although the percentage of the
whole west-bound is slightly less, the volume of the

18 The Grand Trunk Mailway of Canada,

west-bouiid lias incrensed from :35,000,000 tons, ono
mile, in 1880, to 130,000,000 in 18S1.

I mentioned in opening my statement that the pro-
hibition that prevented us from takiu,^ liye stock from
the United States and brins^ing it to England stili con-
tinues, but you will be interested to hear that the result
of that is that there has been a very large increase in the
dead meat traffic; so much so, tliat whilst in the half-
year ending June, 1S80, we carried only 1,264j tons, in
the half-year ending June, 1881, we carried 7,128 tons.
We received on account of that traffic for 1880, $7,834
and for 1881, $37,198. That, you wiU see, is an
enormous proportional increase.

Now, as ri'gards the tonnage of freight conveyed
for the use of the company, which is not repre-
sented by money in tha receipts, the return I have in
my hand sho- s tha"^^ 23,U00,000tons were carried for the
use of the company, whilst 508,000,000 tons were carried
one mile as general merchandise, making a total of
531,000,000 tons moved one mile. The number of freishi
cars hauled ono mile have increased, too, very much.
It was 36,000,000 in 1872 ; it is now 68,000,000. But
the most remarkable feature of the statistics I have,
before me is the enormous amount of extra weight that
we are carrying in our cars. That amount has in-
creased, as regards the average number of tons carried
in each car from June, 1872, Avhcn it was rather more
than 5 tons, up to 7 J tons in 1S80, and no less than
7f tons in 1S81. That is tlie averai?e running of all
our cars. They carry 7} tons per car. Of course,
that leads to economical working, as far as it can
be done safely, but they have boon rather over-doina* it.
It seems to have become the fashion now to load up the.

Ida,

) tons, ono

It tho pro-
stock from
i still con-
fc tho result
[•ease in the
a tho half-
64) tons, in
7,128 tons.
SO, $7,834,
see, is an

1 conveyed
lot repre-
I have in
led for the
ere carried
a total of
p of freight
ery much.
000. But
cs I have
eight that
it has in-
ms carried
ther more
less than
ing of all
)f course,
as it can

r-floina« if

)ad up tha>

Freaideiifs S^eechy Gih October, 1881.

cars almost without reference to their strength, so as to
carry as much as they can in them. We haveheen working,
therefore, a little on the opposite tack lately, and de-
creasing the a mount carried in each car, because we found
those going eastward were loaded to an excessive weight,
and loaded so as almost to be dangerous in running.

The total amount which we received per ton per
mile has sli;:htly increased over tho corresponding
half-year, from '72 to -75 of a cent. That, of course, is
a miserable receipt, audit will be even lower, considering
the rates at which we are runnfuGr now. As regards
what we are doing in passenger traffic, the number of
passengers we carried increased from 892,000 to 994,000,
whilst the receipts increased from $1,251,000 to
$1,330,000 ; and the number of passengers carried one
mile increased from. 63,000,000 to 66,000,000, and wo
get a little more per passenger for carrying them. The
average receipt per passenger per mile increased from
l-97c. to 2c. Tho average distance travelled by each
passenger decreased from 71 to 66 miles.

Whilst we are not able to carry live stock from
the States, and whilst tho prohibition of that traffic
exists, it is interesting to see how the increase of
Canadian exports of live stock to Great Britain has
progressed. I have hero the reports of the two last
whole years of 1879 and 1880. I find that the number
of cattle from Canada to Great Britain increased from
26,000 in 1879 to 50,000 in 1880, nearly double. The
number of sheep was 78,000 in 1S79, and 81,000 in
1880. The number of horses decreased from 386 to 1-9 ;
and the number of ]iogs decreased from 3,091 to 700 ;
but the total value of those exports increased from
$2,600,000 to $4,738,000.

The Grand Ti-imk Bailway of Canada.

The total exports of agricultural and other products
from the United States (these are taken from the returns
of thoUnited States Department of Agriculture), show an
enormous increase of what is coming to this country
though I am afraid it is a very bad story for the
farmers and landowners of this country. There was an
increase as between 1875, we will say, and 1880, of from

$85,000,000 to .$101,000,000~nearlydouble-in "animals
and their products." Then, as regards breadstuffs, it
mcreased from $107,000,000 in 1875 up to $208,000 000
m 1879, and $288,000,000 in 1880. Then other exports
-cotton, wood, and miscellaneous articles, also increased

1866 to 1870 was $351,000,000, whilst for the year ending
30th June, 1880, the total exports were $823000 000

And here is a table which shows you something of
what the American railway companies are fighting for
It is a comparative export of cereals from the five prin *
cipal Atlantic seaports for the last six years. New York
IS always trying to monopolise as far as it can those
exports, and we shall see here in what proportions those
exports have been shipped from the different ports of
Ne^y York, Philadelphia, Baltimore, Boston, and
Montreal during the last few years. In 1875, 56 per
cent, came from Kew York ; in 1879, 49 per cent. ; and
in 1880, 50 per cent. ; so that the proportion from New
York has been reduced to that extent, whereas the pro-
portion from Philadelphia it has increased from 9 or
neaiOy 10, per cent, up to 12 per cent. Baltimore had
a still larger increase-and that is what the New York
companies like least of all-from 12 per cent, to 19 per
cent. The proportion from Boston had increased from
- per cent, in 1875 to 7 per cent, in 1880, and that

-S

ada.

ler products
the returns
re), show an
lis country,
>i7 for the
lere was an
!80, of from
in "animals
;adstuffs, it
208,000,000
hor exports
10 increased
' the years
^ear ending
,000,000.
lething of
:hting for.
5 five prin-
New York
can those
tions those
t ports of
Jton, and
5, 56 per
ent. ; and
'rom New
i the pro-
mm 9, or
nore had
lew York
19 per
sed from
md that

PreaidenVs Speech, Qth October, 1881.

from Montreal had fallen off from 17 per cent, down to
10 per cent.

The numbers and amounts of failures! have generally
menti(med here, and, of course, they are indications of
the prosperity or otherwise of the United States and
Canada. (Cries of " Time " and " War of Eates.") Well,
I will pass over these statistics, of which I have still a
great number of a most interesting character, as affecting
the progress and prospects of the Grand Trunk and the
Chicago and Grand Trunk Railways, and I will, witli
great pleasure, come to what you would evidently wish
me to pass to— this burning question of the war of
rates.

I wish some of you would tell me what is the cause of
this war of rates, because that is a very difficult question
to answer. A great many causes have been assigned for
it, one of which I told you of at the last meeting, which
was a special meeting. It was then supposed to have
commenced with the unfortunate agreement between the
Great Western and Wabash Companies. That agreement
has never been published, and we do not profess to know
what the contents of it are. But there are people who do
profess to know, and they say that the Great Western
Company agreed to carry traffic from the Wabash system
at less than half the cost at which it Avas before carried
over the Lake Shore system; and that Mr. Vanderbilt was
exceedingly angry on that account, and naturally de-
manded that his Michigan Central traffic should be
carried at the same rate as the Wabash traffic was
carried over the Great Western. That may have given
it a start, but still that could not account for all that
has happened since, and for the existing competition
that is still going on.

I 22

The Grand Tmnk Railway of Canada.

Thea it was stated that Mr. Vaiidorbilt was very much
dissatisfied with the building up of Philadelphia and
13altiraore, and that is the reason why I p^ave you the
statistics on that subject. It was said that he was very
much dissatisfied with the traffic carried by the Penn-
sylvania and Baltimore and Ohio Ilailroad Companies,
and he was determined to put a stop to it as far as he
eould; but he will find it a difficult task to accomplish,
lor the Pennsylvania road is very powerful, and Mr.
(jrarrett, also, the President of the Baltimore and Ohio
I load, who is a redoubtable antagonist, is reported to
have recently had a good deal of altercation with Mr.
\'anderbilt. That is assigned as another reason.

Then, again, we are told that Mr. Vanderbilt was
<iisgusted with the trafiie which the Erie Company
(larried last winter and spring, some of which bethought
tliey stole from him, and which they could not have got
without cutting rates, and, therefore, he began to cut.

Mr. Fink gives other reasons, and he tells us one
i-eason of this cutting of rates is, that there are a
great many men who manage diff'erent express lines, and
lines running over different systems, and who make rates
independently of the managers of the railways, and he
believes the managers and presidents are not able to
control those gentlemen. They mnke 'ates which are
bound to be honoured by the managors of the different
1 ines they run over, and they cut rates as they please
against one another. But it appears to me that any
president or general manager who cannot control
those working under him and with him ouffht to
be dismissed and some other put in his place. I
can ouly say that no person on the Grand Trunk
system shall cut rates against our wishes. (Hear, hear.)

Tresidmfa Speech, Qfh October, 1881.

There is another reason given. I am only giving you
the different reasons which liavo been advanced, and I
have not expressed any opinion upon them. That other
reason is tliat there are certain speculators, and those
gentlemen arc some of them in a position, directly or
indirectly, to control rates, and aro able to put them
down when they like, and put them up when they like.
They go— it is said—into speculations of buyinj^and sell-
ing stocks, with a view to provide a profit for themselves,
and they thus sacrifice the interests of the shareliolden
and the companies for their private benefit. (Shame.)
There are various circumstances that give colour to that
statement ; for instance, on ono occasion when I was in
America som? years since, I had the lionour to m«et the
presidents of ihe other four trunk lines, and wo all
agreed that it was very stupid and very silly to cut
each other's throats ; we promised to be good boys, and
that we would not have any cutting in future. We
agreed that we would buy up certain contracts which
had been then made by tlio Wabash Company to carry
below the authorised rates. Mr. Vanderbilt promised to
supply one-third of the money requisite to buy up those
contracts, and the other companies were to find the rest
between them. We thought we were going to have a
real reform, and a better state of things as regards rates.
From that time forward for several monMis rates went
from worse to worse, and I could not understand it at all.
I believed that they were acting in good faith, and I still
believe they were, almost all of them. But what hap-
pened ? We found at the end of a few months that
a certain millionaire bought up the majority of shares iu

is'^^" ---v-iiviLa Atuimd;,, ciiiu j.-.ir. vjaixiji-b LUlu me

when he came over in the following spring that he could

The Grand Trunk Ballway of Canada.

not previously understand it, but he had come to the
conclusion that Mr. Vanderbilt wanted to buy the shares
of the Michigan Central road at a cheap rate. That
appeared to be the main reason why the rates had been
kept down. Mr. Vanderbilt has recently refused to
allow the freight rates to be put up, and he has been
doing a good deal to keep them down ; but what his
object is I certainly cannot tell.

I will now read a letter to you which I have received
from a gentleman thoroughly well informed on the
subject, but I will not mention his name. He says, in
plain terms, that at the present time it is alleged, without
causing the slightest surprise, that the war is being raged
for the express purpose of lowering the price of stocks,
in order that large operators may repurchase securities
which they had previously sold at higher prices. There
is some colour for the accusation, because we heard that
people were selling on this side and on that side, and
there seemed to be some preconcerted scheme for bear-
ing the stocks at a particular period ; and this, I sup-
pose, must have been known, and that something would
happen to enable them to buy them back at a lower rate.
Of course, we who wxre not in the secret could not see
any reason why the stocks should be sold at that par-
ticular time, but we may reasonably assume that there
must have been previous knowledge if there w^as a pre-
concerted scheme for such operations. This gentleman
goes on to say—" Shrewd and frequently accurate obser-
vers give this complexion to the present contest. It
would be difficult to imagine the chairman of the North
Western, Great Western, or Midland operating in the
stocks of those concerns, lowering rates throughout
England, and after accomplishing the purposes of the

President's Speech, m October, 1881.

movement restoring tariffs and resuming their ordinary
posztions at the head of those systems as if nothing Tad
happened. Personally, of com-se, we can have no kuow-
k Mr^ «"«h transactions on this side of the Atlan-

b;v! r ''"'"*' ''' "P^^'y ^-^^ without

rebuke, and are accepted as oae of the probabilities of

and we do no know why passenger fares are day b^
day approaching the zero point."

•Now, we the Grand Ti-unk, had something to do with
passenger tares after that letter was written." We hid a
me of our own to take - I want to be perfectly
rank with you, and to tell you all that we have done
m this matter. When we found the p.ssenger fares
going down, and down, and down, at last we thoif"
^e would go to the bottom, and we put the passenle
ares own to ?5 between Kew EnglaL and 'cMcafo
1 will tell you why we did it. It was because i

we carry mostly frei.'ht tnffi,. n„ „ ^

i-l,o^„ „« 'i«-ij,nt tiauic on our system, and

til se other compa„,es carry more passengei- traffi; and ^
obteinlargeprofltsfromit. We were not ge^ng so m^eh '
out of our passenger traffic, and by filling our trains in
this way we could better afford to carry at low fares.
vhilc the other companies could not afford to lose what
we took from them. But. in order to show exactly
what happened, I will read the official report of what
was done in this resj-ect :- " On the 5th ult. w^c were
notified that the Boston and Albany and Hoosac Tunnel
Companies would, on and after 6th, put in force a reduc-
tion of $1 on first and $3 on second. Our rate was con-
sequently reduced. On July Uth tlie other lines further
reduced to §16 first and f U second. On July 15th first
class tickets were reduced to $15, and on the 18th inst

The Grand Trunk Hallway of Canada,

to $12 ; and these reduced rates were put in force at
Springfield, Worcester, Eutland, and other internal
points. Tliese alterations were consequent upon corres-
ponding reductions from New York to Chicago. They
were made through the agencj of Scalpers, and, as
already advised, tickets reached the price of $7."
Scalpers are persons who buy tickets from one man and
sell them to an other, and by methods which I need not
explain diminish the profits of the railway companies in
doing so. But lately they have been allowed to buy
tickets from certain of the railway companies at low
prices, and sell them out cheaply to the public. In my
opinion it would be Vv'ell if, instead of employing them
for such operations, all the companies would unite with
one another to crush out the Scalpers, like Sir William
Harcourt would stamp out his " nest of vipers." The
report goes on : — *' To meet this New York price, the
other routes again reduced the Boston rate to $9"50,
and on the 29th ult. (Julv) to $8 Boston to Chicago."
Now, here we began. When it came to this we thought
it was time to act, and " in order to accelerate a settle-
ment, and to reach at once a bottom figure, we reduced,
as you know, to $5, and, as that was not effectual, on
the 2nd inst. (August) the same charge was made to
passengers from Chicago to Boston. Hitherto the other
lines have not followed the Chicago fare, but it has
probably acceleiated recent proceedings and declara-
tions. Since the establishment of the $5 rate from
Chicago— *.(?., from the 2rid to the 10th inRt.-'2,602
tickets have been issued, 906 tickets have been pur-
chased in Boston, and 95 from New England points.
We are informed that passengers have expressed
tlicmselves highly *>leased witii the Grand Trunk rout©

Fresldenfs Speech, Glh October, 1881.

and the service." I should think the passenger: ought
to be satisfied with being . carried at that price.
(Laughter.) I want you clearly to understand what
part we have had in this cutting of rates. As regards
freight rates, we have had no part in it whatever, and
have all along protested against it ; but as regards the
passenger rates, when they were found to be going
down, and down, and down, at last we went to the
bottom, and there we are.

And next, gentlemen, as regards the remedy for this
state of things, for that is a most difficult subject.
All sorts of remedies have been proposed, and many
tried. Mr. Fink has long been appointed Comm•^5iouer,
and a very honest Commissioner he is, and w(3 are always
ready to go before Mr. Eink and let him settle all these
disputes, and are ready to abide by his decisions, and
Mr. Fink knows it. (Cheers.) But, unfortunately,
others wil 1 not always agree to do the same. The Ameri-
can companies have appointed three other gentkvnen, as
Ai'bitrators, very honest and able gentlemen ; and those
gentlemen are so disgusted with the position taat they
have declined to draw their salaries until something is
done to bring business before them. Money pools are
ineffective, because there is no means of enforc-
ing payment from defaulters ; and physical pools, that
is to say, actual divisions of traffic, have broken down,
because certain of the companies will not adhere to their
obligations. So those remedies have not been effective.
Tlie only remedy I have to suggest is one of which I hare
had some experience. "When I was a Government in-
spector of railways, I set to work some fifteen years ago
to see how I could best— what is not so directly in
accordanco vvith my present position — bring about a

uS The Grand Trunk Maihmy of Canada.

reform in enforcing improvements in the interest of
safety on directors of railways in this country.
(Laughter.) We had a great deal of discussion at
different times as to how we could cjet imnrovements
made upon railways. Many people advocated legisla-
tion ; some advocated one thing and some another.
I always said there is only one way in which we can
act upon railway companies, and that is by public
opinion. All you have to do is to find out the
truth of everything that happens and clearly state it,
and the public will do the rest. The remedy I should
now propose for the state of things in America is just
the same. I have seen it succeed admirably for one good
object in England, and I believe it will succeed equally
well with our present object in America. If American
gentlemen w ould themselves set to work to discover who
are these people Vv^ho lower the rates, and what they do it
for, and would publish witho t fear, favour, or affection
the results of their discoveries , I believe the cure would
not be far distant. I have given you the various
theories which have been started to account for it, and
if they w^ould set to work to find out what are the causes
operating — whether there are speculators bearing stocks,
or buying up stocks — if they v.ould discover the true
*' inwardness," as they term it, of all those recent opera-
tions, — and set it cleaily before the American public, I
am sure it would do more to stop this abominable state of
things than anything else that we candevise. (Loudcheei's.)
As regards our half-year, I will only repeat, in
conclusion, that vou will see with satisfaction how,
in the face of all these adverse conditions of low
rates and the disadvantages of imdue competition,
of the rise in the cost of fuel, labour, and materials,

^residenfs Speech, Qfh Oofoher, 1881. 29

we have achieved the best results thnf ^o i
before aoWevea in an, .„„e h^^;;";: tj ,,. ^ ^
aU, very encouraging. Nohnrlv l^i ' ^

the other side of th^e tatle tt u wLlo ot Z^'T^^'r
advantage, and even the crueltv t y ' '''^ ""'-

of whatever na^onj ty "f tt ''-l-ay shareholders.
««j • -L . '^ -i^^uciiicy, ot the present conditinn nf

affairs, but we are perfeetly powerless to put an end to it

I .s. however only temporary; itcannotlast fo°vernd
some day we shall hear that the mtes have been rM

Perhaps, when these speculators have bouX I ,
bought up. or settled their arran^eTontr n ' "

or other, rates will be restored. antrhaU Z 7"'
you howmueh traffie we can calron . ? "^

^nd w,,t amount of profit we ean^LTo lelST;'

h vltd TirvT "^-""-''^ '"^"-y- -oh as we
ave i.ad. They have experienced similar effects re

nave had another very serious disadvantage in this

cessors W^Ln^^tdl^ ^^^ J^ur r^
aoeum 1,« for 10 years at the l^T^J^T
that we ha.e somewhere about double the Inouut
to pay on our Preference Stocks than we ouX
bave had if our predecessors had exerc^s d alut e

tC ::!i°!'i_ ^"»--- «'"^- - wiiinuir^

'o..e ....uvaaoages. aud satisfy you before we have

The Grand Trunk Railway of Canada,

done, if we can only get fair play as regards these
through rates for traffic. Our task is a very easy one
compared to what it was when I hecamo your chairrmin
four years aijo. Then we were almost in the Bankruptcy
Court, and some people thought that notliing could save
us ; but now the condition of our credit and our rolling-
stock and our road will bear favourable comparison
with any railway in the world. And we are not going to
stand still. (Cheers.) There are many projects in
America which will, as they are carried out, be of very
great value to us ; and many lines are being made which
will connect with us. If T>Ir. Vanderbilt Avill not work
with us from Buffalo to New York, there is another
line being made which will join us at Buffalo, and be
^lad to exchange traffic with us as soon as it is completed,
I have no doubt. There is also another line projected
from Chicago to the North-w^est, near Duluth, and
I believe that \\W\ also be a very valuable line. It is
already commenced. We shall, when it is made, have a-
straight connection from Chicago to the west end of
Lake Superior, connected with the Northern Pacific,
which will add another grand link to our system, to
counteract the disadvantages with which we have other-
wise to contend. Gentlemen who have at their command
ten or twenty millions of money, have in the past done
much, by buying up railways, towards cutting us off
from the sources of traffic. But we are quite ready
to encounter them in all respects ; and though we have
not these large amounts of money in our pockets, or
securities in our strong rooms available for such purposes,
we have 12,000 good shareholders to support us, and we
have the British public at our back ; tmd with your kind
favour vre intend to go on and ensure suGcess= I beg to

PreHdent's Speech, m October. 1881. gj

move "That the report nnri ..

and -hereh, .jZZl:::;::, fr --^-'"eC he

about the cxpenditu ci S '''"°"' '1"''''°"^' «'^t.

too money. I hope the res?..". > ''' """^'^ P^^' "^
and I am sure it .,1 Lt i '" """ '"'"'•^«'

's going on upon the faith J\^\' ^^Penditure that
and which J, be 1, bv f' """"^^ •^"'"'"S in.
direetion of economSw ■ "'°"'^' '^ ''" '" "'o

va^ profitable to ZSr;;- J!"'^ "*-^ore „,„ he
gradients where we are putZ in T '"'"'"^" ""^^
portions of the lino, so as t h^ J^'T "" ''°"""''"
number of oars i„ our (rains, which il.!" ' """'^^
great economy; and we sh-,11 IV "^ '°"™^ °*"

result by continuiuc tL ''°'"'^'' *''*' «ame

engines and haX: ^oJ "' ''"'^'""=" "wavier

■noney will be S^'oted TJTo "I T *"'" ^'^"^

in roUing-stock-which wi also b" " "'"'°'"""
and in many other „, , "^''^ Profitable-

i-provementf in d L r;.2 t^T^r' ^"^ " ""'-
of course, all tend to profit l^n anTt: f' "')
economy of u^orkinn.. ^^buus and to increased

hari:;r::s:7:s''2': """•^"- "^ ^"--^-3. they

about 6,000 orsoil 18^5? TT'' '''''' «'^' ^--

-^OOOintheprertJLf^^rS"^-^^--^

I was also asked in re-ard fn ^)J -.1,7
some of the annl.Vn.f / .f ^ withdrawals of

ino applicants for the recent f^n^ rf j-
stock. There were ihnui f 1 ordinary

l^etwoen the time "i. en "he '"'''"'" "^°'

^Ph- ^ ^^ the issue was mp^A ov,,j x. ^

applied to bo allowed to withdraw the

:i2

The Grand Trunk Bailway of Canada.

ivliole or a part of their subscriptions. When the
directors met to make the allotment they considered how
they should deal with the matter, and they dealt with it
as the simplest matter of business possible. They said,
*' Those gentlemen who have applied to reduce or with-
draw their subscriptions shall be allowed to do so, and
the balance will be allotted." I do not well sec how
they could have adopted any other course, or how any-
body can suggest that theycould have adopted any other
course than that which they did adopt.

Then there are three questions asked by a shareholder
who is in litigation with the company on this subject.
He used to send a clerk, or whoever he was, to the
office making inquiries. We received him in a good-
humoured way and we answered his inquiries to the best
of our power; but, apparently annoyed by something
or other, he has commenced proceedings against this
company, and now by way of assisting those proceedings
he asks these questions at this meeting. (Derision.) I
think I should be justified, as chairman of this company,
in refusing to answer those questions, but I am. not
inclined to take that course. I will answer the questions,
because I never want to conceal anything at all. He
asks why, as the directors knew nothing of the reduction
of rates, was the issue made when it was made. The
answer to that is perfectly simple. The issue was made
when it was made because we thought that the time had
come when it should be made. There was no reason on
eartli why it should not be made. The market price was
high, and we knew nothing of any reduction of rates.
The second question is, whether we had any intimation
I'rom Mr. Hickson or anybody else on the other side of the
water to induce us to make the issue at once. The answer

Preeident's Speech, m Oc/oler. 1881 33

havo proba),ly suspected ^1 *t '''"'" "'« '''°«''l

Who tMnts t.fat M^mLZTZTr ^'"''"'^
over there would send sueh , L ^ """ "'' *™^t
understands the position .'. , '?° ^''^ '""<='' «'«-

of Mr. Hicsou .rrr :':nr i"" '^"r*-

fflumcation passed between Air wL f " """'' «°«-

The next question had f T h " ""'""^ '"'^'='°••^•
reference to traifies '°"''"'"^' "^htly. some

At certain times of the vew tha ■
competition for the stuff toTe e'ri^ ;\ ^ f""' '^
times, and sueii a condition e T ' ''"' ^' °*''M

«t the present time; Se I.te^atT !' '''^™^="'^=
than we can all ear^y Bn . ^ '"' "°''" ^^'S^t

freight to be carried Le .1 Tr? "" """""^ °^
we should fight for it wlT , '' "° '■^'''^''" "'V

- .- if ,;; el^- a!^^e :X!^^^^^^^^

before, we are re-dv to J. T !^^ ^' ^ '''''^« «aid

P-kandhave:;;tll^l^^.\'tr "^ *" ^^•
other companies do tC" Zi ' m f ''""" ''^*
matter of fact, scarcity of Lde is 1 /T^' "'"'•^ ^^ ^

n:tt-=Xbe^t^rr^^^^^
-.t,.LestrbXtt\rnor°^^^

bee::iS!rnrt^^SSr^^- ■«^"--'-

set our faces entirely a" W, ' "°"'^""^' ""^ ''"^«

very great abuse 0^^^ It usedtobea
many railways. We h-,Z Railway, as on

executive oificers from lILTt •''""* "*" *° °"^
eo-operated with us in ^ ""' ™'' *'"=y I'^^e

put a stop as far as I Z T' ''™''* ^''^y- *"

as 1. possible to all tree passes

The Grand Trunk JlnVioay of Canada.

on tlio Grand Trunk llailway. Of course there are
cases where you have to exchange passes with other
railway companies — where you have to give their
officers the opportunity of travelling over your line,
and there are little courtesies which are exchanged
in that Avay. ]^ut as regards any ahuse of passes being
given too freely, there is nothing of the sort on the
Grand Trunk system at this moment. Many gentlemen
have come to me, shareholders and others, asking
for free passes on the Grand Trunk Line, and my
answer has been plainly that I would not only not give
free passes myself, but that if I heard of anybody giving
them a pass on the Grand Trunk Railway that man
should be dismissed from the company's service. That
is our feeling in regard to free passes.

As regards the Auditors' report, Mr. Chjibb has
undertaken the duties of Auditor, and has done what
Mr. Creak and Mr. Newmarch always did before him ;
he has made his report and conducted his investigations
very carefully. I do not think you would wish to place
upon him any heavier duties than he has at present.
I will myself stand responsible that the dividend which
is to be paid on the 12th October has been earned by
this company. (Applause.)

As regards the rolling stock, an amount of £18,000
has been expended out of revenue sources towards the
construction of 21 new engines. This is equal to
providing in the half-year about 11 new engines out of
revenue.

The Chairman then put the resolution, which was
carried without dissent. He then announced the formal
resolution for the payment of the dividend on the Pirst
and Second Preference Stocks, on October 12.

nc
ti(

Pre^clent's Speeel,, 6« OcMc, 1881 85

The Chairman : WitW "°^ '""'"''''^^ ?

'- paid at Mids„a>^e/i" r'^-."°'""''- « "^^-^ *"
October. ' '*"'' ™^ 1' '3 not paid until

The CHAinMAN- T hon.
paid at Midsummer ^°"'' P""^"" ' " "^^er was

A"g«st. Itusedt^bep'aidT^ 1 Midsummer nor in

An Ac, which was Z^oZtCT" ' '"" '"'^''^ '■
afterwards passed, providirtw^ ^' P'-°P"'"ors, was
paid within 15 da^f o7 hi'!' *," '''''''"' should bo
»ow paving it within six days"^''''^ '"''""=• ^« ««

and Board of Dir" 0^' !^? ^'"'"^ *° ^""^ Chairman

question of the rites ^nn.'°^' '""^ *'"''*' '^ ""l^ the
-o diffieulty inJZ ZV\'T'' "'^^ -"^ he

«on -j^ the «. --^u?:f s:r s ^^"^^ ^*^-

The meeting then terminated.