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 THE 
 
 CANADIAN PACIFIC 
 
 AND 
 
 NORTH SHORE RAILWAYS. 
 
 Correspondence relating tp the efforts of the Canadian Pacific 
 Railway Co. to reach Quebec. 
 
 The following correspondence between the 
 Quebec gorernment and the Canadian Pacitic 
 Railway Company referring to the North Shore 
 Railway vas laid on the table of the Quebec 
 LegislatiJ'e on Friday afternoon, March 2«:— 
 
 Canadian Pacific Railway 
 
 Siorrtart'b Ornoi. 
 MoNTRiAL, January :29th, 1885 
 
 Co. 1 
 185. J 
 
 Th* Jffi)7»- Commiigioner of Railvfays, Province 
 qf Quebec. Qtte. 
 
 SiBj — Referring to the interview which the 
 members of the government of Quebec accord- 
 ed to the delegates from the Board of the 
 Canadian Pacific Railway Company on the 
 21at. instant, I have the honor now to draw 
 the attention of the government to a sul^ect 
 discussed at that interview in connection with 
 tlie Quebec traffic of the Canadian Pacific 
 railway. 
 
 I would remai'k that, at the time the pur- 
 •tase of the westers section of the Quebec, 
 Montreal, Ottawa and Ocoidoutai Railway 
 WAS mode ftixn. the goverrment, this company 
 did not contemplate the possibility of the 
 remainder of the government railway foiling 
 into the hands of any company or syndicate, 
 hikving interODts opposed to a free interchange 
 oi' tamo between Quebec and the country ad- 
 jacent to the North Shore Railway,' and 
 points west of Montreal reached by the Cana- 
 dian Pacific Railway. It appeared to this 
 comiNuy at that time, that as the road really 
 oonstitoted oae line connecting the terininus 
 which the Canadian Pacific Railway Co. had 
 then acquired at Ottawa, with the Province of 
 Qoabeo geaexvlly, having Us eastern terminus 
 at the Cify of Qaeb«o, it would follow as a 
 
 natural consequence that all through traffic 
 originating on either section of the Quebec, 
 Montreal, Ottawa & Occidental Railway would 
 be delivered to the other section, and thus the 
 fiicilities which were expected to be obtained 
 by the construction of the government railway 
 for connecting the Port of Quebec with the 
 Ontario system of railways, and with the 
 Northwest, via the Canadian Pacific Railway 
 would be attained without disturbance. In 
 acquiring the western section of the govern- 
 ment railway, this company always expected 
 that every facility would be accorded them, 
 for carrying their summer traffic to the Port 
 of Quebec, and were always ready to afford 
 similar facilities for Quebec traffic going 
 westward. And these results would naturally 
 follow from the connection which existed at 
 the time of the purchase betwcn the western 
 apd eastern sections of the government rail- 
 way. Nevertheless, the intention of the 
 parties to the sale of the western section was 
 expressely stated in the eighth clause of the 
 contract, and, indirectly in several other ot its 
 clauses. 
 
 The eighth clause provided that << through 
 freight aud passenger traffic shall be carried 
 over both of the said railways and every part 
 thereof, etc.". "At the freight and passenger 
 rates established and charged by the Canadian 
 Pacific railway company for all traffic carried 
 past the City of Ottawa in either direction, 
 and at rates to be agreed upon, from time to 
 time between the government or its assigns 
 and the company, for all traffic which is both 
 received and delivered east of the said city ; 
 and all rates shall be apportioned between the 
 government, or its assigns, and the company) 
 at apro rata mileage rate." 
 
 vj 
 
 S' 
 
2 
 
 [n the Reventh clause it is stated that it is 
 of cKsential importance to the government 
 and the company that a ferry should be oS: 
 tablished over the River St. Lawrence from 
 the City of Quebec to Point Levis, and that a 
 branch of the Intercolonial Railway should 
 be constiucted from Poi'it Levis eastward, to 
 be known as the St. Ch&iles branch, by means 
 whereof trains of cars can be lerried across 
 the River St. Lawrencd, and the trains of the 
 said Quebec, Montreal, Ottawa & Occidental 
 railway and of the In;ercolonial railway can 
 be transferred fiom o^e i-aiiway to the other 
 (without breaking bulk), and it is stipulated 
 , that the government will use its best endea- 
 vors to procure the carrying out of these ob- 
 jects. It is plain that such a stipulation by 
 the company could only have reference to the 
 mutual understanding that the through traffic 
 ehou Id be carried westward over the western 
 ■ection. 
 
 So also in the ninth clause, which gives to 
 both sections the benefits of special rates ob- 
 tained by either party. 
 
 So also with thfr various stipulations as to 
 special trains running over both roads, con- 
 tained in the tenth clause. 
 
 The condition of things as existing at the 
 time of the acquisition of the western section, 
 and the various clauses and stipulations con- 
 tained in the deed of agreemeat between the 
 government and this company, conclusively 
 indicate the intention of both parties that, al- 
 though the Canadian Pacific railway company 
 did not actually acquire the eastern eection, 
 it should have such rights in respect thereof, 
 with regard to through traffic, as virtually to 
 make the port of Quebec the Eastern terminus 
 of the Canadian Pacific railway. For, if, as 
 contemplated by the contract, all freight to 
 and from the city of Quebec should be carried 
 over both railways at a pro rata rate of freight 
 or passage money, all through freight by the 
 Canadian Pacific intended for Quebec 
 was to pass over the North Shore Line, and 
 M0« veraa, the city of Quebec obviously en- 
 joyed precisely the same advantages as if the 
 Canadian Pacific railway carried its own tra- 
 flSc to the city of Quebec over a railway of its 
 own. 
 
 But upon the acquisition by the Grand 
 Tmnk B^ailway company of the control of 
 ^the North Shore Railway a systematic line of 
 conduct was adopted by that company, which 
 has deprived the Port of Quebec of the ad- 
 vantages which were sought to be obtained 
 for it by the agreement. Instead ot through 
 rates for freight and passenger traffic being 
 
 adopted and acted upon, as provided in the 
 eighth clause of the agreement, the North 
 Shore company have fixed special rates of 
 their own from St. Martin's Junction to 
 Quebe'::, for all kinds of freight and passenger 
 traffic, greatly in excess of the rates charged 
 by this company for long distances. It has 
 notified this company of special rates for cars 
 from St. Martin' s Junction to Quebac, which 
 have practically destroyed the carrying trade 
 ef lumber from the Ottawa river and lt« 
 tributaries, which this company was 
 endeavouring to build up. It revises to re- 
 coguize the tickets of this company for pas- 
 seneers from Quebec to the North West, com- 
 pelling this company to purchase saparate 
 tickets over the North Shore, for such passen- 
 gers at larger mileage rates than this company 
 is charging for the whole distance, thereby 
 practically tlestroying the passenger traffic 
 between the City of Quebec and points on the 
 Canadian Pacific Railway including the 
 North West. It deals in the same maaner with 
 freight traffic destined for similar points, and 
 it int';rposes many obstacles to the free inter- 
 chan.re of freight and passenger traffic, more 
 particulitily 8,i to the latter, in respect to 
 checking baii^guje, charging commission on 
 tickets &CC, kcv. By the construction of tiiO 
 Jacques Cartier Union Railway, the Grand 
 Trunk company has established a through 
 line from Quebec through Ontario to the 
 Western States, and, by way of St Paul to 
 Manitoba and the North West, and, instead of 
 facilitating the transit of passengers and 
 freight by the shorter, more commodious and 
 cheaper national route provided by this com- 
 pany, it furthers by every method in its power, 
 the adoption of routes through the Uunited 
 States. 
 
 If the Agreement contained in the contract 
 of purchase of the western section were 
 carried out according to its spirit, the Cana- 
 dian Pacific Railway comi)any would be able 
 to issue tickets for passengers, and make con- 
 tracts for freight at Quebec, in respect of per- 
 sons, and oi freight destined for any point on 
 its line Lorn. Montreal to British Columbia, 
 and soon to a Pacific port. And, in like man- 
 ner it would be enabled to make freight con- 
 tracts, and issue passenger tickets, in the 
 North West, destined for the Port of Quebec, 
 and at low rates for the whole distance. And 
 this is the course of action intended and provi- 
 ded for by the contract. But, as it i8,thi8 cannot 
 be done, and the through traffic to and from 
 Quebec, with the Ottawa Valley the North 
 West Territories, and all points on the Cane- 
 dlan Pacific Railway is obstructed and render" 
 
^ 
 
 ed more expenHive, by the disregard by the 
 North Shore company of the conditions of the 
 contract of sale. 
 
 The Delegates of thin Company had the hon- 
 or of calling your attention and the attention 
 of the Government of Quebec, to this Hubject 
 for two reasons. They desire to make it plain 
 to the Government, that if the intention of the 
 Government and the Company in the coatiaut 
 of the 4th, of March 1882, to make Quebec the 
 practical terminus of the Piicitfc Railway is 
 not carried out, it is net the fault of this com- 
 pany. And that all that is necessary to give 
 the port of Quebec the full benefit of the 
 summer traffic of the Pacific Company, is that 
 the conditions of that catitract siiould be per- 
 formed in good faith. And the other reason 
 that actuated them was the hope thatlif your 
 Government was informed of the actuitl state 
 of things, in respect of the interchange of 
 traffic between the Province of Quebec and the 
 enormous extent of country traversed by this 
 railway, it would take means to enforce a con- 
 tract which it deliberately entered into ; which 
 cofitains provisions calculated to attain the 
 precise object so much desired by the people 
 of Quebec and this Company ; and which has 
 been confirmed by an act of the Ltjgislature of 
 the Province. If the matter has been one of 
 breach of contract between two railway com- 
 panies, no doubt each would have been left to 
 its remedy before the courts, but, in the pre- 
 sent case, the Government of a great province 
 is a j)arty to the agreement. It caused the 
 agreement to be made, wtih a view to the in- 
 terests of that province. The Legislature of 
 that Province acting in the public interest, 
 has confirmed the arrangement and it appears 
 to this Company that that Legislature can 
 compel the performance of so solemn and im- 
 portant an agreement, by more stiramary and 
 effectual means than arc afforded by the tardy 
 action of the law courts. 
 
 I have the honor to be, 
 
 Sur, 
 
 Your obedient servant, 
 
 (Signed), C. Drinkwatkk, 
 
 Secretary. 
 
 [Copy.] 
 QcTBBBo, 6th February, 1885. 
 Charles Drinkwater, Esq., Secretary O. P. R. , 
 Montreal. 
 
 Sib, —I have the honor to acknowledge 
 receipt of your communication of the 2Bth 
 ult,, complaining of the violation of certain 
 cUuses in reference to traffic arrangements 
 
 in tiie deed of sale to your company of the 
 western section of the Quebe(^ Montreal, ' 
 Ottawa and Occidental Railway, and in 
 answer thereto I beg to say that I have this 
 dav written to the president of the North 
 Shore railway company, transmitting copy of 
 your letter and calling specially his attention 
 to the different clauses of the deed of sale cited 
 by you, and te the fact that l>y the i^alo of the 
 easiorn section the syndicate (the North 
 Shore railway company) are to ' ' carry out all 
 the contracts relating to the traffic on both 
 sections of tlie road by which the Government 
 were bound." You will observe that in sec- 
 tion 8, which you have mentioned, it is pro- 
 vided "that if the said parties fail to agree 
 thereon, such rates shall be fixed by the Min- 
 ister of Railways of the Dominion on the re- 
 quest ot either party hereto after notice' to the 
 other." You do not say whether your com- 
 pany has or has not taken advantage of this 
 provision. 
 
 I have the honor to be, sir, 
 
 Your obedient servant, 
 
 (Signed,) E. J. Flynn, 
 
 Commissioner. 
 
 NoKTH Shobr Railway, 
 PreHideut' s Office, 
 Montrtjftl, February 10, 183 
 
 135. J 
 
 SiE, — I have the honor ^ acknowledge the 
 receipt of your letter of the 5th instant, en- 
 closing a copy of a communication addressed 
 to you by the Secretary of the Canadian 
 Pacific Railway Company on the 21»th Jan- 
 uary. 
 
 The transfer of the Government road be- 
 tween Quebec and Montreal — now known as 
 the North Shore Railway — was made to this 
 Company on the 30th June, 1882, and, as far 
 as I know, the communication now before me 
 is the first word of complaint which has been 
 addressed to the company in regard to its ar- 
 rangements for the business of the Canadian 
 Pacific Railway. If there have been previous 
 complaints addressed to the Government, I 
 shall feel greatly obliged if you will send me 
 copies pf them. I desire to say at once that 
 I am iiot aware that the directors or officers 
 of the North Shore Railway Company have 
 ever refused to comply with any demands of 
 the Canadian Pacific Comnany made in terms 
 ot the agreement legalized by act of parlia- 
 ment relating to the sale of the western sec- 
 tion of the line to that company, and 1 have 
 respectfully to suggest that you call upon the 
 Canadian Pacific Company to supply you 
 with particulars of any complai.its which 
 
4' 
 
 they Lave made to this Company in regard m 
 the arrangements for traffic to be inter- 
 changed between the two HyBtemo of rail- 
 ways. 
 
 It is rattier implied ttiun asnerte'i in the 
 communication of the S(!cret«ry of the Cana- 
 dian Pacific Railway Company that tlie North 
 Shore Company have refused t'. ciivry out the 
 terms of the agreement made by the Govern- 
 ment of the Province of Quebec when the 
 western section of the G'<vernmeut line was 
 sold to the Canadian Paoiflc Company, and it 
 is only therefore posnlblo to answer that no 
 such relusal has bee'j mado by tliis Company, 
 and I would further add that the North Shore 
 Company has the control and manage- 
 ment of its own business, and that tlie 
 the public would not be benefitted by any 
 such arrang'jment is obvious from tiie fact 
 that the No.th Shore Company have tickets of 
 their own on sale at stations along their line 
 to all points of importance on tho Canadian I 
 Pacific Railway, and they are prepart'd to [)ut 
 on sa'e tickets to any other stations which, 
 either from inadvertance or under au under- 
 standing with the Catittdian Pacific Company, 
 tickets have not been sold tu. 
 
 There is an assumption in the letter ad- 
 dressed to you by the Secretary of the Cana- 
 dian Pacific Company which I should not 
 venture to notice bad it not been more point- 
 edly brought forward in a communication ad- 
 dressed by the President of the Canadian Pa- 
 cific Company to the Hon. Minister of Public 
 WorkB in April, 1884. It is, that the terms 
 of the contract between the 0-overnment and 
 the Canadian Pacific Company practically es- 
 tablished an exclusive arrangement for busi- 
 ness between the North Shore Railway and the 
 Canadian Pacific ^lilway, and that the North 
 Shore Company have no right io make 
 through rates for exchange of business with 
 the Grand Trunk Railway or any other Com- 
 pany. The agreement and the Act of Parlia- 
 ment are documents which c^ be referred to, 
 and you can readily satisfy yourself in 
 regard to this i^atter. The Directors of this 
 company do not find anything in either to 
 sustain such pretension, but, on the contrary, 
 it is expressly stipulated in the contract, 
 when the transfer of the western section of 
 the government lines was made, that a con- 
 nection should be constracted between the 
 Government lines and the Grand Trunk Rail- 
 way, a connection which would certainly be 
 of little value if traffic was not to be ex- 
 changod between the North Shore road and 
 the Grand Trunk system. 
 
 I may observe further that it can hardly be 
 conceiveil that the Government of the Pro- 
 vince of Quebec could have contemplated the 
 exclusion of the citizens of Quebec and the 
 population living along the line of the North 
 Shore Comimny from the Itonefits arising out 
 of the free exchange of business between the 
 Government Railway and the large system of 
 lines controlled by the Grand Trunk Com- 
 pany. 
 
 I am, sir, 
 
 Your obedient servant, 
 (Signed), L. A. Sbnrcai,, 
 
 President. 
 
 To the Hon. E. J. Flynn, Commissioner of 
 Railways, Province of Quebec. 
 
 } 
 
 QifKBBC, )9th Feb., 1886. 
 Charles Drlnkwatkr, Esq , Secretary, 
 Canadian Pacitic Railway Company, 
 Montreal. 
 
 Sm, — I have the honor to transmit to you 
 for the information of the Canadian Pacific 
 Railway Compan), copy of a letter received 
 by me from Mr. L. A. 8ene«)Bl, President of 
 the North Shore Railway • Company, in 
 answer to your letter to me of the 29th 
 ultimo and to call the special attention of 
 your Company to the contents of said letter. 
 I have the honor to be. 
 
 Your obedient servant, 
 (Signed), E. J. Flyhn, 
 
 Commissioner. 
 
 } 
 
 CANADUN PaOUIC' LiAILWAT CoMFANY, 
 
 Office of t e Secretary, 
 Montreal, 21 st February, 1885. 
 
 Dkar Sir, — I have the honor to acknowl- 
 edge the receipt of your letter of the 5th inst. 
 requesting further information as to the con- 
 tents of my letter of the 29th ult, especially 
 as to the establishment of rates over the North 
 Shore Elailway in connection with Canadian 
 Pacific Railway traffic, and containing the en- 
 quiry whether this company has ever applied 
 to the Minister of Railways to fix the rates 
 referrea to in section eight ot the agreement 
 between this Company and the Government. 
 In reply I beg to submit the following observ- 
 ations, and a more detailed statement of facts 
 bearing on the point referred to. 
 
 In the first place, I desire to call your at- 
 tention to the fact that the power of the Min- 
 ister of Railways and Canals to fix rates in case 
 of dispute, applies only to the rates for traffic 
 originating at, or destined for the City of Otta- 
 wa or points east of it. It -does not apply to 
 
the rnli!8 for traffic destined for, or ori){iiiHtin)< 
 at pointH went of Ottawa, and, thereforo, ap- 
 plies toa vtry Hmall portion of the difficulty 
 which has been made, by tho Noilh kihore 
 Company. As respects frei|i;ht destined for, 
 ur originating ut, points west of Ottawa, thn 
 agreement (suction eight) expressly provides, 
 in effect, timt the rates shall be fixed by the 
 Canadian Tacitic Railway Company, and that 
 the Ooverniuent, or its assigns, shall accept 
 a part of the rates so fixed proportionate 
 to the mileage distance traverseil over 
 the two railways respectively. And I would 
 also observe that the Minister of Railway s has 
 no power to c(>mpel the North Shore Company 
 to accept a pro rata share of the rates even 
 when those rates have been fixed by him. 
 Ho has only the power to tix the entire rate, 
 which leaves it in the power of the North 
 Shore Company to continue to violate the 
 agreement, by refusing to accept a pro rata 
 share of the rate fixed by tlie Minister. 
 
 Such, in fact, has been the position taken 
 by the North Shore Company. " 
 
 They have confined themselves to refusing 
 to accept a pro rata share of the rates fixed 
 by the Pacific Comppauy «n traffic arising 
 west of Ottawa. 
 
 I would observe, further, that the carriage 
 of traffic on a large scale by a railway is not 
 usually regulated by a fixed rate applicable 
 to all cases alike. For ordinary traffic a fixed 
 rate is established, but speciai contracts are 
 made for varioua reasons, dependent upon 
 the Season of the year, the state of trade, and 
 other circumstances, and are common when 
 very large quantities of freight are offered for 
 carriage, and especially when there is another 
 mode in which such carriage may be effected, 
 competing with tho railway. In all such 
 cases freight is carried on special bargains 
 made from time to time, a^ the occasion 
 arises. And as the Pacific Company gathers 
 the freight carried over its line bound for 
 Quebec, it is with that Company that the 
 shipper necessarily makes his contract. 
 Under the terms of the agreement the 
 Pacific Company is entitled to make these 
 contracts at a rate fixed by itself 
 and the North Shore Company is bound to ac- 
 cept its pro rata share of the rate so fixed. 
 T.\m check upon the liairness of the rate arises 
 from the fact that as the Pacific Company 
 only receives a pro rata mile proportion of it, 
 it cannot injure the North Shore Company by 
 fixing a low rate without inflicting a corres- 
 ponding injury upon itself. Ho doubt it is 
 upon this ground tnat the agreement was 
 made by the Government. 
 
 In support of the statement in my former 
 letter, that the North Shore Company had en- 
 tirely ignored this condition of the contract, 
 and had continuously violated it, 1 could cite 
 a number of incidents reaching almost to the 
 coiumiMicemeiit of its operations, but I will 
 content, myself with referring to a few of the 
 most important which have occurred during 
 the past year or thereabouts. 
 
 Although th*^ shipmeutH from and east of 
 Ottawa to Quebec are comparatively small, I 
 will commence by pointing out instances of 
 the asHumptioii by tho North Shore Company 
 of entire control over rates of that descrip- 
 tion, instead of HUbniittiug them to this Com- 
 pany, for mutual adjustment, and failing such 
 to the Minister of Railways. 
 
 On the 2'2ud of Oitober, 188:i, tu'V- Com- 
 pany proposed to undertake to- cany a carload 
 of coal oil from OtUiwa to Quebec for twenty- 
 five dollars. By telegraiu of tho 23id of the 
 same month, the Superintentlent of the North 
 Shore Company notified this Company that 
 the proportion which would be charged 
 by the North Shore Company from St. 
 Martin's Juucf'on to Quebec on such oil was 
 $25 ; that is to say, the whole of 
 the rate to be obtained for the whole dis- 
 tance between Ottawa and Quebec. As it was 
 found impossible to force the North Shore 
 company to a reasonabbi view of the matter, 
 the Pacific Company rather than injure the 
 business, forwarded the car subject to the 
 payment of $25, all of which the North Shore 
 Company recei /ed and retained, leaving 
 nothing for the carriage from Ottawa to St. 
 Martin's junction. 
 
 Similarly, in April last, a carload of tubs 
 from Hull was shipped to Q'n;bcc at f ".0 a car 
 Iciwl ; but the North Shore refused to rec.eive 
 $l'i'.88, being their mileage proportion of the 
 freight charg<is, and insisted upon being paid 
 $22, from St. Martin's junction to Quebec, 
 thus giving to this company about one-half 
 the rate of freight per mile, which the North 
 Shore Company demanded and insisted upon 
 receiving. 
 
 In June of last year, five cars of lumber 
 were s biped from Ottawa to Quebec at $26 a 
 car, out of which the North Shore Company 
 demanded $23.40 per car for the transport 
 from St. Martin's junction to Quebec, thereby 
 allowing this Company only $1.60 for loading^ 
 the lumber and carrying it 115 miles, being: 
 in proportion of 13c per mile to the North 
 Shore Company, and one and a third cents per 
 mile to this Company. 
 
 It is unnecessary to go farther into detail to 
 show the principle on which the North Shore 
 
Company have reated freight traffic, origin- 
 ating at or east of Ottawa. 
 
 With regard to pasKenger traffic of both 
 cla«He8, the North Shore Company . have 
 flxtHl tliolr own ratea from Boctreal to polntH 
 on tlieir own lincB, and these are only 
 rates they will receive for through pasiiengerR. 
 The condition of the contract that a through 
 rate shall be established for passengfirs travel- 
 ling over the whole or portion of both lines, 
 is entirely ignored by them ; and not only 
 are their own local rates persisted iu, but the 
 carriage of passengers over the line of the 
 Faoiflc Railway west of St. Martin's junction 
 is discouraged as much as possible. 
 
 As respects the condition of the agreement 
 that the exchange of through traffic is obli- 
 gatory upon both companies, it is only neces- 
 sary to repeat that the Grand Trunk Company 
 has built a railway called the Jacques Cartier 
 Union Railway, by means of whichall through 
 traffic from the North Shore Railway destined 
 to all points w^st of St. Martin's junction, 
 which can be reached by the Grand Trunk 
 Railway, or its allied linos, is shippied via that 
 railway, instead of being delivere<l to the 
 Pacific Company at bt. Martin's junction. I 
 refer in this connection, especially to traffic 
 destined for Ottawa, and points beyond Ottawa, 
 on the Canadian Pacifio line ; as traffic in- 
 tended for those points is now carried by the 
 Grand Trunk Railway and its allied lines, to 
 Ottawa over the Grand Trunk and Canada 
 Atlantic railways, instead of being forwarded 
 by the Pacific Railway from St. Uiurtin's junc- 
 tion, as agreed by the contract. The North 
 Shore Company pretend that this was intend- 
 ed under the clanse of the contract which re- 
 quired a railway to be built in rear of the 
 mountain to connect with the Grand Trunk 
 Railway. But the refutation *f thia pretension 
 may be found in the fact, that the connecting 
 railway stipulated for by the contract was to 
 long to this Company. And that under the 
 contract the North Shore Company had neither 
 running powers over it, nor any right of ac> 
 cess to or use of it 
 
 As respects passenger traffic, not only does 
 the North Shore Company endeavor to force, 
 all such traffic via the Oiand Trunk Railway 
 by ordinary means, but it obstructs in every 
 way possible passenger traffic going from 
 Quebec direct via the Canadian Pacific. J'or 
 Instance, this Company having established a 
 ticket office in Quebec tot the sale of ticketa to 
 all points on the Canadian Faciflo railway, 
 the MOTth Shore company reftase to recognise 
 tUs oomiiany's tickets over its line, or to 
 
 carry passengers at a pro rata rate, nod it com- 
 pels this Company not only to buy tickets by 
 the North Shore railjvny from Quebec to St. 
 Martin's Junctson or Montreal fur through 
 passengers paying full local rates for guch 
 tickets, but to buy such tickets one by one, 
 positively refusing to sell any numboi at a 
 time thus endeavoring to force each passenger 
 to attend for tho purpose of purchasing his 
 own ticket, or to compel this company to 
 send a messenger expreMly far each ticket, as 
 the occasion arises for it. Again, for the 
 same purpose, it refuses to recognise Canadian 
 Pacific checks fur baggage from Quebec west- 
 ward over the Canadian Pacific line, insisting 
 upon imposing on through passengers the 
 obligations of accepting checks to St. Martin' a 
 Junction or Montreal, and there rechecking 
 their baggage ijt points west, and refusing to 
 enter into any arrangement by which this 
 vexatious practice can be avoided. 
 
 It is hardly necessary to point out to you 
 that such restrictions upon passengers' traffic 
 must necessarily liave the efiect of destroying . 
 through passenger busiaess over the two ' 
 railways, as provided by the agreement, and, 
 consequently, that they constitute a direct 
 violation of ttiat agreement. 
 
 With regaM to through rates of freight 
 fi'om points west of Ottawa, it would be easy 
 to furnish innumeiable instances of the abso- 
 lute refusal of the North Shore company to 
 recognize in any way the tight expressly 
 given to the Pacific Company by the agree- 
 ment to fix rates on such traffic, and its exac- 
 tion of local rates entirety irrespective of the 
 obligation to receive a mileage proportion, as 
 pre8oril>ed by the contract. However, on 
 this point, I give you some instances extend- 
 ing over the past year. 
 
 In February of last year this company was 
 applied to by W. R. Thistle it Co., Pem- 
 broke, for the carriage of a large quantity of ^ 
 lumber form Pembroke to Quebec. Having 
 from long experience learned that the North 
 Shore company would not rocegnise any 
 contract they might make, this company's 
 officera informed tiiem of the application, and « 
 received a reply retosing to accept less than ..: 
 S2l per car load from St Martin's Junotios 
 to Quebec, and that only provided fifty car 
 loads or more were shipped. Tlie previoua , 
 year the rate is stated to have been $33 per V 
 oar load from Pembroke to Quebec, at which 
 rate this oompMiy would receive f 12 per oar 
 load for cariying the lumber 213 mile*} 
 whenas the North Shore company would r»- 
 ceive f 21 for carrying it lt<y ndlaa : or 180 
 
per cent, more than the rate per mile to be 
 received by thin company. Of oouruo, this 
 demand rendered it impoHBlble to enter into 
 any contract to carry the Itimber to Quebec. 
 
 Early in the Hiimmer of last year it was 
 found that the North Shore company was 
 charging fiften cents per barrel of fluuj from 
 Montreal to Quebec, and this company was 
 informed that the rate was higher than that 
 charged on flour brought to the North Shore 
 railway by the Grand Trunlc railway com- 
 pany. Upon inquiring into this matter, the 
 North Shore company refused to communi- 
 cate the rate charge<I other railways, and ad> 
 hered to the arbitrary rate fixed against the 
 Pacific Company. 
 
 In August the North Shore company fixed 
 an arbitrary rafe of $15 per car load of lum- 
 ber, to be shipped by Mr. McAllister, of Pem- 
 brolie. In the same month it fixed an arbi- 
 trary rate of $14 per car load of Iuml>er from 
 St. Martin' s Junction to Three Rivers for Mr. 
 McOuire, and insisted that that proportion 
 should be given (hem or that no rate would 
 be quoted. 
 
 The passenger rates arbitrarily fixed by the 
 tariff of the North Shore Company on the 
 loth November last have already been re- 
 ferred to, and, in the same month, the North 
 Shore company refused to accept a pro rata 
 p.Tiportion of the rates charged by this com- 
 puny for western business 
 
 On the 1 4th of the same month the North 
 Shore company cancelled their previous spec- 
 ial rates, and fixed new special rat«8 for all 
 traffic over their line after that date without 
 any consultation or agreement with this Com- 
 wany. 
 
 On the let December last the North Shore 
 Oompany fixed rates for freight to and firum 
 all points on the Oaiuulian Pacific Railway, to 
 tak« efiect on the 3rd December, and that 
 without any consultation'with this Company 
 or other aotice to them than the &ct that such 
 mtes had been fixed. 
 
 I presumo it is unnecessary to multiply in- 
 stances of the principle upon which the North 
 Shore Oompany has invariably acted in re- 
 spect of the loint traffic. Transactions simi- 
 lar to thoao I have related are of almost daily 
 oocarrence. 
 
 I observe in a printerl oopy of correspond- 
 ence, which is now being circulated fbr the 
 second time, that it is stated by the Geaoral 
 Manager of the 0ru4 Trank Hallway, under 
 dnte the 9th April, 1884, that personallj he 
 is not aware of any reqaeet having been made 
 to the North Shore Oompany for latea or iiusil' 
 ities for the Oanfedioa Pacific Boilway Oem* 
 
 pany to and from Quebec which has not been 
 complied with, and ho furthor stAtos that ho 
 cannot find, upon enquiry, that any appli(»- 
 tion haH been received from the Pacific Com- 
 pany tor facilities* on the North Shore Railway 
 which has .been rufuse<i. Thii« letter was 
 sent after the departure of the President of 
 this Company for Kagland, und it did not 
 sdum necessary to reply to a Mtatement which 
 was controverted by daily occurrences. But 
 as the statement Ih now being agaiu assidu- 
 ously circulated, I feel bound to point out 
 that the Pacific Company is not required by 
 the contract to apply fur any facilities what- 
 ever. It is simply authorized by the con- 
 tract to make the rates foi- the Que- 
 bec traffic, when oiginating at or 
 destined for points west of Ot- 
 tawa, and to receive a pro rata mileage share 
 of those rates ; and that right has been ex- 
 pressly and continuously denied to the Pacific 
 Company during nearly the whole period 
 since the contract was executed. And further, 
 that that contract requires that rates east of 
 Ottawa should i>e fixed hy mutual agreement 
 between the companies, and that the Pacific 
 Company, therefore, has the right to have 
 such rates submitted to it for consideration, 
 in order, if possible, to agree upon them ; 
 and failing such agreement to have them 
 fixed by the Minister of Railways. But 
 this also has been persistently and continu- 
 ously violated for nearly the whole period 
 since the execution of the contract. I have 
 furnished you with instances of breaches of 
 contract of both descriptions, previous to and 
 since the date of the Oeneral's Manager's 
 letter. Restates that he had no personal 
 knowledge of any request for rates or fociU 
 ities, that have not been complied with, and 
 I therefore infer that the intends to indicate 
 that he :ls not personally aware of the &ct8, 
 and of the course of conduct of the North 
 Shore company referred to in President's 
 Stephen's letter of the 2nd April. If that is 
 his meaning, no doubt his statement must 
 be accepted ; but the foot that he was not 
 personally aware of the line of conduct 
 adopted and acted npon daily by the North 
 Shore Oompany with reference to the contract, 
 does not, in any respect, aff*" ■'^' faat that 
 tiist line of conduct was directly tne reverse 
 of what it must be supposed he meant to con- 
 vey by the statement in qnestlon. 
 
 The North Shore Railway was conetmoted 
 for the purpose of fiMsilitating oommhnlcatioB 
 •ad traffic between Quebec as the main sam« 
 mer port of the Dominion, and the entire 
 breadth of the Amerloui oentiiient. Under 
 
itfi manugement iiince 18H2, it has. opposed a 
 complete and efTectimi barrier to any material 
 portiutt of that traflii; reacliing Quebec. And 
 ai* itti existeuoe interpoHca n Herioiig obHtaoIe 
 to the cunitructiou of another railway on the 
 North Bhoro, it i» productive of actual injury 
 to the intercflts of Quebec as a ftnmmor luirt. 
 
 It now riMitit with the Government who 
 made the contract and the LegiHltanre which 
 confirmed it, to tatie the neceHxary and 
 obviou8 HtepH, iu the intereMtH of the Province, 
 to compel tiie performance by the North 
 Shore Company of the conditions on which 
 it acquired (he railway. 
 
 I have the honor to be, sir, 
 Your obedlaut Hervant, 
 (Signed,) 0. DmnKvyATiB, 
 
 Secretary. 
 
 Hon. E. J. Flyuu, Minister of Railways, 
 Quebec, Que. 
 
 :.} 
 
 Canadiam PaoificRaii-wat Co., 
 
 Office of the Secretery, 
 Montreal, 28th February, 1885 
 
 Hon. E. J. Flyn.v, 
 Commissioner of Railways, 
 Quebec. 
 
 Sib, — I beg ♦« acltnowledge the receipt of 
 your favor of the 5th mst. transmitting to me 
 for the information of this companv a copy of 
 a letter received from Mr. L. A. Senecal, 
 president of the Nortn Shore Railway Com- 
 pany ; and in accordance with yopr request 
 I have placed it before the Board. 
 
 In reply, I am instructed to say that the 
 letter which I had the honor of transmitting 
 to you on the 2l8t inst. anticipates the reply 
 ot the Board to much of the President's letter. 
 I am detdred, however, to remark that, in 
 view of the communications referred to in 
 my last letter and of similar communications 
 of almost daily occurrence, in view also of 
 the letter of the President of this Company to 
 the Minister of Public Works, intended for 
 communication to Mr. Hickson, to which the 
 President of the North Shore Company in h'i 
 letter expressly refers, it is difficult to under- 
 stand in what sense he makes the statement, 
 that so lar as he knows, my letter of the 29th 
 January is the first complaint made with re- 
 gatd to the arrangemeiits o( the North Shore 
 Company for the traffic of the Ouiadiaa Paci- 
 fie Bailway. 
 
 In my last communication to yon I stated 
 a number of actual oafles in which the North 
 Shore Company positively refused, notwitU- 
 Handing the remonstrances of the Offieers of 
 
 this Company, to a<;cept a pro rata share of 
 rates maJu for the carriaKt^ of through freight 
 to Quebec, and other nasis in which in viola- 
 tion of the contract and contrary to the re- 
 presentation!* of the Offici^rH of this Company, 
 the North Shore company fixed arbitrary 
 rates of its own from St. Martin' h junction to 
 Quebec for traffic dellvertd to it thwre by this 
 Company, coming from points both east and 
 west of Ottawa. 
 
 Mr. Stephen's letter to tiie Minister of I'ul)- 
 lic WorkH makes a formal complaint on the 
 same subject, and the violation by the North 
 Shore Com|>any of tho agreement of 1882, in 
 respect of through traffic niten, constitutes an 
 important part of the plea of the Canadian 
 Pacific railway in the suit inHtitute<l against 
 It by the North Shore Railway Company, filed 
 in December, 1883. These facts and docu- 
 ments should have been sufficient to enable 
 the President of tho North Shore company to 
 become aware of the complaints of tl'.is com- 
 pany, and would, no doubt, havo done so 
 were it not that the management of the 
 North Shore Railway is practically entirely 
 in tho hands of another Railway Company. 
 
 If an official and formal complaint from 
 the Board of this Company direct to the Board 
 of the North Store Company was not Hooner 
 made, it was because the continuous and un- 
 varying action of the North Shore (/'ompany, 
 and the declaration by tbe General Manager of 
 the Grand Trunk Company, that the North 
 Shore road has been acquired for the purpose 
 of preventing thecompoiitionof the Canadian 
 Pacific, appeared to make it obvious that any 
 such complaint would be futile and useless. 
 It was only when the Company perceived that 
 \ blic attention was attracted to the neces- 
 sity for a connection by this Company with 
 the port of Quebec, which the performance, of 
 the agreement of 1882 would have afforded to 
 it, that the Company began to enteriuiu a 
 hope that the Government, backed by the 
 force of public opmion, might assume the 
 task ot compelling the North Shore Company 
 to perform an agreement which was original- 
 ly made by the Government itself and sanc- 
 tioned by the Legislature. And it was in that 
 hope that my communication of the 29th ult. 
 was addresseid to the Government. And I am 
 desired to add that since my letter of the 29th ' 
 ult., and in fact since the reply of the Presi. 
 dent of the North Shore Company baa been . 
 received, similar efforts to conf>titute the 
 North Shore Gompany^ an impregnable barrier 
 between Quebec and the enormous tract of 
 country traversed by the Canadian Pacific 
 
Rftilway bnve not onljr been continuud, but 
 new and more utlectivo methudM have bueu 
 devised Ikr that puriwHe. The |>ractict> of 
 lefuHiug to sell more than one ticket ut a lime 
 hat) been peiHlitted in, the obstructions in the 
 way ot baggage checks continues, al.d piut- 
 sengerH from Quebec, travelling on Caiuidiuu 
 Pacittc tickets to dixtiiut points, have Ijeen 
 put off t>ie North Shore traift«. 
 
 In itddition to such difficulties as ther<e, 
 thi:) Companv has been notified that tl ii North 
 8hore Company will not carry freight to t^ne- 
 bee or intermediate points on Canadian i'acitic 
 through way-l>ill8 as they have hitherto done, 
 but will Insist on such traflic being billed 
 only to St. Martin's Junction and then re- 
 sbipped and re.billed to Quebec. 
 
 And BO latfl as the 2.')th inst. the North 
 Shore Company notified a l(3adiag shipper at 
 Quebec tliat having understood that he w^s 
 receiving his western freight via the Canadian 
 Pacific Railway, he must in future ship it via 
 the Grand Trunk Railway or his contract 
 would be cancelled. 
 
 Such facts certainly have an extraordinary 
 appearance in conrection with the ignorance 
 stated by the President, of anything in the 
 arrangements of the North Shore Railway 
 Company which is complaine<l of by the Cau> 
 adiau Pacific Railway. 
 
 With regard to the dispute by the Presi- 
 dent of the North Shore Railway of 
 the interpretation placed upon the contract by 
 this Company, and to the argument as to 
 the connecting link between the Canadian 
 Pacific and the Grand Trunk, by which 
 he enforces his pretensions, I would remark 
 ahat the^answer to these pretensions has ueen 
 anticipated in my communication of the 21st 
 inst.; but I am instructed to repeat that the 
 construction of that connection has no bearing 
 whatever upon the complaint of tliis company 
 \^itk regard to through freight. 
 
 As I before remarked, there is no stipula- 
 tion in the deed of purchase from the govern- 
 ment that this connecting link should be used 
 by the North Shore Railway Company, but it 
 would not follow that traffic was not to be ex- 
 changed between the North Shore and the 
 Grand Trunk system. On the contrary 
 that link was built for the purpose of 
 enabling the traffic of the North Shore des- 
 tined for points along the Grand Trunk to be 
 carried by the Pacific company and delivered 
 to the Grand Trunk Railway. But this a»m- 
 pony would never have consented, nor, it is 
 btUeved would the Govemmeat hare demand- 
 
 ed that traffic intended for the western por- 
 tions of the Q, M., O A O. railway or for 
 points on the Canaduui Fatitlo llailway slionlJ 
 l)e carried ovoi the proponed cotiiiection luid 
 delivered to tlio Grand Trunk Railway. 
 
 The Hoard 'entirely ii.rcp with the Presi- 
 dent of the North Hhoie tlii»t it in impossible 
 Ihat the Government of tho Province of Que- 
 bec could have cotiieni plated tho exclusion of 
 tho citizens of Quebec and the population of 
 the North 8h(.rc from tho bonetits arising 
 from the free exc^ang♦^ of business between 
 the Government Railwivy aiid the lines con- 
 trolled by tho Giand Trunk Railway, but they 
 believe that it is equally Impossible ty con- 
 ceive that it was intended to alienate from 
 the western portion of the Government Rail- 
 way and tho Cana<llaii Paciflc the entire 
 through traffic anil force it into the hands of 
 the Grand Trunk Railway Company 
 
 What this Cotupany contends the Qovem- 
 meiit of Quebec agread to was that through 
 traffic to and from points on tho Canadian 
 Paciflc should be carried over that line, and 
 not over the Grand Trunk Railway or linos 
 controlled by it. And it is <iuite certain tliat 
 neither the goverjiment of Quebec nor this 
 Company, in .'naking tho contract of 1882, 
 ever for a moment contemplated that through 
 traffic destined for points on the Canadian 
 Pacitic Railway was to be exclusively carried 
 by the Grand Trunk Pailwav and the lines 
 controlled by it. 
 
 The Board observes that the President of the 
 North Shore Company does not contradict the 
 statement of this Company that the North 
 Shore company has refused to accept a pro 
 rata share of rates fixed by this company from 
 points west of the city of Ottawa, nor thai *he 
 North Shore Company has fixed arbitrary and 
 excessive rates as compared with the rates of 
 this company, from St. Martin's junction to 
 Quebec. 
 
 Apart, therefore, from the question of the 
 light of this company to share the entire 
 through traffic of the North Shore Company, 
 which was undoubtedly the intention, and 
 constitutes the true interpretation of the 
 agreement, the fact cannot be disputed, nor 
 does the President of the North Shore Com- 
 pany apparently dispute it, that that Com- 
 pany has always refused, and still refuses, to 
 allow the Paciflc Company to make rates for 
 traffic arising on, or destined to points lying 
 west of the city of Ottawa, and passing over 
 the whole or part of the North Shore Rail- 
 way ; and has alwr^ys refused, and still re- 
 fuses, to accept a pro rota ahare of tu^b mtei. 
 
Id 
 
 The Boiird believe that this fiwt, which 
 practically Hhuts off the City and part of the 
 ProTluce of Quebec from the benefits to be 
 derived from the traffic of the territory 
 retched by the Canadian Pacific Bail- 
 way, is more to the parpow than 
 the queatious lained by Mr. Hickson in 
 in April, 1884, and by the President of the 
 North Shore Company in his late comnuni- 
 cation, as to whether or no the complaints 
 and objections which have been per- 
 sistently made by this Company ever 
 since the violation of the agreement 
 commenced, were or were not put 
 in a particular official form which would have 
 enabled them to reach those gentlemen. 
 
 This Company could not suppose that the 
 Oeneral Manager of the Orand Trunk Railway 
 Company, which controls the North IShore 
 Railway, or the President of the Notih Shore 
 Company, who is the official head of that 
 Railway Company, could be ignorant of that 
 which their empU>yees were doing from day 
 to 'day, and which, constituted the universal 
 rule in dealing with the traffic of the Cana- 
 dian Pacific Railway Company. 
 
 I am, sir, 
 
 Your obedient servant, 
 (Signed) ,0. Drinkwatib, 
 
 Secretory.