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QUEBEC: PRINTED AT THE " MORNINQ CHRONICLE" OmCK. 1880. i | i H i | i y i || i II i ii i u '|i n < i ' u ' i ' u .«^ k. ^r^rrv^ ADDRESS i OK ■ JOSEPH SHEHYN, Esq., M.P.P., President ef tlie Qoeliec Baari of Trade, 1) r. 1. 1 V i: I". ('. 11 AT THE MEETING OF THE BOARD, HELD ON F F. P. R F A R Y 'I t n , 18SO. QUEBEC! PniNTED AT TUF "MnilSIKn CIIRONirtK " OFFICE. Q2 s£r ^ ADDRESS OF JOSEPH SHEHYN, Esq., M.P.P., Frcsident of the Quebec Board of Trade, D R 1. 1 V K K K D At the Meeting of the Board, hold on February 4th, 1880. V Cl£iNTI,EMEN, BcCore aJluJing io Iho subjeols which luive had ihe attention of your Council since our last Quarterly Meeting in May last, I think it my duty to make a few remarks on various sul)j<»cts which I trust will be ol some use to our commercial community and interesting to the members of this Board. It is quite possible that the delivery of this address may occupy your attention longer than I would desire, yet I hope that my good intentions will at least merit your kind indulgence. It is quite possible also that my remarks may not be as interesting as I would like them to be, but you must remember that, like yourselves, I am actively engaged in a business that claims a great part of my attention, and that consequently my time for public business is limited. It is therefore scarcely to be expected that I can very clearly give expression to views which I have not had time to stiidy out with that care and attention which they would otherwise require. At the close of our business season, in 1878, the outlook was far from encouraging. Wo found ourselves in the midst of a commercial depression which had been going on for two or three years, and with no immediate prospects of an early change. The commercial crisis was as severe as ever, not only iii oiu" in;iikt't, hut also on I ho Continent, iijul in (rr.'ut IJriUiin, wiiicii is the ^reat outlet lor our pro- tluctis. Tliis depression .seemetl to be t^reuter then than ever, and at the hitler eiiu ol the season, hiisiness was so had, that lears weit; eiileri lined that a iinaneial panic was at hand. In the United ^Slates the outlook was not less diseourai^inii'. Coinin-.^' haek lo our owu niarki't, our indus- tries were laiiivuishiny, our ioeal interests were in a de- prt'ssed condition, and all en-jayt'd in hiisiness were, throULch failures and dei)HMjiation, worse oil' at the end of tin; season than at the couuneneeui^nt. Our timber, which is the ureat article oi' our market, and which lorms the l)rincipal item in (^ur exports, was ui a ilepreciated condi- tion, and all those cJiyayx'd in tiiai busines;-, haiL sull'ered more or less severely durint;,' the seasoji Prices at Homo had been unremunerative, and at the close ol' the season we lound ourseIv<'S u ith a. heavy stoik ol lumber in our coves and an encumberetl market in Great Uritain. The only redeemiii'.;' point v> as the avowed intention of our manui'actiirers of lumber, to curtail their opv'ratiojis during- the w'inter seasc^n ; so that when we commenced our spring- business, the commercial aspect was far from being au I) ■m encoiirag-mg one. I The only reasonable course left to our exporters of lumber was to follow a close policy — to avoid spectdations of all kinds, and to shj[) to order as much as possible, in order to avoid losses. Those of our lumber merchants who had no stock remaining over from previous seasons, and which had been laid in at high price, were able to buy at prices \vhich enabled them to sell in the Home market at a small advance; ; but, on the other hand, those holding stocks -were obliged to sell at a loss, as their timber was higher than the current prices. It wa.s exceedingly wise on the part of the manufacttirers that their operations had been ciirtuiled to the lowest point, as it enabled our mer- I) ± I chiints to run off th(3 heavy stocks which they hiul wiutorud over. Diuiuii," tlio eiirly part ol' the soasoii the business was, as aiiticipati'd, dull, but, towards the lull, an iuipro, eiueiit, set in, tiiou^h no iiicreasetl prices were reuli/.i-d. It is only within a lew weeks that a ehantje has taken place, and tliat. butter prices are obtaim-d in the Uritish markets. With an increased eonsuniption and hii^'her i»rices, w»^ may iiulil reasonable hopes that tlm commercial de[)ri.'Ssion has seen its end and that we tu'e on (he yvt; ol' a more progressive era. This chanLre, cou[»h>d with an improvement in the prospects of sawn lumbi'r in ihf L'nited States, ou^ht to increase our conlidence. It is not my intention to l^o into details rl•g•ardin^• liie various kiiuls of lumber exported aiid in stock, as the iinnual tircular u\' Messrs. J. IJell Forsyth ^K: Co., careiuliy compiled, contains lull inlormation on the subjecl. In it will be ibund all the iiiibrmation that i,''i'ntlemrn mm'aged in that busine.ss requin-. It is suili(;ient tor me to say that, according' to this circular, th>' quantity of hunbri- wintered over is very much smtdler ihuu this tiine last year, and that the English msirket is in a much more iavorablo con- ilitioii, the stocks held there being very much reduced, compared with those of 1878. It is evident from all accounts that our business season just closed presents a much more cheeriul aspect for l.s8U, than ^vas presented at th' beginning of last year. Since the closing of navigntiiu, the price of lumber has remained lirm, with an ujuvard tendency, and the demand seems now to be larger than for sometime past. It has been stated, whether it is <[uite true or not, that several large transactions have tukt.-n plac,', that .some of the lum- ])ering linns here have been operating sticcessluily (^f late, and that these transactions have been maile at remitnorative prices. 6 So far as Quebec is conronio(', thcso are cheoriuc: news, especially alter such a long spell ol" di^prt'ssioii iii an article such as lumber, which I'onns the i>iincipal item in our local trade. It is to be ho|)e desire more ample information than I eau give them. This article has been written with great care and by a person fully conver- sant witli the nature of that trade. •'CANADIAN TRADE IN LUMBER AND TIMBER. 1 The exports of timber and huiiber form a very large por- tion oi" the outward trade of the Dominion. For scnne years, during the inflated period, tln^ amount nalized from exports of our forest products nearly eciualled the sum ol)- tained from every kind of produce avc sent abroad. And oven (lurinG" more; rcc(Mif. years, when our export of wood has lUiiioriiilly docliiK'tl — laon', howevor, in \.ilui' tluiii in ({iiaulity -thn extent ol" this bniiich of Canadian trade renders it an inlliu'utial laetor in doprosisinij; or improving the general business condition ol' tl»e country. Whenever our lumbering- interests uro depressed, the business of the Dominion will be lacking in elasticity and prosperity. It is opportune, therefore, to consider what contraction has taken place; whicli nations have ceased to purchase from us as freely as formerly; and what tlio prospects are of an increased demand for this portion of our productions. The rapid exi)ansion of I he returns from the liimbei- trade prior to 187-'5, as w.-ll as the d tin' there- after, can V)e seen by a glance at the olhcial siniemenls of the value of our exports of wooil during the iasl ten years They are as follows : — 18(J!) |ll>,838,%^ 1870 20, ('40,434 iS7l 22,;{.>2,lin 1872 23,tJ85,382 1873 28,580,810 1874 -- 2)5,817,715 1S75 24,<'^>1,780 18V() 20.337,401) 1877 23,005,787 1878 22,054,8iii) Our lumlxn- and timber trade, mea;-.ured by the total amount it produced, thus advanced as rapidly before 1873 as it has since contracted. The bottom was, however, reach- ed last year, let us ho})e, for the amoiuit produced by our sales then barely exceeded those of 180'J. The per centage of c(tntraction in 1878, as compared with 1873, was close upon 30 j)er cent. Some may consider this hardly suffi- cient to have caused so many disasters araonjj tlie lumber- men of I lie various Proviiices. But if it is remembered how many of them, flushed with previous success, had speculated in timber limits and undertaken enormous obli- gations under expectations of an ever-increasing demand I'or every thing their mills could j)roduce, the fatal eliects of glutted markets, and consequently decn^ised consump- tion and lower prices, will be readily understood. The fall in price was a much severer blow than the dimi- nution in the ([uantily sold. Tihiber which, in 1809, was worth in Quebec, 35 cents, and in 1873, 30 cents, fell to 26 or 27 cents in 1878, and say to 22 cents iu 1879. Lumber 8 culls, wovih $11 to s^12 in 187.14, wore Avortli only ii^8 io fTii) in 1878-0. From 187.''> to 1878. Iho ])rico ol'lmnlKM- IMl as muoli as $'l to $4 per thousand. The diniinulion in Iho receipts from tinilxT and lumlx v has arisen in a much S'reat(M' doijfr(^(^ I'rom a loAV(>rinir ol' the price than IVom the lessening- ol' the quMniity sold. The decline in the quantity shipped, from ih*^ fiii'ures of 1873 to 1870, may be set down at a]>out OA per cent., while the decline in price was prol)- ably 25 per cent. The diminished value, at lirst, fell on heavy stocks g-oi out at great cost, when general prices were highest, and this source of loss continued active for three or four years, making thi^ total loss I'rom shrinkage in value very grciit. Some of the items of cost to tlie luml)erer. by degrees acctnnmodated themselves to the decliiui in the j>riee of his products ; but others, including the rost. of thnber limits acquired in the time of high prices, remained the same. Our total exports of products of the forest dtiring 1878 — valued at s20,O;V1,s20 — were distributed araonti' the did'erent nations of thx.' world as follows : — Great Britain ^i?V,lft^G,4'^0 Newfoundland... 120,407 British W.Ind.... 320,(j09 ►Sl)anish •' ... 14o,501 French " .... 17,403 Danish " .... 3,002 Dutch " .... 4,030 Hayti 10,002 Guiana 34,524 St. Pierre 21.724 South America... 208,140 Franco 330.0GS Germany 23,415 Spain 38,003 United States Portugal Italy Beluium Holland China Madeira Gibraltar Canary Islands... Africa Australia Sandwich Islands Labrador Falkland Islands. $4,730,747 51,758 3,710 49,008 42,150 03,270 10,304 3,178 2,059 42.800 174.803 21,830 (3 8,808 Whilst not inclined in any way to de])reciate the markets aiTorded by Great Britain and the United States, wluch are naturally the nearest and the best for the most valuable branch of Canadian trade, we Avould like to see earnest efforts made to increase our transactions with P^rance and other continental nations, with the West Indies. South America, Australia, China, and the Sandwich Islands. 9 ;< i 1 There is also a lield for Canadian lumber in Mexico. These could absorb larg'e quantities oi" our timber were a system of exchange properly established between us. And it would be an immense gain to our lumbering interests if they could be made even a little loss dependent upon the British and United States mai'kets. Next to the great decline in price, the derangement of our sawn lumber trade since 1878 has been caused almost entirely by the decreased demnnd in the United States, coupled with the duties levied on every l)oat and car-load which crosses the lines. Notwithstanding the depression in G-reat Britain, the proceeds fi'ora sales there of lumber and timber were not greatly less in 1878 than during the exceptional year 1873, when our exports leaped upward nearly live millions at a single bound. How diti'erent it has been with the United States will l^e seen by consulting the value of our shipments to each of these countries dur- ing the last six years ; — (iRKAT niUIAl.V. rMTF.Ii S1ATE.S. 1873 $18,749,000 $12,948,000 1874 14.928,u00 9.054,000 1875 10,394,000 0,385,000 1876 14,031,000 4,973,000 1877 17,080.000 4,789,000 1878 13,580.000 4,739,000 Notwithstanding the contraction in the value ol our ex- ports in 1878, it will be observed that the British markets returned us nearly as large an amount for our lumber and timber as they did in 1878, whilst in 1875-7 they greatly assisted to bear up the iires.- and 1878 was as under, showing an increase ofol per cent, in butter and 33 per cent, in cheese received : — Butter receipts, 187'.:> 280,479 kegs. 1878 193,202 " Increase 87,227 kegs. The shipments for the 3'ear were : — 1879 259,901 kegs. 1878 180,812 " Increase 73,089 kegs. Total receipts of cheese at Montreal last j-^ear were also considerably larger than the previous year, viz.: — Cheese receipts, 1879 558,90;] boxes. 1878 484,395 " Increase 74,508 boxes. 11 Shipments, IftTO 571,704 boxes. 1878 501/.U3 " Increase 60,761 boxes. The ibllowiiig- comprises a very iuleresting article on. the sabjt'ct oi" produce, and contains (igures which will serve to giv*- some idea oi' what is being done in the ship- ment of our agricultural produce : — " xMOVILMENT OF niODUCE. The arrivals of j^rodiice at Montreal by Grand Trunk and Occidental Kaihvays and Lachine Canal, from the be- ginning- of 1871* lip to the clo.so of navigation were as under. Following theso will be found" the receipts for the correspoiiding period of 1878. 1877, and 1876: — MONTREAL UECEIPTS. W'liont, Ihi-1i. riniir, l.rl... ("urn, l'U.=h. 1870 11.181,808 751,300 4,380,201 1878 7,263.373 884,840 6,117.326 1877 7,214,802 802,503 4.612,015 187tJ 6,386,630 808,062 3,031,631 I'f.-is, l>ii>li. Oiits, Imsli. Harlfv, liush. 1870 2,014.870 485,853 365,289 1878 1,564,125 710,603 427,616 1877 810,001 323.075 1,228,086 1876 1,020,243 2,608,474 266.477 ButliT, l<('.u:s. Clic'C'so, lioxc*. Pork, VtIs. 1870 260,010 557,483 0,002 1878 176.320 476,774 15,675 1877 116,563 251,736 10,790 1876 130,025 346,516 15,401 The.se figures show a marked increase in this year's re- ceipts of wheat, butter and cheese, and an increase of peas, but decri^ises in Hour as compared with any of the three preceding years, and of corn as compared with the average of these years, The shipments of g-rain, Hour and produce were as under in 'lie years named ; — 12 MONTREAL SHIPMENTS 1879. 1878. 1877, Wheat, buih lU,:{88.04a y canal and river boats, 275,955 l)ushels to Europe, and the remainder, 86,132 brls., 'by rail. Out of tlie 10,383,000 l)ushels ol" wheat shipped, 10,330,000 bushels went to Euro|)e ; other Grains have gone thither in about similar proportion to their total shipments. Out of 59,308 brls. cornmeal and oatmeal, 33,859 went to Britain, the remainder being- shipped in about (Mjual parts by rail and canal, and to Lower Ports. 01 10,048 brls. pot and pearl ashes, 10,006 were sent to Europe, wiiich has for many years been their regular market. The receipts and shipments of butter and cheese are both upon a much increased scale. The sharp advatice in Eng- lish prices and demand having given a stimulus to the dairy produce trade during the past;nitumn. The number of packages of butter coming into Montreal, 209,040, was 30 per cent, greater than last year, and 52 per cent, greater than 1877. The increase in cheese receipts, which were 567,483 boxes, was 14 pin- cent, over last year, and 55 per cent, over 1877. As lately as the week ending 10th instant, 4,942 packages of butter were shipped for Europe, but those of cheese numbered only 720 boxes, where in the same month last year they had been 12,219 iu number. Lard and Tallow' show greatly increased receipts as com- pared with any of the three previous years, 20,221 pkgs. lard and 8,459 "of tallow being received, against 10,419 and 2,264 packages respectively in 1878." I 18 I TRADE REVIVAL IN THE UNITED STATES. Tho following table of some of tlio leadini;' {'acts in con- nectioti with production and trade in the United States diirinLi' ls7!», which are taken IVom the reliable and valu- able Nev) York Coiuinercinl Bu/lefin, will be I'ound to pre.sent a clearer, more definite and instructive history oi' the year's busine.s.s, and the i^reat trade revival ol' which so much has now been written, than it would seem possible to offer ill any less extended form : — AVheat crop, bush Corn crop, value Oat crop, bush Grain received at Atl. ports, bush Cotton, receipts of, bales. Cotton, tai^eii by North- (»rn mills last 4 months, bales Crop of hay, value Crop of potatoe.'-, bush..,. Butter, receipts at N. Y., since June 1. pkg> Coal, prod., anthr., tons.. F]g iron, tons Product of silvr Product of irold. , Total jiroduct precious metals Lumber, shipments from SaiiiTiaw reirion, ft.... , Petroleum, exports, trais.. Imports, U. S., 1 1 months. Exports, U. !S., 11 months. Exehnimi^s at ('learinqr Houses of U. .S 8ah>s of stocks at N. Y.. Stock Exchange .s, and d wit)i a mon^ cheering aspect, and the most of us an* under tli(» impression .that we have now seen the ^vorst, and tliat with the i-icreased value of all ' >j 16 kinds of manufactured i^oods and of oiir products, we have. in store the prospect of a bettor business season than that of 1879. THE CREDIT SYSTEM. T am sorry to say, however, that our system of credit has the etieet of curtail iu<4' the leiiitimate results which we might expect frohi the ]a])or of those engaged in business. It is impossible, in my opinion, for any Hou.^e to make money by selling- goods at a small advance, and dating them several months ahead, as is generally done in wholesale dry goods ])0lh here and in Montreal. For instance, .spring goods ai'e offered by some at G months from 1st May next, making 12 months credit before the goods are paid, besides having to renew on an average 50 percent of ihe paper when due. Of course all Houses feel tliat tin; system fs bad, and I am sui'e they are all desirous of improving it if possible; but, for some un- accountable reason, no one has th<; courao-e to make a change, all being afraid one of another. 1 feel convinced that sometime or another the change will have to be made. I notice some agitatio)i in that direction in Western Canada, and some talk of it in Montreal. Whether this talk will result in nnything langil)lt> is hard to say. All I have to say is that everyone knows that to sell goods at 12 to 18 months credit, at a small advance, is insullicient to cover risks, expenses of business and rent. We shall at an early date have to idopt the system prevalent in the United States, where goods are sold at 10, 30 and GO days at the outside. For the last few years our lossi.'s ])y failures, taking our population into account, are greater in number and amounts than in the United States, which sliews that their system of credit is superior to our own, and I am sorry to say that iiotwithstanding the prospect of a more prosperous era, the fiilures in the Dominion during the nine months ending ?)01h September, have been much in 16 excess of the correspoiidiiii'- nine months ol" 1878, whereas in the United States there is a great diminution. I cannot do better, ho\v Ibllowing shows the number of failures in the United States and Canada for the quarter ending September 30 l!^7!L compared with the same quarter in 1878, together with ihe amount of lia])i]ities. The figures for the nine months of each year are also given : Tliiiil Qiuirter iu 1.S7'J. Statfs and I'g . ' Ti'.uriiioiMi.s. i u r Amount ol ' ? — ' I S'5 i Liabilities. E3stcrn.«t:Ues.j 2.V) S 2,('.2:.,'.i'?j Miilillc^ Sl;itcv».. Soul hern " AVe.«t(i'n " I'noilie Stiitos and Territorios Total Dominion of Canada 4ao .'i.liio.lir 1,-il' 2,7:'.(!,:ui •Ml 129 .■!,2lio,^i2 TliirJ (^iiarter in 1S7S. - in 1S7 fc. P ! Amount of Niiif Morilhs § 'S l.iiiljiliticfi.l S '5 I I.iiibilitiefi. 202 S15,27,^,5J(J -| 417 $6,998,617 ;'•:!:-$ 11,777,(1 Mi S7!i' 27,7:)2,8I1 2.".:i; 1,'U0,7^:! yjUl IS, 4711, 783 78/ $ll,.'il9,HU7 Nine Montli.s in 1'<7S. Amount of Lialiilitics. l.M7;$:iO,o:;;5,i;i5 !i;ni| 1(1,113,319 019 ,s,.'?d2,129 ^-.--,).i|$(ii,,ui ^,;i(Jo. ,'3320, |h 1,054,0 10 1829: 2.S8.'>.S,;;39' 2.-.J0I 7'.l,;;7,0,4()9 s73| 13,1 ir,, .510 111. vs 2i,:;.59,in4 06,55.'), 846 u 29.'i$ 4,629,5921148 }]$24,424,070 29(19 041 8678 $197,211,129 9,887,570 1242 $ 18,138,321 . i 17 The failures in the United States, for the year 1878, were 10,478 in number, as against 8,872 in 1877, showing an increase in the past year of 1,571. The liabilities for 1878 equal $234,000,000, compared with $190,000,000 in 1877, an increase in the past year of $40,000,000. These large liabilities are approached only by the figures for 1873, when they reached $228,000,000 ; but these were divided among only 5,163 failures, less than one-half of the number in 1878. In a recent number of tho Monetary Times mid Trade Review, of Toronto, occurs the following very readable article on this subject of MERCANTILE FAILURES. Contrary to a very prevalent impression, occasioned by the recent activity consequent on the good harvest and the rise in prices, that this year's failures in Canada would be less than last, we find them greater. While the aggregate of failures in the United States had fallen from 10,478 in number and $234,383,132 in amount in 1878, to 6,058 in number and $98,149,053 in amount, in 1879, no less than 1,902 Canadian traders failed last year, as compared with 1,615 the year before, "r i ihe liabilities were $29,347,937, in 1879. against $2-3,152,262 in 1878, and $25,466,139 in 1877. Not a little of this untoward list of disasters must be attributed to the bank failures of the year. The last three months of 1879 show an improvement in the condition of our mercantile affairs, however, which is as gratifying as it is marked. The aggregate of iailures among Canadian traders during that period is by far the smallest of the four quarters of the year, forming but 16.8 per cent of the whole twelvemonth, while those of the third quarter formed 23.8 per cent, of the second, 19.7. and of the first 39.7 per cent. The number and amount of the failures for these periods of the year is shown in the following : 1879, 1st quarter. No. 634 Whole year '79 1902 3 Amount. P. c. $11,647,698 39.7 5,777,250 19.7 6,998,617 23.8 4,923,367 16.8 $29,347,937 100.0 18 Let US soo how this rompavcs wiili the pvovions yoar, by quarters : No. Amoiiiil. ' r. c. 187H, lKtqu!irt(M- .555 ^ 0,100,02l> ;}1).4 " 2nd " :!it2 4,407,800 10.1 " 3rcl " '2'X> 4,020,.')02 20.0 " 4th •• iMii r),01:;,!i41 21,5 Whole year "78 Itil.;) *2:U52,2(;2 100.0 It is liere shown (hat wliih' Ihe lirst two quarters of hotli years corres{)()Jid ahiiost exactly, the lailurcs in the hist <]uarter ol' 1878 \verc iiuvtMsed in uu)u1)i'r and amount over thi> lhr«'e months ending September. This y<'i^i', (1870) on tli(> contrary, th»\v possible there are others engaged in manufacturing boots and shoes, but of these I have no account, such as Fortin and others I tliink 1 am safe in saying that we owe, in great part, the introduction oi this industry in our midst to the "Woodleys, who were amongst the first who had the courage to start an establishment of the kind on a large scale, and conducted on the same principle as similar industries are on in the United States. AVe owe these gentlemen, as well as Mr, Bresse, Mignor and others, a debt of gratitude for having had that spirit of public enterprise which has characterized their extensive undertakings. AVe have also tw^o large factories for making furniture ; one Riibber Factory ; several tanning estaldishments ; Peter's extensive saw mills and planing concern, tVc, &c ; one or two smaller mills and a Tool Factory. Everything in Mr. Peter's establish- ment is conducted in the most approved style, and the machinery used is the best and latest. A large number of hands are constantly employed there, at fair wages. M(\ssrs. Lemesurier & Son's Tobacco Factory, covering an area of 160 j'oet by 40, gives i-mployment to 100 hands ; also, the ■'iksi Machine and F'oundry Shop ol Carrier, Laine & Co , and /ihers in the same line ; also, the large and extensive Saw-Mills established in our midst. 29 Such are the priiieipai local iiulustrios which havo sprung into existence since our shipl)uiUlini»' trade has f,''one down. It is very fortunate, indeed, that suchaspirit of enterprise has been manifested in spite of adverse circumstances, otherwise our working population would have been ol>ligod to seek an existence in other parts, and our good old City, although not as far advanced perhaps in industries as othm- Cities in the Dominion, would have sunk into insignifi- cance. All these industries must have sulfered more ov less during the commercial crisis, but they have been able to go through safely, and to-day they s(»em as stro)ig as ever. J t speaks well for their vitality, and show^s agood and prudent management. I know there are other iiulustries here, but as it is impos- sible, in a review of this kind, to include them all, I have had to content myself with pointing out the most i)romi- nent. However, I cannot close this subject without saying a few words more, which, although not immediately interest- ing to the members of this Board, may perhaps be of some elli'ct in the proper lime. I mean the danger to be appre- hended from over manufacturing. The present national policy has had for effect to encourage, as intended, our own manufacturers, to the exclusion of foreign goods of the same kind. No doubt, the object of the promoters of this policy has beeii gained in so far as they had in view the fostering of certain industries which had much ditficulty to exist when exposed to a keen competition with the American and English markets. It is natural that if a prohibitory duty is imposed upon certain kinds of goods, that it will, as a matter of course, stamp out the importation of these goods. H H 30 This protection has given an impetus to all our manu- factures, and we see that great efforts are being made all over the country, not only to extend as fast as possible the existing powers of producing, but to put new ones into existence, owing to the prospects of a pro- fitable investment. It is easy to conclude what will be the final issue of all this forced activity. It will lead to over production with all its natural conse- (juences. Unless the rules of prudence and moderation are loUowed by our leading manufacturing industries, the results will be the same to our trade as a commercial crisis. Cai)ivaleut in Canada, that our Banks, as a rule, had been raiher lilieral in making advances to firms who had neither the capacity, nor the capital, nor the brain to carry on an extensive business. What has taken place since has unfortunately proved the correctness of ray assertion. V\'e have examples of Banks having made enormous advances to iirms of no business reputation, and we see in some cases that one or two firms had succeeded in obtaining a great part of the capital of financial institutions. In fact, for a long time our Canadian Banks il 32 enjoyed the c^cnoval confidenco of tho people, and I remember quite, well how we boasted as to the superior manner with which these .inslitntions w^ere manai^ed as compared ^\ ith our nt'iTith great credit to themselves, from all these com- mercial disasters. Our local Banks here have felt, like others, the commercial crisis, but ihey have been able to fight it out successfully, and to preserve their capital. Still we must candidly admit that even the best established Banks and the most carefully managed have not been able to escape the numerous los.ses which have resulted from tne great depreciation which has been going on for several years past. Besides, it is impossible even for the most conservative banking institutions, on account of their various ramifications in trade, not to be sensibly affected by a commercial crisis. However, with the exception of a heavy encroachment upon their reserves, and a correspond- ing reduction in the value of the stock, they stand this day perfectly solvent, and ready to meet the legitimate wants of the trade. It is to be hoped that all the financial institutions which have allowed their ftinds to go into the hands of speculators and manipttlators have been wiped out from the list of regtilar banking linns possessing the ability to meet the real requirements of trade. If not, like their predecessors, they will have to collapse ere long to make room for those carrying on business on legitimate principles. The experience of shareholders has been dearly paid for, and it will take some time before as much capital can again 34 be drawn in as freely os before the Bank disasters. Capital will seek, for some time to come, safer channels for invest- ments, and it will take a good deal to restore that public confidence which Bank stocks once enjoyed. M It is evident from what has taken place in banking business since the commercial depression commenced, that the amount of capital which had sought investment in that line must have been in excess of the actual requirements of commerce. For many years previous to the commercial crisis. Bank shares were considered as one of the safest and most prolituble investments. The interest, as a ride, ranged up to 8 p. c, at least such was the annual rate of dividends paid by most of the Banks. It is not, therefore, surprising that many people were anxious to invest their savings in Bank sharet, and the facility with which new Banks could get their stock subscribed and paid up promptly, is not to be wondered at. But, unfor- tunately, banking business in this country has a limited field and it is no use to force a market when there is none. There being too much capital invested in bunking business, the competition increased in proportion, and finally ended in fostering all sorts of wild and hazardous schemes, which had for effect an interference with the regular requirements of trade. As in other business, Banks conducted on the most conservative principles had finslly to become more liberal in order to meet this competitit/i otherwise they would have been unable to use their capital and pay satisfactory dividends. Hence th<' general depreciation visible in all Bank stocks ; the evident consequence of hazardous risks, and losses sustained through a deviation from the principles which ought to guide bankers. ' ■ * As a conclusion to the above remarks, I may add that now that the surplus capital employed in banking has been lost, the remaining banking capital will be employed in j 86 furthering the real interests of commerce, and in serving the development of our industries, and not as heretofore in encouraf^ing all sorts of enterprises of a risky nature, and in fostering a competition through lihoral a'lvances to parties -who have heen a ruin to themselves and to others well qualilied to carry on the aiTairs of the country. We can now see that such has been the course followed by many Ranks, at least so we can infer from what has taken place within a year. Now that the mischief has been done, the gentn'al cry will b(^ for reforms, and everyone will look to legislation for a remedy. No doubt certain stringent measures may be suggested which may have for etfect the curtailing to a certain extent of the abuses which have crept into banking business ; but, in my opinion, no legislative measures will entirely cure people dishonestly disposed, or give intelligence where there is none. ARRIVALS AND TONNAGE AT THE PORT OF QUEBEC. The following is an extract from Messrs. J. Bell For.syth & Co.'s annual circular, showing the arrivals and tonnage at the Port of Quebec. This statement is interesting to those engaged in our maritime interests. By it you will see that the number of vessels cleared at the Port of Quebec for sea, has been steadily diminishing since 1873. The total tonnage of steam and sailing vessels from sea, visiting our Port, include? rU vessels whose destination is Montreal, so that, although the trade of Montreal in ship- ping has been on the increase, that Port being the great centre of transit tralFic, ours has been falling otf largely, as our only article of export is lumber, and as there has been a large falling off in our lumber trade, our shipping interest has been steadily decreasing instead of increasing. I feel \ 86 confident, howevor, that whon our magnificent Harbour Works will have been com})leted, and the the Q. M. O. & 0. li. will have been made a link in the railway system of this contineut by an extension at Point Levis with the Gr. T. li,. It , and at Ottawa M'ith the Canada Central, and by the construction of a line to Sault Ste. Marie, we may look to a very dill'erent result. Then we may have our share in the increasinu- traffic from the "West. ' K'< AiiKivALs AND ToNNAGE at the Port of Quebec for the years : \S'H. isr.i. isrn. isrr. ! 1 IS7S. 1879. SAILING VESSELS FROM SEA, Ves. Toils. i,iti-...72n,io,- Vcs. :sr... 1 : ! 1 Tons. 'Vcs. Tons.lVos. Tons. Ves. Toiis.'Ves. 'Ill 1 1 . .")1.''(,1S2 977... 709,12('. 958... 763,423 (ifi2... .'■)n3,912|ijn(i.. Tons. ..492,670 OOEAN STEAMSniPS. Sfps. Tons. 15!> 215,4no St'p? 117.. . Tons. Sfps. Tons.jSfps. Tons- Sfps. Ton?. Sfps . 171..r.l9 139.,.20;.,632J|60,..211,.'579 159...231.616|215.. . Tons. ...327,647 LOWER PROVIJICES. Ves. Tons. 190 42,022 Vcs. 296.. Tons. Ves. Tons. 1 ...50,80,') 178 .36,019 Ves. Tons. Veg. Tons.. Ves. 183 .37,123 176 3,j,33,5 225.. Tons. ...51,907 CoMrARATiVE STATEMENT of Sailings Vessels cleared at the Port of Quebec, for sea, (lumber laden,) in 1873, 1874, 1875, 1870, 1877, 1878 and 1870, Irom the opening- to the close of navigation : (CompiUul by Mb. F. JonNSTON, Quebec Exchange.) .711) Vessels 520,112 Tons. 1874 1875 854 642 1870 1877 1878 780 796 476 1879 433 630,072 478,441 624,110 070,027 300,833 304,628 in 37 D7 THE CATTLE TRADE. I had occasion last year to call your attention to the Cattle Trade, and showed how desirable it would be for us, if our fanners would make some attempts to share in it. Here- tofore, the farmers in the District of Quebec have not raised sufficient cattle to supply our local market, but with a little more energy and good-will, it is possible for them not only to supply our own market, but also do some- thing in the export trade. Of course, I am not sufficiently conversant with the effect of our climate upon the fattening of cattle, nor do I know how far it is suitable for raisinjr live stock. I leave that problem to the farmers themselves to solve. My only object in mentioning the subject has been to draw their attention to the splendid business that has been done for the last two or three years by those engaged in exporting live stock. The only advantage to us directly, that we have secured, has been in the shape of supplying fodder, &c., for the wants of the live stock while on shipboard. I do not know how far this trade is susceptible of a further increase, but if this increase is to go on in the same proportion for the next few years as it has done since it commenced, it must speedily reach great proportions, and become one of our most important items of export. The live stock shipments from Montreal and Quebec in 1879, are far ahead of those of the priivious year, and had it net been for the depressed condition of the English markets in the autumn montlis would have been still larger. A com- parison with the two preceding years gives the following satisfactory result : 1879. 1878. 1877. Cattle 24,828 18,655 0,940 Sheep 7X,792 41,220 9.509 Swine 4,745 2,07^ 430 The exports were all Canadian cattle as tht* -iile prohibit- ing the entrance of American [cattle iJito u"^ .ountry was strictly enforced. Hi S ; ■ ' >■•■ ■ 1 1 i il 88 I see that a Company has been formed in Montreal, for the purpose of exporting meat extract. If this Company's operations are satisfactory, it will make a demand for our cattle, and encourage our farmers in the raising of stock. I understand, also, that in the District of Quebec there are a few small cheese industries, manufacturing on a small scale ; these small undertakings could easily be made to extend their operations. I believe, also, that a great, deal of butter in our district is generally bought up by speculator.s, and taken to Montreal, where it is shipped to a foreign market. ST. LAV/RENCE ROUTE. For the last twenty years, the increase in our communi- cation by sea-going A'essels, propelled by steam, is something wonderful, and shows the development which our trade has taken. Of course, twenty-two years ago, it ie quite pos.sil)le that the number of sailing vessels was much greater than at the present, and that the latter have been supiM-seded by steamships. I have not in my possession the figures showing the tonnage and freights of that date, but I am sur." it is far under the pret^eut Bguros, nnd that the development in steam vessels coming to our port is not due merely to a change in our present mode of communi- cation, but is the effect of an increase in commerce and trade. " Twenty-two years ago, in the year 1857, accord- ing to the Monelari/ Times, there were but tiiree steamers of the Montreal Ocean Steamship Company on the route between Montreal and Great Britain. The tonnage of these threi\ the " North American," " Anglo-Saxon," and " In- dian," did not exceed 6,000 tons. There ar.^ in 187!^ over twenty steamers belonging to that company, the aggregate tonnaii'o of which is 00,000 tons. Another handsome iron 39 steamship, the " Parisian," of the great size of 5,400 tons, is now about to be built for that line, the deepening of the channel of the St. Lawrence to 22 feet, permitting laden vessels of this superb class to come in the spring to Mon- treal. I take from the Herald of that city the following comparative figures, showing the growth of the ocean trade of our chief city as indicated by the steam tonnage and principal exports of each of the two periods named : !^toamsiii]is Tonnage. liusb. grain. Pkgs huttcr chee.se, Ao 1857 1879 3 20 6,000 66,000 1,000,000 20,000,000 9,800 70,000 These figures ol' grain and provision export are up to 30th October of last year, and doubtless were much increased before ice closed the channel, while in addition to the ships of the Allan Line, there are the fine ships of the Dominion, thejTemperley and other lines which go to swell the tonnage of the port. The figures are " very striking, and they prove the greatness of our producing power." QUEBEC, M0NTRT51AL, OTTAWA & OCCroENTAL RAILWAY. Lsi.i'i winter the North Shore Railway was inaugurated for tia'liic between Quebec and Montreal. This event was a RO"vc,H -^ great pleasure to the city of Quebec, alter having Widted so long, and aftor the heavy pecuniary sacrifices m&de to accomplish the project, for our citizens understood the vast importance of having, at all seasons ol" the year, a direct communication by rail to the western parts of our Province, and in due course with all the Western States, a,)d to be placed in direct connection with the Pacific Kf«rrivate enterprise. In fact I understand that a priA'^ate company is anxious to obiaui a charter for its construction, but I do not think the G-overnment would allow the control of this short link to go out of its hands when the cost of it is insigni (leant, as compared with the additional traffic which would be sure to accrue from the connection. Your Council, knowing the importance of having this connection made at the earliest, date possible, i I, > ill «R»ll^ It ! I' i II 44 has memorialized the Government to that effect, and hopes that their suggestion will be duly taken into consideration. They are confident that such a useful enterprise for the Province cannot do otherwise than strike the Government with the necessity of its being immediately carried out. Pending the construction of the Pacific, it would at once put us in connection, via the Grand Trunk Railway, with the whole system of American railways. The thanks of this community are due to the late Government for the happy solution of a question which, if carried out other- wise, would have been very prejudicial to the best interests of our national highway. Before clcsiiig this article, I may safely say that we are also greatly indebted to the former Government for having adopted the Terrebonne line in place of the Bout de I'lsle as intended by contract. So that one Government has the credit of adopting a route to Terrebonne more suitable as far as Terrebonne, the other for having continued the eastern terminus to St. Martin instead of from Terrebonne to Hochelaga. Both Governments are therefore entitled to our thanks. LEASING OP THE NORTH SHORE R. R. Upon this question, as you are aware, your Council took an active part. In accordance with a motion passed at our quarterly meeting, which was held in May last, your Council had the honour of addressing the Honorable Mr. Joly on this subject, praying him not to lease the road till completed, and till the Government had ascertained, by running it a short time, what revenues might be expected from it ; and, finally, instead of handijig it over to a private syndicate as was intended, that the lease should be offered to public comi)etition. No doubt that the representation .f« 45 made by our Board, must have had its due influence with Mr. Joly's Goveriiraeut, I'or the intention of leasing it for the present, was abandoned, and upon doing so, the Honorable Premier declared that he had yielded to the influence of men whose opinions were well worthy of con- sideration. COTEAU BRIDGE QUESTION. A few days after our annual meeting, your Council's attention was directed to a Bill, pn-sented during thr' last Session, at Ottawa, intituled : "An Act to amend the Coleau Bridge Act," uk\ the Act amending the same. As this Bill was supi)Osed to effect our general railway system, your Council, feeling the importance of the question, at once called a special public meeting, at which a motion was passed urging the Council of the Board of Trade to oppose the passing of the Act. Petitions were at once sent to the various branches of the Federal Legislature. How- ever, notwithstanding the strong opposition that was manifested both in and out of Parliament, notwithstanding the expression of opinion against the scheme by various corporate Boards of Trade, the Bill was passed through its various stages, with one amendment, which was the important one that the construction of this Bridge at Coteau, should not be erected without the consent of the Governor in Council. I must say that at the time your Council took action in the matter, the public did not seem to attach any interest to the (|uestion, vrhich was one of vital importance to our railway system. This was, perhaps, because the public mind had not been directed to it, and people had not had time to become familiar with the object of the Act. It is, perhaps, desirable that I should say a few words which will serve to place the question in its true light before the members of this Board, although, after all that has been said by the i^ress of late, it is hardly necessary '.'1 I ill 46 that I should dwell much upon this point. The Bill passed during last Session, had I'or its object the amalgamation of the Coteau and Province Line Railway and Bridge Com- pany, and the Montreal and City of Ottawa Junction Railway Co., under the corporate name of the " Canada Atlantic Railway Co." This line would extend from Ottawa City to Coteau Landing, some 37 miles West of Montreal, on the North side of the River St. Lawrence, where the Company intends building a Bridge across, to connect with a line extending to some point on the Northern boundary line of the State of New ^ork or in the Town of St. Johns. One important objection to this Bill is that the building ol' a bridge at this spot would be an impedi- ment to the free navigation of the River St. Lawrence. However, upon that point the best engineers are not in accord, some pretending that there would be no obstruction by this bridge, and others pretending the contrary. The other arguments broiTght against the Coteau Bridge are ; that a very large sum of money has been invested by the Dominion Grovernment in building the Intercolonial Railway, which now aiibrds a winter port at Halifax ; that the GoveDiment is also engaged in expend- ing immense sums in constructing the Canada Pacific Railway, and the Government ol the Province of Quebec has also made large pecuniary investments in building up a railway system that will connect with the Intercolonial Railway and practically continue the Canada Pacific Railway to all summer and winter ocean ports of the Dominion or the Atlantic Sea Board. That after all these pecuniaiy sacrifices, i'or which we will have all to contribute, it would be bad policy on the part of the Government to permit the construction of a bridge which would have the efl'ect of diverting from our national highways in the Dominion to American lines the traffic which would seek an outlet by our railways and •i 47 water-courses, not only the present trafiic roming from the Ottawa rej^ion, but also that tralFic anticipated from the lines now under construction, as well as those projected by the Government to the North-West. It would most decidedly effect our interest in the North Shore Railway, for at an early date there will be a commu- nication between this line and the contemplated terminus at Levis, the communication being effected by steamers, which will carry railway cars over the river such as is done in other parts of our Contiiuint. Such are some of the principal objections against the passing of this l)ill. Since last Session the promoters of the scheme have been at work and aie using all their influence to oljtain the au- thority required for building the Coteau bridge. lender the circumstances your Council thought it desirable to au"ain send to the Governor General, the House of Com- mons, and tlu; Senate, a copy of the petition sent on the 12th April last, accompanying the same \vith a letter urging the views of the Council on the subject. It is to be hoped that the scheme will not be carried out, as it would be so injurious to our railways and our river interests, which are under Government control, and which will have to be sup- ported by all the inhabitants of the Dominion of Canada in the shape of direct and indirect taxation, so that the less trafiic we have for our public highways, the heavier the burden upon us, whereas a large volume of business means lighter responsibilities for ourselves. Before concluding this article, the following figures may not be without Ui- terest to the Board : — Mill F C'oteau to Montreal. rom " Montreal to Ivouse's Point. From Coteau via the new route.. Against Montreal , 37 50 87 50 37 48 If other parts of Canada wore to bo bpiiefittt'd or to derive any advantages, the caso would hn ditlorcnt ; but unfortu- nately oiily Aniorioau railways would benclit by the schciue. As rej^ards the Northorii Pacific, the consequences would be more serious. The American Paciiic gives the following distances : — Milps. San Fniiiciseo to Omaha 1,011 Omaha tt> Chicago 402 Chieauo to Bulialo , 540 Ijuffaio to New York 208 3,241 San Francisco to Bo.ston 3,2l>8 Mi Irs. To Boston by the American Pacific 3,298 To Quebec by the Canadian Pacific 3,001 DilFerence in favor of C. P 207 The Canadian Pacific will give us an advantage of 297 miles over the American route, and will pass where the Americans can draw the traffic to their advantage. If we open the way, they wiY: not be long in tnking advantage of it. "With the Coteau Bridge, let us see what will he the result : — Milef;. From the Pacific terrahius at Ottawa 2,746 " Ottawa to house's Point 128 " Rouse's Point to liutlaiid via Dela- ware 93 " Kutland to Boston via Fitchling 108 3,135 ^WBB 49 01(1 Boston Route 8,298 New " " 5^,1^0 ^^^ Gain 10:j '" Therefore, with this brids^e, tiio (lilleronco })et\veon Boston and Queboc, instead oi" boinj^ 21*7 milos, will not be more than 134 miles. As IVoights from Boston and New York are always cheaper than onr Ocean freights here, the diiference would be absorbed by lower freights. TELEGRAPHIC EXTENSION IN THE GULF AND ISLANDS OP ST. LAWRENCE. For several years past, the Council of this Board has been alive to the necessity of a more extended tele- graphic communication in the Gulf and Lower St. Lawrence, and from time to time the Government oi the day has been petitioned on this important subject. On occasions, this telegraphic extension was one of the subjects which our delegates brought prominently before the Dominion Board of Trade at their annual meeting. Last year, on learning that the Honorable Dr. Fortin had, at the request of the Montreal Board of Trade, addres- sed a public meeting under its auspices, your Council at once requested the honorable gentleman to deliver a lecture here. From the long experience which the Honorable Dr. Fortin had acquired of the wants of (he Coast and Islands of the Lower St. Lawrence during the time he acted as magistrate over these parts, and from the deep interest he has always manifested in favor of the scheme, the lecture could not be otherwise than interesting. The honorable gentleman acquitted himself of his task to the entire satisfaction of his audience, and his information embraced the whole subject, 7 1^ £0 k : |i Your Council being fully aware of the advantage it would be to our comnerce, and to all those engaged in mari- time interests, did not hesitate to secure the services of a first-class stenographer, in order that the speech of the honorable gentleman should be produced as it was pro- nounced. Besides, a subscription was got up amongst the members of the Council and some outside gentlemen to make up a sum of 8100, whilst the Montreal Board of Trade also furnished a sum, which together would defray the expense of getting this address in pamphlet form, to which ■ vas attached a plan, showing the intended system of tele- graphy which the honorable gentleman had in view. This pamphlet was extensively distributed to various parts of the Dominion, to the different Boards of Trade, and to Members of Parliament, in order to give every one interested in the maritime interests of the country, the opportunity of becoming acquainted with the subject. Thanks to the favorable reception given to this pamphlet, thanks to the influences of the various Boards of Trade which was brought to bear upon the question, and the kind support of the Honorable Members of the Federal House, and finally, thanks to the energy and activity of the Honorable Mr. Fortin himself, the Government havinjr become fully aware of the necessity of this telegraphic extension, intended to render more secure the naviiration of the Lower St. Lawrence, placed a sum in the estimates, $15,000, of an annual subsidy, representing about $200,000, which sum, although insufhcient to embrace the whole scheme, as suggested by L)r. Forlin, will permit, in the meantime, a commencement, 1/ constructing the lines which are more immediately wanted. You see, gentlemen, that on this important point, your Council has not been neglectful of your interests, as they did not hesitate to impose upon themselves some pecuniary HI 51 sacrifices, in order to give such an important subject as much publicity as possible, and. our delegates at Ottawa did all they could to bring th*? matter before the Dominion Board as prominently as the case required. CANADA CENTRAL EXTENSION. Of late the subject of a new line of railway to connect Minneapolis and St. Paul with tide water at Montreal and Quebec via Sault Ste. Marie, has been brought promiuently before the pul)lic by the Montreal Board of Trade, and also by our own Board. The lino to vSault t^te. Mane would, for the present, bo as follows: — Quebec, Montreal to Ottawa by the Q. M. O. & O. Railway, thence by the Canada Central, and onwaid by Canada Central extension to a point a little north hy east of Lake Nipissing, the probable eastern terminus of the main line of the Canada Pacific Railway. The railway bridge at Ottawa will ]»e soon completed, and the Canada Central extension to Lake Nipissing, it is understood, will be finished in September, .1880. The hue from Lake Nipissing to Sault Ste. Marie (225 miles long) can, it is said upon good authority, be built in two years. It will, no doubt, receive early attent,ion, and there can hardly be a question as to ^ts being efficiently aided by the Lominion Grovernment. "When the Q. M. 0. & 0. Railway is carrit^l onward, as contemplated, to Portage du Fort, there may be a connection made with the Canada Central that will shorten the distance to Lake Nipissing by 28 miles. It is also believed that the line from Lake Nipissing to the Sault will ije 20 or 25 miles shorter than the distance noted a])ove. Montreal to St. Paul i'ia Or. T. Railway from Montreal to Chicago is 848 miles. Distance from Chicago to St. Paul 411 " 1259 miles. i r V\ \ hi f I ! • 52 By an almost air line From Montreal to Sault iSte. Marie, the distances are : Montreal to Lake Nipissino- 366 miles. Lake Nipissinji: to tSault ISte. Marie 255 " Sauit tSte. Marie to St. Paul (approximate).. 425 " ■ 1046 miles. Diflerence ill favor of Sault Ste. Marie route 213 " For the accuracy of the information I have given ab'"'"^, I have relied upon an article on the subject which appe. dd in the Gazette of the 8th October last. The advantages that would be derived by the construction of this projected line of railway can be easily ascertained by looking over a map and following the tracing which is intended to be adopted. However, to make the subject clearer, I will endeavor to point out as lucidly as possible some of the principal advantages which would accrue from the contemplated line. This railway would place us, pending the construction of the North Pacific, in direct communication with our new Province of Manitoba via Quebec and Montreal during the season of navigation, thus affording a through traffic and facilitating an immigration movement from Europe to our shores, and thence to Manitoba via our railways and water courses, an immigration which would contribute largely to the prompt development of the vast resources of that part of the country. Making the international connection at the Sault as closely as possible to Lake Superior would enable large propellers to reap all the advantages of the long season of navigation on that lake by plying between Duiuth and Prince Arthur's Landing to the railway depot at the Sault, thus making so many more trips each season, than if they had to come down to Lake Huron to find a railway 63 connection for their east bound freight. By this arrangement the cost of transportation would materially be reduced, and the value of the products of our North Western Provinces would become more valuable. In addition to a line from St. Paul to Sault Ste. Marie, which an American Company would be ready at once to construct, (at least it is understood so) provided we extend our own communications to the Sault, another line from Duluth close along the shores of Lake Superior, part ot which is already completed and another tinder contract, would place us at an early date in direct communication with St. Paul p- d MinneapoJi^', the centre of the vast American railway system of the North "Western States. Bitt apart altogether from the benefits which would accrue to St. Paul and Minneapolis as the Ftituro centre of a vast region oi' the North Western States from the extension of the Canadiaii railway system to Sault Ste. Marie, the advantages lo Quebec, Montreal and Manitoba would be immense, being the shortest route from St. Paul and the North AVestern States to Liverpool, the ditference in favor of the projected route being some 577 miles short(>r than as at present via New York and other Atlantic ports. The following tigures will at once establish that fict : — IV. — SHORTEST ROUTE FROM ST. PAUL AND THE NORTH WESTERN STATES TO LIVERPOOL. The following comparison of distances will be of interest to the people of the North Western States : — Miles. Milcf. St. Paul to Chicago 411 Chicago to New York City 002 New York to Liverpool 3,040 4,413 St. Paul {via Sault) to Montreal 1,04(J Montreal to Liverpool 2,7i)0 3,830 Ditference in favor of Montreal route 577 I .i' 54 Therefore, it is evident that if a large portion of the traffic were carried by some other route it would naturally seek an outlet to the sea-board, in consequinice of the shorter distance, ina Sault Ste. Marie, and thence to Montreal and Quebec by the Q. M. O. «& 0. R. R., as soon as extended by the Canada Central to Lake Nipissing and Sault Ste. Marie. I find, also, that the distance from Sault Ste. Marie to Winnipeg ina St Paul, is 800 miles, whereas, by our own route ])y steamer and rail, the distance is 674 miles, making a difTerence of 216 miles in favor of the Canadian route. The r ravelling by water part of the way, during the summer months, would anbrd a ])]easant relief to passengers after (he tedious fatigues of a long journey by rail, and many would be induced to take this route for a chonge. This; .shorter route would, naturally, draw the u-aific from the P!o\'iiice of Manitoba through that line. Independently of the obvious advantages accruing to Canada from having an independent connection with its North Western Provinces at an L-arlier date, there are many others which it is needless to enumerate, as what has been already said ought to convinct; us of the utility of the project, but [ will merely add that the very fact of our being in direct communication ^vith th<' lartrest and richest grain-ii'rowing States, and the most fertile territories of the North Wt'stern States, cannot do otherwise than prove of an immense benefit to our railway system, and the cost of the projected scheme would amply repay its cost by the increased tralhc that it would bring to our railways, if adopted as one of the principal outlets to the sea-board, as it certainly would be when it is considered that it is the most direct and the shortest route to sea, both from Mani- toba and the North AVestern States. In conclusion, I may ,1 . h 55 say that there is a formal assurance from the two important cities of Minneapolis and Uuluth, Minnesota, that a railway connection with Canadian lines at Sault Ste. Marie, would be sure to secure the transport of the breadstulls which are now following other channels not so direct as the projected one. Your Council, duly impressed with the i^reat and important advantages of the project, petitioned the Governor- General, and both Branches of the Legislature to give the subject their favorable consideration. There are several private companies anxious to obtain acts of incorporation for the purpose of building thi> line, but it is suggested that it should either be subsidized, or built by tht^ Government, in order that it should have the control of it, in conjunction with the other railways, INTERCOLONIAL RAILWAY TERMINUS. The Council of the Board of Trade being strongly impressed with the opinion Ihat to render the Intercolonial Railroad an eflL-ctive part of the great national highway of this Dominion, it is al)solutely necessary that this roud, ibr throuirh trafhe, should not be dependent on mutual anange- ments with another Railroad Corporation, address/d, last year, a memorial to the Minister of Public Works, praying the Government to complete the Western section of the Intercolonial Railroad by acquiring control of a line from its present terminus at Riviere du Loup to a i»oint opposite Quebec. Since the sending of that memorial last year, the Government has acquired from the Grand Trunk Raihvay that i^art extending from Riviere dn Loup to IlaJlow, but no st(!p.s have been taken as yet to secure lor the Litorco- lonial Railroad a more convenient terminus than that at present in use. I understand that tlie Intercolonial Railroad has now the right of way, by purchase, ironi RiviCro du !; :' i I ^■ 66 Loup to Hadlow via Chaudiere, a very roundabout way to reach Quebec, making an additional mileage of about 20 miles for traffic and passengers to and from Quebec, besides having to use the Grand Trunk Railway line from Hadlow to Levis. Your Council, under such circumstances, and upon a question of this kind, which interests the trade and com- merce of Quebec, specially after considering that in addition to our own interest, it was also to the advantage of the whole Dominion, to have a terminus located in a more convenient place in the Harbour of Quebec, and also to have a more direct connection with the Intercolonial than by the present roundabout way at the Chaudiere, decided to take immediate stops to bring the subject in a tangible form before the Government, and in order to give it as much weight as possible, a Committee was named for the purpose of getting the Levis Board of Trade to act jointly with us. Our negotiations with the Levis Board resulted in the formation ot a Joint Committee being appointed, with instructions to frame a memorial subject to the approval of the Coiinoils of both Boards. This memorial, pointing out the necessity for the commerce and trade o the Dominion to have a better terminus at a more commer- cial i^lace and in a more direct communication with the main line, was duly drawn up and sent to the proper constituted authorities at Ottawa. For your information I will read a copy of the very document which was drawn up ; by it you will at once see the principal reasons which have induced your Council to move in the matter. The subject is a very important one, and should on no account be lost sight of, and I am sure that as soon as the Government is fully impressed with the necessity of having a better deep water terminus opposite Quebec, they will not hesitate to take the matter into their favorable con- sideration. The Goverument will easily understand that 61 it is in the interest of the Intercolonial Railway to be in as direct communication as possible with our North Shore Railway terminus, which, ere long, and when our magni- licent Harbor Works will have been coraph^ted, will be the termination ol" one of our principal highways to the sea board via the St. Lawrence in the summer, and by the Intercolonial to Halifax in wi:iler. The navigation of the St. Lawrence from one shore to another being ]iow an established fact, it would be easy to have a constant access from one shore to another for freight and passengers by means of suitable steamers of the tonnage and strength to suit the exigencies of the trallic. (COPY.) The Joint Petition of tiii<: Quebec and Levis Boards OF TB.A.DE ; Humbly sherrelk : That the Dominion Goverumi'ut, having purchased from the Grand Trunk Railway the Line from Hadlov^^ to Riviere du Loup, it is now in tlu; public interest of Canada that the Intercolonial Railway should hare a deep-water terminus at Levis, opposite to the City of Quebec, by a branch line running from the Station in the Parish of St. Charles via Indian Cove ; That such a connection with deep water would material- ly increase the trallic of the Intercolonial Railroad, as it would save the expense and loss of time in running the train round by Chaudiere Juaction. It would also prove of great atlvantage to the Intercolonial Railway to have easy coiPinunication >vilh the Port of *.^uei>ec, especially after the extensive Harbor Works now in course of con- struction Avill have l)ecn completed, as they will certainly favor the development of the Trade of the Dominion ; That it would grcMti^ icilitate the Intercolonial Rail- road in cominanding the traihc which will soon ilow from the Quebec. Montreal, Ottawa and Occidental Jiailway, seeking a direct course to the sea-board, especially during the Winter reason ; 8 rP^ ■ I 68 Tlxat it, is of nntional im))ortaiice to direct that traffic to llalitax, tho Winter Port of the Dominion ; That in ih? near future, the Federal Government will most prohab.y acquire jiofisession of the Quebec, Montreal, Ottawa and Occidental liailway. in order to control and operate a cojitinuous line of railway from the Atlantic to the I'acilic , That to (.'omplete this great national work, the connect- ino' link indicated between St. Charles Station and Levis, will l)e necessary, in order to facilitate communication between the shores of the St. Lawrence River at Quebec, and will obviate the permanent inconvenience of uselessly running" the trains over eighteen miles of road. That the Corporation ofthe Town of Levis have informed the Levis Board of Trade, that they would assist the proposed undertaking, in granting to the Government easy terms for the right of \vay on their property, and for such part of their property as the Government may require lor the construction of a station and freight sheds ; That for the aforesaid public reasons, the Quebec and Levis Boards of Trade most humbly pray that it may please the Dominion Government to take such measures as may secure the construction of the said branch line of railway from St. Charles to Levis via Indian Cove, at an early date And your petitioners will ever humbly pray. Signed on behalf of the Boards of Trade of Quebec and Levis. Quebec, 22nd November. 1879. (Signed,) JOSEPH SHEHYN, President, Quebec Board of Trade. (Signed,) JULIEN CHABOT, President, Levis Board of Trade. (Signed,) F. H. Andrews, Secretary, Quebec Board of Trade. (Signed,) L. G. Desjardix, Secretary, Levis Board of Trade. To the JIONOUABLE CllAS. TUPPER, C. B., Minister of Canals and Railways, Ottawa. GENERAL HEWSON'S LECTURE. t \ li I The Historical Society of Quebec haviui^ iiiviied General Hewson to deliver a lecture on his projected PaciJic Railway line, the Council of the Board of Trade at once took advan- tage of his presence in our city to invite him to deliver a similar lecture under your auspices to our commercial community, in order to afford an opportunity to our business men of hearing him, previous to his departure, upon a subject which, if practicable, would be of an immense benefit not only to the whole Dominion but to our city in particular. General Hewson had intended leaving- Quebec, but at our request he very kindly consented to remain over for the purpose oi exposing- his views on his projected line in order that we might form an opinion for ourselves as to whether it was deserving of our attention. 1 am sure everyone must have been highly pleased after having heard him, at the vast amount of information which he imparted to us, both upon the intejided Pacific Railroad and also upon the line which he advocates as being superior in every respect. He clearly demonstrated that the line which is about being adopted, and of which several sections have already been given out, was very objectionable in many respects, both as to cost and as to its usefulness as a means of opening up our country to coloni/ation. In fact, he showed us very clearly that the location of the present line was bad, and that in consequence of its passing principally through regions quite unlit for culture and settlement of any kind, it would not fulfil the object for which it was intended. According to his views, which appear to me to be sound, as they are based upon common sense, the construction cf a road going over such regions as he described, would plunge our country into diliiculties and the practical results of the enterprise woiild not be at all adequate to the immense expenditure involved. According to his views, the present line will cost tho 60 Itil I country some $130,000,000 to ;$150,000,000, and all this immense expenditure would only serve to connect us with British Columbia, so that for the purpose or pleasing a few people we are called upon to sanction an expenditure of money which is quite out of proportion with our means. For as he says, w here is all this money to come from ? can we raise a revenue sufficient to enable us to borrow for the building of this road ? or can we expect to build it by means of selling out the fertile lands through which this adopted road will run ? It is proven on the contrary that no hopes of the kind can be entertained, as the regions for the most part through which it will pass are of no value for agricultural purposes. Of course I do not intend to go over all the ground which he covered during his lecture, as it would take more time than you have to devote to this subject on this occasion, l)esid('s you can obtain more knowledge than I could impait myself, from his lecture, I would therefore refer you to his pamphlet on the subject, and also to the excellent leadijig article of the Quebec Morning Chronicle of the 28rd December, which contains arguments more convincing than 1 could myself make them. By the reading of this article you will at once see for yourselves that the present line of the Pacific, if carried out, will never compensate us for the sacrifices we are called upon to make. I must say that, like others, I was carried away from want of knowledge with the fond hope that this Pacific Railroad was destined to work wonders for us all, but since I have heard General Ilewson's views on this feubject, I feel that we are going to undertake a route which is perfectly useless, so far as the object we had in view, that of opening up a rich and ll-rtile part of our possessions is concerned. [ V F According to the views expressed in General Hewson's Lecture, and in the editorial article of the Chronicle, which seem to be ably prepared, the following are the 61 r chief points that have been made out ; that some $5,000,000, the larger part of which has boon spent in surveys, which the chief engineer admits, still leave us with a knowledge of the country very imperfect for construction purposes and utterly worthless for the purpose of realizing upon our lands, and also with a location defective in every particular. Out of a total distance of some 3,000 miles, it appears that upwards of 2,000 miles will be through an inhosjMtable, formidable and uninha])itable country, as the region between Lake Nii>issing and Red Tlivev, the American dt^sert, which extends some hundreds of miles into the Prairie Region, and from Yellow Head Pass to Biirrard Iiilet, in British Columbia, has been described, rocky and barren, brisiling with tremendous mountains and fearful precipices, and offering no lields for settlem<}nt. That an outlay of some $180,000,000, which will reach $150,000,000 belbre final completion, is beyond the strength of the country, and that an average cost of con^^truction of fully -^50,000 per mile of road is unwarranted l)y the requirements of a raihvay which, at lirst, should b'3 a colonization road, to be gradually improved with the progre sive settlement of the country, whereas it is stated that there are but 100,000 souls located in this immense territory, extending from Lake Nipissiiig to the Pacilic. The next point dwelt upon, is the dilficulty of raising the enormous sum of i&130,000,000, that so far some i8il"J,000,000 have been spent in surveys and in con- struction from ThundcU- Bay to Selkirk, and from Winnipi^g to Pembina, which has been raised by loan Is the balance to be so raised, at an average of .|10,000,000 a year? Is this possible without ])ringing on a financial disaster '{ It is also urged that sucii a road will ntiver be able to raise enough to keej) it in working order, and paying running expenses, that with a population of say 6,000,000 souls in ten years hence, it is not jiossibie to keep up such an enormous expenditure, that perhaps after spending some 40 or 50 millions, the work will have to be abandoned, n ' 62 leaving lis with disconnected sections of the road. It is likewise urged that there is no well matured policy of fixed principles iipon which this road is being built. Such are the princii)td points made out against the present intended Paciiic line, and if all substantiated, they are of a nature to make us pause before we commit the country further to such an immense expenditure, especially when its desired ends are not to be obtained. Let us now consider briefly General Hewson's Location. According to his theory, it will be far superior in every respi-'cl to the present location. Ist. It will be the most direct and shortest line from ocean to ocean, ^nd. It is estimated not to cost more than half the other. 3rd. It will open up a vast region of country quite lit lor growing wheat, &(;. 4th. It will be highly advantageous to Quebec and the wholo Dominion. Such are the principal points that have been made out by the Lecturer, both in his pamphlets and iu his lectures, delivered at the Historical Society's Rooms and before the Board of Trade. As all these points have been demonstrated by the lecturer him- sell", it is needless for me to dwell upon them. If his demonstration is proved to be correct, and if his propounded scheme will stand the test of verification, then there cannot be any hesitation as to the G-overnment policy for the future. There is no doubt that the Location advocated by General Hewson bears the character of being the result of a carefully and w^ell digested plan, and the conclusions arrived at seem to be based upon the reports of men of science who have explored these regions, and frm, oUiers who have experience as to the topography of t mtry, its climate and the nature of the soil. On th vhole, I consider General Hewson has made a good case, and lis projected location of a national highway has, so far, the appearance of a feasible enterprise, much superior to the present adopted route. After the strong case that has been 68 made out against tho adoptnd location, and the fiivorablo di^raonstrution mado by General Howson in support of tiis Pacific Railway plan, tho question we have to Koive is, are we to recommend tho abandonment of the present lino and the adoption of that of General Hewson. In my opinion, before coming- to any conclusion on such an iniportiint (subject, it is the duty of every one to calmly weig-h all tho points that have been made out, and if they are uncontra- dicted, I think in that case wo may safely come to tho conclusions that General Ilewson's ideas as to tho proper location for our Pacilic Railway Lino, are correct. Some will, perhaps, say that it is now too late to conio back upon a new plan, but if GentMal Ilewson's ideas can bear a scientific examination, and turn out to be in accord- ance with his statements, I think (hat argument falls to tho ground, as it is better to at once abandon a scheme which will involve a loss of some oO millions to the country. All thiit is asked by the supporters of Howson's schemes is tiu^l the quoslion bo well studied, and if, after a proper exami- nation the verdict is in h'l^ favor, then they will ask the Government to suspend the works upon the present location, pending the verification of the ideas promulgated by General Hewson. The Board of Trade in this matter docs not endorse tho policy of General Hewson's plan nor does it condemn it, but in inviting General Hewson to deliver a lecture, under your auspices, to tho commercial community, its great object was to give to our commercial men an opportunity of hearing and judging for themselves of tho value of the views promulgated by the lecturer. At this public meeting a motion was unanimously adopted, the purport of which was a recommendation to the Council of the Board of Trade to study the matter and take such steps as they would decide upon after mature wsmaKammim n I i' ti- ll (?;. i 64 deliberation. The Council has now the subject under con- sideration, and you may depend that they will endeavor in this case, as in all otht rs, that no decision will be arrived at without all due precaution on their part. In the meantime, 1 thin v the thanks of the general public are due to the Ilis'orical Society of Quebec for having first given us the oppori unity of becoming conversant with General Hewson's plmi of his projected national route, and to have been the means of raising a very important discussnon upon a subject of such a vast and interesting point ;is the proper location of our racilic Ivailroad line. Our thanks are also due to General Ilewson for having kindly under! aken to imparl to us his valuable ideas upon his projected railway route. The following articles from the Chronicle of the 20th January and 3rd February, on this sul)ject, are full of interest : — " The first condition to the future sueeessful working of a railway is a location through a country capable of yielding trallic. From the following brief description it will be seen at a glance how fatally defeclive is the location of our national railway in this particular • The country through which the railway will j>ass has been broadly designated as three great regnon;« — the Woodland, the Prairie, and the Mountiiinous. The first is comprised between Lake Nipissing and Red Eiver, the second betw- en Red River and the iloeky Mount:urs, the third between the Rocky Mountams md the Pacific Ocean. From Lak<^ Nipissing to Thunder I'ay. a distance of over 600 miles to the immediate north oi' Lake SupiM'ior, the country is of a most forbidding character and unlit for settlement. For years the Government Engineers have beer, cndeaveving to find a reasonal)ly Feasibli! route through it, but so far without success. From Thunder Pay to the Red River, a distance of over 400 miles, the country is but very litth». lietter, in great part (hovered wMi rocks and water. We tints have a location of over 1,000 miles through an uninhabitable country in the Woodland region. I 65 f Between Red River and the Rocky Mountains, we find the American Desert extcndint^ into Canada on a brt'adth of some 500 miles, and the location is through this desert, which is absolutely wanting in timber and Avater, It is stated that Colonel Denis, the Surveyor-General, has re- ported on these facts, Captain Butler says settlement in this terriiory will be attended with disastrous consequences ; iind Marcus Smith, confirmitjg- this, furthermore adds that the mass of the fertile lands lie far to the north in the Peace River District ; we thus have a location of 500 miles through an uninhabitable country in the Prairie region. From Yellow Head Pass to the Pacific stretches the enormous barren mass of the Rocky Mountains, rent asunder here and there by fearful chasms, and termiuotiug abruptly in the sea. The lo^'ation, huviiiu; surinouiitod this formidable barrier at an elevation of 4,000 feet, winds its gloomy way to the sea through and along the sides of these mountains which overhang the waters roaring beneath in the canons of the Thompson and Fraser Rivers. The desolate character of this territoi-y may ))e taken in at a glance when it is stated, that according to Marcus Smith, there are not 10,000 acres of arable lands along the entire route. We thus have a location of 500 miles through an uninhaV)ita])le country in the Mountainous region. From the present location we therefore deduce the following facts: — 1st, that our national railway will be carried for over 2,000 miles Through a country which cannot by any possibility yield trallic for its sustenance after construction ; and 2nd, that the Eastern Terminus is in truth fixed at the head of Lake Superior, at Thunder Bay, which virtually will hand over the trafiic of the road exclusively to the American railways in winter, and to American ships equally with our own in summer. The connecting link between Thunder Bay and Lake Nipissing is a thing in the far distant future, as may lie inferred from the immediate construction of a line from Lake J^ ipissing to Sault Saint Marie, which has been foreshadowed by Sir Charles Tupi)er in his late speeches. Tritly may the country in general, and the Eastern Provinces in particular, Iind matter for deej) and anxious refiection Ji this location, and more particularly when it is considered, tiiai upon it is l)a ( d an outlay of .^loO, 000,000 of capital." — Mornini^- Chronii 'r, 2titli Jany., 1880. P pf msamm 66 tJ^ The Council of the Board of Trade has memorialized the Fodt'ral G-*n'ernmont, praying that the contract from Yellow Head Pass to Biirrard Inlet, in British Columbia, be not awarded till further surveys have been held to ascertain if a better route could not be lound. It is quite possible that the whole of General Hewson's route may not be as favorable as stated ; but whether it is acceptable or not is not altog-ether the question to be solved at this moment. It may be an imaginary air line, as it is styled by prejudiced parties, but even at the worst it is no reason we should spend uselessly )BiloO,000,000 over the present intended route merely to suit the interests of a few .people, and to go into an enterprise for which we are going to plunge the country into debt. The following appeared on this head in the Chronicle of the 3rd Feby., 1880 : " Tlie second condition to the future successful working of a railway is an outlay of capital in keeping with the requirements of the road. From the following it will be seen at a glance, how fatally defective has been the policy in this particular since the inception of this great national scheme. The total cost of construction we work out as under. The section from Thunder Bay — at the head of Lake Superior — to Selkirk — on the Red River — Sandford Flem- ing admits— at page 22 of his report lor 1879 — will cost $44,000 per mile " as far as it can now be ascertained." The original estimates having l)een exceeded in execution by 62 per cent — a fact brought out by Senator Macpherson — we are fully warranted in setting down the iinal average of this section at ^r)0,000 at least. The tenders latc^ly received lor the four sections, 125 miles in length, from Yale to Kamloops in British Columbia, exceed |80,000 per mile, exclusive of mils, rolling stock, engineering, vScc, cSrc, — simply for the roiul bed. A foot note at the bottom of the printed form, pur[)orts, that part of the ([uantities set forth are only rough approximations, part simply conjectures. On the fa(>e of the tend'M- thf Government openly ndmit Iheir complete ignorance of the natiu'e and extent of the i 67 works for which they call for tenders — and also, that the country is to be handed over to contractors and engineers, who will, at a later day, settle amicably among themselves what shall be the true cost of this precious piece of business, if indeed it ever be undertaken. Should the original estimates in this case be overstepped in course of execution, in the same ratio as in the case of the Thunder Bay-Selkirk section, the final average per mile for these 125 miles would reach over $150,000 per mile. AVe may, therefore, with perfect safety, fix an average of 5^100,000 per mile for the section from Yellow Head Pass to Ourrard Inlet. Estimates have been figured up, ranginir from $80,000 to $90,000 i)er mile for the section from Thunder Bay to Lake Nipissing. As this country is far more dillicult than the country from the head of Lake Superior to the lied River, and as the Government have recoiled from this task, a final avi'rage of $70,0(jO per mile for this section will certainly be found to be wiihiu the truth should it ever be built. Construction from Red River to the Rocky i\Iountains, through the Prairie Region, we wili establish at the moderate figure of say $20,000 per mile, which again we may observe will turn out to be under the mark in practice. We sum up : Lake Nipissing to Thunder Bay, 630 miles, at $70,000 per mile $ 44,100,000 Thunder Bay to Selkirk, 410 miles, at $50,000 per mile 20,500,000 Selkirk to Yellow Head Pass, lOi;] miles, at $20,000 per mile 20,800,000 Yellow Head Pass to Burrard Inlet, 41)3 miles, at $100,000 per mile 49.300,000 $ 134,700,000 That these $134,700,000 will swell up to |150,ii00,000 by final completion is very likely indeed, jiidging IVoin past experience. Now, when it is considered :— 1st. Thai this railway is to be built through well nigh two thousand miles of an almost uninhabitable country, as exi)lained in our article entitled " The Location." 2nd. That at this moment there are not 100,000 souls living in the immense territory ' 1 !" It |! I n' 68 stretching from Lake Nipissing to the Pacific, and that this vast region cannot be settled up to any appreciable extent within the next twenty years — and 3rd. That under these circumstances the railway should, of necessity, be con- structed as a colonization road, to be improved as its trafl&c developes, and not as a gieat trunk line through an old, densely populated, and wealthy country like England, it will be evident to every impartial mind, that capital is being recklessly and uselessly squandered on construction, and that the finances of the country are being imperiled. The secret to success in business is the application of the least amount of capital to prodr ;e a given result. How many great projects have been hopelessly over- weighed by lavish and uncalled for outlays of capital : and in no field has this been exemplified to the same extent as in railway enterprise, a point alluded to in the Chief Engineer's report for 1879. The people of the Dominion in general, and of the Eastern Provinces in particular, will do well, ere it be too late, to examine cl^^sely into the policy governing this great work, a policy under which their best interests are being so completely ignored, and upon which is based an outlay of over !|130,000,000."- Morning Chronicle, 3rd February, 1880. By the present route, such as the one adopted by the G-overnment, the Eastern Provinces are called upon to contribute for a few people of the Western portion of our territory to build a railway, which will not, after all, be a national highway, as the great part of the way is unfit for settlement of any kind. It will merely serve to connect British Columbia with us, at a cost of 1150,000,000, which in that case will be rather an extensive toy. DOMINION BOARD OF TRADE. This yeai' the Dominion Board of Trade meeting having been post])oned, it lias not been necessary for your Council to call a special meeting for the purpose of electing 69 » I delegates and submitting the subjects to be discussed, lor your approval at this meeting. There are other subjects which have had the attention of your Council, but as this address has perhaps occupied more time than you are willing to devote on this occasion, I have reserved them for your next meeting. You see that your Council has not been idle during the past season. The subjects which have had their consideration have not been numerous, but their importance makes up for the quantity, I am afraid that I have occupied more of your time in the delivery of this address than I should, but my only excuse is that I have endeavored to make it as interesting- and as important as I could ; therefore 1 think I am entitled under the circumstances to a little indulgence on your part. I think you will easily forgive me when you come to reflect that this address involves a considerable amount of work and labor to furnish you with all the facts and figures it contains. I have annexed to this address several very interesting articles bearing upon the general move of our products during 1879 ; also, an article on insolvencies for last year, and one upon our Railways in the Dominion, showing the number of miles completed and in operation, «&c., all taken from various numbers of the Journal of Commerce and Monetary Times, two excellent trade reviews published in this country. Without wishing to detract in the slightest way from the value of our local press, I cannot do otherwise than say that both of these Reviews are very useful to a business man, from the vast and valuable information which they contain upon all questions bearing upon hnancial, commercial, and industrial subjects, as well as the ligures and statistics upon all business questions. I must admit that I have followed them with pleasure and have derived a real benefit from the perusal of the articles which they contain. K 70 You will be kind enough to bear in mind that I am far from pretending that my address offers the characteristic signs of a literary essay, or that its composition has been all I would desire. My great object has been to present you with a series of facts and opinions upon all such questions as I thought would be of some interest to you, irrespective of stylo and form; besides, you can easily understand that owing to my numerous occupations, it is quite impossible for me to devote very much time to questions outside of my own direct business. My sole desire in this instance has been to give the Board of Trade, of which I am the President, all the importance which it deserves. Therefore, under the circumstances, I feel con- fident that the general public and the members of this Board will grant their indulgence to the motives which have actuated me in this instance. My great aim has been to discharge faithfully the duties appertaining to my charge as President, and if I have succeeded in pleasing you all, I shall be amply repaid for all the work and labor which this address has cost me. THE HARBOUR WORKS AND GRAVING DOCK. The progress made with the Haj-bour Works, and with the Graving Dock at Point Levis, deserves notice among the important subjects already discussed. The Harbour Improvements in the River St. Charles were commenced under contract in May, 1877, and have made a proportionate periodical approach towards comple- tion as each season advanced and closed to the end of the third year of progress, 1879. It is now apparent to all, since the completion of the North Shore Railway, a contemporary work by accidental coincidence, what an important aid these works will i 71 become in the development of our Trade, and I am happy to notice the progress made so far, as justifying a belief in their final and satisfactory completion. In the first season of 1877, little beyond preparatory work was perceptible, but in the year 1878, the greater part of the deep-water crib-work was laid in position and concreted up, in that part of the embankment forming the Quay Work of the Tidal Basin. The season of 1879 now closed, has again been marked by clear results, in work which has given satisfaction, and maintained its reputation as to stability. The stone wall on the superstructure of the Tidal Basin has been carried higher than the tidal range nearly its whole length of 1250 feet, and to coping level for a length of 150 feet, the walling in rear being constnicted of Port- land cement concrete. The Wet Dock section pihiig has been driven for a dis- tance of 1500 feet, or nearly half the entire length, and backed up by cribwork caissons and concreted in. During the season 7000 cubic yards of concrete have been laid below low water, and 4,514 yards above low water behind the masonrv. The dredcfin!? in all, for the three seasons, has amounted to 3-15,000 cubic yards. One marked feature of the work now nearly complete is the line of outside cribwork on the northern face, forming a breastwork enclosing the entire area of 4,500 feet in length. The Graving Dock is making more progress during the winter than the other works. The contractors having quarried ? nd dressed 26,000 yards of stone for the inverts, walls, timber slides and circular head, at St. Vincent de 111 72 Paul. During the season, 16,000 cubic yards of excavation* had been complited in the Dock pit, and the wing wall foundations put in and concreted up. The successful completion of these works seems now therefore to amount to certainty. With a reasonable prospect before us of connecting by Railway Ferry the iVorth and South shores of the St. Lawrence through these walls, we may fairly look forward to a material improvement in our commercial condition and future prosperity. ■nf THE RAILWAYS OF THE DOMINION. [From the ^'Monetary Times.") The railways of the Dominion are steadily increasing in number and importance. Whilst progress has been slow in other directions during the last four years, our railway system has continued to expand faster than in most other countries during prosperous times. The latest returns issued by the Government last summer, have been but tardily distributed, and instead of the fiscal year 1879, it is only the previous year's figures we have to notice. The return coii'^ains the complete Railway statistics of the Dominion up to the 30th June, 1878, the latest available, and they are of interest as bearing upon our material progress. The mileage of the entire Railway system of the Dominion was as follows : — Railways actually in operation " partly running, " under construction, 6,143 miles. 721 " 1,041 " Totalmileage 7,905 " During 1879 the mileage was only 7,571, there being 5,574 miles in operation, and 1,997 under construction. There were thus 569 miles more in operation during 1878, and 234 less under constr ntion. Deducting from the to^al mileage the portions cf the Grand Trunk or other ions wall now lable the 5Ugh erial iture g m slow Iway jther sued rdily only turn nion they the liles. i( (C )emg tion. 1878, the )ther 73 lines in the United States, the actual length of over fifty Canadian railways in running order is 5,915 miles, and the total length, both finished and under construction, is 7,678 miles — a very creditable exhibit for four millions of people to be able to make. The amount of capital now invested in our Railways is $360,617,816. This sum is double the entire public debt of the Dominion. By far the greater portion of the amount was raised by shares on Bonds, although the Government and Municipal aid has been considerable. The actual figures are as follows : — Ordinary share capital 1122,176,083 Preference capital 69,155,683 Bonded debt 83,710,939 $275,042,705 Amounts of aid from — Dominion Government $65,939,900 Ontario " 2,229,639 Quebec " 8,513,645 N. Brunswick " 2,730,000 Nova Scotia " 818,750 Municipalities 7,224,578 $87,456,481 Less included in paid up securities 1,882,000 85,574,481 Total capital invested $360,617,186 It ovight to be mentioned that the foregoing is the par value of all the securities issued by the ditforent Companies, and that the actual capital received and expended by them was considerably less, as in some cases they were disposed of at a discount. Making all duo allowance for this, how- ever, the actual amount of capital now invested in Canadian railways is exceedingly large considering the circumstances of the country. The nominal cost of constructing our railways — that is, taking all securities as sold at their full value — has been $45,925 per mile. This is made up as follows : Ordinary share capital, $15,583 ; preference shares, $8,820 ; bonded 10 1 74 debt, 110,677 ; and Government and Municipal aid, $10,915. The actual cash expenditure per mile must, for the reasons already given, have been much below s3!4,'),925 per mile. Turning now to the triidic of Canadian railways, we find that the returns for 1878 exceed those of any previous year. The niimber of passengers carried was 0,443,024, equal to six per cent, more than during the preceding- twelve months. Tlie tonnage of freight handled was 7,883,472, an increase of 1,023,070 tons, or over 15 per cent. The total number of passengers nnd tons of freight carried by the principal lines during 1878 were as follows: — PAfeSENGERS. FllEIGHT, Grand Trunk 2,^25,737 2,387,042 Great AVestern 1,200,372 1,854,003 Intercolonial 018,057 522,710 Canada Southern 210,544 958.044 Northern 234,122 207,245 Midland 127,208 133,405 Toronto, Grey & Bruce 143,431 04,300 Toronto cV Nipissing 00,140 100,814 All the railways increased the number of passengers they carried in 1878 over 1877, except the Grand Trunk and Northern, the former of which carried 2,477 less, and the latter, 18,240 less. In freights the Northern and Midland are the only roads whose tonnage declined. The Grand Trunk, Great Western, and the Canada Southern each increased their fr"ight business by over 200 tuns — the hitter showing the largest gain. The total railroad earnings for the tw<^lve months was the handsome sum of $20,520,078. How this compares with the preceding year can be seen at a glance by the annexed statement : — ' 1878. 1877. Passenger traffic $ 6,386,325 $ 6,458,493 Freight traffic 13,129,193 11,321,264 Mails and express 795,797 744,742 Other sources 208,763 217,554 Total $20,520,078 $18,742,053 The increased receipts during the year were $1,778,025, or a little over 9 per cent. The increase was almost 75 entirely in freijrht receipts. So tar as the passeii.(!■> per cent. The operating- ex- penses }i(M' mih' of railway runnini!', accordiiiii' to Die oliicial report, was 8-',7;3t in 1878 as a^'ainst i$2,88") in 1»77, or a decrease of ij(151 per mile ! According- to this, the railways of the Dominion iiicreasivl their earnings $01 per mile during- l.'-<78, and did the work lor $151 per mile less. The importance of this fact may not at iirst sight be fully realized, but it will be more clearly comprehended by [daciiig- side by side the receipts and expenses of the last two years: Receipts ^20,.5-20,078 $18,712,053 Expeiises 16,100,103 1o,2!H\0(»1 Net profit on working •^ 4,410.975 $ 3,451, 'Jt)2 The increase of the receij)ts over the operating expenses in 1878 as compared with the preceding year, is no less than s;0(>8,013, or over 28 per cent. This is a very larg-e increase, and speaks volumes for the Judicious character of Canadian railway management. The net earnings would allow 2 per cent dividend upon the shares and bonded capital of the roads, bmt nothing on the Government or Municipal investments. The only other point to which we desire to call attention at present in the list of casualties and here we can hardly be complimentary, as no less than 97 j)ersons were killed, and 361 injured during the year. It is but justice to men- tion that only 11 of these were passengers. Placing the .il "I ' 1 II 76 casualties of the two years one against each other they compare as follows — the figures for 1878 being those first given : Killed. Injured. Passengers 11 to 5 25 to 18 Employoes 45 to 45 £00 to 257 Others 41 to 61 36 to 42 Total 97 to 111 361 to 317 These figures prove that whilst fourteen persons less were killed in 1878, no less than 44 more were injured, among whom were a largely increased number of employees. This is deeply to be regretted, and the increasing fatality among railway employees seems to point to some Legislative action be taken to make their employment less hazardous. The number of valuable lives lost through coupling cars, overhead bridges and railway frogs is legion, and calls aloud for the employment of some prompt and efficient remedy. Better dividends ought no doubt to be realized than have been obtained of late years. That is admitted on all hands. But it is gratifying at any rate to learn that during a period of great depression, there are at least some signs of improvement, both in increased traffic and in reduced running expenses. For some time past, it is well known some of our lines have been very busy, and the returns for 1879 when we get them should show an improved condition of revenues at any rate. /